GSA awards $8.1M contract for occupancy and revenue management applications support to Fedtec LLC

Contract Overview

Contract Amount: $8,117,907 ($8.1M)

Contractor: Fedtec LLC

Awarding Agency: General Services Administration

Start Date: 2024-02-01

End Date: 2027-01-31

Contract Duration: 1,095 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OCCUPANCY AND REVENUE MANAGEMENT APPLICATIONS SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $8.1 million to FEDTEC LLC for work described as: OCCUPANCY AND REVENUE MANAGEMENT APPLICATIONS SUPPORT SERVICES Key points: 1. Contract provides essential IT support for critical government operations. 2. Fedtec LLC, a new awardee, will deliver specialized application services. 3. The contract is structured as Firm Fixed Price, aligning costs with deliverables. 4. Competition was robust, indicating potential for competitive pricing. 5. Performance duration of three years allows for sustained support. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $8.1 million over three years appears reasonable for specialized IT application support services. Benchmarking against similar contracts for system design and integration services suggests this is within a typical range. The firm-fixed-price structure provides cost certainty for the government, although it places more risk on the contractor to manage performance within the agreed price. Without specific details on the scope of services and the complexity of the applications supported, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a fair market price was likely achieved.

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 five bidders suggests a healthy level of competition for this requirement. A competitive environment generally leads to better price discovery and encourages contractors to offer their best value solutions to win the award. The agency's decision to use full and open competition is a positive indicator of seeking the most advantageous outcome.

Taxpayer Impact: Taxpayers benefit from the competitive process through potentially lower prices and higher quality services, as multiple companies vied to provide the best offering.

Public Impact

Federal agencies utilizing occupancy and revenue management applications will benefit from enhanced support and maintenance. Improved application performance can lead to more efficient government operations and resource allocation. The contract supports IT services within the District of Columbia. The contract is expected to support specialized IT roles, potentially impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if knowledge transfer is not managed effectively.
Reliance on a single vendor for critical application support could pose a risk if the vendor faces financial or operational challenges.

Positive Signals

Firm Fixed Price contract structure provides cost predictability.
Full and open competition indicates a robust selection process.
Multiple bidders suggest a competitive market for these services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. This sector encompasses a wide range of services, including custom software development, IT integration, and IT support. The federal government is a major consumer of these services, with spending often concentrated in areas supporting core mission functions and administrative operations. The market for such services is competitive, with numerous small and large businesses vying for contracts. This specific award supports applications related to occupancy and revenue management, which are crucial for efficient facility and financial operations within government agencies.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Fedtec LLC, is not explicitly identified as a small business in the provided data. Therefore, there are no direct small business set-aside implications. However, the potential for subcontracting opportunities with Fedtec LLC could exist, depending on the nature of the services required and the company's subcontracting plan. Without further information on Fedtec LLC's size or subcontracting goals, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its contracts. This contract, being a delivery order under an IDIQ, likely falls under the purview of GSA's contracting officers and program managers who monitor performance and compliance. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight may be applicable depending on the specific GSA office and the nature of any potential issues that arise during contract performance. The firm-fixed-price nature of the contract also provides a degree of financial oversight by fixing the total cost.

Related Government Programs

IT Application Development and Integration Services
IT Support and Maintenance Services
Cloud Computing Services
Software Licensing and Support

Risk Flags

Potential for performance issues if contractor lacks specific application expertise.
Risk of vendor lock-in due to specialized knowledge requirements.
Contractor financial stability could impact service continuity.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $8.1 million to FEDTEC LLC. OCCUPANCY AND REVENUE MANAGEMENT APPLICATIONS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is FEDTEC LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.1 million.

What is the period of performance?

Start: 2024-02-01. End: 2027-01-31.

What is the track record of Fedtec LLC in performing similar government contracts?

Based on the provided data, this appears to be a new award to Fedtec LLC for occupancy and revenue management applications support services. There is no immediate information available regarding Fedtec LLC's historical performance on similar government contracts through this specific data snippet. A deeper dive into contract databases and performance assessment reports would be necessary to evaluate their track record. However, the fact that they were awarded this contract under full and open competition with five bidders suggests they met the qualifications and presented a competitive offer. Future performance will be key to assessing their capabilities in this domain.

How does the awarded value compare to similar IT support contracts?

The awarded value of $8.1 million over three years for IT application support services is within a reasonable range for specialized services. Similar contracts for computer systems design and related IT support often fall within this valuation, depending on the scope, complexity, and duration. For instance, contracts for enterprise resource planning (ERP) system support or custom software maintenance can range from hundreds of thousands to millions of dollars annually. The firm-fixed-price nature of this contract provides cost certainty. Benchmarking against contracts with similar North American Industry Classification System (NAICS) codes (like 541512) and similar agencies would provide a more precise comparison, but the initial assessment suggests the value is competitive.

What are the primary risks associated with this contract?

Key risks include potential performance issues if Fedtec LLC lacks sufficient expertise in the specific occupancy and revenue management applications, leading to service disruptions or inefficiencies. There's also a risk of cost overruns for the contractor under the firm-fixed-price structure, which could indirectly impact service quality if not managed well. Vendor lock-in is another concern, where the government becomes overly reliant on Fedtec LLC's specialized knowledge, making future transitions difficult or costly. Ensuring effective knowledge transfer and maintaining clear performance metrics will be crucial to mitigate these risks. The duration of the contract (three years) also presents a risk of technological obsolescence if the supported applications are not updated.

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

The full and open competition with five bidders is a strong indicator that the government is likely receiving good value for taxpayer dollars. A competitive environment incentivizes contractors to offer lower prices and higher quality services to win the contract. The presence of multiple bidders suggests that the market has sufficient capacity and interest in providing these services, preventing a situation where a single provider could dictate terms. This level of competition helps ensure that the awarded price reflects market rates and that the chosen contractor is the most capable and cost-effective option available.

What is the historical spending pattern for occupancy and revenue management application support at GSA?

Analyzing historical spending patterns for occupancy and revenue management application support at GSA would require access to detailed historical contract data. This specific award of $8.1 million over three years provides a snapshot for the current period. To understand historical trends, one would need to examine spending on similar services over the past several fiscal years, identify the primary contractors, and note any significant fluctuations in contract values or award types. This analysis would reveal whether GSA's spending in this area is increasing, decreasing, or remaining stable, and whether competition has historically been robust. Without that historical data, it's difficult to place this $8.1 million award in a long-term context.

What are the potential implications of the firm-fixed-price contract type on service delivery?

A firm-fixed-price (FFP) contract type means the contractor, Fedtec LLC, is obligated to complete the work for a predetermined price, regardless of the actual costs incurred. This structure provides the government with significant cost certainty and predictability. For taxpayers, it means the total cost of the contract is known upfront. However, it places the risk of cost overruns on the contractor. If Fedtec LLC underestimates the effort or encounters unforeseen challenges, they may face reduced profit margins or even losses, which could potentially impact their motivation or ability to deliver the highest quality service if not managed carefully. Conversely, if they are highly efficient, they can achieve higher profits. Clear performance standards and quality assurance are essential under FFP to ensure service delivery meets expectations.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47HAA024Q0007

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1950 OPPORTUNITY WAY STE 1300, RESTON, VA, 20190

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $24,942,215

Exercised Options: $8,117,907

Current Obligation: $8,117,907

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0481Y

IDV Type: FSS

Timeline