GSA Awards $29.6M for Custom Computer Programming, Increasing Funding by $15.1M

Contract Overview

Contract Amount: $50,270,503 ($50.3M)

Contractor: Techflow, Inc.

Awarding Agency: General Services Administration

Start Date: 2009-09-30

End Date: 2011-03-31

Contract Duration: 547 days

Daily Burn Rate: $91.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS FPDSNG ENTRY REFLECTS BASE DOCUMENT THRU MODIFICATION PS13. INCREASING FUNDING BY $15,095,882.69. FOR A TOTAL VALUE OF $29,638,917.17. CE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $50.3 million to TECHFLOW, INC. for work described as: THIS FPDSNG ENTRY REFLECTS BASE DOCUMENT THRU MODIFICATION PS13. INCREASING FUNDING BY $15,095,882.69. FOR A TOTAL VALUE OF $29,638,917.17. CE Key points: 1. The contract value increased by over 100% from the base amount. 2. TECHFLOW, INC. secured this delivery order. 3. The contract is for custom computer programming services. 4. This is a firm-fixed-price contract. 5. The contract was awarded by GSA's Federal Acquisition Service.

Value Assessment

Rating: fair

The total contract value of $29.6M is substantial for custom programming services. Benchmarking against similar contracts is difficult without more detailed scope information, but the significant increase in funding warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

Awarded as a competitive delivery order, suggesting some level of competition existed, likely within a pre-existing contract vehicle. The price discovery mechanism is tied to the underlying contract's competition.

Taxpayer Impact: The increase of $15.1M represents a significant taxpayer investment, the value of which depends on the effectiveness and necessity of the expanded scope.

Public Impact

Taxpayers are funding custom software development services. The increase in funding suggests a growing or evolving need for these services. The contract duration spans over 1.5 years. The awardee is a small business.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant funding increase mid-contract.
Limited transparency on the specific services provided.
Potential for scope creep given funding increase.

Positive Signals

Awarded under a competitive process.
Firm-fixed-price contract provides cost certainty.
Awardee is a small business.

Sector Analysis

This contract falls under IT services, specifically custom computer programming. Spending in this sector is consistently high across federal agencies, driven by modernization efforts and evolving technological needs.

Small Business Impact

The awardee, TECHFLOW, INC., is a small business. This award contributes to federal small business contracting goals. Further analysis would be needed to determine if this was a set-aside or competed broadly.

Oversight & Accountability

Oversight would focus on ensuring the increased funding aligns with documented needs and that the services delivered meet the specified requirements and provide value for money.

Related Government Programs

Custom Computer Programming Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Significant funding increase mid-contract.
Lack of detailed scope for custom programming.
Potential for cost overruns if not managed tightly.
Limited visibility into specific service deliverables.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $50.3 million to TECHFLOW, INC.. THIS FPDSNG ENTRY REFLECTS BASE DOCUMENT THRU MODIFICATION PS13. INCREASING FUNDING BY $15,095,882.69. FOR A TOTAL VALUE OF $29,638,917.17. CE

Who is the contractor on this award?

The obligated recipient is TECHFLOW, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $50.3 million.

What is the period of performance?

Start: 2009-09-30. End: 2011-03-31.

What specific factors drove the 100% increase in funding for this custom programming contract?

The substantial funding increase suggests a significant expansion of the original scope, a change in requirements, or an underestimation in the initial contract. Understanding the precise drivers is crucial for assessing whether the additional funds represent a necessary investment or potential scope creep. Further documentation or agency justification would be needed to clarify the reasons behind this significant adjustment.

How does the per-unit cost of programming services compare to industry benchmarks, given the firm-fixed-price structure?

Without detailed breakdowns of labor categories, hours, and specific tasks within the $29.6M contract, a precise per-unit cost benchmark is not feasible. Firm-fixed-price contracts aim for cost certainty, but the overall value is determined by the scope and efficiency of the services delivered. Comparing the total value against the complexity and duration of the custom programming work is a more appropriate, albeit still high-level, assessment.

What is the long-term strategic value of this custom programming work to the agency?

The long-term strategic value hinges on how effectively the custom-developed software supports the agency's mission and operational goals. If the programming addresses critical needs, enhances efficiency, or provides unique capabilities, its value is high. Conversely, if it leads to technical debt or doesn't align with future strategies, its value diminishes. The significant funding increase necessitates a clear articulation of this strategic alignment.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12220 EL CAMINO REAL, SAN DIEGO, CA, 90

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $52,581,637

Exercised Options: $52,581,637

Current Obligation: $50,270,503

Parent Contract

Parent Award PIID: GS35F0210J

IDV Type: FSS

Timeline