GSA Awards $57.2M Cisco Smartnet Renewal to Colossal Contracting LLC for 5 Years

Contract Overview

Contract Amount: $57,193,703 ($57.2M)

Contractor: Colossal Contracting LLC

Awarding Agency: General Services Administration

Start Date: 2021-01-01

End Date: 2025-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO SMARTNET SOFTWARE RENEWAL

Place of Performance

Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152

State: South Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $57.2 million to COLOSSAL CONTRACTING LLC for work described as: CISCO SMARTNET SOFTWARE RENEWAL Key points: 1. Significant contract value for software renewal services. 2. Competition method indicates potential for price discovery challenges. 3. Risk associated with vendor lock-in for critical IT infrastructure. 4. IT sector spending benchmark needs further analysis for this service type.

Value Assessment

Rating: fair

The contract value of $57.2M over five years for software renewal is substantial. Benchmarking against similar Cisco Smartnet renewals across federal agencies is crucial to assess if this pricing is competitive, especially given the 'full and open competition after exclusion of sources' method.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources,' suggesting a limited competitive field. This method may not have yielded the most competitive pricing possible, as it implies certain sources were excluded prior to the competition.

Taxpayer Impact: The $57.2M expenditure represents a significant taxpayer investment. Ensuring this renewal provides optimal value and competitive pricing is key to responsible fiscal management.

Public Impact

Ensures continued support and updates for essential Cisco network hardware and software. Impacts agencies relying on Cisco infrastructure for their IT operations. Potential for cost savings if competitive bidding processes were fully optimized.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Potential for vendor lock-in with Cisco software.
Renewal of existing contracts can sometimes lack aggressive price negotiation.

Positive Signals

Ensures continuity of critical IT services.
Long-term contract provides budget predictability.
Standardized IT support for federal agencies.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on software maintenance and support renewals for network equipment. Federal spending in IT services is consistently high, with a significant portion allocated to maintaining existing infrastructure and software licenses.

Small Business Impact

The contract was awarded to COLOSSAL CONTRACTING LLC, and there is no indication of small business participation in this specific award. Further analysis would be needed to determine if small businesses were involved in subcontracting or if opportunities were missed.

Oversight & Accountability

The General Services Administration (GSA) awarded this contract through its Federal Acquisition Service. Oversight would involve monitoring contract performance, ensuring adherence to terms, and verifying that the services meet federal IT standards and requirements.

Related Government Programs

Other Computer Related Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Limited competitive landscape.
Potential for inflated pricing due to source exclusion.
Risk of vendor lock-in for critical IT infrastructure.
Lack of transparency in the specific reasons for source exclusion.
High contract value warrants close scrutiny for cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $57.2 million to COLOSSAL CONTRACTING LLC. CISCO SMARTNET SOFTWARE RENEWAL

Who is the contractor on this award?

The obligated recipient is COLOSSAL CONTRACTING LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $57.2 million.

What is the period of performance?

Start: 2021-01-01. End: 2025-12-31.

What is the specific justification for excluding certain sources in the 'full and open competition after exclusion of sources' award?

The justification for excluding sources in this type of competition typically relates to specific technical requirements, existing infrastructure compatibility, or prior performance issues with certain vendors. Understanding the precise reasons is crucial for assessing whether the exclusion was warranted and if it unduly limited competition, potentially impacting the final price paid by taxpayers.

How does the per-unit cost of this Cisco Smartnet renewal compare to industry benchmarks for similar services?

Without specific per-unit cost breakdowns (e.g., cost per device or per license), a direct comparison is difficult. However, the total contract value of $57.2M over five years suggests a significant investment. Benchmarking against publicly available pricing for similar Cisco support contracts or analyzing historical GSA contract data for comparable renewals would be necessary to determine if the pricing is competitive.

What is the long-term strategy for managing Cisco software renewals to ensure cost-effectiveness and avoid vendor lock-in?

Agencies should develop a long-term IT asset management strategy that includes proactive planning for software renewals. This involves regularly assessing needs, exploring alternative solutions or vendors where feasible, and negotiating multi-year contracts with clear exit clauses or transition plans. Early engagement with vendors and market research can help mitigate vendor lock-in and secure better pricing.

Industry Classification

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

Product/Service Code: IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 HARRY S TRUMAN PKWY STE G, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $62,856,941

Exercised Options: $57,193,703

Current Obligation: $57,193,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD72B

IDV Type: GWAC

Timeline