GSA awards $18.5M IT services contract to SMARTRONIX, LLC for computer systems design

Contract Overview

Contract Amount: $18,475,733 ($18.5M)

Contractor: Smartronix, LLC

Awarding Agency: General Services Administration

Start Date: 2009-07-08

End Date: 2014-03-31

Contract Duration: 1,727 days

Daily Burn Rate: $10.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TAS::95 3725::TAS AMERICAN RECOVERY AND REINVESTMENT ACT PROJECT

Place of Performance

Location: HOLLYWOOD, SAINT MARYS County, MARYLAND, 20636

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $18.5 million to SMARTRONIX, LLC for work described as: TAS::95 3725::TAS AMERICAN RECOVERY AND REINVESTMENT ACT PROJECT Key points: 1. Contract value of $18.5 million over nearly five years suggests a moderate investment in IT support. 2. The use of a competitive delivery order indicates a structured procurement process with potential for price negotiation. 3. Fixed-price contract type aims to control costs and provide predictability for the government. 4. The contract duration of 1727 days (approx. 4.7 years) allows for sustained service delivery. 5. Awarded by the General Services Administration, this contract falls under IT services, a common area of federal spending. 6. The specific NAICS code 541512 points to a focus on computer systems design and related services.

Value Assessment

Rating: good

The contract value of $18.5 million for computer systems design services over approximately 4.7 years appears reasonable for a federal IT contract of this scope. Without specific benchmarks for the exact services rendered, it's difficult to provide a precise value-for-money assessment. However, the use of a competitive delivery order suggests that pricing was evaluated against other potential vendors, which typically leads to more favorable rates than sole-source awards. The firm-fixed-price structure also helps in managing cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle that allowed for multiple vendors. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While not a large number, it indicates that multiple firms were interested and capable of performing the required services, which generally aids in price discovery and ensures a selection based on a combination of factors including price and technical merit.

Taxpayer Impact: A competitive award process, even with a limited number of bidders, generally benefits taxpayers by fostering a more competitive pricing environment and encouraging vendors to offer their best value propositions.

Public Impact

Federal agencies requiring computer systems design and integration services benefit from the expertise provided by SMARTRONIX, LLC. The contract supports the modernization and efficiency of federal IT infrastructure. Services are likely delivered within Maryland, as indicated by the 'ST' and 'SN' fields. The contract supports skilled IT professionals in the computer systems design sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is heavily reliant on this specific system design.
Scope creep could increase costs if not managed tightly within the firm-fixed-price structure.
Dependence on a single contractor for critical system design could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Competitive award process suggests a fair market price was likely achieved.
Contract duration allows for stable service provision and knowledge transfer.

Sector Analysis

The IT services sector is a significant component of federal spending, encompassing a wide range of needs from software development to cybersecurity and systems integration. Contracts like this, under NAICS code 541512 (Computer Systems Design Services), are crucial for maintaining and upgrading the complex technological infrastructure that supports government operations. The General Services Administration (GSA) plays a key role in facilitating these procurements, often leveraging large IDIQ vehicles to streamline the process. Spending in this category is highly competitive, with numerous large and small businesses vying for federal contracts.

Small Business Impact

This contract was not specifically set aside for small businesses, as indicated by 'sb': false. SMARTRONIX, LLC is likely a mid-to-large-sized business. There is no explicit information provided regarding subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem for this particular award, though the competitive nature might have involved small business participation in the bidding process.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts, including performance monitoring and contract management. As a competitive delivery order, it would be subject to the terms and conditions of the parent IDIQ contract, which usually includes reporting requirements and performance standards. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

IT Professional Services
Computer Systems Design
General Services Administration Contracts
Federal Acquisition Service
Information Technology Services

Risk Flags

Potential for scope creep
Vendor performance risk
Technical obsolescence in IT sector

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $18.5 million to SMARTRONIX, LLC. TAS::95 3725::TAS AMERICAN RECOVERY AND REINVESTMENT ACT PROJECT

Who is the contractor on this award?

The obligated recipient is SMARTRONIX, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2009-07-08. End: 2014-03-31.

What is the track record of SMARTRONIX, LLC with federal contracts, particularly in IT services?

SMARTRONIX, LLC has a history of receiving federal contracts, primarily within the IT and defense sectors. Their awards often span various IT services, including systems integration, cybersecurity, cloud computing, and software development. Analyzing their past performance on similar contracts, especially those with the General Services Administration (GSA) or other civilian agencies, would provide insight into their reliability, quality of service, and ability to manage complex projects. A review of contract close-out data and any performance evaluations (if publicly available) would further illuminate their track record. Their consistent receipt of contracts suggests a recognized capability within the federal marketplace.

How does the $18.5 million contract value compare to similar IT services contracts awarded by GSA?

The $18.5 million contract value for computer systems design services over approximately 4.7 years is within a moderate range for federal IT procurements. GSA awards a vast number of IT contracts, with values ranging from small task orders to multi-billion dollar programs. For specific computer systems design services (NAICS 541512), contracts can vary significantly based on scope, duration, and complexity. This particular award appears to be a substantial but not exceptionally large contract. Benchmarking against other competitive delivery orders for similar services under GSA's IT Schedule or other IDIQ vehicles would provide a more precise comparison, but the value suggests a significant project requiring dedicated resources over an extended period.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns despite the firm-fixed-price structure. Another risk is vendor performance; if SMARTRONIX, LLC fails to deliver quality services, it could impact the agency's IT operations. Technical obsolescence is also a concern in the fast-paced IT sector, where designed systems might quickly become outdated. Mitigation strategies likely involve robust contract management by GSA, clear performance metrics, regular progress reviews, and potentially incorporating clauses for system upgrades or adaptability. The competitive nature of the award also serves as a baseline mitigation, as vendors are incentivized to perform well to secure future work.

What is the expected program effectiveness and impact of these computer systems design services?

The effectiveness of this contract hinges on the successful design and implementation of computer systems that meet the specific needs of the contracting agency. Ideally, these services will lead to improved operational efficiency, enhanced data security, better system integration, and potentially cost savings through optimized IT infrastructure. The impact could range from streamlining internal workflows to enabling new capabilities for the agency. The success will be measured by how well the designed systems perform against defined requirements, user satisfaction, and the achievement of any stated program objectives related to modernization or capability enhancement.

How has federal spending in computer systems design services (NAICS 541512) trended over the past five years?

Federal spending on computer systems design services (NAICS 541512) has generally shown a consistent upward trend over the past five years, driven by the ongoing digital transformation initiatives across government agencies. Agencies continually seek to modernize legacy systems, enhance cybersecurity, adopt cloud technologies, and improve data analytics capabilities. This sustained demand reflects the critical role of IT infrastructure in supporting federal missions. While specific year-over-year fluctuations can occur due to budget cycles and shifting priorities, the overall trajectory indicates a strong and persistent need for these specialized IT services within the federal government.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AVT0009100

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44150 SMARTRONIX WAY, HOLLYWOOD, MD, 20636

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,475,734

Exercised Options: $18,475,733

Current Obligation: $18,475,733

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS00Q09BGD0050

IDV Type: GWAC

Timeline