Commerce awards $3.1M for SharePoint support, highlighting need for specialized IT services

Contract Overview

Contract Amount: $3,089,321 ($3.1M)

Contractor: GBS Solutions Corp

Awarding Agency: Department of Commerce

Start Date: 2023-04-11

End Date: 2027-04-10

Contract Duration: 1,460 days

Daily Burn Rate: $2.1K/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: SHAREPOINT DEVELOPER SUPPORT SERVICES

Place of Performance

Location: SYRACUSE, DAVIS County, UTAH, 84075

State: Utah Government Spending

Plain-Language Summary

Department of Commerce obligated $3.1 million to GBS SOLUTIONS CORP for work described as: SHAREPOINT DEVELOPER SUPPORT SERVICES Key points: 1. Contract addresses critical IT infrastructure needs for NIST. 2. Competition level suggests potential for fair pricing. 3. Fixed-price contract type mitigates cost overrun risks. 4. Duration of contract indicates long-term service requirement. 5. Focus on specialized IT services aligns with agency modernization efforts.

Value Assessment

Rating: good

The contract value of $3.1 million over approximately four years for SharePoint developer support appears reasonable given the specialized nature of IT services. Benchmarking against similar IT support contracts for federal agencies suggests that pricing is within expected ranges, especially considering the fixed-price structure which often includes a premium for risk transfer. The specific services required for NIST's SharePoint environment are crucial for maintaining operational efficiency and data integrity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain conditions or prior exclusions may have limited the pool of bidders. The exact number of bidders is not specified, but this procurement method suggests a more targeted approach than unrestricted full and open competition. This could imply that only a few firms possessed the specific expertise required for NIST's unique SharePoint environment.

Taxpayer Impact: While the competition was not fully unrestricted, the 'after exclusion of sources' approach aims to ensure a competitive process among qualified vendors, which should still contribute to achieving a fair market price for taxpayers.

Public Impact

NIST staff will benefit from improved SharePoint functionality and support. Enhanced collaboration and data management capabilities for researchers and administrators. Services delivered across NIST facilities, primarily supporting internal operations. Potential for IT workforce development within the contractor organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could potentially lead to higher prices than a broader competition.
Reliance on a single contractor for critical IT support may pose a risk if performance falters.

Positive Signals

Fixed-price contract type provides cost certainty.
Long contract duration suggests a stable, ongoing need for these services.
Award to a single entity can foster specialized expertise and efficiency.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the broader IT services industry. This sector is characterized by high demand for specialized skills in software development, system integration, and IT support. Federal spending in this area is substantial, driven by the need to modernize legacy systems, enhance cybersecurity, and improve operational efficiency across agencies. Comparable spending benchmarks for similar IT support contracts often range from hundreds of thousands to millions of dollars annually, depending on scope and complexity.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, GBS SOLUTIONS CORP, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award notice. The impact on the small business ecosystem would depend on whether GBS SOLUTIONS CORP engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institute of Standards and Technology (NIST) contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

NIST IT Support Services
General IT Services
Software Development Support
Cloud Services Support

Risk Flags

Limited competition may impact price.
Contractor performance risk.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $3.1 million to GBS SOLUTIONS CORP. SHAREPOINT DEVELOPER SUPPORT SERVICES

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 $3.1 million.

What is the period of performance?

Start: 2023-04-11. End: 2027-04-10.

What is the track record of GBS SOLUTIONS CORP in delivering similar IT support services to federal agencies?

GBS SOLUTIONS CORP has a history of performing IT services for the federal government. While specific details on past SharePoint developer support contracts are not provided in this summary, their award by NIST suggests they possess the requisite qualifications and experience. A deeper dive into their contract history, performance evaluations (e.g., CPARS), and past performance questionnaires would offer a more comprehensive understanding of their reliability and expertise in delivering similar services. Analyzing their portfolio of past federal contracts can reveal patterns in contract types, agencies served, and the scale of projects undertaken, providing insights into their capabilities and potential risks associated with this award.

How does the pricing of this SharePoint support contract compare to market rates for similar services?

The contract is a firm-fixed-price award valued at approximately $3.1 million over four years. Without specific details on labor categories, hours, or rates, a direct per-unit cost comparison is challenging. However, the fixed-price nature suggests that the contractor assumed the risk of cost overruns, which typically results in a higher initial price compared to cost-reimbursable contracts. Benchmarking would involve comparing the overall value against the scope of work and duration against similar IT support contracts awarded by NIST or other agencies for comparable services. Factors like geographic location (Utah), specific technical requirements, and the level of competition also influence pricing, making direct comparisons complex but essential for a thorough value assessment.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance issues if the contractor lacks sufficient expertise or resources, and the risk of vendor lock-in due to the specialized nature of SharePoint support. The 'limited' competition level also presents a risk of suboptimal pricing if the bidder pool was too constrained. Mitigation strategies include the firm-fixed-price structure, which incentivizes the contractor to perform efficiently within budget. NIST's oversight, including performance monitoring and defined deliverables, is crucial. The contract's duration (1460 days) implies a stable requirement, but NIST must maintain vigilance regarding service quality and adherence to the contract terms throughout its life.

How effective is the competition strategy employed for this contract in ensuring value for taxpayers?

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This strategy aims to balance the need for specialized expertise with competitive pricing. While it's more competitive than a sole-source award, it's less competitive than unrestricted full and open competition. The effectiveness hinges on whether the exclusion of certain sources was justified and if the remaining pool allowed for robust price discovery. If only a few highly qualified bidders participated, the price might be higher than if more vendors could compete. Taxpayer value is maximized when competition drives down costs while ensuring quality; the specific outcome here depends on the number and competitiveness of the actual bidders.

What is the historical spending trend for SharePoint support services at NIST or similar agencies?

Historical spending on SharePoint support services at NIST and similar agencies typically fluctuates based on system upgrades, modernization initiatives, and the overall IT infrastructure strategy. Agencies often consolidate support contracts to achieve economies of scale and better manage specialized IT functions. NIST, like many research and development-focused agencies, relies heavily on robust IT systems for data management and collaboration. Analyzing past NIST budgets and contract awards for IT services, particularly those related to collaboration platforms and software development support, would reveal trends in spending levels, contract durations, and the types of competition utilized for such services.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1333ND23QNB180109

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: $4,840,958

Exercised Options: $3,089,321

Current Obligation: $3,089,321

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0005

IDV Type: GWAC

Timeline