GSA awards $5.17M for Data Analytics as a Service, with limited competition

Contract Overview

Contract Amount: $5,172,011 ($5.2M)

Contractor: Illumination Works, LLC

Awarding Agency: General Services Administration

Start Date: 2023-06-01

End Date: 2026-05-31

Contract Duration: 1,095 days

Daily Burn Rate: $4.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA ANALYTICS AS A SERVICE DAAAS SBIR PHASE III TASK ORDER 01

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45431

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $5.2 million to ILLUMINATION WORKS, LLC for work described as: DATA ANALYTICS AS A SERVICE DAAAS SBIR PHASE III TASK ORDER 01 Key points: 1. Contract value represents a significant investment in advanced data analytics capabilities. 2. The limited competition nature of this award warrants scrutiny for potential price impacts. 3. Performance period of three years allows for sustained development and integration of services. 4. The specific NAICS code suggests a focus on custom programming and integration services. 5. This task order falls under a larger SBIR Phase III program, indicating prior innovation. 6. The firm-fixed-price structure aims to control costs, but requires careful scope management.

Value Assessment

Rating: fair

The contract value of $5.17 million for a three-year period for Data Analytics as a Service (DAAAS) appears moderate for custom programming services. Benchmarking against similar custom computer programming contracts (NAICS 541511) is challenging without more specific service details. However, the firm-fixed-price structure suggests an attempt to establish clear cost expectations. Without comparative data on per-unit analytics or development costs, a definitive value-for-money assessment is difficult, but the price seems within a plausible range for specialized IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' status, which is a form of limited competition. This typically occurs when a contract is a follow-on to a Small Business Innovation Research (SBIR) Phase III award, allowing the original awardee to continue development. While this can foster innovation and provide continuity, it limits the opportunity for other vendors to compete, potentially impacting price discovery and the government's ability to secure the best possible pricing.

Taxpayer Impact: Limited competition means taxpayers may not benefit from the cost savings that can arise from a more robust bidding process. The government may be paying a premium due to the lack of broader market engagement.

Public Impact

Federal agencies requiring advanced data analytics capabilities will benefit from this service. The contract supports the delivery of custom computer programming services for data analysis. The geographic impact is primarily within the operational scope of the General Services Administration and its supported agencies. This contract likely supports a workforce skilled in data science, programming, and IT integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs than a fully competed contract.
The 'NOT AVAILABLE FOR COMPETITION' status requires justification and oversight to ensure it's appropriate.
Scope creep could increase costs if not managed tightly under the firm-fixed-price structure.
Dependence on a single vendor for critical data analytics services could pose a risk.

Positive Signals

Awarding to the SBIR Phase III awardee ensures continuity and leverages prior innovation.
The firm-fixed-price contract provides cost certainty for the government.
The three-year performance period allows for sustained service delivery and integration.
The General Services Administration's involvement suggests a focus on efficient and effective procurement.

Sector Analysis

The IT services sector, particularly custom computer programming (NAICS 541511), is a rapidly evolving market. This contract for Data Analytics as a Service (DAAAS) fits within the broader trend of government agencies seeking advanced analytical tools to process and derive insights from vast datasets. The SBIR Phase III context indicates a focus on innovative solutions developed through federal research programs. Comparable spending benchmarks are difficult without specific service details, but the overall IT services market for the federal government is substantial, with significant investments in data management and analytics.

Small Business Impact

This contract is associated with an SBIR Phase III task order, which often originates from small business innovation. However, the contract itself is awarded to 'ILLUMINATION WORKS, LLC', and the 'sb' flag is false, indicating it is not a small business set-aside. There is no explicit mention of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem through this specific award appears limited, though the underlying SBIR program aims to foster small business innovation.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a task order under a larger program, it likely adheres to GSA's procurement regulations and oversight mechanisms. Transparency is generally facilitated through contract databases like FPDS. Accountability measures would be tied to the firm-fixed-price contract terms and performance expectations. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the procurement or performance process.

Related Government Programs

SBIR Phase III Programs
Data Analytics Services
Custom Computer Programming Services
General Services Administration IT Procurement
Federal Data Management Initiatives

Risk Flags

Limited Competition Justification
Potential for Cost Overruns if Scope is Not Well-Defined
Vendor Lock-in Risk
Performance Monitoring for Specialized Services

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5.2 million to ILLUMINATION WORKS, LLC. DATA ANALYTICS AS A SERVICE DAAAS SBIR PHASE III TASK ORDER 01

Who is the contractor on this award?

