GSA awards $47.4M IT services contract to MAXISIQ, Inc. for Computer Systems Design

Contract Overview

Contract Amount: $47,389,744 ($47.4M)

Contractor: Maxisiq, Inc.

Awarding Agency: General Services Administration

Start Date: 2017-09-29

End Date: 2019-03-29

Contract Duration: 546 days

Daily Burn Rate: $86.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF CONTRACT AWARD AND INITIAL OBLIGATION OF FUNDS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $47.4 million to MAXISIQ, INC. for work described as: IGF::OT::IGF CONTRACT AWARD AND INITIAL OBLIGATION OF FUNDS Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant duration of 546 days suggests a substantial, ongoing need for services. 3. Time and Materials pricing structure can pose cost control challenges. 4. Awarded by the Federal Acquisition Service, indicating a focus on shared government IT needs. 5. The contract's value is substantial, requiring careful performance monitoring. 6. No small business set-aside, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $47.4 million over approximately 18 months is substantial. Without comparable contract data or a detailed breakdown of labor categories and rates, a precise value-for-money assessment is difficult. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not managed diligently, especially compared to fixed-price contracts. Benchmarking against similar IT services contracts for Computer Systems Design would be necessary for a more definitive assessment of pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed openly. This significantly limits the number of potential bidders and the opportunity for market forces to drive down prices. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they generally result in less competitive pricing and reduced transparency compared to full and open competition.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price, as competition is absent. This can lead to higher overall government spending for the same services.

Public Impact

Federal agencies requiring computer systems design and related IT services benefit from this contract. The services delivered likely support the operational needs and modernization efforts of government IT infrastructure. The contract is geographically focused on the District of Columbia. The contract supports IT professionals and potentially creates or sustains jobs in the computer systems design sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs for taxpayers.
Time and Materials pricing structure offers less cost certainty than fixed-price contracts.
Lack of small business set-aside may limit opportunities for smaller, specialized IT firms.

Positive Signals

Awarded by GSA's Federal Acquisition Service, suggesting alignment with government-wide IT procurement strategies.
The contract duration indicates a sustained need for these IT services within the government.
MAXISIQ, Inc. is a provider of IT services, implying relevant expertise.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. This is a critical area for government operations, encompassing a wide range of services from system integration and network design to software development and IT consulting. The market for IT services is highly competitive, but sole-source awards bypass this competition. Government spending in this category is substantial, with agencies constantly seeking to modernize and maintain their technological infrastructure.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to directly participate in this contract are limited. While MAXISIQ, Inc. may engage small businesses as subcontractors, the absence of a set-aside or explicit subcontracting goals means there is no guaranteed pathway for small business involvement, potentially impacting the small business IT ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established procurement regulations and contract administration processes. The Inspector General's office within GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency is enhanced through contract databases like FPDS, but the sole-source nature limits public insight into the justification and negotiation process.

Related Government Programs

IT Professional Services
Computer Systems Design
GSA Schedules
Federal Civilian IT Procurement

Risk Flags

Sole-source award
Time and Materials pricing
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $47.4 million to MAXISIQ, INC.. IGF::OT::IGF CONTRACT AWARD AND INITIAL OBLIGATION OF FUNDS

Who is the contractor on this award?

The obligated recipient is MAXISIQ, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $47.4 million.

What is the period of performance?

Start: 2017-09-29. End: 2019-03-29.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is a common designation for sole-source procurements. The specific justification would typically be documented by the GSA contracting officer. Common reasons for sole-source awards include situations where only one responsible source can provide the required supplies or services, such as when a unique capability is required, or in cases of urgent and compelling need. Without access to the official justification document, the precise rationale remains unknown, but it implies that GSA determined that MAXISIQ, Inc. was the only viable option at the time of award.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT services?

Time and Materials (T&M) contracts are characterized by reimbursement for direct labor hours at specified hourly rates and the actual cost of materials. This structure offers flexibility, allowing for changes in scope without formal contract modifications for each change. However, it carries higher risk for the government regarding cost control, as the total cost is not fixed upfront. Compared to Firm-Fixed-Price (FFP) contracts, which offer greater cost certainty for the government but less flexibility, T&M can potentially lead to higher overall expenditures if not managed very closely. For IT services, FFP is often preferred for well-defined scopes of work, while T&M might be used for research, development, or situations where the scope is expected to evolve significantly.

What is MAXISIQ, Inc.'s track record with federal contracts, particularly with GSA?

MAXISIQ, Inc. has a history of receiving federal contracts, including those administered by the General Services Administration (GSA). The provided data shows this specific award from GSA's Federal Acquisition Service. A deeper analysis would involve examining their contract history across various agencies and contract vehicles to assess performance, past performance ratings, and any history of disputes or contract terminations. Their ability to secure a $47.4 million contract suggests a level of established capability and a positive past performance record, though a comprehensive review would require access to more detailed contract performance data.

What are the potential risks associated with a sole-source IT services contract of this magnitude?

The primary risk associated with a sole-source IT services contract of this magnitude is the lack of competitive pressure, which can lead to inflated pricing and reduced value for taxpayer dollars. Without competing bids, the government may overpay for the services rendered. Additionally, sole-source awards can stifle innovation by limiting the entry of new or alternative providers into the market. There's also a risk of vendor lock-in, where the agency becomes heavily reliant on the sole provider, making future transitions difficult and potentially costly. Effective oversight and robust performance management are crucial to mitigate these risks.

How does this contract's value compare to other GSA IT services contracts?

The $47.4 million award value for Computer Systems Design Services is a significant sum, placing it among larger IT services contracts. GSA manages a vast portfolio of IT contracts, many of which are awarded through competitive processes like GSA Schedules. While this specific contract's value is substantial, its sole-source nature makes direct comparison to competitively awarded contracts challenging in terms of value for money. Benchmarking would require identifying similar sole-source awards or analyzing the average contract values for Computer Systems Design Services awarded competitively through GSA Schedules to understand if this award represents a fair market price under its specific circumstances.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: GSCQF0B1733160

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10505 FURNACE RD STE 101, LORTON, VA, 22079

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $62,969,994

Exercised Options: $62,969,994

Current Obligation: $47,389,744

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline