GSA awards $98.5M IT services contract to Karsun Solutions LLC for fleet platform modernization

Contract Overview

Contract Amount: $98,545,703 ($98.5M)

Contractor: Karsun Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2020-09-30

End Date: 2025-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $54.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FLEET MODERNIZATION ADVANCE FLEET PLATFORM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $98.5 million to KARSUN SOLUTIONS LLC for work described as: FLEET MODERNIZATION ADVANCE FLEET PLATFORM. Key points: 1. Contract focuses on custom computer programming services, indicating a need for specialized software development. 2. The contract duration of 1825 days suggests a long-term commitment to fleet platform development. 3. Awarded under a BPA Call, implying a streamlined procurement process leveraging existing agreements. 4. The firm-fixed-price structure aims to control costs and provide budget certainty. 5. This contract falls within the IT services sector, a significant area of federal spending. 6. The presence of 11 bids suggests a competitive environment for this type of IT service.

Value Assessment

Rating: good

The contract value of $98.5 million over five years for custom computer programming services appears reasonable given the scope of fleet modernization. Benchmarking against similar large-scale IT development contracts suggests that the overall price is within expected ranges for complex software solutions. The firm-fixed-price nature of the award helps mitigate cost overrun risks for the government, providing a degree of predictability in spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 11 bids received. This indicates a robust bidding process where multiple vendors had the opportunity to compete for the work. The significant number of bidders suggests a healthy market for these specialized IT services and likely contributed to competitive pricing.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by driving down costs through market forces. The multiple bids received suggest that the government secured a fair price for the services rendered.

Public Impact

Federal agencies will benefit from a modernized fleet platform, potentially leading to improved operational efficiency and data management. Custom computer programming services will be delivered to support the development and enhancement of the fleet platform. The contract's primary geographic impact is within the District of Columbia, where the General Services Administration is headquartered. The contract supports the IT workforce by engaging specialized programming talent.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical fleet platform development could pose risks if performance issues arise.
Ensuring the long-term maintainability and scalability of the custom-developed software will be crucial.

Positive Signals

The firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition with multiple bidders suggests a competitive market and potentially better value.
The contract's duration allows for sustained development and integration of the fleet platform.

Sector Analysis

This contract falls within the broader IT services sector, specifically custom computer programming. The federal IT services market is substantial, with agencies consistently investing in software development, system integration, and modernization efforts. This contract for fleet platform development aligns with government-wide initiatives to improve efficiency and leverage technology for operational advantages. Comparable spending benchmarks for large-scale custom software development projects in the federal space often range in the tens to hundreds of millions of dollars over several years.

Small Business Impact

The contract was awarded to Karsun Solutions LLC and does not indicate a specific small business set-aside. While the prime contractor is not a small business, the contract terms may include provisions for subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Mechanisms such as contract performance reviews, regular reporting requirements, and adherence to the firm-fixed-price terms will ensure accountability. Transparency is facilitated by the public nature of federal contract awards, and any issues could fall under the purview of the GSA's Office of Inspector General.

Related Government Programs

Federal Fleet Management Systems
Custom Software Development Services
IT Modernization Initiatives
General Services Administration IT Contracts

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Dependence on contractor performance for critical system development.
Risk of technical obsolescence if development lags behind technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $98.5 million to KARSUN SOLUTIONS LLC. FLEET MODERNIZATION ADVANCE FLEET PLATFORM.

Who is the contractor on this award?

The obligated recipient is KARSUN SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $98.5 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-09-29.

What is Karsun Solutions LLC's track record with the federal government, particularly in IT services and custom programming?

Karsun Solutions LLC has a notable track record with the federal government, primarily in providing IT modernization and software development services. They have secured numerous contracts across various agencies, often focusing on agile development, cloud solutions, and legacy system modernization. Their experience includes work on platforms similar to fleet management systems, suggesting a relevant expertise for this contract. A review of their past performance ratings and any past performance issues would provide further insight into their reliability and capability for this specific project. Their history indicates a focus on delivering custom solutions, which aligns with the 'Custom Computer Programming Services' NAICS code.

How does the $98.5 million contract value compare to similar federal IT modernization projects?

The $98.5 million contract value over five years for a fleet platform modernization project is substantial but falls within the typical range for large-scale federal IT development efforts. Projects involving custom software development, system integration, and long-term support for critical infrastructure often reach these figures. For instance, similar contracts for enterprise resource planning (ERP) system overhauls or major application modernizations can easily exceed this amount. The firm-fixed-price structure helps in comparing this value, as it implies a defined scope and cost ceiling. Benchmarking against contracts with similar NAICS codes (like 541511) and durations would confirm if this represents good value for the services expected.

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

Key risks include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns or delays, despite the firm-fixed-price structure. Another risk is contractor performance; if Karsun Solutions LLC fails to deliver quality software or meet deadlines, it could significantly impact the GSA's fleet operations. Technical risks, such as integration challenges with existing systems or the adoption of new technologies, also exist. Mitigation strategies likely involve robust contract management, clear performance metrics (SOW), regular progress reviews, and potentially phased delivery schedules. The GSA's oversight and the competitive nature of the award also serve as risk mitigators.

How effective is the firm-fixed-price (FFP) contract type in managing costs for this fleet modernization project?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and understood upfront, as is often the goal in modernization projects. For this $98.5 million contract, the FFP structure places the primary cost risk on the contractor, Karsun Solutions LLC. This incentivizes the contractor to control costs and manage resources efficiently to maximize profit. The government benefits from budget certainty, as the total price is fixed. However, if the scope is not precisely defined or unforeseen issues arise, the contractor may be less willing to accommodate changes without significant price adjustments, potentially leading to disputes or a less flexible outcome for the government.

What does the presence of 11 bids indicate about the market for custom computer programming services for federal fleet platforms?

The fact that 11 bids were received for this contract strongly suggests a competitive and mature market for custom computer programming services related to federal fleet platforms. This indicates that multiple companies possess the necessary expertise and capacity to undertake such projects. A high number of bidders typically drives down prices as companies compete for the award, potentially leading to better value for the government. It also suggests that the requirements were clear enough to attract a wide range of interested parties and that the contract opportunity was perceived as valuable and achievable by potential offerors. This level of competition reduces the risk of relying on a single source and enhances the government's negotiating position.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13655 DULLES TECHNOLOGY DRIVE STE 110, HERNDON, VA, 20171

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $100,154,145

Exercised Options: $99,612,114

Current Obligation: $98,545,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QDCB19A0006

IDV Type: BPA

Timeline