GSA's $18.5M IT modernization contract awarded to Incentive Technology Group LLC shows strong competition

Contract Overview

Contract Amount: $18,529,427 ($18.5M)

Contractor: Incentive Technology Group LLC

Awarding Agency: General Services Administration

Start Date: 2012-03-19

End Date: 2017-03-16

Contract Duration: 1,823 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::IGF ELEASE MODERNIZATON SERVICES

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 $18.5 million to INCENTIVE TECHNOLOGY GROUP LLC for work described as: IGF::CL::IGF ELEASE MODERNIZATON SERVICES Key points: 1. The contract utilized full and open competition, indicating a robust bidding process. 2. The fixed-price contract type suggests a clear scope and predictable costs. 3. The contract duration of over 1800 days points to a long-term need for these services. 4. The award was made to a single vendor, Incentive Technology Group LLC. 5. The services fall under Computer Facilities Management, a critical IT infrastructure area. 6. The contract was awarded by the General Services Administration's Public Buildings Service. 7. The contract was a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging without knowing the underlying IDIQ vehicle and its specific tasking. However, the firm-fixed-price structure generally promotes cost control. The total award amount of $18.5 million over approximately five years suggests a moderate annual spend for IT modernization services. Further analysis would require comparing the per-unit costs or labor rates against similar task orders issued under the same or comparable IDIQ contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates that 8 bids were received, suggesting a healthy level of interest and competition for this requirement. A competitive process like this typically drives down prices and encourages innovation as vendors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally leads to better pricing and a wider selection of qualified vendors, ensuring the government receives the best value for its investment.

Public Impact

Federal agencies, particularly those managed by GSA, benefit from modernized IT infrastructure. Improved IT facilities management services enhance the efficiency and security of government operations. The contract supports IT modernization efforts within the District of Columbia. The contract likely supports a workforce involved in IT services and facility management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the IDIQ vehicle was not competitively re-competed.
Reliance on a single vendor for critical IT modernization services could pose a risk if performance issues arise.

Positive Signals

The use of full and open competition is a strong positive signal for value and fairness.
The firm-fixed-price contract type provides cost certainty for the government.
The award to Incentive Technology Group LLC suggests they met the government's technical and cost requirements.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on Computer Facilities Management Services. This is a broad category encompassing the maintenance, management, and modernization of IT infrastructure. The market for such services is large and competitive, with numerous vendors offering solutions to government agencies. The $18.5 million award is a moderate-sized contract within this sector, likely supporting specific modernization initiatives rather than a large-scale enterprise-wide overhaul.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Furthermore, the 'sb' field is false, suggesting no explicit small business subcontracting goals were mandated. This implies that the primary focus was on obtaining the best overall solution through full and open competition, rather than prioritizing small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service. As a delivery order under a potential IDIQ, oversight would involve monitoring performance against the task order requirements, ensuring compliance with contract terms, and managing payments. The firm-fixed-price nature of the contract simplifies financial oversight by providing cost predictability. Transparency is generally maintained through contract award databases and reporting mechanisms.

Related Government Programs

IT Facilities Management Services
General Services Administration IT Contracts
Public Buildings Service IT Modernization
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Potential for scope creep in long-term IT modernization projects.
Vendor performance risk if technical challenges are underestimated.
Reliance on a single vendor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $18.5 million to INCENTIVE TECHNOLOGY GROUP LLC. IGF::CL::IGF ELEASE MODERNIZATON SERVICES

Who is the contractor on this award?

The obligated recipient is INCENTIVE TECHNOLOGY GROUP LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2012-03-19. End: 2017-03-16.

What was the specific nature of the IT modernization services provided under this contract?

The contract's North American Industry Classification System (NAICS) code is 541513, which designates Computer Facilities Management Services. This typically includes services related to the operation and maintenance of clients' computer systems and/or the facilities in which these systems are housed. For this specific contract, it likely involved upgrading, maintaining, or managing IT infrastructure within GSA-managed facilities. This could encompass hardware maintenance, network management, data center operations, or other IT support functions aimed at modernizing the existing technological environment to improve efficiency, security, and performance.

How does the $18.5 million award compare to similar IT modernization contracts managed by GSA?

The $18.5 million total award value over approximately five years places this contract in the mid-tier range for IT services procured by the General Services Administration. GSA manages a vast portfolio of IT contracts, many of which are significantly larger, particularly those supporting enterprise-wide solutions or large-scale cloud migrations. However, this amount is substantial enough to indicate a significant project within its scope. To provide a precise comparison, one would need to analyze the specific services rendered and benchmark against other task orders issued under similar IDIQ vehicles or contracts with comparable NAICS codes and agencies within GSA.

What are the key risks associated with a firm-fixed-price contract for IT modernization?

While firm-fixed-price (FFP) contracts offer cost certainty, they can introduce risks for both the government and the contractor in IT modernization projects. For the government, if the scope is not clearly defined or if unforeseen technical challenges arise, the contractor may be incentivized to cut corners on quality or performance to maintain profitability, potentially leading to suboptimal outcomes. Conversely, if the contractor underestimates the complexity or effort required, they may incur significant losses. Effective risk mitigation relies on a well-defined SOW, robust contractor oversight, and clear change management processes to address any scope creep or unforeseen issues.

What does the number of bidders (8) suggest about the competitiveness of the IT facilities management market?

Receiving 8 bids for this contract under full and open competition is a strong indicator of a healthy and competitive market for IT facilities management services. It suggests that multiple companies possess the capabilities and interest to pursue government contracts in this domain. A higher number of bidders generally leads to more competitive pricing, better quality offerings, and increased innovation as vendors strive to differentiate themselves. This level of competition is beneficial for the government, as it increases the likelihood of securing a high-value solution at a reasonable cost.

What is the historical spending pattern for Computer Facilities Management Services (NAICS 541513) by the GSA?

Historical spending by the General Services Administration (GSA) on Computer Facilities Management Services (NAICS 541513) is substantial, reflecting the agency's role in providing IT infrastructure and support across the federal government. GSA often acts as a consolidator and procurer of IT services, leveraging its purchasing power. While specific aggregate spending figures for this NAICS code by GSA fluctuate annually based on agency needs and evolving technology landscapes, it consistently represents a significant portion of the agency's IT procurement budget. This contract, valued at $18.5 million, aligns with the typical scale of projects GSA undertakes in this area.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1530 N KEY BLVD STE 1202, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $24,203,581

Exercised Options: $18,529,427

Current Obligation: $18,529,427

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0164V

IDV Type: FSS

Timeline