Air Force awards $29M IDIQ for enterprise data modernization to GZO, Inc

Contract Overview

Contract Amount: $29,000,000 ($29.0M)

Contractor: GZO, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-01-31

Contract Duration: 488 days

Daily Burn Rate: $59.4K/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. TO5-ENTERPRISE-TDM ELIMINATION AND MODERNIZATION.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78258

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $29.0 million to GZO, INC. for work described as: FY24 COMMERCIAL SOLUTIONS OPENING (CSO) FOR SAF/CN/CNSI. IDIQ - SINGLE AWARDEE. TO5-ENTERPRISE-TDM ELIMINATION AND MODERNIZATION. Key points: 1. Contract aims to eliminate and modernize enterprise data systems. 2. Single award indicates potential for limited competition or specialized capabilities. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Longer than average duration suggests a complex, multi-year effort. 5. Performance period extends into early 2026. 6. Geographic focus on Texas for contract performance.

Value Assessment

Rating: fair

The contract's total ceiling is $29 million over approximately 488 days. Benchmarking this against similar enterprise data modernization contracts is challenging without more specific details on the scope of work. The firm-fixed-price structure is generally favorable for the government in controlling costs, but the value proposition hinges on GZO, Inc.'s ability to deliver the modernization efficiently within the ceiling. The provided data does not include a specific award amount, only a ceiling, making a precise value-for-money assessment difficult.

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,' which is a complex designation. It implies that while the initial solicitation was broad, specific sources may have been excluded based on certain criteria, or that a prior exclusion of sources was overcome by a subsequent full and open competition. The data indicates a single awardee, GZO, Inc., which could suggest that only one offeror met the stringent requirements or that the nature of the requirement led to a sole source determination after an initial broad solicitation. Further clarification on the 'exclusion of sources' aspect would be beneficial.

Taxpayer Impact: A full and open competition, even with exclusions, generally aims to maximize taxpayer value by encouraging broad participation. However, a single award can sometimes indicate a lack of robust competition, potentially leading to higher prices than if multiple bidders had vied for the contract.

Public Impact

The Department of the Air Force benefits from modernized enterprise data systems, potentially improving operational efficiency and decision-making. The contract supports the elimination of outdated systems and the modernization of existing ones. Work is anticipated to be performed in Texas. The contract could impact IT professionals and data specialists within GZO, Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' designation requires further scrutiny to understand the competitive landscape and potential impact on pricing.
The single awardee nature of this IDIQ raises questions about the breadth of competition and whether alternative solutions were adequately considered.
Lack of specific award amount (only ceiling) hinders precise value-for-money analysis.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The contract addresses critical needs for enterprise data elimination and modernization.
The duration allows for comprehensive project execution.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on data management and modernization. The market for enterprise data solutions is vast and competitive, with numerous companies offering services ranging from cloud migration to data analytics and system integration. The Department of Defense, and the Air Force in particular, are significant spenders in this area, often seeking advanced solutions to manage complex information environments. Comparable spending benchmarks would typically involve looking at other large-scale data modernization efforts within federal agencies, considering factors like scope, duration, and technology stack.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract (ss: false, sb: false). This suggests that the requirement was likely geared towards larger, more established firms with the capacity and expertise to handle enterprise-level data modernization. There is no explicit mention of subcontracting goals for small businesses, which could limit opportunities for the small business ecosystem in this specific contract's execution. Future analysis could explore if GZO, Inc. has a history of subcontracting with small businesses on similar large-scale IT contracts.

Oversight & Accountability

The contract is a Delivery Order under an IDIQ, implying that the underlying IDIQ vehicle likely has established oversight mechanisms. The firm-fixed-price nature provides a degree of cost control. Transparency would be enhanced by publicizing the specific tasks ordered under this IDIQ and their associated costs. Oversight would typically involve program management reviews, performance monitoring, and potentially audits by the agency's Inspector General, depending on the scale and criticality of the modernization effort.

