GSA awards $39M for Salesforce support, with Pyramid Systems Inc. delivering custom programming services

Contract Overview

Contract Amount: $39,053,193 ($39.1M)

Contractor: Pyramid Systems, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-09-30

End Date: 2024-03-29

Contract Duration: 1,276 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SALESFORCE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $39.1 million to PYRAMID SYSTEMS, INC. for work described as: SALESFORCE SUPPORT SERVICES Key points: 1. Value for money appears fair given the contract duration and scope of custom programming services. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long contract duration and labor hour pricing model. 4. Performance context involves custom computer programming services, a critical area for agency operations. 5. Sector positioning is within IT services, specifically custom software development and support.

Value Assessment

Rating: fair

The contract's total value of approximately $39 million over nearly four years for Salesforce support services suggests a moderate per-year expenditure. Benchmarking against similar custom computer programming contracts is challenging without more specific service details. However, the labor hours pricing model can sometimes lead to cost overruns if not managed tightly. The overall value proposition depends heavily on the efficiency and effectiveness of the services provided by Pyramid Systems, Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 10 bids suggests a healthy level of interest and competition for this requirement. A competitive bidding process generally helps in achieving better price discovery and potentially lower costs for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price for the required Salesforce support services.

Public Impact

Federal agencies utilizing Salesforce will benefit from enhanced support and custom programming. Services delivered include custom development, integration, and maintenance of Salesforce platforms. Geographic impact is primarily within the District of Columbia, where the contract is managed. Workforce implications include the need for skilled IT professionals to support and develop Salesforce solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours pricing can lead to cost uncertainty if not closely monitored.
Long contract duration increases the risk of scope creep or evolving requirements.
Dependence on a single vendor for critical Salesforce support could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Multiple bidders participated, suggesting a competitive market for these services.
Pyramid Systems, Inc. is a known entity in the federal IT contracting space.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on custom computer programming and support for enterprise software solutions like Salesforce. The market for such services is substantial, with numerous companies offering specialized expertise. This contract represents a typical government investment in maintaining and enhancing its core IT infrastructure and operational platforms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have a specific small business subcontracting plan highlighted. This suggests that larger, established IT service providers were likely the primary participants and awardees. The impact on the small business ecosystem is neutral in this instance, as there's no explicit set-aside or subcontracting requirement mentioned.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability measures would be embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Salesforce Enterprise Support
Custom Software Development Services
IT Professional Services
Cloud-Based Software Support
Federal Civilian IT Modernization

Risk Flags

Long contract duration may increase risk of scope creep.
Labor hour pricing requires diligent oversight to control costs.
Dependence on a single vendor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $39.1 million to PYRAMID SYSTEMS, INC.. SALESFORCE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PYRAMID SYSTEMS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $39.1 million.

What is the period of performance?

Start: 2020-09-30. End: 2024-03-29.

What is Pyramid Systems, Inc.'s track record with federal contracts, particularly for IT services?

Pyramid Systems, Inc. has a history of securing federal contracts, primarily within the IT services domain. Their portfolio often includes custom software development, IT support, and system integration services. Analyzing their past performance on similar contracts, especially those involving large-scale enterprise software like Salesforce, would provide further insight into their capabilities and reliability. Reviewing past performance evaluations and any reported issues or successes can help assess their suitability for this specific contract. Their experience with agencies like GSA suggests familiarity with federal procurement processes and requirements.

How does the $39 million award compare to similar Salesforce support contracts awarded by the government?

Comparing this $39 million award requires context regarding the contract's duration, scope, and the specific services rendered. Contracts for Salesforce support can vary significantly based on whether they involve basic maintenance, custom development, integration with other systems, or comprehensive platform management. A contract spanning nearly four years at this value suggests a substantial undertaking. Benchmarking against other full and open competition awards for similar custom programming and support services for enterprise CRM systems would be necessary. Without more granular data on the specific tasks and deliverables, a precise value-for-money comparison is difficult, but the expenditure aligns with significant IT modernization and support efforts within federal agencies.

What are the primary risks associated with a labor-hour contract for custom programming services?

Labor-hour contracts, like the one used here, carry inherent risks primarily related to cost control and predictability. The government pays for the time and materials expended by the contractor, which can lead to cost overruns if projects take longer than anticipated or if labor rates are higher than expected. There's a risk of inefficiency or 'gold plating' if not managed diligently. For custom programming, the scope can also be fluid, making it harder to estimate total effort upfront. Effective oversight, detailed work breakdown structures, and regular progress monitoring are crucial to mitigate these risks and ensure the government receives good value.

How effective is GSA's Federal Acquisition Service in managing and overseeing IT support contracts?

The General Services Administration's Federal Acquisition Service (FAS) plays a crucial role in managing and overseeing a vast array of government IT contracts. FAS aims to provide efficient and cost-effective procurement solutions for federal agencies. Their effectiveness in managing IT support contracts like this Salesforce award is generally considered good, leveraging established procurement vehicles and expertise. However, the success of individual contracts still depends on specific program management, contract officer vigilance, and the contractor's performance. FAS continually works on improving acquisition processes and ensuring compliance, but challenges can arise with complex, long-term IT projects.

What is the historical spending trend for custom computer programming services by the GSA?

The General Services Administration (GSA) consistently spends significant amounts on custom computer programming services, reflecting the federal government's ongoing need for tailored IT solutions. Historical data shows a steady demand for these services across various agencies to support mission-critical systems, modernize legacy infrastructure, and develop new applications. Spending in this category often fluctuates based on major IT initiatives, agency modernization efforts, and the availability of competitive contract vehicles. GSA, as a central procurement agency, plays a key role in aggregating this demand and facilitating efficient contracting, making it a major player in this spending category.

What are the implications of awarding a large IT support contract to a single vendor for an extended period?

Awarding a large IT support contract to a single vendor for an extended period, such as this nearly four-year contract, can have several implications. Positively, it can foster a deep understanding of the agency's specific needs and systems by the vendor, leading to more tailored and efficient support. It can also provide stability and continuity for critical IT operations. However, it also carries risks, including potential vendor lock-in, reduced incentive for innovation if competition is limited post-award, and a greater impact if the vendor's performance declines or if they face financial instability. Robust performance management and contingency planning are essential to mitigate these risks.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFPA20Q007

Offers Received: 10

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pyramid Systems Inc.

Address: 2677 PROSPERITY AVE, FAIRFAX, VA, 22031

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $53,407,700

Exercised Options: $47,480,108

Current Obligation: $39,053,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00LJ

IDV Type: FSS

Timeline