GSA awards $42.5M IT contract to Lakeview Center Inc. for baseline software development

Contract Overview

Contract Amount: $42,495,540 ($42.5M)

Contractor: Lakeview Center Inc

Awarding Agency: General Services Administration

Start Date: 2017-01-13

End Date: 2018-07-12

Contract Duration: 545 days

Daily Burn Rate: $78.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF - DMDC EITS EBO BASELINE SOFTWARE DEVELOPMENT TO 65

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $42.5 million to LAKEVIEW CENTER INC for work described as: IGF::OT::IGF - DMDC EITS EBO BASELINE SOFTWARE DEVELOPMENT TO 65 Key points: 1. Contract value of $42.5M for a 545-day period suggests a significant investment in IT infrastructure. 2. The contract was awarded on a 'not available for competition' basis, raising questions about market research and potential alternatives. 3. The primary service category is Computer Systems Design Services, indicating a focus on IT solutions and development. 4. The contract's duration of 545 days (approx. 1.5 years) points to a medium-term project lifecycle. 5. The firm fixed-price contract type aims to control costs, but the lack of competition may limit price negotiation. 6. Awarded by the General Services Administration (GSA), this contract falls under the Federal Acquisition Service. 7. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: questionable

The contract value of $42.5 million for a 545-day period for computer systems design services is substantial. Without comparable contract data or detailed scope of work, it's difficult to definitively benchmark value. However, the lack of competition is a significant concern that could lead to inflated pricing. The firm fixed-price nature provides some cost certainty, but the absence of competitive bidding means taxpayers may not have received the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'not available for competition' basis, which is a form of sole-source procurement. This indicates that the agency did not conduct a full and open competition, likely due to specific circumstances such as the existence of a unique capability or a critical need that only one vendor could fulfill. The lack of multiple bidders means there was no direct price comparison or market pressure to drive down costs.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This limits the government's ability to leverage market forces for cost savings.

Public Impact

The primary beneficiary is the agency requiring baseline software development services, likely improving its IT capabilities. The services delivered include computer systems design, potentially encompassing software engineering, system integration, and IT consulting. The geographic impact is primarily within California, where the contractor, Lakeview Center Inc., is located. Workforce implications may include employment opportunities for IT professionals and software developers at Lakeview Center Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
The 'not available for competition' award justification needs thorough review to ensure it was appropriate.
Limited transparency into the procurement process due to the sole-source nature of the award.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Awarded by GSA, a reputable agency known for managing federal IT procurements.
The contract addresses a specific need for baseline software development, indicating a defined project objective.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The IT services market is highly dynamic and competitive, with significant government spending allocated to software development, system integration, and IT support. Comparable spending benchmarks for similar IT development contracts can vary widely based on complexity, duration, and specific technologies involved. GSA's role often involves leveraging its purchasing power to secure IT services for various federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is also no explicit mention of subcontracting goals for small businesses. This suggests that the primary contractor, Lakeview Center Inc., will likely perform the majority of the work, and there may be limited opportunities for small businesses to participate in this specific contract, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer at the General Services Administration (GSA). The firm fixed-price nature provides some level of financial oversight by limiting cost overruns. Transparency is somewhat limited due to the sole-source award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Software Development
Computer Systems Design
Federal Acquisition Service Contracts
General Services Administration IT Procurement

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $42.5 million to LAKEVIEW CENTER INC. IGF::OT::IGF - DMDC EITS EBO BASELINE SOFTWARE DEVELOPMENT TO 65

Who is the contractor on this award?

The obligated recipient is LAKEVIEW CENTER INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $42.5 million.

What is the period of performance?

Start: 2017-01-13. End: 2018-07-12.

What specific baseline software development needs does this contract address for the agency?

The provided data does not specify the exact nature of the 'baseline software development' required. This typically refers to the foundational software or systems upon which future enhancements or applications will be built. It could involve developing core operating systems, foundational databases, or essential application frameworks. Without further details from the contract's statement of work, it's impossible to ascertain the precise technical requirements or the specific agency benefiting from these services. Understanding the 'baseline' is crucial for assessing the contract's necessity and its long-term impact on the agency's IT infrastructure.

What is the justification for awarding this contract on a 'not available for competition' basis?

The data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a sole-source justification. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for contracting without full and open competition. Common reasons include: only one responsible source exists, the award is made under certain emergency conditions, or it's authorized or required by statute. For this specific contract, the justification would need to be documented by the GSA, detailing why competitive procedures were not feasible or not in the government's best interest. This could stem from unique technical expertise, proprietary technology, or a critical, time-sensitive need that only Lakeview Center Inc. could meet.

How does the $42.5 million contract value compare to similar IT development contracts awarded by GSA or other agencies?

Benchmarking the $42.5 million contract value requires access to detailed data on similar IT development contracts, including their scope, duration, and specific services. Without this comparative data, it's challenging to assess if the price is reasonable. However, for a 545-day project focused on foundational software development, this figure represents a substantial investment. The lack of competition inherently makes price comparison difficult, as there was no market pressure to achieve the lowest possible cost. A thorough value analysis would necessitate comparing the contract's deliverables and performance metrics against other government IT projects of comparable complexity and scale.

What is Lakeview Center Inc.'s track record with federal IT contracts, particularly sole-source awards?

The provided data identifies Lakeview Center Inc. as the contractor but does not offer details on their past performance or track record with federal IT contracts. To assess their reliability and experience, one would need to examine their contract history, including past performance evaluations, any disputes or terminations, and their success rate with similar types of IT development work. Understanding their history with sole-source awards would also be relevant, particularly to see if this is a pattern or an isolated instance, and whether they have consistently delivered value under such conditions.

What are the potential risks associated with a sole-source IT development contract of this magnitude?

The primary risk associated with a sole-source IT development contract of this magnitude is the potential for inflated costs due to the absence of competition. Without competing bids, the government may pay a premium. Other risks include vendor lock-in, where the agency becomes overly reliant on a single provider, potentially hindering future flexibility or innovation. There's also a risk that the chosen vendor may not possess the absolute best solution available in the market, as alternatives were not explored. Furthermore, the justification for sole-sourcing needs to be robust to ensure public funds are used appropriately and efficiently.

What is the expected impact of this contract on the agency's IT capabilities and future modernization efforts?

This contract is expected to establish or enhance the agency's foundational IT infrastructure through baseline software development. This could lead to improved system performance, enhanced security, and a more stable platform for future applications and services. By investing in baseline development, the agency is likely aiming to create a more robust and scalable IT environment, which is crucial for ongoing modernization efforts. The success of this contract will directly influence the agency's ability to adopt new technologies, integrate systems, and deliver services more effectively in the long term.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: ID03170021

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Escambia County School District (UEI: 808973353)

Address: 1221 W LAKEVIEW AVE, PENSACOLA, FL, 32501

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,511,540

Exercised Options: $42,495,540

Current Obligation: $42,495,540

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9821013D0003

IDV Type: IDC

Timeline