SBA's $66.7M Restaurant Platform SaaS Contract Awarded to Goldschmitt-CRI LLC
Contract Overview
Contract Amount: $66,725,383 ($66.7M)
Contractor: Goldschmitt-Cri LLC
Awarding Agency: Small Business Administration
Start Date: 2021-04-13
End Date: 2022-04-12
Contract Duration: 364 days
Daily Burn Rate: $183.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OFFICE OF CAPITAL ACCESS, GRANT RESTAURANT PLATFORM, SOFTWARE AS A SERVICE (SAAS), RESTAURANT REVITALIZATION GRANT PROGRAM
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20194
State: Virginia Government Spending
Plain-Language Summary
Small Business Administration obligated $66.7 million to GOLDSCHMITT-CRI LLC for work described as: OFFICE OF CAPITAL ACCESS, GRANT RESTAURANT PLATFORM, SOFTWARE AS A SERVICE (SAAS), RESTAURANT REVITALIZATION GRANT PROGRAM Key points: 1. The contract supports the Restaurant Revitalization Grant Program. 2. Goldschmitt-CRI LLC is the sole awardee. 3. The contract is for Software as a Service (SaaS). 4. The award value is $66.7 million over 364 days. 5. The NAICS code is 518210 (Computing Infrastructure Providers).
Value Assessment
Rating: questionable
The contract value of $66.7 million for a 364-day term appears high for a SaaS platform, especially considering the lack of competition. Benchmarking against similar government SaaS contracts is difficult without more detailed service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to a higher cost for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition raises concerns about whether the government secured the best possible price for this critical software platform.
Public Impact
Supports the Restaurant Revitalization Grant Program, aiding businesses. Provides essential SaaS infrastructure for grant management. Potential for long-term reliance on a single vendor. Data security and privacy are critical considerations for this platform.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value for term
- Sole-source award
Positive Signals
- Supports a vital government program
- Utilizes modern SaaS technology
Sector Analysis
The contract falls under the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sector. Spending in this area has increased significantly as agencies adopt cloud-based solutions.
Small Business Impact
The contract was awarded to Goldschmitt-CRI LLC, and there is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The Small Business Administration is the contracting and administrative agency. Oversight should focus on performance, data security, and future competition strategies.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Small Business Administration Contracting
- Small Business Administration Programs
Risk Flags
- Sole-source award limits competition.
- High contract value may not reflect best value.
- Potential for vendor lock-in.
- Lack of transparency in pricing justification.
Tags
computing-infrastructure-providers-data-, small-business-administration, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Small Business Administration awarded $66.7 million to GOLDSCHMITT-CRI LLC. OFFICE OF CAPITAL ACCESS, GRANT RESTAURANT PLATFORM, SOFTWARE AS A SERVICE (SAAS), RESTAURANT REVITALIZATION GRANT PROGRAM
Who is the contractor on this award?
The obligated recipient is GOLDSCHMITT-CRI LLC.
Which agency awarded this contract?
Awarding agency: Small Business Administration (Small Business Administration).
What is the total obligated amount?
The obligated amount is $66.7 million.
What is the period of performance?
Start: 2021-04-13. End: 2022-04-12.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without a competitive process, it is crucial for the agency to have conducted thorough market research and price analysis to ensure the $66.7 million price was fair and reasonable for the services provided over the 364-day period.
How does the per-unit cost of this SaaS platform compare to industry benchmarks for similar government or commercial services?
Benchmarking the per-unit cost is challenging without specific details on user counts, data storage, processing power, and included features. However, the overall contract value of $66.7 million for one year suggests a high per-unit cost, warranting scrutiny against comparable SaaS offerings in the market.
What measures are in place to ensure the long-term effectiveness and scalability of this platform, given its sole-source nature?
Effectiveness and scalability for a sole-source contract rely heavily on vendor performance and contract management. The agency must actively monitor service level agreements, conduct regular performance reviews, and plan for future contract actions, potentially including competitive procurements, to ensure continued effectiveness and address evolving needs.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: IT AND TELECOM - DATA CENTER
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 73351021R0004
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11601 QUAIL RIDGE CT, RESTON, VA, 20194
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $66,725,383
Exercised Options: $66,725,383
Current Obligation: $66,725,383
Actual Outlays: $66,725,383
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $6,286,211
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-04-13
Current End Date: 2022-04-12
Potential End Date: 2022-04-12 00:00:00
Last Modified: 2025-01-08
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