GSA's $13.9M non-competitive delivery order for real property system support awarded to Delta Corporate Services, Inc

Contract Overview

Contract Amount: $13,899,169 ($13.9M)

Contractor: Delta Corporate Services, Inc.

Awarding Agency: General Services Administration

Start Date: 2008-07-11

End Date: 2010-04-24

Contract Duration: 652 days

Daily Burn Rate: $21.3K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS A TRANSFERRED ORDER FROM TASK ORDER NUMBER GST1005EC1125 TO GS09Q08BH0028 FROM CLIENT ORDER ID 9COI) A05S47T0132 TO 9T8ZDWIS02R0 ADN ACCOUNTING CONTROL TRANSACTION (ACT) NUMBER A04445152 TO A24650701. SYSTEM FOR TRADCKIGN AND ADMINISTERING REAL-PRORERTY 9STAR0

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $13.9 million to DELTA CORPORATE SERVICES, INC. for work described as: THIS IS A TRANSFERRED ORDER FROM TASK ORDER NUMBER GST1005EC1125 TO GS09Q08BH0028 FROM CLIENT ORDER ID 9COI) A05S47T0132 TO 9T8ZDWIS02R0 ADN ACCOUNTING CONTROL TRANSACTION (ACT) NUMBER A04445152 TO A24650701. SYSTEM FOR TRADCKIGN AND ADMINISTERING REAL-PRORERTY 9STAR0 Key points: 1. This contract represents a significant investment in maintaining critical federal real property data. 2. The non-competitive nature of this award warrants scrutiny regarding potential price efficiencies. 3. A long contract duration of 652 days suggests a need for ongoing, specialized support. 4. The award is concentrated in the District of Columbia, indicating a focus on federal agency operations. 5. The firm-fixed-price structure aims to provide cost certainty for the government. 6. This order is a transfer from a previous task order, suggesting continuity of service.

Value Assessment

Rating: questionable

Benchmarking the value of this $13.9 million contract is challenging without detailed service descriptions and comparable contract data. However, the non-competitive award mechanism raises concerns about whether the government secured the best possible price. The firm-fixed-price contract type offers some cost control, but the absence of competition limits the ability to assess if the pricing is aligned with market rates for similar real property management systems or support services. Further analysis would require understanding the specific functionalities and maintenance requirements of the STAR system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a non-competitive delivery order, meaning it was not openly competed. This suggests that either there was a sole source justification or it was a follow-on to an existing contract where competition was previously established. The lack of open competition limits the government's ability to solicit bids from multiple vendors, potentially impacting price discovery and the opportunity to leverage a wider range of solutions or innovations.

Taxpayer Impact: Taxpayers may not have benefited from the most competitive pricing due to the absence of a bidding process. This could result in a higher overall cost for the services provided compared to what might have been achieved through a competitive solicitation.

Public Impact

Federal agencies managing real property assets benefit from the continued operation of the STAR system. The contract supports the administration and tracking of federal real property, crucial for inventory and management. The primary geographic impact is within the District of Columbia, where many federal agencies are headquartered. The services likely involve IT support, data management, and system maintenance, potentially impacting federal IT workforces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency into the selection process for this non-competitive award.
Potential for vendor lock-in given the transfer from a previous order.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Continuity of service for a critical federal system.
Award supports essential real property management functions.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on software and system support for real property management. The federal government invests heavily in IT systems to manage its vast assets. Comparable spending benchmarks would typically involve other large-scale IT system maintenance and support contracts, particularly those related to asset management or enterprise resource planning (ERP) systems. The market for such specialized IT support can be concentrated among a few experienced vendors.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award to Delta Corporate Services, Inc., a single entity, suggests it was likely a prime contract award. Further investigation would be needed to determine if any small business participation was mandated or occurred through subcontracting, which is less likely in a non-competitive scenario.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the non-competitive nature of the award; however, contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Real Property Management Systems
IT System Maintenance and Support
Asset Management Software

Risk Flags

Non-competitive award
Lack of detailed service description
Potential for cost overruns without competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $13.9 million to DELTA CORPORATE SERVICES, INC.. THIS IS A TRANSFERRED ORDER FROM TASK ORDER NUMBER GST1005EC1125 TO GS09Q08BH0028 FROM CLIENT ORDER ID 9COI) A05S47T0132 TO 9T8ZDWIS02R0 ADN ACCOUNTING CONTROL TRANSACTION (ACT) NUMBER A04445152 TO A24650701. SYSTEM FOR TRADCKIGN AND ADMINISTERING REAL-PRORERTY 9STAR0

Who is the contractor on this award?

The obligated recipient is DELTA CORPORATE SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2008-07-11. End: 2010-04-24.

What specific functionalities does the STAR system provide, and why was Delta Corporate Services, Inc. the sole provider chosen for this transferred order?

The STAR (System for Tracking and Administering Real Property) system is designed to manage and track federal real property assets. Its functionalities likely include inventory management, space utilization, maintenance tracking, and financial reporting related to government-owned or leased properties. The reason for Delta Corporate Services, Inc. being the chosen provider for this transferred order, especially under a non-competitive basis, typically stems from a prior relationship or a sole-source justification. This could be due to the contractor possessing unique knowledge, proprietary technology, or having successfully performed under a previous contract that made them the only viable option for continuity of service. Without specific documentation from GSA, the exact justification remains speculative but often relates to specialized expertise or the need to avoid disruption to a critical system.

How does the $13.9 million cost compare to similar federal contracts for real property management IT systems?

Comparing the $13.9 million cost of this contract to similar federal contracts for real property management IT systems is challenging without more granular data on the specific services provided by Delta Corporate Services, Inc. and the scope of the STAR system. Federal IT contracts can vary widely in price based on the complexity of the system, the number of users, the duration of the contract, and the level of support required (e.g., maintenance, upgrades, training, help desk). However, for a contract spanning approximately 22 months (July 2008 to April 2010) with a total value of $13.9 million, the average annual cost is roughly $7.5 million. This figure would need to be benchmarked against contracts for similar enterprise-level asset management or facility management IT solutions, considering factors like the number of properties managed and the sophistication of the software.

What are the key risks associated with a non-competitive award of this magnitude for a critical federal system?

The primary risk associated with a non-competitive award of this magnitude is the potential for inflated pricing. Without the pressure of competition, the selected contractor may not be incentivized to offer the most cost-effective solution. Another significant risk is the lack of innovation; a sole-source provider might not bring new technologies or efficiencies to the table as readily as a competitive environment would. Furthermore, there's a risk of vendor lock-in, where the government becomes overly reliant on a single provider, making it difficult and costly to switch vendors in the future. Finally, non-competitive awards can sometimes raise concerns about fairness and transparency in the procurement process, potentially leading to scrutiny from oversight bodies or the public.

What is the historical spending pattern for the STAR system or similar real property management solutions by the GSA?

Analyzing the historical spending pattern for the STAR system or similar solutions by GSA requires access to historical contract databases beyond this single award. This $13.9 million delivery order, awarded in 2008, represents a specific period of expenditure. To understand the broader pattern, one would need to examine previous and subsequent contracts related to the STAR system or its predecessors/successors, as well as other real property management IT systems GSA or other agencies have procured. This would involve looking at contract vehicles, award amounts, contract durations, and the contractors involved over several fiscal years. Such an analysis could reveal trends in spending, identify periods of significant investment or divestment, and highlight the evolution of technology and requirements in federal real property management.

What performance metrics or oversight mechanisms were likely in place to ensure Delta Corporate Services, Inc. met the contract requirements?

For a federal contract of this size and duration, performance metrics and oversight mechanisms are typically established to ensure the contractor meets requirements. These often include Service Level Agreements (SLAs) that define specific performance standards for system availability, response times for support, and issue resolution. The contract likely included clauses requiring regular progress reports from Delta Corporate Services, Inc., detailing work completed, challenges encountered, and adherence to the schedule. GSA contracting officers and technical representatives would have been responsible for monitoring performance, reviewing deliverables, and ensuring compliance with the contract terms. Periodic reviews or inspections might also have been conducted. The firm-fixed-price nature of the contract itself serves as an oversight mechanism, as the contractor is obligated to deliver the specified services within the agreed budget.

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 9T8ZDWIS02R0

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 129 LITTLETON RD, PARSIPPANY, NJ, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,951,531

Exercised Options: $13,899,169

Current Obligation: $13,899,169

Parent Contract

Parent Award PIID: GS35F0319M

IDV Type: FSS

Timeline