The obligated recipient is ILLUMINATION WORKS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2023-06-01. End: 2026-05-31.

What is the specific nature of the 'Data Analytics as a Service' being provided under this contract?

The provided data indicates the contract is for 'DATA ANALYTICS AS A SERVICE DAAAS SBIR PHASE III TASK ORDER 01' under NAICS code 541511 (Custom Computer Programming Services). While the exact services are not detailed, this suggests the contractor, ILLUMINATION WORKS, LLC, is providing specialized software, platforms, or expertise to enable federal agencies to analyze data. This could encompass data warehousing, business intelligence tools, predictive modeling, machine learning applications, or data visualization services. The SBIR Phase III designation implies these services are likely advanced and stem from prior research and development funded by the Small Business Innovation Research program, focusing on innovative solutions for data interpretation and utilization.

How does the $5.17 million contract value compare to similar custom computer programming services procured by the federal government?

Benchmarking the $5.17 million value for this three-year firm-fixed-price contract against similar custom computer programming services (NAICS 541511) is challenging without more granular data on the specific services rendered. However, for specialized IT services like advanced data analytics, this value is within a plausible range for a multi-year effort. Federal spending on IT services, including custom programming, runs into billions annually. Contracts for complex software development, system integration, and specialized analytics platforms can easily reach millions of dollars. The 'limited competition' aspect, tied to an SBIR Phase III, suggests a potentially higher price than a fully competed contract might achieve, but it also implies unique capabilities developed through prior investment.

What are the primary risks associated with a 'limited competition' award for data analytics services?

The primary risks associated with a 'limited competition' award, especially one designated 'NOT AVAILABLE FOR COMPETITION', include potential overpayment due to lack of market pressure, reduced innovation from a smaller pool of vendors, and vendor lock-in. Taxpayers may not receive the best possible price or value. Furthermore, if the sole or limited source vendor faces financial difficulties or fails to perform, the government's ability to secure continuity of service could be jeopardized. There's also a risk that the justification for limited competition might not be robust, potentially indicating a less-than-optimal procurement strategy. Continuous monitoring of performance and cost is crucial to mitigate these risks.

What is the significance of this contract being a 'SBIR Phase III Task Order'?

The designation 'SBIR Phase III Task Order' is significant because it indicates that this contract is a follow-on effort to a Small Business Innovation Research (SBIR) Phase III award. SBIR programs are designed to stimulate technological innovation by funding small businesses' research and development. Phase III is the commercialization stage, where the developed technology is transitioned into products or services for government or commercial markets. This means the contract likely leverages technology that has already undergone significant R&D, potentially offering advanced capabilities. It also typically allows the original SBIR awardee to continue work, providing continuity and capitalizing on prior federal investment, often through sole-source or limited competition vehicles.

How does the firm-fixed-price (FFP) contract type influence cost control and risk for this data analytics service?

A Firm-Fixed-Price (FFP) contract type aims to provide the government with cost certainty, as the contractor assumes most of the risk for cost overruns. For data analytics services, this means ILLUMINATION WORKS, LLC is obligated to deliver the specified services within the $5.17 million budget. This structure incentivizes the contractor to manage their costs efficiently. However, the effectiveness of FFP depends heavily on a well-defined scope of work. If the requirements for 'Data Analytics as a Service' are ambiguous or subject to change (scope creep), the contractor might seek change orders, or the quality of service could be compromised to stay within budget. For the government, the risk shifts from cost uncertainty to performance and scope definition.

What is the expected impact of this contract on federal data analytics capabilities?

This contract is expected to significantly enhance federal data analytics capabilities by providing specialized 'Data Analytics as a Service' (DAAAS). As a task order under an SBIR Phase III program, it likely delivers innovative solutions developed through R&D. Agencies utilizing these services can expect improved data processing, more sophisticated analysis, better insights for decision-making, and potentially the development of predictive models or AI-driven tools. The three-year duration allows for sustained integration and utilization of these advanced analytics, contributing to a broader government-wide effort to leverage data for improved efficiency, effectiveness, and policy outcomes across various mission areas.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA23Q0127

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2689 COMMONS BLVD STE 120, BEAVERCREEK, OH, 45431

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,043,772

Exercised Options: $5,198,412

Current Obligation: $5,172,011

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFLA23D0003

IDV Type: IDC

Timeline