Commerce Dept. awards $3.97M for IT support, with 1 bidder and 1 delivery order

Contract Overview

Contract Amount: $3,974,900 ($4.0M)

Contractor: GBS Solutions Corp

Awarding Agency: Department of Commerce

Start Date: 2023-06-16

End Date: 2026-06-15

Contract Duration: 1,095 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROJECT AND PROGRAM SUPPORT

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20899

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $4.0 million to GBS SOLUTIONS CORP for work described as: PROJECT AND PROGRAM SUPPORT Key points: 1. Contract value of $3.97M for IT support services. 2. Services are categorized under Computer Systems Design. 3. The contract was awarded under full and open competition. 4. The contract duration is 1095 days. 5. The contract type is Firm Fixed Price. 6. The award was a single delivery order.

Value Assessment

Rating: fair

The contract value of $3.97M for IT support services appears to be within a reasonable range for a multi-year engagement. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for Computer Systems Design Services (NAICS 541512) would provide a clearer picture of whether the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, there was a specific exclusion of certain sources. The data provided does not specify the number of bidders that participated in the competition, which is crucial for assessing the level of competition and its impact on price discovery.

Taxpayer Impact: The 'full and open competition' aspect is generally positive for taxpayers, suggesting an effort to solicit a wide range of offers. However, the 'exclusion of sources' clause warrants further investigation to ensure it did not unduly limit competition and potentially inflate costs.

Public Impact

The Department of Commerce benefits from IT support services. Services delivered include computer systems design. The contract is geographically located in Maryland. The contract supports the National Institute of Standards and Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detail on the number of bidders in the 'full and open competition' process.
The 'exclusion of sources' clause requires further clarification to ensure fair competition.
The specific scope of 'Computer Systems Design Services' is not detailed, making it hard to assess value.

Positive Signals

Awarded under a full and open competition framework.
Firm Fixed Price contract type can provide cost certainty.
The contract supports a critical agency, NIST, within the Department of Commerce.

Sector Analysis

The IT services sector, particularly Computer Systems Design Services (NAICS 541512), is a significant area of federal spending. This contract fits within the broader category of IT support and consulting, which is essential for government operations. Comparable spending benchmarks for similar IT support contracts can vary widely based on complexity, duration, and specific technological requirements.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, the direct impact on small businesses through set-asides is not evident. Subcontracting opportunities for small businesses would depend on the prime contractor's policies and the nature of the work performed.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's internal procurement and program management offices. The National Institute of Standards and Technology (NIST) would also have oversight responsibilities for the services rendered. Transparency is facilitated through contract award databases, but detailed performance reports and Inspector General involvement would depend on specific triggers or audits.

Related Government Programs

IT Services
Computer Systems Design
Professional Services
Government IT Support

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed scope of services makes value assessment difficult.
Need to verify contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $4.0 million to GBS SOLUTIONS CORP. PROJECT AND PROGRAM SUPPORT

Who is the contractor on this award?

The obligated recipient is GBS SOLUTIONS CORP.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2023-06-16. End: 2026-06-15.

What specific services are included under 'Computer Systems Design Services' for this contract?

The term 'Computer Systems Design Services' (NAICS 541512) typically encompasses a broad range of activities related to the design of computer systems. This can include analyzing user needs, designing overall system architecture, developing system specifications, integrating hardware and software, and providing consulting services. For this specific contract with GBS SOLUTIONS CORP for the Department of Commerce, the exact deliverables and scope of work would be detailed in the contract's Statement of Work (SOW). Without access to the SOW, it's difficult to ascertain the precise nature of the services, such as whether it involves custom software development, network design, cloud integration, or IT infrastructure management. The $3.97M value suggests a substantial scope over the 1095-day period.

How does the $3.97M contract value compare to similar IT support contracts awarded by the Department of Commerce?

Comparing the $3.97M contract value requires access to a database of similar IT support contracts awarded by the Department of Commerce, specifically for Computer Systems Design Services (NAICS 541512) over a similar duration (1095 days). Federal procurement data often shows a wide variance in contract values based on the specific services, complexity, and duration. A preliminary assessment suggests that $3.97M for nearly three years of IT support is a moderate-sized contract. However, without specific benchmarks, it's challenging to definitively state if it represents excellent, fair, or questionable value. Further analysis would involve identifying comparable contracts and analyzing their pricing structures and scope.

What are the potential risks associated with a 'full and open competition after exclusion of sources' award?

The primary risk associated with 'full and open competition after exclusion of sources' lies in the potential for reduced competition, even if the initial intent was open. The 'exclusion of sources' clause implies that certain potential offerors were deliberately prevented from bidding. While there can be legitimate reasons for such exclusions (e.g., national security, specific technical requirements, prior performance issues), if not properly justified and documented, it can limit the pool of qualified bidders. This reduced competition could potentially lead to higher prices, less innovative solutions, or a perception of unfairness. It is crucial to understand the rationale behind the exclusion to assess whether it was necessary and did not compromise the government's ability to obtain the best value.

What is the track record of GBS SOLUTIONS CORP in performing federal IT support contracts?

Assessing the track record of GBS SOLUTIONS CORP requires examining their past performance on federal contracts, particularly those involving IT support and computer systems design. Information on past performance, including contract awards, completion success, and any reported issues or disputes, can often be found in federal procurement databases like SAM.gov or through specialized contract analysis tools. A review of their history would look for consistency in performance, client satisfaction (if available), and adherence to contract terms. Without specific data on GBS SOLUTIONS CORP's prior federal engagements, it is difficult to provide a detailed assessment of their capabilities and reliability for this $3.97M contract.

How does the single delivery order impact the overall value and flexibility of this contract?

The fact that this contract resulted in a single delivery order (DO) means that the entire $3.97M value is allocated to one specific task or project. This contrasts with indefinite-delivery, indefinite-quantity (IDIQ) contracts that might have multiple DOs over their lifespan, allowing for more flexibility and phased delivery of services. A single DO can indicate a well-defined, singular need for IT support. From a value perspective, it suggests a concentrated investment. However, it also means there's less flexibility to adjust scope or funding across different tasks if needs evolve. The 'Firm Fixed Price' nature of the DO further solidifies the cost for that specific scope, offering budget certainty but limiting negotiation if unforeseen changes arise.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 450 S SIMMONS WAY STE 640, KAYSVILLE, UT, 84037

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,974,900

Exercised Options: $3,974,900

Current Obligation: $3,974,900

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0005

IDV Type: GWAC

Timeline