DoD's $14M IT Modernization Contract Awarded to GZO, Inc. via Full and Open Competition
Contract Overview
Contract Amount: $13,992,045 ($14.0M)
Contractor: GZO, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-26
End Date: 2026-01-31
Contract Duration: 492 days
Daily Burn Rate: $28.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FY24 COMMERCIAL SOLUTIONS OPENING (CSO) FOR SAF/CN/CNSI. IDIQ - SINGLE AWARDEE. CREECH AFB INFORMATION TECHNOLOGY (IT) INFRASTRUCTURE MODERNIZATION.
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78258
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $14.0 million to GZO, INC. for work described as: FY24 COMMERCIAL SOLUTIONS OPENING (CSO) FOR SAF/CN/CNSI. IDIQ - SINGLE AWARDEE. CREECH AFB INFORMATION TECHNOLOGY (IT) INFRASTRUCTURE MODERNIZATION. Key points: 1. Contract focuses on IT infrastructure modernization at Creech AFB. 2. Awarded as a Delivery Order under an IDIQ with a single awardee. 3. Competition method was 'Full and Open Competition after Exclusion of Sources'. 4. The contract has a firm-fixed-price structure. 5. Small business participation is not indicated.
Value Assessment
Rating: fair
The contract value of $13.99M for IT infrastructure modernization appears reasonable for a multi-year project. Benchmarking against similar IT modernization contracts is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition after Exclusion of Sources', indicating an initial broad solicitation followed by specific source exclusions. This method aims for competition but the exclusion of sources warrants scrutiny for potential price impacts.
Taxpayer Impact: Taxpayer funds are utilized for essential IT infrastructure upgrades, aiming for improved efficiency and security. The competitive process should ensure reasonable pricing.
Public Impact
Modernization of IT infrastructure at a key Air Force base. Potential for improved operational efficiency and cybersecurity. Contract duration extends into early 2026. Single awardee for this specific delivery order.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single awardee for the delivery order.
- Exclusion of sources in the competition process.
- Lack of small business participation.
Positive Signals
- Firm-fixed-price contract type.
- Full and open competition method used.
- Clear IT modernization objective.
Sector Analysis
This contract falls within the Information Technology sector, specifically IT infrastructure modernization. Spending in this area is consistently high across federal agencies, driven by the need for updated systems and enhanced cybersecurity.
Small Business Impact
The data indicates no specific small business participation for this contract. Further investigation may be needed to determine if opportunities were missed or if the prime contractor has plans for subcontracting.
Oversight & Accountability
The Department of the Air Force, under the Department of Defense, is responsible for oversight. The use of an IDIQ with a single awardee for this delivery order requires careful monitoring to ensure performance and adherence to contract terms.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for limited competition due to source exclusion.
- Lack of transparency on small business utilization.
- Single awardee for the delivery order may limit future options.
- Dependence on one contractor for critical IT infrastructure.
Tags
other-computer-related-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.0 million to GZO, INC.. FY24 COMMERCIAL SOLUTIONS OPENING (CSO) FOR SAF/CN/CNSI. IDIQ - SINGLE AWARDEE. CREECH AFB INFORMATION TECHNOLOGY (IT) INFRASTRUCTURE MODERNIZATION.
Who is the contractor on this award?
The obligated recipient is GZO, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $14.0 million.
What is the period of performance?
Start: 2024-09-26. End: 2026-01-31.
What was the rationale for excluding specific sources after the initial full and open competition?
The rationale for excluding specific sources after an initial full and open competition typically relates to specialized capabilities, existing infrastructure integration, or unique technical requirements that only a limited number of vendors can meet. Understanding these specific needs is crucial to assess if the exclusion was justified and did not unduly limit competition, potentially impacting price discovery and overall value for the government.
How does the per-unit cost of this IT modernization compare to industry benchmarks for similar services?
Without a detailed breakdown of the services and specific IT components being modernized, a precise per-unit cost benchmark is challenging. However, the total contract value of $13.99M over approximately 1.5 years suggests a significant investment. Comparing this to industry averages for large-scale IT infrastructure upgrades, considering factors like cloud migration, network upgrades, and cybersecurity enhancements, would be necessary for a thorough assessment.
What are the key performance indicators (KPIs) for this IT modernization contract, and how will their achievement be measured?
Key performance indicators for this IT modernization contract would likely focus on system uptime, network speed improvements, reduction in security vulnerabilities, successful migration of data and applications, and user satisfaction post-modernization. The Department of the Air Force will need robust mechanisms to track these KPIs, ensuring GZO, Inc. meets the defined performance standards and delivers the expected improvements in IT infrastructure effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: FIBER OPTIC
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: TWO STEP
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 114 CHAMPIONS BND, SAN ANTONIO, TX, 78258
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $13,992,045
Exercised Options: $13,992,045
Current Obligation: $13,992,045
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA701424D0010
IDV Type: IDC
Timeline
Start Date: 2024-09-26
Current End Date: 2026-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2025-09-22
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