GSA awards $38.9M for custom computer programming, with Inforeliance LLC as the sole awardee

Contract Overview

Contract Amount: $38,894,418 ($38.9M)

Contractor: Inforeliance LLC

Awarding Agency: General Services Administration

Start Date: 2011-09-01

End Date: 2016-08-31

Contract Duration: 1,826 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT CONSULTING SUPPORT AND SERVICE

Place of Performance

Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152

State: South Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $38.9 million to INFORELIANCE LLC for work described as: MICROSOFT CONSULTING SUPPORT AND SERVICE Key points: 1. Value for money appears fair given the 5-year duration and firm-fixed-price structure. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a long performance period and a single awardee. 4. Performance context is within custom computer programming services, a common federal need. 5. Sector positioning is within IT services, a significant area of federal spending. 6. The contract was awarded as a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

The total contract value of $38.9 million over five years averages to approximately $7.78 million per year. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. However, the firm-fixed-price contract type suggests that the government has a clear understanding of the scope and cost, which can be advantageous. Benchmarking against similar custom computer programming contracts would provide a more precise valuation, but the overall spend is within a typical range for this type of service over this duration.

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 bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment. The fact that it resulted in a single awardee suggests that Inforeliance LLC was the most advantageous offer based on the evaluation criteria. The competitive nature of the initial bidding process is a positive sign for price discovery.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it maximizes the pool of potential offerors and drives down prices through market forces.

Public Impact

Federal agencies requiring custom computer programming services benefit from this contract. The services delivered likely involve software development, integration, and maintenance. The geographic impact is likely nationwide, supporting various federal agency needs. Workforce implications include employment for IT professionals and developers within Inforeliance LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific technologies or platforms are developed.
Performance risks associated with a single awardee over a long contract duration.
Scope creep could increase costs if not managed tightly.

Positive Signals

Firm-fixed-price contract type helps control costs.
Full and open competition suggests a robust initial bidding process.
Awarded under a General Services Administration (GSA) schedule, which streamlines procurement.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Custom Computer Programming Services (NAICS 541511). The federal IT services market is substantial, with agencies consistently investing in software development, system integration, and IT support to modernize operations and enhance capabilities. This contract represents a portion of that broader federal IT spending, likely supporting specific agency requirements for tailored software solutions.

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 stemming from a small business set-aside. The primary contractor, Inforeliance LLC, is not explicitly identified as a small business in the provided data, so its own size status would determine its role in the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established procurement regulations and oversight mechanisms to ensure contract compliance and performance. Accountability measures are typically embedded within the contract terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
Custom Software Development
General Services Administration Schedules
IT Services Contracts
Delivery Orders

Risk Flags

Long contract duration with a single awardee may increase performance risk.
Lack of specific performance metrics in the provided data hinders detailed value assessment.
Potential for scope creep if not managed diligently due to the nature of custom development.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $38.9 million to INFORELIANCE LLC. MICROSOFT CONSULTING SUPPORT AND SERVICE

Who is the contractor on this award?

The obligated recipient is INFORELIANCE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.9 million.

What is the period of performance?

Start: 2011-09-01. End: 2016-08-31.

What is the track record of Inforeliance LLC in performing similar custom computer programming services for the federal government?

Assessing the track record of Inforeliance LLC requires a deeper dive into historical contract data beyond this single award. While this contract indicates a successful bid for custom computer programming services, it doesn't reveal the quality or timeliness of past performance. A comprehensive review would involve examining other federal contracts awarded to Inforeliance LLC, looking at past performance evaluations (if publicly available), and identifying any instances of contract disputes, terminations, or performance issues. Without this additional data, it's difficult to definitively assess their reliability and expertise in delivering complex programming solutions.

How does the average annual value of this contract compare to similar custom computer programming contracts awarded by the GSA?

The average annual value of this contract is approximately $7.78 million ($38.9 million / 5 years). To benchmark this effectively, we would need to compare it against other firm-fixed-price, full-and-open competition contracts for custom computer programming services (NAICS 541511) awarded by the GSA over a similar timeframe. Factors such as contract duration, complexity of services, and specific agency requirements influence pricing. If comparable contracts show significantly lower or higher annual values for similar scopes of work, it could indicate whether this contract represents a particularly good or poor value. Without direct comparative data, it's challenging to make a definitive statement on its relative cost-effectiveness.

What are the primary risks associated with a single awardee performing custom computer programming services over a five-year period?

A primary risk with a single awardee over an extended period is the potential for vendor lock-in, where the government becomes heavily reliant on the contractor's specific expertise, technology, or processes, making it difficult to switch providers or negotiate favorable terms in the future. Performance risk is also elevated, as there's no immediate alternative if the contractor underperforms. Furthermore, a lack of ongoing competition can reduce the incentive for the contractor to innovate or maintain competitive pricing throughout the contract's life. Mitigating these risks often involves robust contract management, clear performance metrics, and contingency planning.

What specific types of custom computer programming services are typically covered under NAICS code 541511, and how might they apply here?

NAICS code 541511, Custom Computer Programming Services, encompasses a wide range of activities including designing, developing, and testing software and systems. This can include writing, modifying, testing, and supporting software to meet the specific needs of a client. Examples include developing custom applications, integrating different software systems, creating databases, and providing software maintenance. For this contract, it's likely that Inforeliance LLC is providing services such as developing bespoke software solutions for a federal agency, creating custom interfaces between existing systems, or building specialized tools to automate specific government processes. The exact nature would depend on the agency's requirements.

How does the contract type (Firm Fixed Price) influence the risk allocation between the government and Inforeliance LLC for these programming services?

A Firm Fixed Price (FFP) contract shifts the majority of the cost risk to the contractor, Inforeliance LLC. This means that the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. If their costs exceed the fixed price, they absorb the loss. Conversely, if their costs are lower, they retain the profit. For the government, this provides cost certainty and predictability, which is highly desirable. However, FFP contracts typically require a well-defined scope of work upfront, as any changes or additions can lead to costly change orders. The government bears the risk of inadequate scope definition.

What is the significance of this contract being a 'Delivery Order' (aw: DELIVERY ORDER)?

A Delivery Order signifies that this contract was issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a GSA Schedule. Instead of awarding a new contract for each specific need, agencies can issue delivery orders against an established contract vehicle. This streamlines the procurement process, reduces administrative burden, and often allows for quicker acquisition of services. In this case, Inforeliance LLC likely holds a larger master contract (perhaps a GSA Schedule contract) that allows for multiple delivery orders to be placed over its duration, with this specific order representing a defined task or set of services with a specific value and delivery timeline.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 4QBG57112018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4050 LEGATO RD STE 700, FAIRFAX, VA, 22033

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

Financial Breakdown

Contract Ceiling: $42,098,183

Exercised Options: $38,894,418

Current Obligation: $38,894,418

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0273L

IDV Type: FSS

Timeline