GSA awards $3.4M IT radio field system support contract to Cynergy Professional Systems LLC

Contract Overview

Contract Amount: $3,426,630 ($3.4M)

Contractor: Cynergy Professional Systems LLC

Awarding Agency: General Services Administration

Start Date: 2023-09-01

End Date: 2026-08-31

Contract Duration: 1,095 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT RADIO FIELD SYSTEM SUPPORT

Place of Performance

Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $3.4 million to CYNERGY PROFESSIONAL SYSTEMS LLC for work described as: IT RADIO FIELD SYSTEM SUPPORT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The fixed-price contract structure provides cost certainty but may limit flexibility for evolving needs. 3. The duration of the contract (1095 days) suggests a long-term need for these IT support services. 4. The award to a single vendor warrants scrutiny to ensure fair market pricing. 5. The specific nature of 'radio field system support' requires further definition to understand its criticality and scope.

Value Assessment

Rating: fair

The contract value of $3.4 million over three years for IT radio field system support appears within a reasonable range for specialized IT services. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or identify potential cost savings. The fixed-price nature of the award provides budget predictability for the General Services Administration (GSA). Further analysis would require understanding the specific deliverables and comparing them to similar support contracts for radio systems, which are often highly specialized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one vendor can provide the required goods or services, or in specific circumstances like urgent needs or follow-on work. The lack of competition means that GSA did not benefit from multiple bids, which could have driven down prices and potentially identified a wider range of qualified vendors. The justification for a sole-source award needs to be thoroughly reviewed to ensure it was appropriate.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not leverage the full potential of market competition to secure the best possible price.

Public Impact

Federal agencies relying on radio communication systems will benefit from continued support and maintenance. The contract ensures the operational readiness of critical communication infrastructure. Services are delivered within California, impacting federal operations in that state. The contract supports specialized IT roles, potentially maintaining employment for skilled technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in above-market pricing.
Sole-source award requires strong justification to ensure taxpayer value.
Scope creep could increase costs if not managed tightly under a fixed-price contract.

Positive Signals

Fixed-price contract provides cost certainty for the duration.
Award to an established vendor may indicate reliability and expertise.
Contract duration suggests a stable, long-term need being met.

Sector Analysis

The IT services sector is vast and encompasses a wide range of specialized support functions. This contract falls under computer systems design services, specifically focusing on radio field systems. Such systems are critical for many government operations, including public safety, defense, and logistics. The market for specialized IT support can be competitive, but for niche areas like radio field systems, the number of qualified vendors might be limited, sometimes leading to sole-source or limited competition awards. Benchmarking would require identifying comparable contracts for similar radio communication support.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no explicit information regarding subcontracting plans for small businesses. The absence of small business participation in this sole-source award means that opportunities within this specific contract are not being directed towards the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a sole-source award, it warrants close monitoring to ensure the vendor is meeting all contractual obligations and that the pricing remains fair. Transparency regarding the justification for the sole-source award and the vendor's performance metrics will be key accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal IT Support Services
Radio Communication Systems Maintenance
General Services Administration IT Contracts
Sole-Source IT Procurements

Risk Flags

Sole-source award lacks competitive justification.
Potential for above-market pricing due to lack of competition.
Limited transparency on specific service deliverables and criticality.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.4 million to CYNERGY PROFESSIONAL SYSTEMS LLC. IT RADIO FIELD SYSTEM SUPPORT

Who is the contractor on this award?

The obligated recipient is CYNERGY PROFESSIONAL SYSTEMS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2023-09-01. End: 2026-08-31.

What is the specific nature and criticality of the 'IT RADIO FIELD SYSTEM SUPPORT' being provided under this contract?

The contract specifies 'IT RADIO FIELD SYSTEM SUPPORT' under NAICS code 541512 (Computer Systems Design Services). While the exact nature of 'radio field systems' is not detailed, it likely refers to the maintenance, operation, and support of radio communication infrastructure used in various field applications by federal agencies. This could include systems for public safety, emergency response, logistics, or operational command. The criticality would depend on which agencies and functions rely on these systems; if they are essential for day-to-day operations or emergency communications, their criticality is high. Without further details on the specific systems and their users, a precise criticality assessment is challenging, but the three-year duration suggests ongoing operational importance.

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

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures) and awarded as a 'PURCHASE ORDER' on a sole-source basis. The specific justification for this sole-source award is not detailed in the provided data. Typically, sole-source awards require a formal justification, such as the existence of only one responsible source capable of providing the required services, urgent and compelling circumstances, or specific follow-on requirements to an existing contract where a competitive process is not feasible or advantageous. The General Services Administration (GSA) would have documented this justification internally, and it would be subject to review to ensure compliance with federal procurement regulations.

How does the contract value of $3.4 million compare to similar IT radio field system support contracts?

Benchmarking the $3.4 million contract value for IT radio field system support is challenging without more specific details on the scope of services, the technology involved, and the geographic coverage. However, for specialized IT support contracts of a three-year duration, this value is not inherently excessive. The primary issue is the lack of competitive bidding, which prevents a direct comparison to market-driven prices. Similar contracts for broader IT infrastructure support can range from hundreds of thousands to millions of dollars annually, depending on complexity. To properly assess value, one would need to compare this contract's deliverables against other sole-source or competed contracts for similar radio systems support, considering factors like system uptime guarantees, response times, and included maintenance.

What are the potential risks associated with a sole-source award for IT support services?

The primary risk associated with a sole-source award for IT support services is the potential for inflated costs due to the absence of competitive pressure. Without competing bids, the contractor may not be incentivized to offer the lowest possible price. Other risks include vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future flexibility and innovation. There's also a risk that the quality of service might not be as high as it could be under competitive conditions, although the fixed-price nature of this contract provides some cost certainty. Ensuring robust contract management and performance monitoring becomes even more critical in sole-source situations to mitigate these risks.

What is the track record of Cynergy Professional Systems LLC in providing similar IT support services to the federal government?

Information on Cynergy Professional Systems LLC's specific track record for providing 'IT RADIO FIELD SYSTEM SUPPORT' is not detailed in the provided data. As a sole-source award, understanding the contractor's past performance, especially on similar federal contracts, is crucial for assessing risk and ensuring value. A thorough review would involve examining their contract history, past performance evaluations (if available), and any reported issues or successes on previous government engagements. Without this information, it's difficult to definitively assess their capability and reliability for this specific requirement, making the justification for the sole-source award even more important.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 47QFPA23R0043

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 23187 LA CADENA DR, LAGUNA HILLS, CA, 92653

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,247,232

Exercised Options: $4,247,232

Current Obligation: $3,426,630

Actual Outlays: $1,196,453

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline