EPA awards $9.1M IT support contract to Gold Systems, Inc. for custom programming services

Contract Overview

Contract Amount: $9,100,000 ($9.1M)

Contractor: Gold Systems, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2025-02-24

End Date: 2027-02-23

Contract Duration: 729 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: RCRAINFO INFORMATION TECHNOLOGY (IT) SUPPORT SERVICES AND DEVELOPMENT THE SERVICES FOR THIS TASK ORDER ARE IN ACCORDANCE WITH THE GSA RFQ NO. 1718383, AND THE GOLD SYSTEMS PROPOSAL DATED OCTOBER 9, 2024.

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84106

State: Utah Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $9.1 million to GOLD SYSTEMS, INC. for work described as: RCRAINFO INFORMATION TECHNOLOGY (IT) SUPPORT SERVICES AND DEVELOPMENT THE SERVICES FOR THIS TASK ORDER ARE IN ACCORDANCE WITH THE GSA RFQ NO. 1718383, AND THE GOLD SYSTEMS PROPOSAL DATED OCTOBER 9, 2024. Key points: 1. Contract focuses on custom computer programming services, indicating a need for specialized IT solutions. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration of 729 days allows for sustained IT support and development. 4. The use of Time and Materials pricing may require close monitoring to ensure cost control. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The small business set-aside flag is false, meaning large businesses were eligible and likely participated.

Value Assessment

Rating: good

The contract value of $9.1 million over two years for custom IT support and development appears reasonable, especially given the full and open competition. Benchmarking against similar custom programming services contracts awarded by the EPA or other agencies would provide a more precise value-for-money assessment. The Time and Materials (T&M) pricing structure, while common for development work, necessitates diligent oversight to prevent cost overruns and ensure efficient resource utilization. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the competitive nature of the award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 10 bids were received, suggesting a healthy level of interest and competition for these IT support and development services. A competitive environment like this typically drives down prices and encourages innovation as contractors vie for the award. The presence of multiple bidders allows the agency to select the offer that provides the best overall value, considering both technical approach and cost.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a market-driven price discovery process. This competitive landscape helps prevent inflated pricing and encourages contractors to offer their best value propositions.

Public Impact

The Environmental Protection Agency (EPA) will benefit from enhanced IT support and custom development services. The contract aims to deliver critical IT solutions that likely support the EPA's mission of environmental protection. The services are primarily based in Utah, suggesting a localized impact on the IT workforce in that region. The contract may lead to job creation or sustainment within the IT sector in Utah.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost uncertainty if not managed closely, potentially exceeding initial estimates.
The specific nature of 'custom computer programming services' requires clear scope definition and ongoing performance monitoring to ensure alignment with EPA needs.
Reliance on a single delivery order under a potential IDIQ vehicle might limit flexibility if broader or different IT services are needed beyond the current scope.

Positive Signals

Awarded under full and open competition with 10 bids received, indicating strong market interest and a competitive process.
The contract is for a defined period (729 days), allowing for focused IT support and development efforts.
The contractor, Gold Systems, Inc., was selected through a competitive process, suggesting they met the agency's technical and cost requirements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Custom Computer Programming Services (NAICS 541511). This is a significant and growing market driven by the increasing need for specialized software development, system integration, and IT support across all federal agencies. The EPA's requirement for custom programming suggests a need for tailored solutions that off-the-shelf software cannot meet, reflecting a common trend in government IT procurement where agencies seek unique capabilities to support their specific missions. Comparable spending in this category often involves substantial investments in software development, cloud migration, cybersecurity, and data analytics.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This indicates that the competition was open to businesses of all sizes, and Gold Systems, Inc., while potentially a small business itself, was not awarded under a specific small business set-aside provision. This means larger companies were also eligible to bid. The implications for the small business ecosystem are that opportunities may have been pursued by larger prime contractors, and any subcontracting opportunities would need to be assessed separately to determine if small businesses are being engaged.

