GSA awards $20.18M for IT support services to Octo Consulting Group, with a 2370-day duration

Contract Overview

Contract Amount: $20,183,905 ($20.2M)

Contractor: Octo Consulting Group LLC

Awarding Agency: General Services Administration

Start Date: 2018-08-06

End Date: 2025-01-31

Contract Duration: 2,370 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EFINANCE LEAVEWEB FMSUITE SUPPORT ELF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $20.2 million to OCTO CONSULTING GROUP LLC for work described as: EFINANCE LEAVEWEB FMSUITE SUPPORT ELF Key points: 1. The contract value of over $20 million for IT support services indicates a significant investment in maintaining federal IT infrastructure. 2. Competition dynamics for this contract, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggest a potentially competitive bidding process that aimed to maximize value. 3. The fixed-price contract type generally transfers risk to the contractor, potentially leading to more predictable costs for the government. 4. The contract's duration of 2370 days (over 6 years) suggests a long-term need for these IT support services. 5. The North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design services. 6. The award to Octo Consulting Group LLC, a single entity, highlights the concentration of specialized IT service providers in the federal market.

Value Assessment

Rating: good

The contract value of $20.18 million for IT support services appears reasonable given the extensive 2370-day duration. Benchmarking against similar IT support contracts awarded by GSA would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control. However, without specific performance metrics or detailed service breakdowns, a definitive assessment of 'excellent' value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This specific procurement method indicates that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation, or the competition was opened after an initial exclusion. The number of bidders (4) suggests a moderate level of competition. This level of competition is generally sufficient to encourage competitive pricing, but a broader, unrestricted full and open competition might have yielded even more aggressive bids.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely benefited from competitive pricing, though the exclusion of some sources might have limited the full potential for cost savings.

Public Impact

Federal agencies utilizing General Services Administration (GSA) IT support services benefit from enhanced system reliability and operational efficiency. The contract supports the delivery of essential computer systems design and integration services, crucial for modern government operations. The primary geographic impact is within the District of Columbia, where the contractor is headquartered and likely performs significant work. The contract supports a workforce skilled in IT systems design, development, and maintenance, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration.
Risk of scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT support functions.

Positive Signals

Firm fixed-price contract type mitigates cost overrun risks for the government.
The contract was awarded through a competitive process, suggesting a degree of market validation.
Long contract duration provides stability and predictability for IT service delivery.

Sector Analysis

The federal IT services sector is a substantial market, with agencies increasingly relying on external contractors for specialized support. This contract falls within the Computer Systems Design Services category, which encompasses a wide range of activities from system integration to IT consulting. Spending in this sector is driven by the need for modernization, cybersecurity, and efficient data management. Comparable contracts often range from a few million to tens of millions of dollars, depending on the scope and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The award to a single entity, Octo Consulting Group LLC, does not inherently preclude subcontracting opportunities for small businesses. However, without specific subcontracting plans detailed in the award, the direct impact on the small business ecosystem is unclear. Future analysis could explore whether the prime contractor has a history of engaging small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. The firm fixed-price nature of the contract provides a degree of financial oversight by limiting potential cost increases. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would typically involve performance reviews and adherence to contract terms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Computer Systems Design Services
IT Support Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Long contract duration may increase risk of obsolescence or changing requirements.
Procurement method 'after exclusion of sources' warrants scrutiny of the exclusion rationale.
Limited number of bidders (4) could indicate potential for reduced price competition.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.2 million to OCTO CONSULTING GROUP LLC. EFINANCE LEAVEWEB FMSUITE SUPPORT ELF

Who is the contractor on this award?

The obligated recipient is OCTO CONSULTING GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2018-08-06. End: 2025-01-31.

What is Octo Consulting Group LLC's track record with federal IT service contracts?

