GSA awards $2.2M contract for business app user support to Bering Straits Professional Services, LLC

Contract Overview

Contract Amount: $2,216,755 ($2.2M)

Contractor: Bering Straits Professional Services, LLC

Awarding Agency: General Services Administration

Start Date: 2026-01-27

End Date: 2027-01-26

Contract Duration: 364 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BUSINESS APPS USER SUPPORT 24322625C0003

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

General Services Administration obligated $2.2 million to BERING STRAITS PROFESSIONAL SERVICES, LLC for work described as: BUSINESS APPS USER SUPPORT 24322625C0003 Key points: 1. Contract value of $2.2M over one year suggests a moderate investment in essential IT support. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. The contract's duration of one year with no options indicates a short-term need or a pilot program. 4. Fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs. 5. Geographic location in Alaska may influence labor costs and logistical considerations. 6. The NAICS code 541519 points to a broad range of computer-related services, requiring specific expertise.

Value Assessment

Rating: fair

The contract value of $2.2 million for one year of business application user support appears within a reasonable range for specialized IT services. However, without comparable sole-source contracts or detailed service level agreements, a precise value-for-money assessment is challenging. The fixed-price nature of the contract provides cost certainty for the government, but it's crucial to ensure the pricing reflects fair market value given the lack of competitive bidding. Benchmarking against similar sole-source IT support contracts would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or in the interest of the government. The lack of competition means there was no opportunity for multiple vendors to bid, which could limit price discovery and potentially lead to higher costs than a competitively awarded contract. The rationale for the sole-source award would need further investigation to understand if it was justified by unique capabilities or urgent needs.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. The absence of multiple bids means the government could be paying a premium for these services.

Public Impact

Federal employees relying on business applications will receive continued user support, ensuring operational continuity. The contract supports the General Services Administration's Federal Acquisition Service, a key agency for government procurement. Services are likely concentrated in Alaska, potentially impacting the local IT workforce and economy. Improved user support can lead to increased productivity and efficiency for government personnel utilizing these business applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of detailed performance metrics in the provided data makes assessing contractor performance difficult.
The broad NAICS code suggests a wide scope of work, which could lead to scope creep if not managed carefully.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Contract awarded to Bering Straits Professional Services, LLC, a known entity in government contracting.
Contract duration is clearly defined, allowing for predictable resource allocation.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer-related services and support. The market for IT support services is highly competitive, with numerous firms offering specialized solutions. However, sole-source awards, like this one, represent a segment where specific circumstances justify bypassing open competition. The value of $2.2 million is moderate for an IT support contract, and its placement within the Federal Acquisition Service of GSA indicates a focus on internal government operational efficiency.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The prime contractor, Bering Straits Professional Services, LLC, may or may not be a small business itself, but the award mechanism did not prioritize small business participation through a set-aside. Further analysis of the contractor's size status would be needed to understand its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. The fixed-price nature of the contract implies that performance monitoring will focus on deliverables and service level agreements rather than cost reimbursement. Transparency would be enhanced by making the contract details and performance reports publicly accessible, and any Inspector General investigations would fall under GSA's jurisdiction.

Related Government Programs

IT User Support Services
General Services Administration IT Contracts
Federal Business Application Support
Computer Systems Design Services

Risk Flags

Sole-source award
Limited competition
Potential for cost inefficiency
Lack of public performance data

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.2 million to BERING STRAITS PROFESSIONAL SERVICES, LLC. BUSINESS APPS USER SUPPORT 24322625C0003

Who is the contractor on this award?

The obligated recipient is BERING STRAITS PROFESSIONAL SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2026-01-27. End: 2027-01-26.

What is the track record of Bering Straits Professional Services, LLC in performing similar IT support contracts for the federal government?

Bering Straits Professional Services, LLC has a history of performing various federal contracts, including IT services. While specific details on past user support contracts of this exact nature and scale are not immediately available from the provided data, their presence in the federal contracting space suggests experience. A deeper dive into their contract history, past performance evaluations (e.g., CPARS), and any awards or penalties would provide a clearer picture of their reliability and capability in delivering business application user support. Understanding their performance on previous GSA contracts would be particularly relevant.

How does the $2.2 million contract value compare to similar sole-source IT user support contracts awarded by GSA or other agencies?

The $2.2 million contract value for one year of IT user support is a moderate amount within the federal IT services market. Sole-source awards can sometimes be priced higher than competitively bid contracts due to the lack of market pressure. To benchmark this value, one would need to compare it against other sole-source contracts for similar services (e.g., help desk, application maintenance, user training) awarded by GSA or agencies with comparable IT needs. Factors such as the number of users supported, complexity of applications, and geographic location of services would need to be considered for a fair comparison. Without such comparative data, it's difficult to definitively state if this represents excellent, fair, or questionable value.

What are the specific risks associated with a sole-source award for essential business application user support?

The primary risk of a sole-source award for essential business application user support is the potential for inflated costs due to the absence of competition. This can lead to a suboptimal use of taxpayer funds. Another risk is vendor lock-in, where the government becomes dependent on a single provider, potentially reducing flexibility and leverage in future negotiations. Furthermore, if the sole-source justification is weak or if the contractor underperforms, the government has limited recourse compared to a competitive environment where alternative vendors could be engaged. Ensuring robust contract management and clear performance metrics is crucial to mitigate these risks.

What is the expected effectiveness of this contract in ensuring the continuity and efficiency of government operations reliant on business applications?

The effectiveness of this contract hinges on the quality of service provided by Bering Straits Professional Services, LLC and the clarity of the contract's performance requirements. If the contractor delivers timely and accurate user support, it should directly contribute to the continuity and efficiency of government operations. This includes minimizing downtime, resolving user issues promptly, and potentially improving user proficiency with the applications. However, the sole-source nature means effectiveness is more dependent on the contractor's inherent capabilities and the government's oversight rather than the pressure of competition to drive performance improvements.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) trended in recent years, and how does this contract fit into that trend?

Federal spending on NAICS code 541519, 'Other Computer Related Services,' has generally seen an upward trend over the past decade, reflecting the increasing reliance of government agencies on technology and specialized IT support. This category encompasses a wide array of services beyond standard software development or IT infrastructure management. This $2.2 million contract for business application user support fits within this trend as a specific instance of demand for specialized IT assistance. Its moderate size suggests it's addressing a focused need rather than a large-scale transformation, aligning with many agency-specific requirements within the broader IT services landscape.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QACA26R0233

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 C ST STE 400, ANCHORAGE, AK, 99503

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

Financial Breakdown

Contract Ceiling: $8,900,064

Exercised Options: $2,216,755

Current Obligation: $2,216,755

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline