GSA's $23.4M IT Support Contract Awarded to Criterion Systems Shows Fair Competition

Contract Overview

Contract Amount: $23,386,664 ($23.4M)

Contractor: Criterion Systems, L.L.C.

Awarding Agency: General Services Administration

Start Date: 2016-06-01

End Date: 2018-12-31

Contract Duration: 943 days

Daily Burn Rate: $24.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 18

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CL,CT::IGF NITC IT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $23.4 million to CRITERION SYSTEMS, L.L.C. for work described as: IGF::CL,CT::IGF NITC IT SUPPORT SERVICES Key points: 1. Contract value of $23.4M over approximately 2.5 years indicates a moderate investment in IT support services. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The contract was awarded via a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design services. 5. The contract's duration of 943 days (approx. 2.5 years) is typical for IT support services. 6. The award was made in the District of Columbia, a common hub for federal contracting.

Value Assessment

Rating: good

The contract value of $23.4 million over roughly 2.5 years for IT support services appears reasonable when benchmarked against similar federal contracts. While specific per-unit cost data is not provided, the competitive nature of the award suggests that pricing was likely vetted against market rates. The General Services Administration (GSA) typically manages a large portfolio of IT contracts, and this award falls within a common range for system design and support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that all responsible sources were permitted to submit offers. The fact that it was competed suggests a robust market for computer systems design services. While the exact number of bidders is not specified, the 'full and open' designation implies multiple bids were likely received, fostering price discovery and potentially leading to a more favorable outcome for the government.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by driving down prices through market forces. This approach helps prevent overpayment and ensures the government receives the best value for its investment in IT support.

Public Impact

Federal agencies requiring computer systems design and support services benefit from this contract. The contract delivers essential IT infrastructure and operational support to government operations. The primary geographic impact is within the District of Columbia, where the contract is managed. The contract supports a workforce skilled in IT systems design and support, contributing to the federal IT labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness beyond contract completion.
The 'delivery order' nature suggests this is one of many task orders under a larger IDIQ, making it harder to assess the overall value and competition of the parent contract.
Limited detail on the specific IT systems supported hinders a deeper analysis of the contract's criticality and potential risks.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace and potential for good value.
The contract is managed by the General Services Administration (GSA), an agency with extensive experience in IT procurement.
The contractor, Criterion Systems, L.L.C., has a track record of performing federal contracts, suggesting familiarity with government requirements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under Computer Systems Design Services (NAICS 541512). This is a critical sector for federal operations, encompassing a wide range of services from system design and integration to IT support and maintenance. The federal IT market is substantial, with agencies consistently investing in modernizing and maintaining their technological infrastructure. This contract represents a typical procurement within this space, aimed at ensuring the smooth functioning of government IT systems.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a specific set-aside. However, as a full and open competition, larger prime contractors like Criterion Systems may still engage small businesses as subcontractors for specialized IT services, contributing to the broader small business ecosystem. Further analysis would require examining the prime contractor's subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Federal Acquisition Service. GSA has established procurement regulations and contract administration processes to ensure compliance and accountability. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would typically reside with the GSA's Office of Inspector General, which investigates fraud, waste, and abuse in GSA programs and contracts.

Related Government Programs

GSA IT Schedule 70 (now IT Professional Services)
CIO-SP3 Small Business
Alliant Government Services
IT Support Services Contracts
Computer Systems Design Services

Risk Flags

Potential for scope creep
Cybersecurity vulnerabilities
Contractor performance issues
Over-reliance on contractor expertise
Personnel turnover impacting service delivery

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.4 million to CRITERION SYSTEMS, L.L.C.. IGF::CL,CT::IGF NITC IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CRITERION SYSTEMS, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.4 million.

What is the period of performance?

Start: 2016-06-01. End: 2018-12-31.

What is the track record of Criterion Systems, L.L.C. in performing federal IT contracts?

Criterion Systems, L.L.C. has a history of performing federal contracts, primarily within the IT services domain. While this specific contract was for computer systems design services, the company's broader federal contracting experience suggests familiarity with government procurement processes, reporting requirements, and performance expectations. A deeper dive into their contract history would reveal the types of services rendered, agencies served, and performance ratings on past awards. This information is crucial for assessing their capability and reliability in fulfilling current and future government IT needs. Their presence in the federal market indicates a capacity to compete for and manage government contracts, though the scale and complexity of past awards would provide further insight into their expertise.

How does the awarded value of $23.4 million compare to similar IT support contracts?

The awarded value of $23.4 million over approximately 2.5 years for computer systems design services is within a moderate range for federal IT contracts. Similar contracts for IT support, system design, and integration can vary significantly in value depending on the scope, duration, and complexity of services required. Contracts for large-scale system modernization or enterprise-wide IT support can reach hundreds of millions or even billions of dollars. Conversely, smaller, more specialized IT support tasks might be valued in the low millions. This contract's value suggests a significant but not exceptionally large scope of work, typical for supporting specific agency IT needs or a defined set of systems.

What are the primary risks associated with this type of IT support contract?

Primary risks associated with this type of IT support contract include scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Another significant risk is vendor lock-in, where the government becomes overly reliant on a single contractor's proprietary systems or expertise, making future transitions difficult and costly. Performance risk is also a concern, as a contractor's failure to deliver services adequately can disrupt critical government operations. Cybersecurity risks are inherent in any IT contract, as the contractor will have access to sensitive government data and systems, necessitating robust security protocols and monitoring. Finally, personnel turnover within the contractor's team can lead to loss of institutional knowledge and impact service continuity.

How effective is 'full and open competition' in ensuring value for taxpayer money in IT procurements?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in IT procurements. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This broad competition drives down costs as contractors vie for the award. Furthermore, it provides the government with a wider range of choices, enabling selection of the offer that best meets technical requirements and offers the best overall value. While it requires more administrative effort to manage a broader competition, the potential savings and improved outcomes typically outweigh these costs, making it a cornerstone of sound federal procurement policy.

What are historical spending patterns for computer systems design services by the GSA?

The General Services Administration (GSA) is a major procurer of IT services, including computer systems design. Historical spending patterns show GSA consistently awarding significant contracts in this category to support various federal agencies. Spending in this area has generally trended upwards over the years, reflecting the increasing reliance of government operations on technology and the need for sophisticated IT solutions. GSA often utilizes large IDIQ vehicles, such as the IT Schedule 70 (now IT Professional Services), to facilitate these procurements, allowing for task orders like the one awarded to Criterion Systems. Analyzing GSA's historical spending data reveals a sustained demand for these services, driven by modernization efforts and the need to maintain complex federal IT infrastructures.

What are the implications of the contract being awarded as a 'delivery order'?

The fact that this contract was awarded as a 'delivery order' implies it is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. This contracting method allows agencies to procure services or supplies on an as-needed basis over a set period, often with a defined ceiling value. For the government, it offers flexibility and streamlined ordering processes. For the contractor, it provides a potential stream of work. The implications for value are tied to the underlying IDIQ contract's competition and pricing structure. If the parent IDIQ was competitively awarded, then delivery orders under it are generally considered to represent good value. However, the specific terms and pricing of the delivery order itself are crucial for a complete assessment.

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

Solicitation ID: ID05140054

Offers Received: 18

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8330 BOONE BLVD STE 400, VIENNA, VA, 22182

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

Financial Breakdown

Contract Ceiling: $128,410,943

Exercised Options: $23,386,664

Current Obligation: $23,386,664

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0643Z

IDV Type: GWAC

Timeline