GSA Awards $28.3M for Industrial Base Resilience to 202 Group LLC, Facing Limited Competition

Contract Overview

Contract Amount: $28,289,850 ($28.3M)

Contractor: 202 Group LLC

Awarding Agency: General Services Administration

Start Date: 2021-12-13

End Date: 2024-09-18

Contract Duration: 1,010 days

Daily Burn Rate: $28.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INDUSTRIAL BASE RESILIENCE

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $28.3 million to 202 GROUP LLC for work described as: INDUSTRIAL BASE RESILIENCE Key points: 1. Significant contract value of $28.3M awarded. 2. Limited competition raises questions about price discovery. 3. Potential risk associated with sole-source or limited competition. 4. Focus on Industrial Base Resilience suggests critical national security or economic importance.

Value Assessment

Rating: fair

The contract value of $28.3M is substantial. Without comparable contracts or detailed pricing breakdowns, assessing value for money is difficult. The limited competition suggests potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for full and open competition, indicating limited vendor participation. This approach may restrict price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The $28.3M expenditure represents taxpayer funds. Limited competition could mean taxpayers are not receiving the best possible price for the services rendered.

Public Impact

Taxpayers may be overpaying due to lack of robust competition. The specific nature of 'Industrial Base Resilience' impacts national security or economic stability. Dependence on a single or limited number of contractors could pose supply chain risks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of transparency in pricing
Potential for vendor lock-in

Positive Signals

Addresses critical area of Industrial Base Resilience
Long-term contract duration provides stability

Sector Analysis

The Software Publishers (NAICS 511210) sector is diverse. A $28.3M contract suggests a significant software or service component, potentially related to data analytics, cybersecurity, or specialized software development for resilience.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to assess small business participation.

Oversight & Accountability

Oversight is crucial given the limited competition. The General Services Administration (GSA) should ensure rigorous performance monitoring and justification for the procurement method to ensure accountability.

Related Government Programs

Software Publishers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of full and open competition
Potential for inflated pricing
Limited transparency on specific deliverables
Risk of vendor lock-in
Uncertainty regarding small business participation

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $28.3 million to 202 GROUP LLC. INDUSTRIAL BASE RESILIENCE

Who is the contractor on this award?

The obligated recipient is 202 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 $28.3 million.

What is the period of performance?

Start: 2021-12-13. End: 2024-09-18.

What specific services or software are being procured under 'Industrial Base Resilience' to justify the $28.3M cost?

The specific services or software procured under 'Industrial Base Resilience' are not detailed in the provided data. This category could encompass a wide range of activities, from cybersecurity solutions protecting critical infrastructure to supply chain analysis tools, or even direct investments in domestic manufacturing capabilities. Understanding the precise nature of the deliverables is essential for a thorough value assessment.

How was the pricing determined if competition was limited, and what mechanisms are in place to ensure fair market value?

With limited competition, pricing determination relies heavily on negotiation and available market research. The government likely used historical data, cost-plus-incentive-fee structures, or benchmarked against similar, albeit potentially scarce, contracts. Robust oversight is needed to verify that the negotiated price reflects fair market value and that the contractor's costs are reasonable and allowable.

What are the long-term implications for the industrial base if this contract is not competitively bid in the future?

If future contracts for industrial base resilience are not competitively bid, it could stifle innovation and lead to sustained higher costs for the government. It may also create a dependency on the incumbent contractor, potentially reducing the overall capacity and diversity of the industrial base available to the government. This could ultimately weaken national security and economic resilience.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFRA22Q0001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1250 CONNECTICUT AVE NW STE 700, WASHINGTON, DC, 20036

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,486,371

Exercised Options: $28,486,371

Current Obligation: $28,289,850

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFRA22D0001

IDV Type: IDC

Timeline