GSA's $29.5M IT support contract to BAE Systems shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $29,501,180 ($29.5M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: General Services Administration

Start Date: 2008-09-29

End Date: 2012-09-28

Contract Duration: 1,460 days

Daily Burn Rate: $20.2K/day

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: IT

Official Description: DSS ENTERPRISE SERVICES SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $29.5 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: DSS ENTERPRISE SERVICES SUPPORT Key points: 1. Contract value appears reasonable given the scope of IT enterprise services. 2. Limited competition suggests potential for higher pricing than a fully open market. 3. Contract duration and delivery order structure indicate a need for ongoing IT support. 4. Performance context is within general IT services, a common government need. 5. Sector positioning is in IT services, a significant area of federal spending. 6. Contractor BAE Systems is a large, established player in the federal IT market.

Value Assessment

Rating: good

The contract's total value of approximately $29.5 million over four years for enterprise IT support appears to be within a reasonable range for the services provided. Benchmarking against similar large-scale IT support contracts suggests that the pricing, while not explicitly detailed here, likely falls within acceptable parameters for a contract of this nature. The absence of specific performance metrics or detailed cost breakdowns makes a precise value-for-money assessment challenging, but the overall expenditure seems aligned with the expected costs of comprehensive IT services for a federal agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded via a limited competition, indicating that not all potential offerors were solicited. With five bids received, the competition level was moderate, but it falls short of a full and open competition which would typically involve a broader range of bidders. This limited scope may have influenced the final pricing and the range of innovative solutions considered. Further details on the specific reasons for the limited competition would be necessary for a complete assessment.

Taxpayer Impact: Limited competition can sometimes lead to less competitive pricing for taxpayers compared to a scenario with numerous bidders vying for the contract.

Public Impact

The primary beneficiary is the General Services Administration (GSA), which receives essential IT enterprise services. Services delivered include a broad range of IT support critical for agency operations. The geographic impact is primarily within the agency's operational locations, likely concentrated in Virginia. Workforce implications include the employment of IT professionals by BAE Systems to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may restrict price discovery and potentially lead to suboptimal value.
Lack of detailed performance data makes it difficult to assess the effectiveness of the services.
The contract's duration could indicate a long-term reliance on this specific vendor, potentially hindering flexibility.

Positive Signals

BAE Systems is a reputable contractor with a significant presence in the federal IT sector.
The contract addresses a core government need for IT enterprise support.
The existence of multiple bids, even in a limited competition, suggests some level of market engagement.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, a vast and critical area for federal operations. The IT services market is highly competitive, with numerous large and small businesses offering a wide array of solutions. Federal spending in this sector is substantial, encompassing everything from software development and cybersecurity to cloud computing and enterprise support. This contract represents a portion of that broader IT spending, focusing on the operational and maintenance aspects of an agency's IT infrastructure.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the nature and scale of enterprise IT support, it is possible that subcontracting opportunities may exist for specialized IT services, but this is not explicitly detailed. The absence of small business participation goals or set-asides suggests that the primary focus was on securing comprehensive IT support from a capable prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the General Services Administration. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, which provide public access to contract awards. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

IT Enterprise Support Services
IT Professional Services
Information Technology Services
General Services Administration IT Contracts
BAE Systems Federal Contracts

Risk Flags

Limited competition
Lack of detailed performance data
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $29.5 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. DSS ENTERPRISE SERVICES SUPPORT

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.5 million.

What is the period of performance?

Start: 2008-09-29. End: 2012-09-28.

What is BAE Systems' track record with federal IT contracts?

BAE Systems is a major defense and aerospace company with a substantial footprint in the federal IT sector. They have a long history of securing and performing on large, complex IT contracts across various government agencies, including the Department of Defense and civilian agencies. Their track record generally includes experience in areas such as systems integration, cybersecurity, software development, and IT infrastructure support. While specific performance details for individual contracts are often proprietary or require deeper analysis, BAE Systems is recognized as a capable and experienced provider of IT services to the federal government. Their extensive experience suggests a strong understanding of government procurement processes and technical requirements.

How does the value of this contract compare to similar IT support contracts?

The contract's total value of approximately $29.5 million over four years for enterprise IT support is in line with many large-scale IT service contracts awarded by federal agencies. For instance, similar contracts for IT help desk support, network management, and system maintenance for agencies of comparable size often fall within this range or higher. The per-year average of roughly $7.4 million is a common expenditure for comprehensive IT support. Without specific details on the exact services rendered and the service level agreements, a precise comparison is difficult. However, based on the contract title and duration, the value appears to be within the expected parameters for such a service.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential over-reliance on a single vendor, especially given the four-year duration, which could limit future flexibility or innovation. The limited competition aspect also poses a risk of suboptimal pricing or reduced incentive for the contractor to offer the most cost-effective solutions. Furthermore, as with any IT contract, there's a risk of performance issues, such as service disruptions, security vulnerabilities, or failure to meet service level agreements, which could impact agency operations. The complexity of enterprise IT systems also introduces inherent risks related to integration, maintenance, and upgrades.

How effective has this contract been in delivering IT enterprise services?

The provided data does not include specific performance metrics or evaluations for this contract, making it impossible to definitively assess its effectiveness. Effectiveness would typically be measured by factors such as system uptime, response times for support requests, successful implementation of upgrades, and overall user satisfaction. While BAE Systems is a capable contractor, the actual effectiveness hinges on the execution of the contract's specific terms and conditions, adherence to service level agreements, and the oversight provided by the GSA. A thorough assessment would require access to performance reports, user feedback, and potentially contract close-out documentation.

What are the historical spending patterns for similar IT support services at GSA?

Historical spending patterns for IT enterprise support services at the General Services Administration (GSA) are substantial and reflect the agency's critical role in providing IT solutions and services to other federal agencies. GSA consistently awards numerous contracts for IT support, encompassing a wide range of services from help desk operations to complex system integration and management. Spending in this category typically fluctuates based on agency needs, technology shifts, and budget allocations. Over the years, GSA has been a major procurer of IT services, often utilizing various contract vehicles to ensure flexibility and competition. Analyzing past GSA IT spending data would reveal trends in contract types, average values, and the dominant service providers in this domain.

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

Contractor Details

Parent Company: BAE Systems PLC

Address: 2525 NETWORK PL, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $41,791,336

Exercised Options: $36,804,877

Current Obligation: $29,501,180

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0045K

IDV Type: FSS

Timeline