GSA's $213.8M IT Support Contract to Innovative Management Concepts Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $213,858,410 ($213.9M)

Contractor: Innovative Management Concepts, Inc

Awarding Agency: General Services Administration

Start Date: 2020-09-17

End Date: 2026-07-03

Contract Duration: 2,115 days

Daily Burn Rate: $101.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THE PURPOSE OF THIS TO IS TO PROVIDE MISSION CRITICAL C4 AND IT SYSTEM SUPPORT TO ESIM, ITS SUBORDINATE UNITS, AND ITS STRATEGIC AND OPERATIONAL PARTNERS.

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96819

State: Hawaii Government Spending

Plain-Language Summary

General Services Administration obligated $213.9 million to INNOVATIVE MANAGEMENT CONCEPTS, INC for work described as: THE PURPOSE OF THIS TO IS TO PROVIDE MISSION CRITICAL C4 AND IT SYSTEM SUPPORT TO ESIM, ITS SUBORDINATE UNITS, AND ITS STRATEGIC AND OPERATIONAL PARTNERS. Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a potentially limited but documented competitive process. 2. The contract's cost-plus-award-fee structure allows for performance-based incentives, but requires careful monitoring to ensure cost control and value. 3. A high number of bids (101,115) suggests significant market interest, but the specific competition dynamics need further analysis to confirm price discovery. 4. The contract duration of 2115 days (approx. 5.8 years) represents a long-term commitment for critical C4 and IT system support. 5. The contract is categorized under Computer Systems Design Services, a broad IT sector with varying market rates and competitive landscapes. 6. No small business set-aside was utilized, raising questions about opportunities for smaller firms in this significant IT services procurement.

Value Assessment

Rating: fair

Benchmarking the $213.8 million total contract value against similar IT support contracts is challenging without more specific service details. The cost-plus-award-fee (CPAF) pricing structure, while incentivizing performance, can lead to cost overruns if not managed rigorously. The contract's duration and scope suggest a substantial investment, and its value will depend heavily on the effective delivery of mission-critical C4 and IT systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources may have been excluded for specific reasons. The high number of bids (101,115) is unusual and may represent a registration or interest count rather than formal proposals. Further investigation is needed to understand the actual number of competitive proposals received and the rationale for excluding any sources.

Taxpayer Impact: The competitive process, while appearing broad based on the bid count, needs clarification to ensure taxpayers received the best possible pricing and value. A truly open and robust competition is essential for driving down costs and ensuring efficient use of federal funds.

Public Impact

The primary beneficiaries are the various components of ESIM (Enterprise Systems Integration Management) and its strategic and operational partners, who will receive mission-critical C4 and IT system support. Services delivered include comprehensive IT system support, likely encompassing network management, cybersecurity, software development, and system maintenance. The geographic impact is likely nationwide, supporting ESIM's operations wherever they are located. Workforce implications could include the direct employment of IT professionals by the contractor and potential indirect impacts on government IT personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on the 'exclusion of sources' aspect of the competition could mask reduced price competition.
The cost-plus-award-fee structure necessitates stringent oversight to prevent potential cost creep and ensure performance aligns with award criteria.
The sheer volume of bids (101,115) raises questions about the efficiency and effectiveness of the solicitation process, potentially indicating a broad but shallow engagement.
The contract's long duration could lead to technological obsolescence if not actively managed and updated.
The absence of small business set-asides limits opportunities for smaller, potentially innovative firms in this significant IT procurement.

Positive Signals

Awarded under a 'Full and Open Competition' framework, suggesting an intent to maximize market participation.
The high number of bids (101,115) indicates substantial market interest in providing these critical IT services.
The contract aims to provide 'mission critical' support, highlighting its importance to the agency's operations.
The use of an award fee structure incentivizes contractor performance and alignment with government objectives.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. This is a large and dynamic market driven by government and commercial demand for digital transformation, cloud computing, cybersecurity, and data analytics. The total federal spending on IT services is in the hundreds of billions annually. This contract represents a significant portion of spending within its specific niche, supporting essential government functions.

Small Business Impact

This contract does not appear to have a small business set-aside. The absence of specific small business considerations in the award details suggests that opportunities for small businesses may be limited to subcontracting roles, if any. Further analysis would be needed to determine if subcontracting plans were mandated or if small businesses were actively encouraged to bid or participate in the prime contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. The contract's cost-plus-award-fee structure necessitates robust performance monitoring and financial oversight to ensure that award fees are justified and costs are controlled. Transparency would be enhanced through regular reporting requirements and potential audits by GSA or the relevant Inspector General.

Related Government Programs

IT Infrastructure Support Services
C4ISR Systems Support
Enterprise Resource Planning (ERP) Support
Cloud Computing Services
Cybersecurity Services

Risk Flags

Competition concerns due to 'Exclusion of Sources'
Potential for cost overruns with CPAF structure
Risk of technological obsolescence due to long contract duration
Limited small business participation opportunities

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $213.9 million to INNOVATIVE MANAGEMENT CONCEPTS, INC. THE PURPOSE OF THIS TO IS TO PROVIDE MISSION CRITICAL C4 AND IT SYSTEM SUPPORT TO ESIM, ITS SUBORDINATE UNITS, AND ITS STRATEGIC AND OPERATIONAL PARTNERS.

Who is the contractor on this award?

The obligated recipient is INNOVATIVE MANAGEMENT CONCEPTS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $213.9 million.

What is the period of performance?

Start: 2020-09-17. End: 2026-07-03.

What is the specific nature of the 'mission critical C4 and IT system support' being provided to ESIM?

The contract aims to provide essential Command, Control, Communications, Computers, and Information Technology (C4 and IT) system support to the Enterprise Systems Integration Management (ESIM) organization and its partners. This likely encompasses a broad range of services critical to ESIM's operations, including but not limited to network infrastructure management, cybersecurity operations, system maintenance and upgrades, software development and integration, and potentially help desk and end-user support. The 'mission critical' designation implies that the uninterrupted and effective functioning of these IT systems is vital for ESIM to achieve its core objectives and fulfill its governmental responsibilities. Without more specific details on ESIM's mission, the precise scope of 'C4 and IT system support' remains generalized but is understood to be foundational to the agency's ability to operate.

How does the 'Full and Open Competition After Exclusion of Sources' process impact price discovery and value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' clause suggests that while the government intended to compete the contract broadly, certain potential offerors were intentionally excluded. The impact on price discovery and taxpayer value is nuanced. On one hand, it implies a deliberate decision to limit the pool of bidders, potentially based on specific technical requirements, past performance, or security concerns. This could reduce the number of competitive offers received, potentially leading to less downward pressure on pricing compared to a truly unrestricted full and open competition. On the other hand, if the exclusions were justified by unique capabilities or essential qualifications, the remaining competition might still yield a fair price for specialized services. The key concern for taxpayers is understanding the rationale behind the exclusions and ensuring that the resulting competition was sufficient to achieve a competitive market price for the services rendered.

What are the potential risks associated with the Cost Plus Award Fee (CPAF) contract type for this IT support requirement?

The Cost Plus Award Fee (CPAF) contract type presents several potential risks for taxpayers. While it incentivizes contractor performance by offering award fees based on achieving specific criteria, it also carries a risk of cost overruns. The government agrees to reimburse the contractor for all allowable costs, plus a fee that is composed of a base amount (often fixed) and an award amount determined by performance evaluations. The primary risk is that the contractor may incur higher costs than anticipated, either due to inefficiencies or by pursuing activities that maximize their award fee potential at the expense of overall cost-effectiveness. Robust oversight, clear performance metrics, and diligent cost monitoring are crucial to mitigate these risks and ensure that the award fee truly reflects exceptional performance rather than simply higher spending.

Given the contract's duration (approx. 5.8 years), what are the implications for technological relevance and adaptability?

A contract duration of approximately 5.8 years for IT support services carries significant implications for technological relevance and adaptability. The IT landscape evolves rapidly, with new technologies, security threats, and operational requirements emerging constantly. A long-term contract, while providing stability, risks locking the government into potentially outdated technologies or methodologies if not managed proactively. To mitigate this, the contract must include mechanisms for regular review, adaptation, and incorporation of new technologies. This could involve contract modifications, periodic re-competition of specific service elements, or performance standards that require the contractor to stay abreast of and propose innovative solutions aligned with evolving technological trends and agency needs. Without such provisions, the government risks paying for suboptimal or obsolete IT support.

How does the absence of a small business set-aside impact the potential for innovation and competition in this IT services contract?

The absence of a small business set-aside in this contract means that the primary competition was likely among large businesses, or the contract was competed on a broader basis where small businesses were not specifically targeted. This can limit the opportunities for small businesses to directly compete for and win prime contracts, potentially reducing the infusion of innovative solutions that smaller, more agile companies often bring to the market. While large businesses can be innovative, small businesses frequently operate with leaner structures and specialized expertise that can lead to novel approaches. Furthermore, excluding small businesses from prime contract opportunities can hinder their growth and development within the federal IT sector, potentially impacting the long-term health and diversity of the government's contracting base. Subcontracting opportunities may exist, but they do not offer the same strategic benefits as prime contract awards.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 428 HONAKER RD, BLAIRSVILLE, GA, 30512

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $268,840,993

Exercised Options: $241,638,493

Current Obligation: $213,858,410

Actual Outlays: $-312,728

Subaward Activity

Number of Subawards: 108

Total Subaward Amount: $81,464,627

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCH18D0028

IDV Type: GWAC

Timeline