Oversight & Accountability

Oversight for this contract will likely be managed by the Environmental Protection Agency's contracting officers and program managers. Given it's a delivery order under a GSA RFQ, there may be oversight from GSA as well. Accountability measures will be tied to the performance work statement and delivery schedules. Transparency is facilitated by the public availability of contract award data. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

GSA Federal Supply Schedule IT Contracts
EPA IT Modernization Initiatives
Custom Software Development Services
Environmental Data Management Systems

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for rigorous oversight to ensure scope adherence and efficient resource utilization.
Dependence on contractor's ability to deliver complex custom programming solutions.
Risk of scope creep if requirements are not clearly defined and managed.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $9.1 million to GOLD SYSTEMS, INC.. RCRAINFO INFORMATION TECHNOLOGY (IT) SUPPORT SERVICES AND DEVELOPMENT THE SERVICES FOR THIS TASK ORDER ARE IN ACCORDANCE WITH THE GSA RFQ NO. 1718383, AND THE GOLD SYSTEMS PROPOSAL DATED OCTOBER 9, 2024.

Who is the contractor on this award?

The obligated recipient is GOLD SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $9.1 million.

What is the period of performance?

Start: 2025-02-24. End: 2027-02-23.

What is the track record of Gold Systems, Inc. in performing similar IT support and custom programming services for federal agencies?

Assessing the track record of Gold Systems, Inc. requires a review of their past performance on federal contracts, particularly those involving custom computer programming and IT support services. Information regarding past performance, client satisfaction, and adherence to schedules and budgets is crucial. While this award indicates they met the EPA's criteria, a deeper dive into their contract history, including any awards or penalties, would provide a more comprehensive understanding of their capabilities and reliability. Publicly available contract databases and performance evaluations (if accessible) can offer insights into their experience with similar requirements and their overall performance trends.

How does the awarded amount of $9.1 million compare to similar custom IT programming contracts awarded by the EPA or other agencies?

The $9.1 million award for custom IT support and development over approximately two years represents a significant investment. To benchmark its value, one would compare it to contracts for similar services (NAICS 541511) awarded by agencies like the EPA, GSA, or other departments with comparable IT needs. Factors such as contract duration, scope of work (e.g., complexity of programming, number of users supported), and the specific technologies involved are critical for a fair comparison. A higher number of bids received (10 in this case) under full and open competition generally suggests the pricing is competitive within the market. Without access to detailed cost breakdowns or specific comparable contract data, a precise value-for-money assessment is limited, but the competitive award suggests it aligns with market rates.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with a Time and Materials (T&M) contract is the potential for cost overruns if the scope of work is not well-defined or if contractor effort is not efficiently managed. Unlike fixed-price contracts, T&M agreements pay the contractor for the actual time and materials used. This can lead to uncertainty in the total cost to the government, especially for custom development where the exact effort required can be difficult to predict upfront. Effective oversight, including detailed tracking of labor hours, rates, and material costs, along with clear milestones and performance metrics, is essential to mitigate these risks and ensure the government receives good value for its expenditure.

How does the 'full and open competition' with 10 bidders impact the EPA's ability to achieve program objectives effectively?

The 'full and open competition' with 10 bidders is a strong positive indicator for the EPA's ability to achieve its program objectives. A competitive environment typically drives contractors to propose innovative solutions and efficient methodologies to win the contract. With multiple bids, the EPA has a wider pool of technical approaches and pricing structures to choose from, increasing the likelihood of selecting a contractor best suited to meet the specific custom programming needs. This robust competition also provides leverage for the EPA to negotiate favorable terms and ensures that the selected contractor is motivated to perform well to maintain their reputation and secure future work.

What are the potential implications of this contract on the IT market in Utah, given the stated location?

Given that the contract is associated with Utah ('UT'), this award could have positive implications for the IT market in that region. It suggests that Gold Systems, Inc. may have a presence or significant operations in Utah, potentially leading to job creation or the utilization of local IT talent for the custom programming and support services. The contract value of $9.1 million over two years indicates a substantial project, which can stimulate economic activity within the local IT sector through employment, subcontracting opportunities (if any), and increased demand for related services. This type of federal contract can also enhance the reputation of the local IT workforce and attract further investment.

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 › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1240 E 2100 S STE 102, SALT LAKE CITY, UT, 84106

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

Financial Breakdown

Contract Ceiling: $16,291,266

Exercised Options: $9,100,000

Current Obligation: $9,100,000

Actual Outlays: $1,990,366

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA23D008U

IDV Type: FSS

Timeline