GSA's $38.7M IT support contract with CSRA Information Systems shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $38,711,721 ($38.7M)

Contractor: Csra Information Systems LLC

Awarding Agency: General Services Administration

Start Date: 2004-03-09

End Date: 2009-03-31

Contract Duration: 1,848 days

Daily Burn Rate: $20.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SAF/FM FINANCIAL MANAGEMENT SUPPORT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $38.7 million to CSRA INFORMATION SYSTEMS LLC for work described as: SAF/FM FINANCIAL MANAGEMENT SUPPORT Key points: 1. Contract value appears reasonable given the scope of IT financial management support. 2. Competition was limited, potentially impacting price discovery and overall value for taxpayers. 3. The contract duration and delivery order structure suggest a need for ongoing IT services. 4. Performance context is difficult to assess without specific metrics on service delivery. 5. This contract falls within the IT services sector, specifically custom computer programming. 6. The use of Time and Materials pricing can introduce cost uncertainty if not managed closely.

Value Assessment

Rating: fair

The contract's total value of $38.7 million over approximately five years suggests a moderate annual spend. Benchmarking against similar IT support contracts for federal agencies indicates that this pricing is within a reasonable range, though a precise comparison is difficult without detailed service descriptions. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not strictly managed and monitored for efficiency. Without specific performance data, it's challenging to definitively assess the value for money achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order, but the data indicates only two bidders participated. While competitive, a low number of bidders suggests that the market may not have been fully engaged, potentially limiting the government's ability to secure the most advantageous pricing. The limited competition could stem from various factors, including specific technical requirements, pre-existing contract vehicles, or market dynamics within the IT services sector.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the full spectrum of competitive pricing that a more robust bidding process could have yielded. This could translate to a higher overall cost for the services provided.

Public Impact

Federal agencies, particularly those within the General Services Administration (GSA) and potentially others relying on its IT infrastructure, benefit from enhanced financial management support. The services delivered likely include custom computer programming, IT system maintenance, and support for financial management applications. The geographic impact is primarily within Virginia, where the contractor is located, but the services support federal operations nationwide. The contract supports a workforce of IT professionals, including programmers, analysts, and support staff, contributing to the federal IT sector employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in suboptimal pricing for taxpayers.
Time and Materials pricing structure introduces potential for cost overruns if not closely managed.
Lack of detailed performance metrics makes it difficult to assess the true value for money.
Contract awarded in 2004, services may be outdated or superseded by newer technologies.
Small business participation is not indicated, potentially missing opportunities for smaller IT firms.

Positive Signals

Contract was competitively awarded, indicating some level of market engagement.
Long-term contract (over 5 years) suggests stability and continuity of essential IT services.
Contractor (CSRA Information Systems) likely possesses relevant experience in federal IT support.
Services provided are crucial for federal financial management operations.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on custom computer programming services (NAICS code 541511). The IT services market for the federal government is substantial, with significant spending allocated to software development, system integration, and IT support. This contract represents a portion of that spending, likely supporting the operational needs of the General Services Administration (GSA) or other agencies utilizing GSA's IT acquisition vehicles. Comparable spending benchmarks would typically be found within IT support and custom software development categories for federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that both large and small businesses were eligible to bid. Without specific subcontracting plans detailed in the award data, it's difficult to assess the direct impact on the small business ecosystem. However, the absence of a small business set-aside suggests that larger prime contractors were likely the primary participants, potentially limiting direct opportunities for small businesses unless they were part of a larger team.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service (FAS). GSA has established procurement regulations and contract management processes to ensure accountability. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. The delivery order structure under a larger contract vehicle implies ongoing monitoring of performance and costs by the contracting officer's representative (COR).

Related Government Programs

GSA IT Schedule Programs
Federal Financial Management Systems
Custom Software Development Services
IT Support Services Contracts

Risk Flags

Limited Competition
Time and Materials Pricing
Lack of Performance Metrics
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $38.7 million to CSRA INFORMATION SYSTEMS LLC. SAF/FM FINANCIAL MANAGEMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is CSRA INFORMATION SYSTEMS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.7 million.

