SBA awards $107.6M for software support to Goldschmitt and Associates LLC

Contract Overview

Contract Amount: $107,588,082 ($107.6M)

Contractor: Goldschmitt and Associates LLC

Awarding Agency: Small Business Administration

Start Date: 2022-06-03

End Date: 2023-08-02

Contract Duration: 425 days

Daily Burn Rate: $253.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE PURCHASE, TRANSITION AND POST-IMPLEMENTATION SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20416

State: District of Columbia Government Spending

Plain-Language Summary

Small Business Administration obligated $107.6 million to GOLDSCHMITT AND ASSOCIATES LLC for work described as: SOFTWARE PURCHASE, TRANSITION AND POST-IMPLEMENTATION SUPPORT Key points: 1. The contract value is substantial at over $107 million. 2. Competition was limited, with the contract being 'NOT COMPETED'. 3. The primary risk lies in the lack of competitive bidding, potentially impacting price. 4. The sector is 'Other Computer Related Services', a broad IT category.

Value Assessment

Rating: questionable

The contract's value of $107.6 million for software support and transition is high. Without competitive pricing data, it's difficult to assess if this represents fair market value compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis ('NOT COMPETED'). This significantly limits price discovery and competition, raising concerns about whether the government received the best possible price.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these software services.

Public Impact

Citizens may question the justification for a sole-source award of this magnitude. The effectiveness of the software support and transition will directly impact agency operations. Transparency regarding the necessity of a sole-source award is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Lack of competition

Positive Signals

Contract awarded to a specific company for specialized services

Sector Analysis

This contract falls under 'Other Computer Related Services', a broad category within the IT sector. Spending in this area can vary widely depending on agency needs, but large sole-source awards warrant scrutiny.

Small Business Impact

The contract was awarded by the Small Business Administration (SBA) to Goldschmitt and Associates LLC. However, the data indicates this was a sole-source award, not specifically set aside for small businesses, raising questions about the intent and execution of small business contracting goals.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the justification was sound and the pricing is reasonable. Accountability for the lack of competition is essential.

Related Government Programs

Other Computer Related Services
Small Business Administration Contracting
Small Business Administration Programs

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency on justification
High contract value without competitive validation

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $107.6 million to GOLDSCHMITT AND ASSOCIATES LLC. SOFTWARE PURCHASE, TRANSITION AND POST-IMPLEMENTATION SUPPORT

Who is the contractor on this award?

The obligated recipient is GOLDSCHMITT AND ASSOCIATES LLC.

Which agency awarded this contract?

Awarding agency: Small Business Administration (Small Business Administration).

What is the total obligated amount?

The obligated amount is $107.6 million.

What is the period of performance?

Start: 2022-06-03. End: 2023-08-02.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other responsible sources. Without further details, it's impossible to confirm if alternatives were explored. A thorough review would examine the agency's documentation to ensure compliance with procurement regulations and that competition was genuinely not feasible or advantageous.

How does the per-unit cost or overall pricing compare to industry benchmarks for similar software support and transition services, given the lack of competition?

Assessing the value is challenging due to the sole-source nature. Without competitive bids, direct price comparisons are impossible. The agency should have conducted a price analysis based on historical data, commercial pricing, or other available benchmarks to ensure reasonableness. Any significant deviation from benchmarks would be a red flag.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effective service delivery and taxpayer value?

Effective service delivery relies on clearly defined KPIs tied to software performance, transition timelines, and post-implementation support. The contract should outline specific, measurable, achievable, relevant, and time-bound (SMART) goals. Regular performance reviews and reporting are crucial to track progress and ensure the vendor meets its obligations, thereby maximizing taxpayer value.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 73351022Q0061

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11601 QUAIL RIDGE CT, RESTON, VA, 20194

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $110,008,841

Exercised Options: $107,588,082

Current Obligation: $107,588,082

Actual Outlays: $107,588,082

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $19,262,095

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline