GSA awards $30.4M IT support contract to JBW FEDITC JV LLC, a sole-source procurement

Contract Overview

Contract Amount: $30,372,295 ($30.4M)

Contractor: JBW Feditc JV LLC

Awarding Agency: General Services Administration

Start Date: 2024-07-01

End Date: 2026-06-30

Contract Duration: 729 days

Daily Burn Rate: $41.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE INFORMATION TECHNOLOGY SUPPORT SERVICES

Place of Performance

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

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $30.4 million to JBW FEDITC JV LLC for work described as: ENTERPRISE INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. The contract value of $30.4 million over two years represents a significant investment in enterprise IT support. 2. As a sole-source award, the lack of competition may limit price discovery and potentially increase costs for taxpayers. 3. The firm-fixed-price contract type shifts performance risk to the contractor, which is generally favorable. 4. The contract is for IT support services, falling under the 'Other Computer Related Services' NAICS code. 5. The award is for a two-year period, with an option for extension, indicating a need for sustained support. 6. The contractor, JBW FEDITC JV LLC, is the sole awardee, raising questions about market availability and alternatives.

Value Assessment

Rating: questionable

Benchmarking the value of this $30.4 million contract is challenging without more detailed service descriptions and performance metrics. However, the lack of competition inherently raises concerns about whether the government secured the best possible price. Compared to similar enterprise IT support contracts that undergo full and open competition, this sole-source award may represent a higher cost per unit or overall value. Further analysis would require comparing the specific services rendered against industry benchmarks for IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential vendors. This approach is typically used when only one vendor possesses the unique capabilities or resources required for the service, or in specific circumstances like urgent needs or follow-on work to a previous contract. The limited competition means that the government did not benefit from the price reductions and service innovations that typically arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to ensure it is receiving the most cost-effective solution available in the market.

Public Impact

Federal agencies requiring enterprise information technology support services will benefit from the continuity of operations provided by this contract. The contract delivers essential IT support, likely encompassing help desk, network management, system maintenance, and cybersecurity functions. The geographic impact is primarily within Illinois, as indicated by the 'ST' and 'SN' codes, suggesting a concentration of services or contractor presence there. The contract supports the federal IT workforce by providing specialized services, potentially freeing up government personnel for higher-level strategic tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source awards can limit innovation and service improvements.
Contract duration and value warrant close monitoring for performance and cost-effectiveness.

Positive Signals

Firm-fixed-price contract type shifts risk to the contractor.
Award to a joint venture may indicate capacity to handle complex IT needs.
Contract provides essential IT support services for agency operations.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on IT support services. The market for enterprise IT support is substantial, with numerous companies offering a wide range of services from help desk operations to complex system integration and cybersecurity. Government spending in this area is consistently high as agencies rely heavily on IT infrastructure. This contract represents a portion of that spending, aimed at ensuring the smooth functioning of critical IT systems.

Small Business Impact

This contract was not awarded as a small business set-aside, and the contractor, JBW FEDITC JV LLC, is a joint venture. While the joint venture structure itself doesn't preclude small business participation, the absence of a specific set-aside suggests that the primary award was not targeted towards small businesses. Further investigation into the joint venture's composition and any subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program office within the General Services Administration (GSA). As a firm-fixed-price contract, performance monitoring is key to ensuring the contractor meets all requirements. Transparency regarding contract performance and any modifications would be expected through federal procurement databases. The specific Inspector General jurisdiction would typically align with the awarding agency, in this case, the GSA OIG.

Related Government Programs

Enterprise IT Services
IT Operations and Maintenance
IT Professional Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Sole-source award lacks competitive justification.
Potential for higher costs due to lack of competition.
Contractor's specific experience with this scope needs verification.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $30.4 million to JBW FEDITC JV LLC. ENTERPRISE INFORMATION TECHNOLOGY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is JBW FEDITC JV LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.4 million.

What is the period of performance?

Start: 2024-07-01. End: 2026-06-30.

What is the track record of JBW FEDITC JV LLC in delivering similar enterprise IT support services to the federal government?

Information regarding the specific track record of JBW FEDITC JV LLC for enterprise IT support services is not detailed in the provided data. As a joint venture, its performance history may be a composite of its parent companies or a newly established record. A thorough review would involve examining past performance evaluations, contract awards, and any reported issues or successes on previous federal contracts. Understanding their experience with similar scope, scale, and complexity of IT support is crucial for assessing their capability to fulfill this $30.4 million award effectively and efficiently over the contract period.

How does the pricing structure of this contract compare to similar IT support services procured through competitive means?

Direct comparison of pricing is difficult without detailed service breakdowns and market data for comparable competitive contracts. However, the sole-source nature of this award raises a red flag regarding potential overpricing. Competitive procurements typically drive down costs through bidding. If this contract's per-unit costs for services like help desk support, network administration, or system maintenance are significantly higher than those found in recently awarded, competed contracts for similar IT support, it would indicate a potential lack of value for money. Further analysis would require benchmarking against industry standards and government databases of IT service costs.

What are the primary risks associated with a sole-source award for enterprise IT support services?

The primary risks associated with a sole-source award for enterprise IT support services include inflated costs due to the absence of competitive bidding, potential for complacency from the contractor leading to suboptimal service delivery, and limited opportunities for innovation or adoption of new technologies. Taxpayers may bear a higher financial burden. Furthermore, if the sole-source justification is weak or if alternative solutions exist, it could indicate a failure in the procurement process to achieve best value. The government also becomes more dependent on a single vendor, increasing risk if that vendor faces financial instability or operational challenges.

What is the expected impact of this contract on the operational effectiveness of the supported federal agencies?

This contract is expected to enhance the operational effectiveness of the supported federal agencies by ensuring the reliable and efficient functioning of their enterprise IT infrastructure. Consistent and high-quality IT support is critical for enabling agency missions, facilitating communication, securing data, and maintaining productivity. By outsourcing these functions to JBW FEDITC JV LLC, agencies can focus their internal resources on core mission objectives rather than day-to-day IT management. The firm-fixed-price nature suggests a clear scope, which, if executed well, should lead to predictable IT service delivery and reduced disruptions.

What are the historical spending patterns for enterprise IT support services by the General Services Administration (GSA)?

The General Services Administration (GSA) is a significant procurer of IT services, including enterprise IT support, reflecting the federal government's overall reliance on technology. Historical spending patterns for GSA in this category are typically substantial, often running into hundreds of millions or even billions of dollars annually across various contracts and task orders. GSA often utilizes multiple contract vehicles, such as its Alliant schedules or IT Schedule 70 (now IT Professional Services), to procure these services. Analyzing GSA's historical spending reveals a consistent demand for IT support, driven by the need to modernize infrastructure, enhance cybersecurity, and support agency operations nationwide.

Are there any specific performance metrics or Service Level Agreements (SLAs) associated with this contract that can be evaluated?

The provided data does not specify the performance metrics or Service Level Agreements (SLAs) associated with this contract. However, for a firm-fixed-price contract of this magnitude and nature, it is highly probable that detailed performance standards and SLAs are included in the contract's statement of work. These would typically cover aspects like response times for help desk tickets, system uptime, resolution times for IT issues, and cybersecurity compliance. Evaluating the contractor's adherence to these metrics would be a key component of contract oversight and performance assessment, crucial for determining the true value and effectiveness of the services provided.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 47QFWA24R0008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14603 HUEBNER RD STE 3002, SAN ANTONIO, TX, 78230

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,724,391

Exercised Options: $31,584,515

Current Obligation: $30,372,295

Actual Outlays: $17,412,046

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline