GSA awards $10.5M IT and Fleet Support Services contract to SEV1TECH, LLC for one year

Contract Overview

Contract Amount: $10,553,790 ($10.6M)

Contractor: Sev1tech, LLC

Awarding Agency: General Services Administration

Start Date: 2025-09-22

End Date: 2026-09-21

Contract Duration: 364 days

Daily Burn Rate: $29.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OIS IT AND FLEET SUPPORT SERVICES

Place of Performance

Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17055

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $10.6 million to SEV1TECH, LLC for work described as: OIS IT AND FLEET SUPPORT SERVICES Key points: 1. Contract value appears reasonable for a one-year IT and fleet support services agreement. 2. Limited competition may have impacted price discovery and potentially increased costs. 3. Contract duration of one year suggests a need for ongoing, adaptable services. 4. Performance is tied to IT and fleet support, critical functions for agency operations. 5. The contract falls under Research and Development in Physical, Engineering, and Life Sciences, which is an unusual classification for IT and fleet support. 6. SEV1TECH, LLC is the sole awardee, indicating a lack of broader market engagement for this specific task order.

Value Assessment

Rating: fair

The contract value of $10.5 million for a one-year period for IT and fleet support services is within a typical range for such services. However, without specific details on the scope of work, it is difficult to benchmark against similar contracts. The 'Time and Materials' pricing structure can sometimes lead to cost overruns if not closely managed, which warrants careful monitoring of expenditures against the estimated value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits the government's ability to explore a wider range of potential vendors and potentially secure more competitive pricing. The lack of competition suggests that either SEV1TECH, LLC was the only capable provider identified, or there were specific circumstances that precluded a competitive solicitation.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not benefit from the price reductions typically achieved through competitive bidding processes.

Public Impact

Federal agencies requiring IT and fleet support services will benefit from the continuity of operations provided by this contract. Essential IT infrastructure maintenance, cybersecurity, and fleet management services are delivered. The contract is geographically focused on Pennsylvania, impacting local federal operations. Workforce implications include potential job creation or retention for SEV1TECH, LLC employees supporting these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Unusual NAICS code classification (541715) for IT and fleet support raises questions about the contract's true nature and scope.
Time and Materials pricing structure carries inherent risk of cost escalation if not rigorously managed.
Limited transparency due to sole-source nature may obscure performance metrics and value for money.
Short contract duration (one year) may indicate a need for services that are subject to frequent change or re-evaluation.

Positive Signals

SEV1TECH, LLC is awarded the contract, indicating they meet the government's requirements for these services.
The contract ensures continued IT and fleet support, vital for agency operational continuity.
Specific performance standards are likely in place, though not detailed here, to ensure service delivery.
The award supports federal agency operations within the specified geographic area.

Sector Analysis

The IT and fleet support services sector is a critical component of federal agency operations, encompassing a wide range of needs from network maintenance to vehicle management. While the contract's NAICS code is listed as 'Research and Development in the Physical, Engineering, and Life Sciences,' the description 'IT AND FLEET SUPPORT SERVICES' suggests a misalignment. This could indicate a specialized R&D component within the IT/fleet services or a classification error. Comparable spending in this broad sector varies significantly based on agency size and specific service requirements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small business participation in this specific contract. This means the direct economic impact on the small business ecosystem from this particular award is likely minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration (GSA). Performance will be monitored against the terms and conditions of the Delivery Order, including service level agreements. Transparency is limited due to the sole-source nature and the lack of publicly available detailed performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

GSA IT Schedule Programs
Federal Fleet Management Services
IT Support Services Contracts
General Services Administration Procurement

Risk Flags

Unusual NAICS code classification
Sole-source award raises concerns about competition and pricing
Time and Materials pricing structure requires diligent oversight

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.6 million to SEV1TECH, LLC. OIS IT AND FLEET SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SEV1TECH, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.6 million.

What is the period of performance?

Start: 2025-09-22. End: 2026-09-21.

What is the specific scope of work for 'IT AND FLEET SUPPORT SERVICES' under this contract, and why is it classified under NAICS code 541715 (Research and Development)?

The provided data indicates the contract is for 'OIS IT AND FLEET SUPPORT SERVICES' but is classified under NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' This classification is highly unusual for standard IT and fleet support. Typically, IT services fall under categories like 541512 (Computer Systems Design Services) or 541519 (Other Computer Related Services), and fleet management might fall under 532111 (Passenger Car Rental and Leasing) or related transportation services. The discrepancy suggests either a highly specialized R&D component integrated into the IT and fleet services, or a potential misclassification. Clarification from the GSA would be needed to understand the precise nature of the services and the rationale behind the R&D classification, which could involve research into new fleet technologies or advanced IT solutions for scientific endeavors.

How does the $10.5 million contract value compare to similar IT and fleet support services contracts awarded by GSA or other agencies?

Benchmarking the $10.5 million contract value requires a detailed understanding of the specific services rendered, the duration, and the geographic scope. For a one-year contract, $10.5 million is a significant amount, suggesting a comprehensive scope of IT and fleet support. GSA's IT Schedule and other contract vehicles often facilitate competitive pricing for such services. However, without knowing the exact deliverables (e.g., number of users supported, fleet size, specific IT infrastructure managed, level of R&D involved), direct comparison is challenging. Generally, competitive solicitations for similar broad IT support services can range from a few million to tens of millions annually, depending on complexity. The sole-source nature of this award means it may not reflect the most cost-effective market rates achievable through open competition.

What are the primary risks associated with a sole-source award for IT and fleet support services, and how are they mitigated?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. This can lead to reduced value for taxpayer money. Another risk is limited innovation, as the government doesn't benefit from the diverse solutions a competitive process might uncover. Furthermore, reliance on a single vendor can create dependency and potential vulnerabilities if that vendor underperforms or faces financial difficulties. Mitigation strategies typically involve rigorous negotiation of terms and pricing, strong contract oversight, clearly defined performance metrics (Service Level Agreements - SLAs), and regular performance reviews. The government may also conduct market research to ensure the sole-source justification remains valid and explore competitive options for future contract renewals.

What is SEV1TECH, LLC's track record with federal IT and fleet support contracts, particularly with GSA?

Information regarding SEV1TECH, LLC's specific track record with federal IT and fleet support contracts, especially with GSA, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any publicly available information on their capabilities and experience in these domains. Their ability to secure this sole-source award suggests they possess the necessary qualifications and clearances required by GSA for the specified services. Further investigation into their contract history would reveal their reliability, quality of service, and adherence to federal acquisition regulations.

How does the 'Time and Materials' (T&M) contract type influence cost control and oversight for these IT and fleet support services?

The 'Time and Materials' (T&M) contract type is often used when the scope of work is not clearly defined or is expected to change, as might be the case with evolving IT needs or fleet maintenance. While flexible, T&M contracts carry a higher risk of cost overruns compared to fixed-price contracts because the government pays for the labor hours and materials used. Effective cost control and oversight are therefore critical. This involves meticulous tracking of all labor hours, material costs, and ensuring that personnel are working efficiently and on authorized tasks. GSA would need to implement robust monitoring mechanisms, including regular audits of timesheets and invoices, and closely manage the ceiling price to prevent exceeding the $10.5 million award amount. Clear definitions of what constitutes 'material' and 'labor' are essential to prevent scope creep and unexpected costs.

What are the potential implications of the contract's duration (364 days) on service continuity and future planning?

A contract duration of 364 days, essentially one year, suggests a need for ongoing services that may require frequent re-evaluation or adaptation. This short-term nature can provide flexibility for the government to adjust requirements based on evolving needs or technological advancements in IT and fleet management. However, it also presents challenges for long-term planning and investment by the contractor. For service continuity, it necessitates a proactive approach to contract renewal or re-competition well before the expiration date to avoid any gaps in service delivery. It might also indicate that the services are considered tactical or that the agency is testing capabilities before committing to a longer-term, potentially larger, contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA25Q0080

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12700 BLACK FOREST LN STE 306, WOODBRIDGE, VA, 22192

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $62,235,386

Exercised Options: $16,740,382

Current Obligation: $10,553,790

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFLA21D0014

IDV Type: IDC

Timeline