Related Government Programs

Enterprise Resource Planning (ERP) Modernization
Cloud Computing Services
Data Warehousing and Analytics
Information Technology Infrastructure Modernization
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Potential for limited competition due to single award.
Complexity of 'Full and Open Competition After Exclusion of Sources' designation.
Lack of specific award amount hinders precise value assessment.
Potential for vendor lock-in with a single awardee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.0 million to GZO, INC.. FY24 COMMERCIAL SOLUTIONS OPENING (CSO) FOR SAF/CN/CNSI. IDIQ - SINGLE AWARDEE. TO5-ENTERPRISE-TDM ELIMINATION AND 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 $29.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-01-31.

What specific technologies or platforms are being targeted for modernization or elimination under this contract?

The provided data does not specify the exact technologies or platforms targeted for modernization or elimination. The contract ID is 'TO5-ENTERPRISE-TDM ELIMINATION AND MODERNIZATION,' suggesting a broad scope related to enterprise data management (TDM). To understand the specific technological focus, one would need to review the Task Order details or the Performance Work Statement (PWS) associated with this IDIQ. This could range from legacy database systems to data integration tools, data lakes, or specific application backends. The 'elimination' aspect implies decommissioning outdated systems, while 'modernization' suggests upgrading or replacing existing infrastructure with more current solutions, potentially involving cloud adoption, AI/ML integration, or advanced analytics capabilities.

How does GZO, Inc.'s past performance and technical capability compare to other potential bidders for this type of enterprise data modernization work?

Assessing GZO, Inc.'s past performance and technical capability relative to other potential bidders requires access to proprietary contract performance databases and competitive intelligence. Typically, agencies evaluate past performance through contractor performance assessment reporting (CPARS) and by reviewing proposals that detail technical approaches, key personnel, and relevant experience. Without specific CPARS data or a detailed analysis of GZO, Inc.'s proposal against competitors, it's difficult to definitively state how they compare. However, the fact that they were awarded a single-source IDIQ after a 'Full and Open Competition After Exclusion of Sources' suggests they met or exceeded the agency's stringent requirements, potentially indicating a strong track record in enterprise data modernization or a unique capability that set them apart.

What are the key performance indicators (KPIs) that will be used to measure the success of this enterprise data modernization effort?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. Typically, KPIs for enterprise data modernization projects are defined in the Performance Work Statement (PWS) or the contract's Statement of Objectives (SOO). Common KPIs in such projects include metrics related to system uptime and availability, data accuracy and integrity, processing speed and efficiency, reduction in system errors or downtime, successful migration of data volumes, user adoption rates, and cost savings achieved through modernization. The success of this contract will likely be measured against objectives such as the successful decommissioning of legacy systems, the implementation of new, efficient data management platforms, and the overall improvement in the Air Force's ability to leverage its data assets.

What is the historical spending trend for enterprise data modernization within the Department of the Air Force, and how does this contract fit into that trend?

Historical spending on enterprise data modernization within the Department of the Air Force (and the broader DoD) has been substantial and is generally trending upwards as agencies grapple with aging IT infrastructure and the need for advanced data analytics capabilities. Agencies are increasingly investing in cloud migration, data warehousing, and AI/ML-driven insights. This $29 million IDIQ ceiling represents a specific investment in modernizing data systems, likely part of a larger, ongoing digital transformation initiative. Without access to historical spending data specifically for 'enterprise data modernization' across the Air Force, it's hard to place this contract precisely within a trend. However, it aligns with the general strategic direction of federal IT modernization efforts focused on improving efficiency, security, and data-driven decision-making.

What are the potential risks associated with a single-award IDIQ for a complex IT modernization project?

A single-award IDIQ for a complex IT modernization project carries several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily reliant on one contractor, potentially limiting flexibility and negotiation leverage in the future. Secondly, if the awarded contractor underperforms or faces financial difficulties, the project could face significant delays or even failure, with limited immediate alternatives. Thirdly, the absence of robust competition from the outset might mean that the government did not secure the most cost-effective solution or the absolute best technical approach available in the market. Finally, the 'Full and Open Competition After Exclusion of Sources' designation, while intended to ensure qualified bidders, could mask underlying issues that limited broader participation, potentially impacting innovation and price discovery.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: FA448420S0002

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: $29,000,000

Exercised Options: $29,000,000

Current Obligation: $29,000,000

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