SBA's $136.4M PPP SaaS Platform Contract Awarded to Goldschmitt-CRI LLC

Contract Overview

Contract Amount: $136,440,000 ($136.4M)

Contractor: Goldschmitt-Cri LLC

Awarding Agency: Small Business Administration

Start Date: 2021-07-10

End Date: 2022-07-09

Contract Duration: 364 days

Daily Burn Rate: $374.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PAYCHECK PROTECTION PROGRAM (PPP) SOFTWARE AS A SERVICE (SAAS) PLATFORM AND CALL CENTER SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20416

State: District of Columbia Government Spending

Plain-Language Summary

Small Business Administration obligated $136.4 million to GOLDSCHMITT-CRI LLC for work described as: PAYCHECK PROTECTION PROGRAM (PPP) SOFTWARE AS A SERVICE (SAAS) PLATFORM AND CALL CENTER SUPPORT Key points: 1. The contract's value represents a significant investment in supporting the Paycheck Protection Program. 2. The sole-source award raises questions about potential missed opportunities for competitive pricing. 3. The duration of the contract (364 days) suggests a need for ongoing, critical support. 4. The fixed-price contract type aims to control costs, but the absence of competition limits benchmarking. 5. The IT services sector, particularly SaaS and data processing, is a key area of federal spending. 6. The contract's focus on a critical small business support program highlights its public service role.

Value Assessment

Rating: questionable

Benchmarking the value of this $136.4 million contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to assess if the pricing reflects market rates or represents a fair value for the SaaS platform and call center support provided. The contract's value is substantial, indicating a significant need for the services, but the lack of competition prevents a direct comparison to similar offerings in the market.

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 approach is typically used when only one vendor can provide the required services, often due to unique capabilities or existing infrastructure. The lack of multiple bidders means that price discovery through competition was not utilized, potentially leading to a higher cost for taxpayers than if the contract had been competed.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings typically achieved through a bidding process. This could translate to a less efficient use of federal funds.

Public Impact

Small businesses across the nation benefit from the continued operation of the Paycheck Protection Program's support systems. The contract ensures the availability of a SaaS platform and call center services essential for PPP loan processing and inquiries. The geographic impact is national, supporting the SBA's mission to assist businesses nationwide. The contract supports a critical function within the federal government's economic relief efforts, indirectly impacting the broader economy and workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for money.
Lack of transparency in the procurement process due to non-competitive award.
Potential for cost overruns if pricing was not adequately vetted without market comparison.

Positive Signals

Contract supports a critical government program (PPP) vital for small businesses.
Firm fixed-price contract aims to provide cost certainty.
Contract duration suggests a stable and reliable service provision.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on Software as a Service (SaaS) and data processing. The federal government is a major consumer of IT services, with significant spending allocated to cloud computing, software development, and IT support. Comparable spending benchmarks for large-scale SaaS platforms and call center operations can vary widely based on scope, complexity, and service level agreements. The SBA's investment here is substantial, reflecting the critical nature of the Paycheck Protection Program.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses explicitly detailed in the provided data. The contractor, Goldschmitt-CRI LLC, is identified as a small business itself, which is a positive signal for the small business ecosystem. However, the lack of a set-aside or explicit subcontracting goals means the direct impact on the broader small business contracting community may be limited for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Small Business Administration (SBA), the awarding agency. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the sole-source justification and contract performance would be key areas for oversight. While specific Inspector General (IG) jurisdiction isn't detailed, the SBA's OIG would likely have oversight responsibilities for programs administered by the agency.

Related Government Programs

Paycheck Protection Program (PPP)
Small Business Administration (SBA) IT Services
Federal Cloud Computing Services
Government Call Center Support Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
High contract value without clear market comparison

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $136.4 million to GOLDSCHMITT-CRI LLC. PAYCHECK PROTECTION PROGRAM (PPP) SOFTWARE AS A SERVICE (SAAS) PLATFORM AND CALL CENTER SUPPORT

Who is the contractor on this award?

The obligated recipient is GOLDSCHMITT-CRI LLC.

Which agency awarded this contract?

Awarding agency: Small Business Administration (Small Business Administration).

What is the total obligated amount?

The obligated amount is $136.4 million.

What is the period of performance?

Start: 2021-07-10. End: 2022-07-09.

What is the track record of Goldschmitt-CRI LLC in delivering similar IT services to federal agencies?

Information regarding Goldschmitt-CRI LLC's specific track record in delivering similar large-scale SaaS platforms and call center support to federal agencies is not readily available in the provided data. As a sole-source award, the justification for selecting this contractor would typically include an assessment of their unique qualifications and past performance. Further investigation into federal contract databases and agency performance reviews would be necessary to fully evaluate their capabilities and historical success in fulfilling complex IT service requirements for government programs.

How does the $136.4 million contract value compare to other federal spending on PPP support or similar IT services?

The $136.4 million contract value is substantial and reflects the significant operational needs of the Paycheck Protection Program. Comparing this to other federal spending on PPP support is difficult without more granular data on all PPP-related contracts. However, in the broader context of federal IT spending, this amount is significant but not unprecedented for large-scale software platforms and support services. For instance, other agencies procure similar services for large citizen-facing programs. The value is particularly high due to the critical, time-sensitive nature of the PPP and the need for robust, scalable infrastructure and support.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude include a lack of price competition, which can lead to overpayment and reduced value for taxpayer money. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future flexibility and innovation. Furthermore, without competitive pressure, there might be less incentive for the contractor to optimize performance or efficiency. Ensuring robust contract management and performance monitoring becomes even more critical in sole-source situations to mitigate these inherent risks.

How effective has the PPP software and call center support been in facilitating PPP loan applications and inquiries?

The effectiveness of the PPP software and call center support is crucial for the success of the Paycheck Protection Program, which aimed to provide economic relief to small businesses. While the provided data does not offer direct metrics on the effectiveness of this specific contract, the overall success of the PPP in disbursing funds to millions of businesses suggests that the underlying IT infrastructure and support services were largely functional. However, challenges and criticisms regarding the program's implementation and accessibility have been noted, which could indirectly reflect on the performance of supporting systems.

What are the historical spending patterns for IT services by the Small Business Administration?

Historical spending patterns for IT services by the Small Business Administration (SBA) would typically show a consistent need for technology to support its various programs, including loan processing, grants, and business development services. The SBA, like many federal agencies, relies heavily on IT infrastructure for its operations. Spending often fluctuates based on program demands, such as the surge in activity during the COVID-19 pandemic with the PPP. Analyzing past contracts for similar services (e.g., cloud hosting, software development, call center support) would reveal trends in investment and the types of technologies prioritized by the agency over time.

What is the potential impact of this contract on the broader IT services market for federal contracts?

This contract, being a significant sole-source award for essential PPP support, could have a mixed impact on the broader IT services market for federal contracts. On one hand, it demonstrates the government's reliance on specialized SaaS and call center solutions for critical programs. On the other hand, the sole-source nature means that other qualified IT vendors did not have an opportunity to compete, potentially limiting market entry and innovation for those firms. It highlights the importance of established relationships and unique capabilities in securing large federal contracts, especially during times of urgent need.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 73351021R0007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11601 QUAIL RIDGE CT, RESTON, VA, 20194

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $136,440,000

Exercised Options: $136,440,000

Current Obligation: $136,440,000

Actual Outlays: $136,440,000

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $115,305,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline