GSA awards $19.7M for IT services to Highlight Technologies, Inc., with 2 bidders

Contract Overview

Contract Amount: $19,746,669 ($19.7M)

Contractor: Highlight Technologies, Inc.

Awarding Agency: General Services Administration

Start Date: 2022-06-30

End Date: 2026-04-12

Contract Duration: 1,382 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA ANALYTIC SHARED SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $19.7 million to HIGHLIGHT TECHNOLOGIES, INC. for work described as: DATA ANALYTIC SHARED SERVICES Key points: 1. Contract value appears reasonable given the scope of IT services. 2. Competition was robust with two bidders, suggesting fair market pricing. 3. No immediate risk indicators identified, but performance monitoring is key. 4. Contract duration extends over three years, aligning with typical IT service needs. 5. This contract fits within the broader IT services sector for government agencies. 6. No small business set-aside was applied to this procurement.

Value Assessment

Rating: good

The contract value of $19.7 million for IT services over approximately 3.8 years appears to be within a reasonable range for similar government procurements. Benchmarking against other IT service contracts of comparable scope and duration would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without specific details on the services rendered, a definitive value assessment is challenging.

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 offers. The presence of two bidders suggests a moderate level of competition. While two bidders are better than one, a higher number of bidders typically leads to more aggressive pricing and a wider range of technical solutions. The GSA's procurement process likely ensured fair evaluation of the submitted proposals.

Taxpayer Impact: The full and open competition with two bidders suggests that taxpayers likely received a fair price, though potentially not the absolute lowest possible price achievable with more intense competition.

Public Impact

Federal agencies requiring IT support services will benefit from this contract. The contract will deliver a range of IT services, including but not limited to computer-related services. The primary geographic impact is within the District of Columbia. The contract supports the IT workforce by engaging a private sector provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT services could pose a risk if performance falters.
Ensuring the contractor maintains adequate cybersecurity measures is crucial.

Positive Signals

Firm-fixed-price contract structure shifts cost risk to the contractor.
Full and open competition generally leads to better pricing and quality.
The contract duration allows for stable service delivery and planning.

Sector Analysis

The Information Technology (IT) services sector for the federal government is a vast and continuously evolving market. Agencies rely heavily on IT services for everything from basic infrastructure maintenance to advanced cybersecurity and software development. Spending in this sector is consistently high, with numerous large and small businesses competing for contracts. This particular contract, classified under 'Other Computer Related Services,' falls within a broad category that supports various IT functions, indicating it's a standard procurement for essential IT support.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit subcontracting requirements for small businesses were mandated. This means that opportunities for small businesses to participate in this specific contract are limited unless they are part of Highlight Technologies, Inc.'s supply chain or are independently contracted by the prime. The absence of a small business set-aside suggests the procurement was focused on obtaining the best overall value from the available market, which may not have prioritized small business participation.

Oversight & Accountability

The General Services Administration (GSA) is known for its robust procurement oversight. Contracts awarded through GSA are subject to internal review processes and are often monitored by the GSA's Office of Inspector General (OIG) for fraud, waste, and abuse. Transparency is generally maintained through public contract databases like FPDS. Accountability is typically managed through performance metrics outlined in the contract and the agency's established contract management procedures.

Related Government Programs

IT Professional Services
IT Services (8(a))
Information Technology
Cloud Computing Services
Cybersecurity Services

Risk Flags

Limited competition (2 bidders)
Potential for scope creep
Cybersecurity risks

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.7 million to HIGHLIGHT TECHNOLOGIES, INC.. DATA ANALYTIC SHARED SERVICES

Who is the contractor on this award?

The obligated recipient is HIGHLIGHT TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Office of Administrative Services).

What is the total obligated amount?

The obligated amount is $19.7 million.

What is the period of performance?

Start: 2022-06-30. End: 2026-04-12.

What is the track record of Highlight Technologies, Inc. with federal contracts?

Highlight Technologies, Inc. has a history of performing federal contracts, primarily within the IT services domain. Reviewing their past performance on similar contracts awarded by agencies like GSA or others would provide insight into their reliability, quality of service, and ability to meet deadlines and budget constraints. Data from contract databases can reveal their success rate, any past performance issues, and their experience with different contract types and agencies. A thorough analysis would involve examining contract close-out data, any reported disputes or terminations, and customer satisfaction feedback if publicly available.

How does the awarded price compare to market rates for similar IT services?

The awarded value of $19.7 million for a contract spanning approximately 3.8 years (1382 days) needs to be benchmarked against prevailing market rates for 'Other Computer Related Services.' This involves comparing the estimated average annual cost ($5.2 million) or daily rate against industry benchmarks for similar IT support functions, considering factors like labor categories, geographic location (District of Columbia), and the specific services provided. Without a detailed breakdown of the services and labor mix, a precise comparison is difficult, but the firm-fixed-price nature suggests the government secured a defined cost upfront, shifting risk to the contractor.

What are the primary risks associated with this contract?

Key risks for this contract include potential performance issues if the scope of work is not clearly defined or if the contractor fails to deliver services meeting quality standards. Cybersecurity vulnerabilities are a constant concern with IT contracts, requiring diligent oversight to ensure data protection. Dependence on a single provider for critical IT functions can also be a risk if the contractor experiences financial instability or operational disruptions. Furthermore, the risk of scope creep, where the project expands beyond its original objectives without corresponding adjustments in cost or timeline, needs active management.

How effective is the competition level in ensuring value for taxpayers?

The contract was awarded under full and open competition with two bidders. While this indicates a degree of market engagement, having only two bidders suggests that the competitive pressure might not have been as intense as it could be with a larger pool of offerors. This could potentially lead to a price that is fair but not necessarily the lowest achievable. Taxpayers benefit from the competition by receiving at least two distinct proposals to evaluate, ensuring a baseline level of market validation. However, to maximize taxpayer value, encouraging broader participation in future procurements of this nature would be beneficial.

What is the historical spending pattern for 'Other Computer Related Services' by the GSA?

Historical spending by the General Services Administration (GSA) on 'Other Computer Related Services' (NAICS 541519) is substantial, reflecting the agency's role in providing IT support and solutions to other federal entities. Analyzing past GSA spending in this category reveals trends in contract values, types of services procured, and the dominant contractors. This data helps establish benchmarks for future procurements and identify areas where spending may be increasing or decreasing. Understanding these patterns provides context for the current $19.7 million award, indicating whether it aligns with typical investment levels for these services.

Are there any indications of potential cost overruns or budget issues?

The contract is firm-fixed-price (FFP), which inherently places the risk of cost overruns on the contractor, Highlight Technologies, Inc. This contract type is designed to provide cost certainty for the government. Therefore, unless there are contract modifications or change orders that alter the scope or price, direct cost overruns borne by the government are unlikely. However, the overall value and efficiency of the spending depend on the contractor's ability to manage their costs effectively while delivering the required services. Monitoring contract performance and adherence to the FFP terms is crucial.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Highlight Technologies Inc.

Address: 9990 FAIRFAX BLVD STE 350, FAIRFAX, VA, 22030

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $19,746,669

Exercised Options: $19,746,669

Current Obligation: $19,746,669

Actual Outlays: $12,065,210

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47HAA021A0015

IDV Type: BPA

Timeline