What is the period of performance?

Start: 2004-03-09. End: 2009-03-31.

What was the specific nature of the 'Custom Computer Programming Services' provided under this contract?

The contract, identified by NAICS code 541511, falls under 'Custom Computer Programming Services.' This typically encompasses designing, developing, and implementing software solutions tailored to specific client needs. For a financial management support contract, these services likely involved developing or modifying financial software applications, integrating disparate financial systems, creating custom reports, enhancing database functionalities for financial data, and providing ongoing technical support and maintenance for these custom-built or modified systems. The exact scope would depend on the specific requirements outlined in the delivery order issued against the parent contract.

How does the Time and Materials (T&M) pricing structure compare to fixed-price contracts for similar IT services?

Time and Materials (T&M) contracts, like the one used here, offer flexibility by reimbursing the contractor for direct labor hours at specified rates and for the cost of materials. This is often used when the scope of work is not clearly defined or is expected to evolve. In contrast, fixed-price contracts establish a set price for a defined scope of work, shifting more risk to the contractor. For IT services, T&M can be advantageous when requirements are uncertain, allowing for adaptation. However, it carries a higher risk of cost escalation for the government if not meticulously managed, as the final cost is not predetermined. Fixed-price contracts provide greater cost certainty but require a well-defined scope upfront.

What are the potential risks associated with having only two bidders for this contract?

Having only two bidders presents several risks. Firstly, it significantly reduces the potential for robust price competition, meaning the government may not achieve the lowest possible price for the services. Secondly, it limits the government's options if one of the bidders is disqualified or withdraws, potentially leading to delays or a less suitable award. Thirdly, it can indicate barriers to entry in the market for this specific service, such as high qualification requirements or limited marketing by the contracting agency, which could stifle innovation and broader market participation. This lack of broader competition could also mean less incentive for the winning contractor to maintain highly competitive pricing throughout the contract's life.

Can we assess the contractor's (CSRA Information Systems LLC) track record based on this single contract?

Assessing CSRA Information Systems LLC's track record based solely on this $38.7 million contract would be incomplete. This contract, awarded in 2004 and ending in 2009, represents a specific engagement within the federal IT services domain. While its successful completion (implied by the end date) suggests a degree of capability, it doesn't provide a comprehensive view of their overall performance, client satisfaction across multiple projects, or their ability to handle larger, more complex, or different types of contracts. A thorough assessment would require examining their entire contract history, including performance evaluations (e.g., CPARS), other contract values, agencies served, and any documented issues or commendations.

What does the contract duration of 1848 days (approx. 5 years) imply about the nature of the IT services required?

A contract duration of approximately five years, as indicated by 1848 days, suggests that the IT services procured were intended for long-term, ongoing operational needs rather than short-term projects. For financial management support, this implies the need for continuous system maintenance, regular updates, user support, and potentially incremental development or integration of new financial functionalities over an extended period. Such durations are common for core IT infrastructure support, system administration, and application lifecycle management, where stability and consistent service delivery are paramount for the agency's operations.

How does this contract's spending compare to overall federal IT spending in the mid-2000s?

In the mid-2000s (the contract period was 2004-2009), federal IT spending was substantial, often measured in the tens of billions of dollars annually. A contract valued at $38.7 million, while significant for a single award, represented a relatively small fraction of the total federal IT budget. For instance, federal IT spending was estimated to be around $60-70 billion annually during that period. This contract would be considered a mid-to-large size award within its specific service category (custom programming/IT support) but not a major driver of overall federal IT expenditure trends. Its significance lies more in its specific function supporting financial management.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 15000 CONFERENCE CENTER D, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $123,767,864

Exercised Options: $99,779,849

Current Obligation: $38,711,721

Parent Contract

Parent Award PIID: GS35F4639H

IDV Type: FSS

Timeline