GSA Awards $3.5M for Microsoft Office 365 Support to Arctic Information Technology, Inc

Contract Overview

Contract Amount: $3,536,620 ($3.5M)

Contractor: Arctic Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2022-02-15

End Date: 2026-02-27

Contract Duration: 1,473 days

Daily Burn Rate: $2.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT OFFICE 365 SUPPORT

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99515

State: Alaska Government Spending

Plain-Language Summary

General Services Administration obligated $3.5 million to ARCTIC INFORMATION TECHNOLOGY, INC. for work described as: MICROSOFT OFFICE 365 SUPPORT Key points: 1. Contract value of $3.5M over 4 years. 2. Arctic Information Technology, Inc. is the sole awardee. 3. Potential risk due to lack of competition. 4. Services fall under 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract value of $3.5M for O365 support over approximately 4 years appears reasonable given the scope. However, without competitive bidding, it's difficult to benchmark against market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no competition. This limits price discovery and may result in a higher cost to the government than if multiple vendors had bid.

Taxpayer Impact: The lack of competition on this $3.5M contract means taxpayers may not be receiving the best possible price for these essential IT support services.

Public Impact

Federal employees will continue to receive support for Microsoft Office 365. Ensures continuity of essential productivity software. Potential for increased costs due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Ensures continued O365 support
Long-term contract provides stability

Sector Analysis

This contract falls under 'Other Computer Related Services,' a broad category. Spending in this sector can vary widely, but IT support for widely used software like Office 365 is a common and necessary government expenditure.

Small Business Impact

The awardee, Arctic Information Technology, Inc., is not identified as a small business in the provided data. This contract does not appear to have specific provisions for small business participation.

Oversight & Accountability

The Federal Acquisition Service (FAS) within GSA is responsible for this contract. Oversight should focus on ensuring the necessity of the sole-source award and monitoring performance and costs.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in award justification.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.5 million to ARCTIC INFORMATION TECHNOLOGY, INC.. MICROSOFT OFFICE 365 SUPPORT

Who is the contractor on this award?

The obligated recipient is ARCTIC INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2022-02-15. End: 2026-02-27.

What is the justification for the sole-source award, and has it been adequately documented?

The justification for a sole-source award is critical for ensuring fair and efficient government spending. Agencies must provide detailed documentation explaining why competition was not feasible or advantageous. This includes demonstrating that only one source could meet the requirement, or that a compelling urgency existed. Without this documentation, it's difficult to assess the validity of the sole-source decision and its impact on taxpayer value.

What is the estimated cost savings or premium compared to a competitive procurement?

Estimating the precise cost difference without a competitive process is challenging. However, sole-source contracts typically incur a premium due to the lack of market pressure. A thorough analysis would involve benchmarking against similar O365 support contracts awarded competitively, considering factors like scope, duration, and service levels to identify potential overpayment.

How will the government ensure effective service delivery and cost control under this sole-source contract?

Effective oversight is paramount for sole-source contracts. The GSA should implement robust performance monitoring, regular contract reviews, and clear communication channels with Arctic Information Technology, Inc. Establishing key performance indicators (KPIs) and holding the contractor accountable for meeting them will be crucial for ensuring value and controlling costs throughout the contract's duration.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 86615321R00018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11500 SUKDU WAY STE 150, ANCHORAGE, AK, 99515

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,425,802

Exercised Options: $3,536,620

Current Obligation: $3,536,620

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline