GSA awards $174.5M for SETA support to PM Tactical Network, with 2 bidders

Contract Overview

Contract Amount: $174,512,606 ($174.5M)

Contractor: Janus Research Group, LLC

Awarding Agency: General Services Administration

Start Date: 2018-08-14

End Date: 2024-02-13

Contract Duration: 2,009 days

Daily Burn Rate: $86.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SETA SUPPORT FOR PM TACTICAL NETWORK

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $174.5 million to JANUS RESEARCH GROUP, LLC for work described as: SETA SUPPORT FOR PM TACTICAL NETWORK Key points: 1. Value for money appears fair given the contract duration and scope. 2. Competition dynamics indicate a moderately competitive environment with two bidders. 3. Risk indicators are moderate, with a long contract duration and time-and-materials pricing. 4. Performance context is for SETA support, a common requirement in federal IT. 5. Sector positioning is within professional services supporting federal IT programs.

Value Assessment

Rating: fair

The contract's total value of $174.5 million over approximately six years suggests a significant investment. Benchmarking against similar SETA support contracts is challenging without more granular data on specific services rendered. However, the average annual value is around $29 million, which falls within a typical range for large-scale federal program support. The time-and-materials pricing model, while flexible, can sometimes lead to higher costs if not managed closely, warranting careful oversight.

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. With two bidders identified, the competition level was moderate. While more than one bidder is positive, a higher number of bidders typically drives more aggressive pricing and innovation. The presence of two bidders suggests that the market for this specific type of SETA support is not overly saturated but also not highly constrained.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by fostering a more competitive pricing environment and encouraging contractors to offer their best value solutions.

Public Impact

The primary beneficiaries are the program management offices requiring specialized technical and administrative support for tactical networks. Services delivered include program management, technical expertise, and administrative support crucial for the success of federal IT initiatives. The geographic impact is likely concentrated around the agency's operational centers, primarily in Maryland. Workforce implications include the creation of specialized jobs in program management and technical support roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2009-2024) increases the risk of cost overruns if not managed effectively.
Time and Materials (T&M) pricing can lead to uncontrolled cost growth without strict oversight.
Limited competition (2 bidders) may have resulted in a higher price than a more competitive scenario.
The specific nature of 'SETA Support' can be broad, potentially leading to scope creep if not clearly defined.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential offerors.
The contract has a defined period of performance, allowing for structured program execution.
The existence of a specific NAICS code (611430) suggests a defined service category.
The contract is for a specific purpose (SETA Support for PM Tactical Network), indicating focused objectives.

Sector Analysis

The contract falls within the professional and management development training sector, specifically supporting federal IT program management. This sector is characterized by a high demand for specialized expertise in areas like program execution, technical guidance, and administrative support. The market size for such services is substantial, driven by continuous government investment in technology modernization and operational efficiency. Comparable spending benchmarks would involve analyzing other SETA support contracts across various agencies for similar program management functions.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit mention of subcontracting plans for small businesses. This suggests that the primary awardee, Janus Research Group, LLC, is likely a large business, and opportunities for small businesses would depend on their subcontracting decisions rather than a mandated set-aside.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. Accountability measures would be embedded in the contract's performance work statement and delivery orders. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Program Management Support Services
IT Program Support
Federal Acquisition Support
Defense Program Management
Technical Consulting Services

Risk Flags

Potential for cost overruns due to T&M pricing and long duration.
Risk of scope creep if program requirements are not clearly defined.
Moderate competition may limit price optimization.
Contractor performance monitoring is critical.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $174.5 million to JANUS RESEARCH GROUP, LLC. SETA SUPPORT FOR PM TACTICAL NETWORK

Who is the contractor on this award?

The obligated recipient is JANUS RESEARCH GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $174.5 million.

What is the period of performance?

Start: 2018-08-14. End: 2024-02-13.

What is the track record of Janus Research Group, LLC in delivering SETA support services to the federal government?

Janus Research Group, LLC has a history of providing various support services to the federal government. While this specific contract is substantial, their broader contract portfolio would need to be reviewed to fully assess their track record in SETA support. Analyzing past performance evaluations, any past performance issues, and the successful completion of similar-sized contracts would provide a clearer picture of their capabilities and reliability in delivering complex program management and technical support.

How does the awarded price compare to market rates for similar SETA support services?

Directly comparing the awarded price of $174.5 million to market rates is complex without detailed service breakdowns. However, the average annual value of approximately $29 million can be benchmarked against industry reports for SETA support. Factors like the specific technical domain (tactical networks), required clearances, and geographic location influence rates. The time-and-materials pricing structure necessitates close monitoring to ensure costs remain competitive against industry benchmarks for labor categories and overhead.

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

Key risks include potential cost overruns due to the long duration and T&M pricing, scope creep, and contractor performance issues. Mitigation strategies likely involve robust contract administration by GSA, including regular performance reviews, detailed invoicing scrutiny, and clear definition of tasks within delivery orders. The moderate competition level also presents a risk of suboptimal pricing. Effective risk mitigation requires proactive management from both the government and the contractor.

How effective has this contract been in supporting the PM Tactical Network program's objectives?

Assessing the effectiveness requires access to performance metrics and program outcomes directly tied to the SETA support. Without specific data on the tactical network's success, operational readiness, or efficiency gains attributed to this support, a definitive judgment on effectiveness is not possible. Program success metrics, user feedback, and achievement of milestones related to the tactical network would be crucial indicators.

What are the historical spending patterns for SETA support within the General Services Administration or similar agencies?

Historical spending on SETA support within GSA and comparable agencies typically shows a consistent demand, reflecting the government's reliance on external expertise for program management and technical guidance. Spending levels fluctuate based on agency priorities, budget cycles, and the initiation of new technology programs. Analyzing past GSA contract awards for SETA services, particularly those supporting IT infrastructure and network modernization, would reveal trends in contract values, durations, and competition levels over time.

What is the potential impact of the time-and-materials (T&M) pricing structure on overall cost?

The Time and Materials (T&M) pricing structure allows for flexibility in adapting to evolving project needs but carries a significant risk of cost escalation if not rigorously managed. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the cost of materials. Without strict controls, such as labor hour ceilings, defined task orders, and vigilant oversight of timesheets and material costs, the total contract cost can exceed initial estimates. This necessitates proactive government oversight to ensure that labor hours are reasonable and allocable to the contract's objectives.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID02180019

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 600 PONDER PLACE DR, EVANS, GA, 30809

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $193,246,900

Exercised Options: $193,246,900

Current Obligation: $174,512,606

Subaward Activity

Number of Subawards: 199

Total Subaward Amount: $335,269,366

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F310CA

IDV Type: FSS

Timeline