GSA awards $54.3M for AFNET Core Services Design and Integration to QIVLIQ Commercial Group LLC

Contract Overview

Contract Amount: $54,333,209 ($54.3M)

Contractor: Qivliq Commercial Group LLC

Awarding Agency: General Services Administration

Start Date: 2019-07-01

End Date: 2024-06-30

Contract Duration: 1,826 days

Daily Burn Rate: $29.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AFNET CORE SERVICES DESIGN AND INTEGRATION

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $54.3 million to QIVLIQ COMMERCIAL GROUP LLC for work described as: AFNET CORE SERVICES DESIGN AND INTEGRATION Key points: 1. Contract value represents a significant investment in Air Force network modernization. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The duration of the contract (5 years) indicates a long-term need for these services. 5. The award falls within the Computer Systems Design Services NAICS code, a common area for IT support. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $54.3 million over five years for network design and integration appears reasonable given the scope. Benchmarking against similar large-scale IT infrastructure contracts suggests that pricing is likely competitive, especially considering the full and open competition. The firm-fixed-price structure further supports value for money by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The fact that 6 offers were received suggests a healthy level of competition for this significant IT services requirement.

Taxpayer Impact: A competitive award process like this generally leads to better pricing and innovation for taxpayers, as contractors vie to offer the most compelling solution at the best value.

Public Impact

The primary beneficiary is the U.S. Air Force, which will receive enhanced network design and integration services. This contract supports the modernization and operational efficiency of critical Air Force communication networks. The services delivered are expected to improve network performance, security, and reliability for military operations. The geographic impact is national, supporting Air Force installations and operations across the United States. Workforce implications may include specialized IT and network engineering roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial design and integration phases are not tightly managed.
Dependence on contractor expertise could create knowledge transfer challenges for the government.
Ensuring seamless integration with existing and future Air Force IT infrastructure requires robust oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty and incentivizes contractor efficiency.
Full and open competition suggests a strong market response and potential for best-value selection.
Long contract duration allows for sustained focus on complex network modernization efforts.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and integration. The market for such services is substantial, driven by continuous government and commercial needs for advanced network infrastructure, cybersecurity, and digital transformation. Comparable spending benchmarks in this area often involve multi-year, multi-million dollar awards for complex system design and implementation.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is QIVLIQ COMMERCIAL GROUP LLC, there is no explicit information on subcontracting plans for small businesses within the provided data. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the General Services Administration (GSA) Federal Acquisition Service, which awarded the contract. Accountability measures are embedded in the firm-fixed-price structure and performance requirements. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly accessible.

Related Government Programs

Air Force Network Modernization Programs
GSA IT Schedule Contracts
Defense Information Systems Agency (DISA) Contracts
Federal Civilian IT Modernization Initiatives

Risk Flags

Potential for vendor lock-in
Complexity of system integration
Long-term performance dependency

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $54.3 million to QIVLIQ COMMERCIAL GROUP LLC. AFNET CORE SERVICES DESIGN AND INTEGRATION

Who is the contractor on this award?

The obligated recipient is QIVLIQ COMMERCIAL 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 $54.3 million.

What is the period of performance?

Start: 2019-07-01. End: 2024-06-30.

What is the track record of QIVLIQ COMMERCIAL GROUP LLC in performing similar large-scale network design and integration contracts for the federal government?

Assessing QIVLIQ COMMERCIAL GROUP LLC's track record requires examining their past performance on federal contracts, particularly those involving complex network design, integration, and IT infrastructure modernization. Information on contract vehicles, performance ratings (e.g., CPARS), and successful project completions would be crucial. A review of their contract history with agencies like GSA, DoD, or others would reveal their experience level and ability to manage projects of this scale and technical complexity. Without specific past performance data, it's difficult to definitively assess their capability, but the award itself suggests they met the government's minimum requirements and demonstrated potential for successful execution.

How does the awarded value of $54.3 million compare to similar network design and integration contracts awarded by GSA or the Air Force in recent years?

The $54.3 million contract value over five years for AFNET Core Services Design and Integration needs to be benchmarked against similar large-scale IT infrastructure and network modernization contracts. For instance, contracts for enterprise network upgrades, cybersecurity integration, or cloud migration services for large federal agencies often range from tens to hundreds of millions of dollars. The average annual value of this contract is approximately $10.86 million. Comparing this to other GSA IT Schedule awards or direct Air Force procurements for comparable services would provide context. If similar contracts for similar scope and duration are in the same ballpark, it suggests fair market pricing. Significant deviations, either higher or lower, would warrant further investigation into the specific technical requirements and market conditions.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks for this contract include potential technical challenges in integrating complex network systems, the possibility of cost overruns if the firm-fixed-price (FFP) contract is not managed tightly, and schedule delays due to unforeseen technical hurdles or contractor performance issues. Another risk is the potential for vendor lock-in or over-reliance on the contractor's proprietary solutions. Mitigation strategies likely involve robust government oversight, clear performance metrics and milestones defined in the contract, regular progress reviews, and strong contract management by GSA. The FFP structure itself mitigates cost risk for the government, incentivizing the contractor to manage costs effectively. Clear technical specifications and phased integration plans also help manage technical risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring competitive pricing for complex IT services like network design?

The 'Full and Open Competition After Exclusion of Sources' approach is generally considered highly effective in ensuring competitive pricing for complex IT services. This method allows the government to solicit proposals from all responsible sources, maximizing the pool of potential bidders. By excluding specific sources, it might indicate a need for specialized capabilities or a desire to focus on a particular segment of the market, but the 'full and open' aspect ensures broad participation within those parameters. Receiving six offers, as indicated in the data, suggests that the market responded well, leading to a competitive environment where contractors must offer their best value to win. This process typically drives down prices and encourages innovation compared to sole-source or limited competition scenarios.

What is the historical spending pattern for 'Computer Systems Design Services' (NAICS 541512) by the General Services Administration?

The General Services Administration (GSA) is a significant procurer of 'Computer Systems Design Services' (NAICS 541512), often through its IT Schedule 70 (now IT Professional Services). Historical spending in this category is substantial, reflecting the government's continuous need for IT modernization, system integration, and technical support across various agencies. GSA's spending on NAICS 541512 typically involves a mix of large prime contracts and numerous smaller awards, often facilitated through IDIQ vehicles. Analyzing GSA's overall IT spending trends and the proportion allocated to system design and integration services would reveal the importance of this category. Factors like agency-wide IT initiatives, cybersecurity mandates, and the push for digital government services influence these spending patterns.

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

Solicitation ID: ID05190022

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation, Inc.

Address: 2553 DULLES VIEW DR STE 700, HERNDON, VA, 20171

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: $54,333,209

Exercised Options: $54,333,209

Current Obligation: $54,333,209

Actual Outlays: $-102

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17GWD2100

IDV Type: GWAC

Timeline