GSA awards $16.7M for IT support services to Digicon Corporation over five years
Contract Overview
Contract Amount: $16,737,350 ($16.7M)
Contractor: Digicon Corporation
Awarding Agency: General Services Administration
Start Date: 2010-10-01
End Date: 2015-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $9.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: REGIONAL IT AND HEADQUARTERS SUPPORT SERVICES
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $16.7 million to DIGICON CORPORATION for work described as: REGIONAL IT AND HEADQUARTERS SUPPORT SERVICES Key points: 1. Contract value represents a moderate investment in IT support. 2. Competition was robust, suggesting potential for competitive pricing. 3. Performance period of five years allows for sustained service delivery. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The 'Other Computer Related Services' NAICS code indicates a broad scope of IT support. 6. Contract awarded via a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.
Value Assessment
Rating: good
The contract's total value of $16.7 million over five years averages approximately $3.35 million annually. Benchmarking against similar IT support contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if performance is met. The number of bids received (3) indicates a reasonable level of interest, but a higher number could potentially drive prices lower.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Three bids were received, suggesting a moderate level of competition for this requirement. While three bidders is not exceptionally high, it does provide a basis for price comparison and ensures that the government is not limited to a single provider. The use of a delivery order under an IDIQ vehicle implies that the initial competition occurred at the IDIQ level.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider range of innovative solutions. The presence of multiple bidders helps ensure that the government receives fair market value for the services procured.
Public Impact
Federal agencies requiring IT and headquarters support services benefit from this contract. Services delivered likely include a range of IT support functions, such as help desk, network management, and system administration. The contract is geographically focused on Virginia, supporting regional IT and headquarters operations. The contract supports a workforce skilled in various IT disciplines.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if 'Other Computer Related Services' is interpreted broadly.
- Dependence on a single contractor for critical IT support functions.
- Risk of vendor lock-in if follow-on contracts are not competitively procured.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor.
- Five-year performance period allows for stable service delivery.
- Awarded under full and open competition, promoting market access.
Sector Analysis
This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services.' The IT services market is highly competitive and constantly evolving. Contracts for IT support are common across federal agencies, with spending often driven by the need to maintain aging infrastructure, implement new technologies, and provide end-user support. Benchmarks for IT support services vary widely based on the scope and complexity of the services required.
Small Business Impact
This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. However, the prime contractor, Digicon Corporation, may choose to subcontract portions of the work to small businesses as part of its overall business strategy, but this is not a requirement of this contract.
Oversight & Accountability
Oversight for this contract would primarily be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. As a delivery order under an IDIQ contract, oversight mechanisms would include contract administration, performance monitoring, and ensuring compliance with the terms and conditions. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- IT Professional Services
- IT Services (8(a))
- IT and Telecommunications
Risk Flags
- Potential for vendor lock-in
- Risk of underperformance in fixed-price contracts
- Scope definition clarity for 'Other Computer Related Services'
Tags
it-services, gsa, federal-acquisition-service, digicon-corporation, firm-fixed-price, delivery-order, full-and-open-competition, naics-541519, virginia, it-support, headquarters-support, medium-value-contract
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $16.7 million to DIGICON CORPORATION. REGIONAL IT AND HEADQUARTERS SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is DIGICON CORPORATION.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $16.7 million.
What is the period of performance?
Start: 2010-10-01. End: 2015-09-30.
What is the track record of Digicon Corporation with the federal government, particularly in IT support services?
Digicon Corporation has a history of federal contracting, primarily within the IT services domain. Analyzing their past performance on similar contracts, especially those involving IT and headquarters support, would provide insight into their reliability, quality of service, and ability to meet government requirements. Reviewing contract awards, performance evaluations (if publicly available), and any past disputes or corrective actions would offer a comprehensive view of their track record. Their experience with firm-fixed-price contracts and delivery orders under IDIQ vehicles is also a key factor in assessing their suitability for this type of work.
How does the average annual value of this contract compare to similar IT support contracts awarded by GSA or other agencies?
The average annual value of this contract is approximately $3.35 million ($16.7M / 5 years). To benchmark this effectively, one would need to compare it against IT support contracts with similar scopes of work, service levels, and geographic locations. Contracts for 'Other Computer Related Services' can vary significantly in price depending on the specific services offered (e.g., help desk, network management, cybersecurity, software development support). A comparison with contracts awarded under the same or similar IDIQ vehicles, or those with comparable NAICS codes and contract types, would provide a more accurate assessment of its value for money.
What are the primary risks associated with a five-year firm-fixed-price contract for IT support services?
A primary risk with a five-year firm-fixed-price contract for IT support is the potential for the contractor to underperform if the fixed price becomes unprofitable due to unforeseen market changes or increased operational costs. Conversely, if the initial pricing was too high, the government might overpay. For the government, the risk lies in the contractor's ability to maintain service quality over the long term without adequate incentives for improvement, or potential for scope creep if not managed tightly. For the contractor, the risk is absorbing cost increases or failing to meet performance standards within the fixed price.
How effective has the GSA Federal Acquisition Service been in procuring IT support services through IDIQ vehicles and delivery orders?
The GSA Federal Acquisition Service (FAS) has a long history of procuring a wide range of services, including IT support, through IDIQ vehicles and subsequent delivery orders. This approach is generally considered efficient for agencies needing recurring services, as it streamlines the ordering process after initial competition. The effectiveness often depends on the quality of the initial IDIQ competition, the clarity of the task orders issued, and the agency's contract administration capabilities. GSA's extensive experience suggests a generally effective framework, though specific outcomes can vary based on individual contract performance and oversight.
What is the historical spending trend for 'Other Computer Related Services' (NAICS 541519) within the federal government?
Historical spending on NAICS code 541519, 'Other Computer Related Services,' has generally shown an upward trend within the federal government over the past decade, reflecting the increasing reliance on IT infrastructure and specialized computer services. This category often captures a diverse range of services not specifically defined under other IT NAICS codes, such as IT consulting, data processing services, and IT disaster recovery. Analyzing specific agency spending patterns within this category can reveal which departments are the largest consumers and for what types of services, providing context for the significance of individual awards like this one.
What are the implications of awarding this contract via a delivery order under a larger IDIQ contract?
Awarding this contract as a delivery order under a larger IDIQ contract signifies that the primary competition and contract vehicle establishment occurred at an earlier stage, likely for a broader scope of services or a longer potential period. This method allows for faster procurement of specific services once the IDIQ is in place. For taxpayers, it can mean more efficient government operations if the IDIQ was well-competed. However, it also means that the competition for this specific $16.7 million award was limited to those pre-qualified under the parent IDIQ, potentially reducing the pool of bidders compared to a standalone solicitation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 9Q0SDBIS020
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7926 JONES BRANCH DR STE 615, MC LEAN, VA, 22102
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,027,105
Exercised Options: $16,737,350
Current Obligation: $16,737,350
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F5109H
IDV Type: FSS
Timeline
Start Date: 2010-10-01
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2024-02-09
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