GSA's $33.6M IT support contract with Apptis, Inc. shows fair value but limited competition

Contract Overview

Contract Amount: $33,623,407 ($33.6M)

Contractor: Apptis, Inc.

Awarding Agency: General Services Administration

Start Date: 2009-09-17

End Date: 2013-02-28

Contract Duration: 1,260 days

Daily Burn Rate: $26.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: IT

Official Description: DEFENSE ACQUISITION UNIVERSITY IT SUPPORT SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $33.6 million to APPTIS, INC. for work described as: DEFENSE ACQUISITION UNIVERSITY IT SUPPORT SERVICES Key points: 1. The contract's value appears reasonable given the duration and services provided. 2. Competition was limited, raising questions about optimal price discovery. 3. Performance risks were managed through standard contract clauses. 4. This contract falls within the broader IT services sector for government support. 5. The use of labor hours pricing can introduce cost uncertainty. 6. The contract was a delivery order under a larger IDIQ, indicating a phased approach.

Value Assessment

Rating: fair

The total award amount of $33.6 million over approximately 3.5 years for IT support services suggests a moderate annual spend. Benchmarking against similar IT support contracts is challenging without more granular data on specific services and labor categories. However, the average annual spend of roughly $9.6 million appears within a reasonable range for comprehensive IT support for a federal agency. The use of labor hours, while flexible, can sometimes lead to higher costs if not managed tightly, which is a potential area for concern regarding value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract. While the IDIQ itself was likely competed, the specific delivery order process may have had fewer participants than a full and open competition for a new requirement. The record indicates 6 bidders responded to the IDIQ, but the specifics of the competition for this particular delivery order are not detailed. Limited competition can sometimes result in less aggressive pricing.

Taxpayer Impact: Limited competition means taxpayers may not have benefited from the lowest possible prices achievable through a broader bidding process.

Public Impact

Federal agencies, specifically those utilizing GSA's Federal Acquisition Service, benefit from IT support. Services delivered include computer systems design and related services. The geographic impact is primarily within Virginia, where the contract was managed. The contract supports IT infrastructure and operations, indirectly impacting federal workforce productivity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours pricing can lead to cost overruns if not carefully monitored.
Limited competition for the delivery order may have resulted in a higher price than a fully open competition.
The contract duration of over 3 years necessitates ongoing performance monitoring.

Positive Signals

Awarded under a competitive IDIQ, suggesting some level of pre-qualification and competition.
The contract was for IT support services, a critical function for agency operations.
The General Services Administration (GSA) managed the contract, implying established oversight processes.

Sector Analysis

The IT services sector for the federal government is a significant market. This contract for computer systems design services falls under the broader category of IT support and professional services. The federal government spends billions annually on IT, with a substantial portion allocated to systems design, integration, and support. This contract represents a small fraction of that overall spending, typical for individual task orders or delivery orders under larger IDIQ vehicles.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. As a competitive delivery order under a larger contract, the prime contractor, Apptis, Inc., would have had flexibility in its subcontracting approach. Without specific set-aside information, it's difficult to assess the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

The contract was managed by the General Services Administration (GSA), which typically employs robust oversight mechanisms for its contracts. As a delivery order under an IDIQ, performance would be monitored by GSA contracting officers. Transparency is generally facilitated through contract databases like FPDS. Specific Inspector General (IG) jurisdiction would depend on the agency ultimately receiving the services, but GSA's own IG would oversee the contracting process itself.

Related Government Programs

IT Professional Services
Computer Systems Design Services
GSA Federal Acquisition Service Contracts
IT Support Services
IDIQ Contracts

Risk Flags

Limited competition
Labor hours pricing
Potential for scope creep in systems design

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $33.6 million to APPTIS, INC.. DEFENSE ACQUISITION UNIVERSITY IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is APPTIS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.6 million.

What is the period of performance?

Start: 2009-09-17. End: 2013-02-28.

What was the track record of Apptis, Inc. with federal contracts prior to and during this period?

Apptis, Inc. was a significant federal contractor, particularly in the IT services space. Prior to and during the period of this contract (2009-2013), Apptis held numerous federal awards across various agencies. Their performance history would be reflected in contract performance reports (CPARS) and other federal procurement databases. Analyzing these records would reveal their success rate, any past performance issues, and their overall experience in delivering IT support and systems design services. A review of their contract portfolio during this time would indicate if they were a frequent recipient of similar IT support contracts, suggesting established expertise and a positive past performance record with the government.

How does the average annual spend of $9.6 million compare to similar IT support contracts awarded by GSA during that period?

Comparing the average annual spend of $9.6 million for this contract requires access to detailed historical GSA contract data for IT support services between 2009 and 2013. Without direct access to such a benchmark database, a precise comparison is difficult. However, based on general knowledge of federal IT spending, this figure appears moderate for comprehensive IT support. Larger, more complex IT modernization projects or agency-wide support contracts could easily exceed this annual amount. Conversely, smaller, more specialized IT support tasks might fall below this average. The key would be to compare contracts with similar scope, duration, and service complexity within GSA's Federal Acquisition Service portfolio during the specified timeframe.

What were the primary IT support services delivered under this contract, and were there any performance issues reported?

This contract was categorized under NAICS code 541512, 'Computer Systems Design Services.' This typically encompasses a range of services including IT systems analysis, design, development, integration, and implementation. Specific services could include network design, software integration, hardware configuration, IT infrastructure management, and technical support. Performance issues, if any, would be documented in Contractor Performance Assessment Reporting System (CPARS) records. A review of CPARS for this specific contract would reveal ratings on technical performance, management, cost control, and schedule adherence. The absence of widely reported major issues suggests that performance was likely adequate, though detailed CPARS data would provide a definitive answer.

What was the total value of IT support contracts awarded by GSA in the fiscal years 2009-2013?

Determining the exact total value of IT support contracts awarded by GSA between FY2009 and FY2013 requires a comprehensive search of federal procurement data, such as the Federal Procurement Data System (FPDS). GSA awards a vast number of contracts across numerous categories. IT support services, encompassing areas like computer systems design, network support, and IT help desk services, represent a significant portion of this spending. Based on general trends, GSA's IT spending likely ran into the billions of dollars annually during this period, supporting various federal agencies. This specific $33.6 million contract would be a small component of GSA's overall IT services procurement portfolio.

Were there any specific risk indicators associated with Apptis, Inc. or the nature of computer systems design services during this contract period?

Risk indicators for Apptis, Inc. would typically be assessed through their past performance CPARS ratings, financial stability reports, and any history of contract disputes or terminations. For computer systems design services, common risks include scope creep, integration challenges, cybersecurity vulnerabilities, and schedule delays. The use of labor hours pricing, as indicated by the 'PT' (Labor Hours) contract type, introduces a risk of cost escalation if not managed diligently. The contract's duration (1260 days) also presents a risk of technology obsolescence if the systems designed or implemented become outdated before the contract's end. GSA's oversight would aim to mitigate these risks through contract management and performance monitoring.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM Global II, LLC (UEI: 043271568)

Address: 4800 WESTFIELDS BLVD, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $45,855,132

Exercised Options: $39,949,154

Current Obligation: $33,623,407

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0012

IDV Type: GWAC

Timeline