GSA's $50.5M IT Services Contract Awarded to SI International Engineering, Inc. for 9 Years

Contract Overview

Contract Amount: $50,481,555 ($50.5M)

Contractor: SI International Engineering, Inc

Awarding Agency: General Services Administration

Start Date: 2003-03-15

End Date: 2012-02-29

Contract Duration: 3,273 days

Daily Burn Rate: $15.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Place of Performance

Location: DENVER, ADAMS County, COLORADO, 80022

State: Colorado Government Spending

Plain-Language Summary

General Services Administration obligated $50.5 million to SI INTERNATIONAL ENGINEERING, INC for work described as: Key points: 1. Contract awarded through a competitive process, suggesting potential for price discovery. 2. Long duration of 9 years may indicate a need for sustained services but also carries inherent risks. 3. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not closely monitored. 4. Awarded under NAICS code 541519 (Other Computer Related Services), placing it within the broader IT services sector. 5. The contract's value is significant, requiring robust oversight to ensure value for taxpayer money. 6. Performance context is limited without specific details on deliverables and outcomes. 7. Sector positioning within IT services is broad, encompassing various computer-related support functions.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure, while offering flexibility, can lead to higher costs compared to fixed-price contracts if cost controls are not stringent. The total award amount of $50.5 million over nearly nine years averages to approximately $5.6 million annually, which appears moderate for IT services of this duration. However, a detailed analysis of the fixed fee and the allowable costs would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a 'COMPETITIVE DELIVERY ORDER' process, indicating it was competed under a larger indefinite-delivery indefinite-quantity (IDIQ) contract. The presence of '2' bidders suggests a limited but not entirely restricted competition. While competitive, the exact number of bidders and the evaluation criteria are not detailed here, making it difficult to fully assess the extent of price discovery achieved. A more robust competition with a higher number of bidders typically leads to better price negotiation for the government.

Taxpayer Impact: A competitive award process, even with a limited number of bidders, is generally favorable for taxpayers as it introduces some level of price pressure. However, the specific details of the competition are crucial to determine if the best possible value was secured.

Public Impact

Federal agencies requiring 'Other Computer Related Services' benefit from the sustained IT support provided. The contract supports the operational needs of the General Services Administration (GSA) and potentially other federal entities. Geographic impact is likely nationwide, given GSA's role in supporting federal operations. Workforce implications include employment opportunities for IT professionals within SI International Engineering, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed effectively.
Long contract duration (9 years) increases the risk of scope creep and potential for outdated technology.
Limited competition (2 bidders) may have resulted in a less competitive price than a broader competition.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services rendered.

Positive Signals

Awarded through a competitive process, indicating an effort to secure fair pricing.
The contractor, SI International Engineering, Inc., has a track record of performing federal contracts.
The contract is managed by the General Services Administration (GSA), a major federal procurement agency with established oversight processes.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically under 'Other Computer Related Services' (NAICS 541519). This broad category encompasses a wide range of IT support, consulting, and integration services. The IT services market is highly competitive and dynamic, with significant government spending allocated to maintaining and modernizing federal IT infrastructure. Comparable spending benchmarks would typically involve analyzing other large IT service contracts awarded by GSA or other agencies for similar scope and duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, SI International Engineering, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service which awarded the contract. As a Cost Plus Fixed Fee contract, GSA would be responsible for closely monitoring the contractor's costs to ensure they remain reasonable and allowable, and that the fixed fee is earned. Transparency would be assessed through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA IT Schedule Contracts
Federal Civilian IT Services
IT Professional Services
Computer Systems Design Services

Risk Flags

Long contract duration
Cost Plus Fixed Fee contract type
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $50.5 million to SI INTERNATIONAL ENGINEERING, INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SI INTERNATIONAL ENGINEERING, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $50.5 million.

What is the period of performance?

Start: 2003-03-15. End: 2012-02-29.

What is the track record of SI International Engineering, Inc. in performing federal IT contracts, particularly those of similar scope and value?

SI International Engineering, Inc. has a history of performing federal contracts, including those within the IT services domain. Analyzing their past performance on similar contracts would involve reviewing contract databases for awards, performance ratings (if available), and any documented issues or successes. For a contract of this value and duration, it would be important to ascertain if they have successfully managed complex IT projects, adhered to budgets, and met delivery timelines. A review of their contract history would reveal their experience with various contract types, including Cost Plus Fixed Fee, and their ability to manage associated risks and reporting requirements. Without specific performance data for this particular contract, a general assessment of their federal contracting experience is the primary indicator.

How does the average annual cost of this contract compare to similar IT services contracts awarded by GSA or other agencies?

The average annual cost of this contract is approximately $5.6 million ($50.5 million / 9 years). To benchmark this, one would need to compare it against other IT services contracts awarded by GSA or similar agencies for comparable services (e.g., computer systems design, IT support, integration) over similar timeframes. Factors such as the specific services rendered, the level of expertise required, the number of users supported, and the prevailing market rates for IT labor at the time of award are critical for a fair comparison. If comparable contracts show significantly lower annual costs for similar scope, it could indicate potential overpricing or inefficiencies in this contract. Conversely, if it aligns with or is lower than benchmarks, it suggests reasonable value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a CPFF contract of this magnitude and duration include potential cost overruns, reduced incentive for efficiency, and the risk of scope creep. In a CPFF structure, the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. If the government's cost accounting and oversight are not rigorous, contractors may have less incentive to control costs, as they are guaranteed their fee regardless of efficiency. The long duration increases the likelihood that project requirements may change or evolve, leading to scope creep, which can inflate costs beyond initial estimates. Furthermore, the fixed fee, while intended to provide a predictable profit, might be disproportionately high if costs are not well-managed. Effective risk mitigation requires robust government oversight of expenditures and strict change control processes.

What specific IT services are being provided under this contract, and how do they align with GSA's mission?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad classification suggests the services could encompass a wide range of IT support, including but not limited to IT consulting, systems integration, custom software development, IT project management, and potentially IT infrastructure support. These services would align with GSA's mission to provide efficient and effective government-wide procurement and management of federal assets, including IT infrastructure and services. By ensuring federal agencies have access to necessary IT support, GSA facilitates the government's ability to operate and deliver services to the public.

How has spending on 'Other Computer Related Services' (NAICS 541519) by the General Services Administration evolved over the past decade?

To assess the evolution of spending on NAICS 541519 by GSA, one would need to analyze historical federal procurement data. This would involve querying databases like USAspending.gov or FPDS-NG for contracts awarded by GSA under this specific NAICS code over the last ten years. The analysis would reveal trends in total spending, the number of contracts awarded, and potentially the average contract value. Such an analysis could indicate whether GSA's reliance on these types of services has increased or decreased, and whether spending patterns are consistent with broader government IT modernization efforts or budget fluctuations. This context helps in understanding the significance of the $50.5 million award within GSA's overall IT procurement landscape.

What are the implications of awarding a long-term (9-year) IT contract in a rapidly evolving technological landscape?

Awarding a long-term IT contract, such as this 9-year agreement, in a rapidly evolving technological landscape presents both opportunities and significant risks. The opportunity lies in providing stable, long-term support and potentially achieving economies of scale or deeper integration with the contractor's services. However, the primary risk is technological obsolescence. By the end of the contract term, the technologies and methodologies employed may be outdated, requiring substantial reinvestment. Furthermore, long-term contracts can reduce flexibility to adopt newer, more efficient technologies that emerge during the contract period. Effective contract management, including provisions for technology refresh and performance-based metrics that encourage innovation, is crucial to mitigate these risks and ensure the government receives value throughout the contract's life.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 1615 S MURRAY BLVD, COLORADO SPRINGS, CO, 05

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $62,513,157

Exercised Options: $62,513,157

Current Obligation: $50,481,555

Parent Contract

Parent Award PIID: GS07T00BGD0039

IDV Type: GWAC

Timeline