GSA awards $39.5M for telecom transition support, impacting wired carriers

Contract Overview

Contract Amount: $39,511,877 ($39.5M)

Contractor: American Systems Corporation

Awarding Agency: General Services Administration

Start Date: 2016-01-05

End Date: 2020-09-30

Contract Duration: 1,730 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CT,CL::IGF CONTRACTOR SUPPORT TO PROVIDE PLANNING AND EXECUTING AN EFFECTIVE AND EFFICIENT TRANSITION FROM THE EXPIRING CONTRACTS TO THE EIS CONTRACT WHILE AVOIDING DISRUPTIONS AND ADDED COSTS.

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 $39.5 million to AMERICAN SYSTEMS CORPORATION for work described as: IGF::CT,CL::IGF CONTRACTOR SUPPORT TO PROVIDE PLANNING AND EXECUTING AN EFFECTIVE AND EFFICIENT TRANSITION FROM THE EXPIRING CONTRACTS TO THE EIS CONTRACT WHILE AVOIDING DISRUPTIONS AND ADDED COSTS. Key points: 1. Contractor: American Systems Corporation, a significant player in government IT services. 2. Sector: Wired Telecommunications Carriers (517110), crucial for federal network infrastructure. 3. Risk: Potential for disruption during transition to EIS contract if not managed effectively. 4. Value: $39.5M awarded for essential transition planning and execution services.

Value Assessment

Rating: good

The contract value of $39.5M for a 4-year period appears reasonable for specialized transition support. Benchmarking against similar large-scale IT transition contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting a robust price discovery process. This method aims to secure the best value for the government by allowing all eligible contractors to bid.

Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by obtaining competitive pricing for critical transition services.

Public Impact

Ensures continuity of essential telecommunications services during a major contract transition. Supports the government's move to the Enterprise Infrastructure Solutions (EIS) contract, a key modernization effort. Aims to prevent service disruptions and additional costs for federal agencies relying on these services. Facilitates a smooth handover of responsibilities from expiring contracts to the new EIS framework.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if transition is complex.
Dependence on contractor expertise for critical infrastructure.
Risk of service interruption during the transition period.

Positive Signals

Full and open competition ensures competitive pricing.
Focus on avoiding disruptions and added costs.
Supports a major government-wide IT modernization initiative (EIS).

Sector Analysis

This contract falls within the Wired Telecommunications Carriers sector, supporting federal agencies' critical network infrastructure. Spending in this area is substantial, driven by the need for reliable and modern communication systems.

Small Business Impact

This contract was awarded to American Systems Corporation and does not indicate specific set-asides for small businesses. The focus appears to be on large-scale transition management capabilities.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract through its Federal Acquisition Service. Oversight is crucial to ensure the contractor effectively manages the complex transition and meets performance requirements.

Related Government Programs

Wired Telecommunications Carriers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Transition Complexity
Contractor Performance Risk
Service Disruption Potential
Cost Overrun Risk

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $39.5 million to AMERICAN SYSTEMS CORPORATION. IGF::CT,CL::IGF CONTRACTOR SUPPORT TO PROVIDE PLANNING AND EXECUTING AN EFFECTIVE AND EFFICIENT TRANSITION FROM THE EXPIRING CONTRACTS TO THE EIS CONTRACT WHILE AVOIDING DISRUPTIONS AND ADDED COSTS.

Who is the contractor on this award?

The obligated recipient is AMERICAN SYSTEMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $39.5 million.

What is the period of performance?

Start: 2016-01-05. End: 2020-09-30.

What specific metrics are used to measure the success of the transition and the contractor's performance in avoiding disruptions and added costs?

Success metrics likely include on-time completion of transition milestones, minimal unplanned service outages during the handover period, adherence to budget, and successful integration with the new EIS contract framework. Performance is typically evaluated through contractor reporting, agency feedback, and adherence to Service Level Agreements (SLAs).

How does the government ensure that the contractor's proposed costs are competitive and reflect fair market value for the specialized transition services required?

The use of full and open competition is the primary mechanism for ensuring competitive pricing. The government evaluates proposals based on technical merit and price, selecting the offer that represents the best value. Cost realism analyses may also be performed on the winning proposal to validate the estimated costs.

What is the potential long-term impact on federal IT infrastructure if this transition is not executed effectively by the contractor?

An ineffective transition could lead to prolonged service disruptions, increased operational costs due to inefficiencies, security vulnerabilities, and a delay in realizing the benefits of the new EIS contract. This could hinder agency operations and the modernization of federal IT capabilities.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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

Solicitation ID: QTA0015LYC1001

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 14151 PARK MEADOW DR STE 500, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,511,877

Exercised Options: $39,511,877

Current Obligation: $39,511,877

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $12,016,950

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q12NSD0002

IDV Type: IDC

Timeline