GSA Awards $187M IT Services Contract to Sevatec LLC Under Full and Open Competition

Contract Overview

Contract Amount: $186,898,460 ($186.9M)

Contractor: Sevatec LLC

Awarding Agency: General Services Administration

Start Date: 2019-09-27

End Date: 2025-03-26

Contract Duration: 2,007 days

Daily Burn Rate: $93.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HALLEY'S IT SYSTEMS SERVICES

Place of Performance

Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95113

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $186.9 million to SEVATEC LLC for work described as: HALLEY'S IT SYSTEMS SERVICES Key points: 1. Contract value of $186.9M over its period of performance. 2. Awarded to Sevatec LLC, a significant player in the IT services sector. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract's fixed price structure provides cost certainty. Benchmarking against similar large-scale IT service contracts is recommended to ensure optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for the IT services procured.

Public Impact

Federal agencies will receive essential IT support services. Sevatec LLC will benefit from a substantial government contract. The procurement process ensures a wide range of vendors had the opportunity to compete.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep in IT services.
  • Vendor lock-in risk if not managed effectively.
  • Dependence on a single vendor for critical IT functions.

Positive Signals

  • Awarded through full and open competition.
  • Fixed-price contract type offers cost predictability.
  • Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the broad IT services sector, specifically 'Other Computer Related Services'. Spending in this category is substantial across the federal government, with benchmarks varying widely based on service type and complexity.

Small Business Impact

While Sevatec LLC is the prime contractor, the contract does not indicate specific small business set-asides or subcontracting goals. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The General Services Administration (GSA) managed this award through its Federal Acquisition Service, indicating established oversight mechanisms. Performance monitoring will be crucial to ensure service delivery meets requirements.

Related Government Programs

  • Other Computer Related Services
  • General Services Administration Contracting
  • Federal Acquisition Service Programs

Risk Flags

  • Potential for vendor lock-in.
  • Scope creep in IT services.
  • Dependence on a single vendor.
  • Need for detailed performance monitoring.

Tags

other-computer-related-services, general-services-administration, ca, bpa-call, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $186.9 million to SEVATEC LLC. HALLEY'S IT SYSTEMS SERVICES

Who is the contractor on this award?

The obligated recipient is SEVATEC LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $186.9 million.

What is the period of performance?

Start: 2019-09-27. End: 2025-03-26.

What specific IT services are included under 'Other Computer Related Services'?

The 'Other Computer Related Services' NAICS code (541519) is broad and can encompass a wide range of IT support functions not classified elsewhere. This typically includes IT consulting, system integration, disaster recovery, and IT support services. A detailed review of the contract's statement of work (SOW) is necessary to understand the precise services being procured and their alignment with agency needs.

How does Sevatec LLC's pricing compare to market rates for similar IT services?

Without specific line-item pricing and detailed service descriptions, a precise comparison is difficult. However, the use of full and open competition suggests that the pricing was vetted against multiple offers. Further analysis could involve benchmarking against GSA Schedule pricing or other government-wide contracts for comparable IT services to ensure continued cost-effectiveness.

What are the key performance indicators (KPIs) for this contract and how is performance monitored?

The provided data does not detail the specific KPIs or performance monitoring mechanisms. Effective oversight typically involves regular performance reviews, adherence to service level agreements (SLAs), and user satisfaction metrics. The GSA's Federal Acquisition Service likely has standard procedures for monitoring contractor performance, but the contract's SOW would outline the specific requirements and evaluation criteria.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID16190005

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2815 OLD LEE HWY, FAIRFAX, VA, 22031

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $189,819,652

Exercised Options: $189,819,652

Current Obligation: $186,898,460

Actual Outlays: $108,568,667

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QDCB19A0008

IDV Type: BPA

Timeline

Start Date: 2019-09-27

Current End Date: 2025-03-26

Potential End Date: 2025-03-26 00:00:00

Last Modified: 2025-08-26

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