GSA's $5.79M contract for custom programming services awarded to XSB INC shows potential for cost savings

Contract Overview

Contract Amount: $5,787,264 ($5.8M)

Contractor: XSB Inc

Awarding Agency: General Services Administration

Start Date: 2020-06-01

End Date: 2025-11-30

Contract Duration: 2,008 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ID07200024 FAS DATA ENRICHMENT WEBSERVICE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $5.8 million to XSB INC for work described as: ID07200024 FAS DATA ENRICHMENT WEBSERVICE Key points: 1. Contract value of $5.79M over its period of performance suggests a moderate investment in IT services. 2. Awarded under full and open competition, indicating a potentially competitive pricing environment. 3. The firm-fixed-price contract type shifts performance risk to the contractor, XSB INC. 4. This contract supports the Federal Acquisition Service, a key component of GSA's operations. 5. The duration of the contract, spanning over five years, allows for sustained service delivery. 6. The North American Industry Classification System (NAICS) code 541511 points to specialized custom computer programming.

Value Assessment

Rating: good

The contract's total value of $5.79M over approximately 5.3 years suggests an average annual spend of around $1.09M. Without specific benchmarks for 'FAS DATA ENRICHMENT WEBSERVICE', it's difficult to definitively assess value for money. However, the firm-fixed-price structure incentivizes the contractor to manage costs efficiently. Further analysis would require comparing this to similar custom programming contracts for data enrichment services, considering the complexity and scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', suggesting that all responsible sources were permitted to submit bids. This typically leads to a more robust selection process and potentially better pricing due to market forces. The number of bidders is not specified, but the open competition framework implies that multiple entities likely vied for this award, fostering price discovery.

Taxpayer Impact: Taxpayers benefit from the competitive nature of the award, which generally drives down costs and ensures that the government receives services at a fair market price.

Public Impact

Federal agencies utilizing the Federal Acquisition Service will benefit from enhanced data enrichment services. Improved data quality and accessibility can lead to more informed decision-making across government operations. The contract supports IT infrastructure and services within the federal government. Workforce implications are likely concentrated within XSB INC and potentially its subcontractors, contributing to employment in the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if data enrichment requirements are not clearly defined and managed.
Dependence on a single contractor, XSB INC, for a critical service could pose a risk if performance falters.
Ensuring data security and privacy compliance throughout the contract lifecycle is paramount.

Positive Signals

The firm-fixed-price contract type aligns incentives for cost control with the contractor.
Award under full and open competition suggests a competitive process that likely yielded favorable pricing.
The multi-year duration allows for stable service provision and potential for building contractor expertise.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The market for such services is vast and highly competitive, with numerous firms offering specialized solutions. The General Services Administration (GSA) is a major procurer of IT services for the federal government, and contracts like this are essential for modernizing government operations and improving data management capabilities. Benchmarking would involve comparing the per-unit cost or overall value against similar custom programming contracts awarded by GSA or other federal agencies for data enrichment or related IT functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, XSB INC, is likely a larger entity. Opportunities for small businesses would typically arise if XSB INC chooses to subcontract portions of the work, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the General Services Administration (GSA), specifically the Federal Acquisition Service (FAS). Mechanisms likely include contract performance reviews, regular reporting requirements from XSB INC, and potentially the appointment of a Contracting Officer's Representative (COR). Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA IT Schedule 70
Custom Computer Programming Services
Data Management Services
Federal Data Enrichment Programs

Risk Flags

Performance Risk: Dependence on a single contractor for a critical service.
Data Security Risk: Handling potentially sensitive government data.
Integration Risk: Ensuring seamless integration with existing GSA systems.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5.8 million to XSB INC. ID07200024 FAS DATA ENRICHMENT WEBSERVICE

Who is the contractor on this award?

The obligated recipient is XSB INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2020-06-01. End: 2025-11-30.

What is the track record of XSB INC in delivering similar custom programming services to the federal government?

Assessing XSB INC's track record requires a deeper dive into their past performance on federal contracts. This would involve reviewing contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A history of successful, on-time, and within-budget delivery of comparable custom programming or data enrichment services would indicate a lower performance risk. Conversely, a pattern of missed deadlines, cost overruns, or negative performance reviews would raise concerns about their capability to fulfill the current contract effectively. Without specific past performance data for XSB INC, this assessment remains speculative.

How does the pricing structure of this contract compare to market rates for similar custom programming services?

The provided data indicates a firm-fixed-price contract, which means the price is set regardless of the contractor's actual costs. To compare this to market rates, one would need to benchmark the total contract value ($5.79M) against the duration (approx. 5.3 years) and the scope of 'FAS DATA ENRICHMENT WEBSERVICE'. This involves researching average hourly rates or project costs for custom programming and data enrichment services from similar-sized companies serving the federal market. Factors like the complexity of the data, the required technologies, and the level of customization would influence these rates. A preliminary assessment suggests the annual spend of roughly $1.09M is moderate, but a definitive value-for-money conclusion requires detailed market analysis and comparison with specific, comparable contract vehicles.

What are the key performance indicators (KPIs) used to measure the success of this data enrichment service?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a 'FAS DATA ENRICHMENT WEBSERVICE', typical KPIs would likely focus on the accuracy, completeness, timeliness, and usability of the enriched data. Examples could include metrics such as data error rates (e.g., percentage of incorrect records), data completeness percentages (e.g., percentage of required fields populated), turnaround time for data enrichment requests, and user satisfaction scores from agencies utilizing the enriched data. Effective KPIs are crucial for ensuring the contractor, XSB INC, meets the government's requirements and delivers tangible value.

What is the potential impact of this contract on the broader IT services market within the federal government?

This contract, valued at $5.79M and awarded to XSB INC, contributes to the overall spending in the custom computer programming services category within the federal IT market. As a full and open competition award, it signifies a healthy competitive environment for this type of service. The duration of over five years suggests a sustained demand for data enrichment capabilities within the General Services Administration (GSA). This contract could influence market dynamics by setting a benchmark for pricing and performance expectations for similar services, potentially encouraging other vendors to enhance their offerings or adjust their pricing strategies to compete for future GSA or agency requirements in this space.

Are there any known risks associated with the specific type of data being enriched or the systems involved?

The provided data does not detail the specific types of data being enriched or the systems involved, making a precise risk assessment difficult. However, data enrichment services inherently carry risks related to data privacy, security, and accuracy. If the data involves sensitive information (e.g., personally identifiable information - PII, or classified data), robust security protocols and compliance with regulations like FISMA and NIST standards are critical. Risks could also stem from the integration of the enrichment service with existing government systems, potentially causing compatibility issues or disruptions. The contractor's adherence to data governance policies and security best practices would be key mitigating factors.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 155 E 44TH ST STE 910, NEW YORK, NY, 10017

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

Financial Breakdown

Contract Ceiling: $6,061,652

Exercised Options: $6,051,152

Current Obligation: $5,787,264

Actual Outlays: $-11,908

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0318X

IDV Type: FSS

Timeline