Octo Consulting Group LLC has a notable presence in the federal IT services market. A review of federal procurement data reveals multiple contract awards to Octo Consulting Group across various agencies, including the Department of Defense, Department of Homeland Security, and the General Services Administration. These contracts often span areas such as cloud migration, cybersecurity, data analytics, and IT modernization. The company's performance history, as reflected in past performance evaluations and contract closeouts, would be crucial for assessing its reliability and capability in delivering complex IT solutions. Analyzing the value and duration of previous contracts can provide context for the current $20.18 million award, indicating whether this represents a typical engagement or a significant expansion of services.

How does the $20.18 million contract value compare to similar IT support contracts awarded by GSA?

The $20.18 million contract value for IT support services awarded by GSA to Octo Consulting Group is within a common range for significant IT service engagements. GSA frequently awards contracts in the multi-million dollar bracket for services like systems design, integration, and ongoing support, especially when they involve long-term commitments like the 2370-day duration of this award. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes (541512) and service scopes awarded over the past 1-3 years. Factors such as the number of bidders, contract type (firm fixed-price), and specific deliverables heavily influence pricing. Generally, contracts of this magnitude suggest a comprehensive scope of work critical to agency operations.

What are the primary risks associated with a firm fixed-price contract of this duration?

A firm fixed-price (FFP) contract, while beneficial for cost certainty, carries specific risks, especially over a long duration like 2370 days. For the contractor, the primary risk is underestimating the effort or encountering unforeseen technical challenges, which could lead to reduced profit margins or even losses if the scope is not managed tightly. For the government, the risk lies in potential contractor complacency or a lack of incentive to innovate beyond the contract's defined scope, as the contractor is primarily focused on meeting the fixed price. Additionally, if the initial price was set too high due to aggressive bidding or poor market analysis, the government might overpay for the services rendered over the contract's life. Effective contract management and clear performance metrics are crucial to mitigate these risks.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact price discovery?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method is a nuanced approach to procurement. It implies that the solicitation was initially intended for a broader range of potential bidders, but certain sources were excluded based on specific criteria before the competition was fully opened. This exclusion could be due to reasons such as past performance issues, inability to meet specific technical requirements, or strategic sourcing decisions. While it aims to ensure a competitive environment among the remaining eligible bidders, the exclusion of certain sources might limit the overall pool of competition. This could potentially lead to less aggressive pricing than a truly unrestricted full and open competition, as the number of viable contenders is reduced. The impact on price discovery depends heavily on the rationale for exclusion and the competitiveness among the remaining bidders.

What are the potential implications of this contract for federal IT modernization efforts?

This contract for IT support services, valued at over $20 million and spanning more than six years, has significant implications for federal IT modernization. By securing long-term support for computer systems design, the General Services Administration (GSA) is likely enabling agencies to maintain and potentially upgrade their critical IT infrastructure. This sustained support can be a foundation for modernization initiatives, providing the necessary technical expertise and operational stability. It allows agencies to focus on strategic upgrades and new technology adoption, rather than being solely consumed by day-to-day system maintenance. The contract's duration suggests a commitment to evolving IT systems, which is essential for keeping pace with technological advancements and meeting the growing demands for digital government services.

What is the significance of the NAICS code 541512 (Computer Systems Design Services) in this context?

The NAICS code 541512, 'Computer Systems Design Services,' is highly significant as it defines the core nature of the services being procured. This classification indicates that the contract is focused on providing expertise in designing, developing, integrating, and implementing computer systems. This can encompass a broad range of activities, including software engineering, network design, IT infrastructure planning, and systems integration. For federal agencies, engaging contractors under this code means accessing specialized knowledge to build or enhance their IT capabilities. It suggests that the contract is not merely for off-the-shelf software or basic IT maintenance, but rather for tailored solutions that address complex technological requirements and strategic IT objectives.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID08180021

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10780 PARKRIDGE BLVD FL 4, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,602,180

Exercised Options: $20,818,991

Current Obligation: $20,183,905

Actual Outlays: $-4,707

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0608Z

IDV Type: GWAC

Timeline