GSA's $91.9M IT Infrastructure Contract Awarded to AAC Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $91,936,662 ($91.9M)

Contractor: AAC Inc.

Awarding Agency: General Services Administration

Start Date: 2013-02-27

End Date: 2016-01-30

Contract Duration: 1,067 days

Daily Burn Rate: $86.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE-WIDE INFRASTRUCTURE SUPPORT SERVICES. IGF::CT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $91.9 million to AAC INC. for work described as: ENTERPRISE-WIDE INFRASTRUCTURE SUPPORT SERVICES. IGF::CT::IGF Key points: 1. Contract value of $91.9M over three years suggests significant IT infrastructure needs. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The contract's duration of 1067 days (approx. 3 years) aligns with typical IT infrastructure lifecycles. 4. Fixed-price contract type may offer cost certainty but could limit flexibility for evolving needs. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 7. The base contract value of $8.6M suggests this delivery order represents a substantial portion of the potential IDIQ value.

Value Assessment

Rating: good

The contract value of $91.9 million for enterprise-wide infrastructure support services appears reasonable given the three-year duration and the scope of computer systems design services. Benchmarking against similar large-scale IT infrastructure contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests a degree of cost predictability for the government, assuming the scope of work remains stable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means that all responsible sources were permitted to submit a bid. The presence of 14 bidders suggests a robust competitive environment, which is generally favorable for price discovery and innovation. This level of competition implies that the government likely received competitive pricing and a range of technical solutions.

Taxpayer Impact: A high number of bidders in a full and open competition generally leads to better pricing for taxpayers by driving down costs through market forces.

Public Impact

Federal agencies, particularly within the General Services Administration, benefit from enhanced IT infrastructure support. Services delivered include computer systems design, crucial for maintaining and upgrading federal IT networks. The contract's impact is primarily within the District of Columbia, where GSA's Office of the Administrator is located. Workforce implications may include employment opportunities for IT professionals and support staff involved in system design and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in fixed-price contracts if requirements are not clearly defined.
Reliance on a single contractor for enterprise-wide infrastructure could create vendor lock-in.
The exclusion of sources clause, while part of a full and open process, warrants understanding the specific reasons for exclusion.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract type provides cost certainty for the government.
The large number of bidders (14) suggests a healthy market and competitive pricing.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and integration. The market for enterprise-wide IT infrastructure support is substantial, with numerous government contractors vying for these types of awards. GSA, as a major procurer of IT services, often uses IDIQ vehicles to streamline the acquisition of these critical services across various agencies. The $91.9 million award is significant and reflects the complexity and scale of supporting federal IT infrastructure.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration, as it was awarded under full and open competition and the contractor is not identified as a small business. There is no explicit mention of subcontracting goals for small businesses within the provided data. Further analysis would be needed to determine if subcontracting opportunities were made available to the small business ecosystem.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a delivery order under an IDIQ, oversight would involve monitoring performance against the contract terms, adherence to the firm fixed-price structure, and compliance with GSA's procurement regulations. Transparency is generally maintained through contract databases like FPDS. The Inspector General's office for GSA would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

General Services Administration IT Schedule 70
Enterprise IT Operations and Maintenance Contracts
Cloud Computing Services Contracts
Cybersecurity Services Contracts

Risk Flags

Potential for scope creep in fixed-price contracts.
Vendor lock-in risk due to enterprise-wide scope.
Need to verify contractor's past performance on similar scale contracts.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $91.9 million to AAC INC.. ENTERPRISE-WIDE INFRASTRUCTURE SUPPORT SERVICES. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is AAC INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Office of the Administrator).

What is the total obligated amount?

The obligated amount is $91.9 million.

What is the period of performance?

Start: 2013-02-27. End: 2016-01-30.

What is the track record of AAC Inc. in performing similar large-scale IT infrastructure contracts for the federal government?

AAC Inc. has a history of performing IT services for the federal government. To assess their track record for this specific contract, one would need to examine their past performance evaluations on similar contracts, particularly those involving enterprise-wide infrastructure support and computer systems design. Key indicators would include past performance ratings, any contract disputes or terminations, and the successful delivery of services within scope, schedule, and budget on previous engagements. A review of contract databases and agency performance reports would be necessary for a comprehensive understanding of their capabilities and reliability in handling a contract of this magnitude and complexity.

How does the awarded price of $91.9 million compare to market rates for similar enterprise-wide IT infrastructure support services?

Benchmarking the $91.9 million award against market rates requires detailed analysis of the specific services included, the contract duration (1067 days), and the geographic location (District of Columbia). Factors such as the level of technical expertise required, the number of users supported, and the complexity of the systems are critical. Comparing this contract's total value and its implied annual cost to similar government or commercial contracts for enterprise IT support, considering the firm fixed-price nature, would provide insight. Without specific market data for comparable services, a definitive comparison is challenging, but the scale suggests a significant investment in critical infrastructure.

What are the primary risks associated with this firm fixed-price contract for enterprise IT infrastructure support?

The primary risk with a firm fixed-price (FFP) contract for complex IT infrastructure is the potential for scope creep if requirements are not meticulously defined and managed. If the government's needs evolve beyond the initial scope, the contractor may be hesitant to accommodate changes without additional funding, potentially leading to disputes or delays. Conversely, if the contractor underestimates the effort or encounters unforeseen technical challenges, they may incur losses, potentially impacting service quality or leading to contractor instability. Ensuring clear contract modifications and robust change management processes are crucial to mitigate these risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring optimal value for taxpayers in this IT contract?

The 'Full and Open Competition After Exclusion of Sources' approach is designed to maximize competition while allowing for specific exclusions if justified. The fact that 14 bidders participated suggests that the exclusion did not significantly limit the competitive pool, which is positive for taxpayers. This method aims to ensure that the government receives the best possible value by soliciting offers from all responsible sources. The effectiveness is further measured by the resulting price, the technical solution proposed, and the contractor's past performance. A competitive award under this structure generally indicates a favorable outcome for taxpayer investment.

What is the historical spending pattern for enterprise-wide IT infrastructure support services by the General Services Administration?

Analyzing historical spending patterns for enterprise-wide IT infrastructure support services by GSA would reveal trends in contract values, durations, and types of services procured. GSA, as a central procurement agency, consistently invests significant funds in IT infrastructure to support its own operations and those of other federal agencies. Understanding these patterns helps in assessing whether the $91.9 million award is consistent with past investments, indicative of increasing needs, or a deviation from the norm. It also informs future budget planning and identifies potential areas for cost savings or efficiency improvements.

What are the implications of this contract being awarded as a delivery order under a larger IDIQ vehicle?

Awarding this contract as a delivery order under an Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle signifies that it is one of potentially many task orders issued against a pre-competed master contract. This approach allows agencies to procure services more rapidly and efficiently once the initial IDIQ contract has been awarded through full and open competition. For taxpayers, this can mean reduced acquisition lead times and potentially better pricing due to the pre-negotiated terms of the IDIQ. However, it also means that the total spending under the IDIQ could exceed the $91.9 million of this single delivery order, requiring ongoing monitoring of the overall IDIQ ceiling.

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

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8470 TYCO RD, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $334,567,601

Exercised Options: $100,394,550

Current Obligation: $91,936,662

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0592Z

IDV Type: GWAC

Timeline