GSA awards $64M IT services contract to Infinity Labs LLC, with 3-year duration

Contract Overview

Contract Amount: $64,146,920 ($64.1M)

Contractor: Infinity Labs LLC

Awarding Agency: General Services Administration

Start Date: 2023-07-28

End Date: 2026-07-27

Contract Duration: 1,095 days

Daily Burn Rate: $58.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SBIR PHASE III STRAFE TO 01

Place of Performance

Location: XENIA, GREENE County, OHIO, 45385

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $64.1 million to INFINITY LABS LLC for work described as: SBIR PHASE III STRAFE TO 01 Key points: 1. Contract awarded on a "not available for competition" basis, raising questions about market fairness. 2. The contract's value of $64.15 million over three years suggests a significant investment in IT services. 3. The primary service category, 'Other Computer Related Services,' indicates a broad scope of potential IT support. 4. The 'Time and Materials' pricing structure can lead to cost overruns if not closely managed. 5. The contract's duration of 1095 days allows for long-term planning but also extends potential risks. 6. Awarded by the General Services Administration (GSA), indicating a focus on federal IT infrastructure support.

Value Assessment

Rating: fair

The contract value of $64.15 million over three years for 'Other Computer Related Services' appears substantial. Without specific benchmarks for comparable 'Other Computer Related Services' contracts or detailed service descriptions, a precise value-for-money assessment is challenging. The 'Time and Materials' pricing model, while flexible, carries inherent risks of cost escalation compared to fixed-price contracts. Further analysis would require understanding the specific deliverables and comparing labor rates to market averages for similar IT support roles.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' basis, which is a sole-source procurement. This means that only one contractor, Infinity Labs LLC, was solicited. While sole-source awards can be justified for specific reasons such as unique capabilities or urgent needs, they limit the potential for competitive bidding. This approach bypasses the typical process of soliciting multiple offers, which could lead to better pricing and innovation through competition.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price discovery and potential cost savings that competitive bidding typically provides. This can result in higher overall costs for government services.

Public Impact

Federal agencies requiring 'Other Computer Related Services' will likely benefit from the support provided under this contract. The contract supports the delivery of a range of IT services, potentially including system maintenance, software support, and IT consulting. The geographic impact is likely national, given the GSA's role in managing federal IT contracts, with services potentially delivered across various federal installations. The contract may have implications for the IT workforce, potentially creating or sustaining jobs within Infinity Labs LLC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The sole-source nature of the award limits competitive pressure, potentially leading to less favorable pricing for the government.
The 'Time and Materials' contract type can be susceptible to cost overruns if not rigorously monitored and managed.
Lack of competition may reduce the incentive for the contractor to innovate or offer cost-saving efficiencies.
The broad NAICS code '541519' makes it difficult to ascertain the specific services and associated risks without further detail.
The contract duration of three years, while providing stability, also extends the period during which potential cost inefficiencies could persist.

Positive Signals

The award to a single contractor suggests a potential need for specialized IT services that Infinity Labs LLC may uniquely possess.
The GSA's involvement indicates adherence to federal procurement standards and oversight.
The contract duration allows for sustained support and potential for building a strong working relationship between the contractor and the agency.
The contract provides a clear funding mechanism for essential IT services over a defined period.

Sector Analysis

The IT services sector is a vast and critical component of federal spending. This contract falls under 'Other Computer Related Services,' a broad category encompassing a wide array of IT support functions. The federal government is a major consumer of IT services, with spending often driven by the need for modernization, cybersecurity, and operational efficiency. Comparable spending benchmarks for IT services vary widely based on the specific services, duration, and agency. However, contracts in the tens of millions of dollars are common for comprehensive IT support over multi-year periods.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false) and does not explicitly mention subcontracting goals for small businesses (sb: false). This suggests that small businesses may not be directly benefiting from this specific award as prime contractors. However, Infinity Labs LLC may still engage small businesses as subcontractors, depending on their internal policies and the nature of the services required. Further investigation into subcontracting plans would be necessary to determine the full impact on the small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) typically employs various oversight mechanisms for its contracts, including contract officer representatives (CORs) who monitor performance and ensure compliance. The 'Time and Materials' contract type necessitates close financial oversight to prevent cost overruns. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General (IG) jurisdiction would likely fall under the GSA's IG, who can investigate allegations of fraud, waste, or abuse related to federal contracts.

Related Government Programs

GSA IT Schedule Programs
Federal Civilian IT Modernization Initiatives
IT Services and Support Contracts
Other Computer Related Services Contracts

Risk Flags

Sole-source award limits competition.
Time and Materials pricing increases cost risk.
Broad service category lacks specificity.
Contractor's past performance unknown.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $64.1 million to INFINITY LABS LLC. SBIR PHASE III STRAFE TO 01

Who is the contractor on this award?

The obligated recipient is INFINITY LABS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $64.1 million.

What is the period of performance?

Start: 2023-07-28. End: 2026-07-27.

What specific IT services are included under 'Other Computer Related Services' for this contract?

The classification 'Other Computer Related Services' (NAICS code 541519) is very broad and can encompass a wide range of IT support functions. Without the detailed contract statement of work (SOW), it is difficult to specify the exact services. However, this category typically includes services such as IT consulting, custom software development, IT project management, network support, system integration, and IT infrastructure management. Given the contract value and duration, it likely involves a comprehensive suite of IT support critical to the agency's operations, potentially including maintenance, troubleshooting, and enhancement of existing systems, or the implementation of new IT solutions.

What is the justification for awarding this contract on a sole-source basis?

The provided data states the contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, which signifies a sole-source award. The specific justification for this sole-source award is not detailed in the provided data. Common reasons for sole-source procurements include situations where only one responsible source can provide the required supplies or services (e.g., unique capabilities, proprietary technology), or in cases of urgent and compelling need where competition is not feasible. The General Services Administration (GSA) would have had to document and approve this justification according to Federal Acquisition Regulation (FAR) guidelines before proceeding with the award to Infinity Labs LLC.

How does the 'Time and Materials' pricing structure compare to other contract types in terms of risk and value?

Time and Materials (T&M) contracts are characterized by reimbursement of direct labor hours at specified fixed hourly rates, plus reimbursement for actual costs of materials. This structure offers flexibility, particularly when the scope of work is not well-defined or is expected to change. However, T&M contracts carry higher risk for the government compared to fixed-price contracts because the final cost is not predetermined. The government is essentially paying for the time and effort expended, which can lead to cost overruns if not closely monitored. Value is realized through flexibility, but rigorous oversight of labor hours and rates is crucial to ensure fair pricing and prevent waste. Fixed-price contracts, conversely, offer greater cost certainty but are less adaptable to scope changes.

What is the typical annual spending for 'Other Computer Related Services' by the federal government?

Federal spending on 'Other Computer Related Services' (NAICS 541519) can fluctuate significantly year over year and across different agencies. While precise aggregate figures for this specific NAICS code are not readily available in this summary, the broader IT services market within the federal government represents billions of dollars annually. Agencies like the Department of Defense, Health and Human Services, and Homeland Security are major spenders in IT services. The GSA, as an awarding agency here, manages numerous IT contracts across the government, indicating substantial overall federal investment in this sector. Benchmarking this $64 million contract would require analyzing spending patterns within specific agencies or for similar service scopes.

What is Infinity Labs LLC's track record with federal contracts, particularly with the GSA?

Information regarding Infinity Labs LLC's specific track record with federal contracts, especially with the GSA, is not provided in the summary data. To assess their performance, one would typically examine their contract history, including past performance evaluations, any contract disputes or terminations, and the types and values of contracts previously awarded to them. A review of the Federal Procurement Data System (FPDS) or similar databases would be necessary to gather this information. A strong track record with the GSA or other federal agencies would indicate reliability and capability, while a history of issues might raise concerns about performance or management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA23Q0180

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 171 E KREPPS RD, BEAVERCRK TWP, OH, 45385

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $68,690,446

Exercised Options: $68,690,446

Current Obligation: $64,146,920

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $17,759,848

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QFLA23D0008

IDV Type: IDC

Timeline