DoD's $19M Air Force IT Modernization Task Order Awarded to GZO, Inc. Under CSO
Contract Overview
Contract Amount: $19,000,000 ($19.0M)
Contractor: GZO, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-29
End Date: 2026-01-31
Contract Duration: 489 days
Daily Burn Rate: $38.9K/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. TASK ORDER 8 -PATHFINDER-ENTERPRISE INFRASTRUCTURE MODERNIZATION. 4 BASES.
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78258
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $19.0 million to GZO, INC. for work described as: FY24 COMMERCIAL SOLUTIONS OPENING (CSO) FOR SAF/CN/CNSI. IDIQ - SINGLE AWARDEE. TASK ORDER 8 -PATHFINDER-ENTERPRISE INFRASTRUCTURE MODERNIZATION. 4 BASES. Key points: 1. This is a single award task order under a CSO, indicating a specific solution sought. 2. The contract is Firm Fixed Price, which shifts cost risk to the contractor. 3. The contract is for Enterprise Infrastructure Modernization across four bases. 4. The NAICS code 541519 suggests a broad range of computer-related services.
Value Assessment
Rating: fair
The $19M award for Enterprise Infrastructure Modernization is a significant investment. Benchmarking against similar modernization efforts is difficult without more detail on the scope and deliverables. The single award nature warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is unusual. This suggests an initial broad solicitation followed by a restriction, potentially limiting competition and impacting price discovery.
Taxpayer Impact: The impact on taxpayers depends on whether the limited competition resulted in a fair price for the modernization services.
Public Impact
Modernization of critical infrastructure at four Air Force bases. Potential for improved operational efficiency and cybersecurity. Impact on the IT services sector and potential for future follow-on work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite initial 'full and open' claim.
- Single awardee for a significant modernization effort.
- Lack of detailed scope for benchmarking.
Positive Signals
- Firm Fixed Price contract structure.
- Focus on critical infrastructure modernization.
- Potential for long-term benefits from improved IT systems.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on infrastructure modernization. Spending in this area is high across government, driven by the need to update legacy systems and enhance cybersecurity. Benchmarks vary widely based on scope.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not primary participants in this specific award, though they may be subcontractors.
Oversight & Accountability
The CSO mechanism itself is intended to streamline acquisition. Oversight will be crucial to ensure the limited competition was justified and that the contractor delivers on modernization goals effectively and within budget.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition raises concerns about price reasonableness.
- Ambiguity in 'full and open competition after exclusion of sources'.
- Lack of detailed scope hinders independent cost validation.
- Single awardee for a significant modernization effort.
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 $19.0 million to GZO, INC.. FY24 COMMERCIAL SOLUTIONS OPENING (CSO) FOR SAF/CN/CNSI. IDIQ - SINGLE AWARDEE. TASK ORDER 8 -PATHFINDER-ENTERPRISE INFRASTRUCTURE MODERNIZATION. 4 BASES.
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 $19.0 million.
What is the period of performance?
Start: 2024-09-29. End: 2026-01-31.
What specific criteria led to the exclusion of sources after the initial 'full and open' competition, and how did this impact the final price?
The justification for excluding sources after an initial 'full and open' competition needs detailed examination. Typically, such exclusions are based on specific technical capabilities or unique solutions. Understanding these criteria is vital to assess if the limited competition was necessary or if it potentially inflated the price by reducing the pool of qualified bidders.
How does the $19M cost compare to industry benchmarks for similar enterprise infrastructure modernization projects of this scale and scope?
Benchmarking this $19M task order requires a detailed breakdown of the modernization scope, including hardware, software, integration, and cybersecurity components. Without this granular detail, a direct comparison to industry standards is challenging. However, for large-scale enterprise modernization, this figure could be within a reasonable range if it encompasses significant upgrades across multiple bases.
What are the key performance indicators (KPIs) for this Pathfinder task order, and how will their achievement be measured to ensure effectiveness?
The effectiveness of this Pathfinder task order hinges on clearly defined and measurable KPIs related to enterprise infrastructure modernization. These should include metrics for system uptime, performance improvements, enhanced security posture, and user adoption. Robust oversight and regular performance reviews against these KPIs are essential to ensure the $19M investment yields the intended operational benefits for the Air Force.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: $19,000,000
Exercised Options: $19,000,000
Current Obligation: $19,000,000
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
Start Date: 2024-09-29
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-09-16
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