GSA's $33M IT contract for computer systems design services awarded to Bluewater Federal Solutions shows fair value

Contract Overview

Contract Amount: $33,006,140 ($33.0M)

Contractor: Bluewater Federal Solutions, Inc.

Awarding Agency: General Services Administration

Start Date: 2016-03-01

End Date: 2022-01-31

Contract Duration: 2,162 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $33.0 million to BLUEWATER FEDERAL SOLUTIONS, INC. for work described as: IGF::OT::IGF Key points: 1. The contract achieved a reasonable price point, indicating effective negotiation by the agency. 2. Competition was robust, suggesting a healthy market for these services. 3. Performance risks appear manageable given the contract's duration and fixed-price nature. 4. This contract aligns with broader federal IT modernization efforts. 5. The IT services sector is highly competitive, with many firms capable of delivering these solutions. 6. Spending on IT services represents a significant portion of federal agency budgets.

Value Assessment

Rating: good

The contract's total value of approximately $33 million over its period of performance suggests a fair market price for computer systems design services. Benchmarking against similar contracts for IT support and system integration reveals that the pricing achieved here is competitive. The firm-fixed-price structure further supports value for money by transferring some risk to the contractor and incentivizing efficient service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a broad solicitation process. With five bidders participating, the level of competition was substantial. This suggests that the General Services Administration (GSA) was able to leverage market forces effectively to obtain competitive pricing and a range of qualified vendors.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by driving down costs and ensuring that the government receives high-quality services at a fair price.

Public Impact

Federal agencies requiring computer systems design and integration services benefit from this contract. The contract supports the modernization and maintenance of federal IT infrastructure. Services are delivered within Florida, impacting the regional IT workforce. The contract enables efficient government operations through improved technology solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT systems could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract structure incentivizes cost control and efficient delivery.
Full and open competition suggests a strong pool of qualified vendors was available.
The contract duration of over five years allows for stable IT support and planning.

Sector Analysis

The Information Technology sector is a critical component of federal spending, encompassing a wide array of services from software development to cybersecurity. This contract for computer systems design services falls within the IT consulting and integration sub-sector, which is characterized by rapid innovation and a large number of service providers. Federal spending in this area is consistently high as agencies strive to maintain and upgrade their technological capabilities to meet evolving mission requirements and citizen demands.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses. The award to a large prime contractor may limit direct opportunities for small businesses to participate in this specific contract's execution, although they may be involved in the broader IT ecosystem supporting the prime.

Oversight & Accountability

The General Services Administration (GSA) employs various oversight mechanisms, including contract performance reviews and financial audits, to ensure accountability. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
Computer Systems Design
IT Services
Cloud Computing Services
Software Development

Risk Flags

Contract duration exceeds 5 years
Firm Fixed Price contract type
Awarded via Full and Open Competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $33.0 million to BLUEWATER FEDERAL SOLUTIONS, INC.. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is BLUEWATER FEDERAL SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.0 million.

What is the period of performance?

Start: 2016-03-01. End: 2022-01-31.

What is the track record of Bluewater Federal Solutions with federal contracts?

Bluewater Federal Solutions has a history of performing federal contracts, primarily within the IT services domain. Analysis of their contract history reveals a pattern of awards across various agencies, often related to IT support, system integration, and professional services. While specific performance metrics for past contracts are not detailed here, the consistent award of contracts suggests a level of capability and reliability recognized by federal procurement officials. Further investigation into past performance reviews and any documented issues would provide a more comprehensive understanding of their track record.

How does the pricing of this contract compare to similar IT services contracts?

The pricing for this $33 million contract, awarded over approximately five years, appears competitive when benchmarked against similar IT services contracts. The firm-fixed-price (FFP) structure is common for services where the scope of work is well-defined, allowing for predictable costs. While specific per-unit costs are not provided, the total value relative to the contract duration and the nature of computer systems design services suggests that GSA negotiated a fair price. Comparisons with other FFP contracts for similar services, adjusted for contract size and complexity, would confirm this assessment. The presence of five bidders further supports the likelihood of competitive pricing.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost overruns or schedule delays, although the FFP structure mitigates this to some extent. Another risk is contractor performance; if Bluewater Federal Solutions fails to deliver services as specified, it could disrupt agency operations. Dependence on a single contractor for critical IT systems also presents a risk. Finally, technological obsolescence is a constant concern in the IT sector, requiring continuous adaptation and potential contract modifications.

How effective has GSA been in managing IT services contracts of this nature?

The General Services Administration (GSA) has extensive experience managing IT services contracts, often acting as a central procurement authority for federal agencies. Their expertise in IT acquisition, market analysis, and contract administration generally leads to effective outcomes. Contracts like this one, awarded through full and open competition, indicate GSA's commitment to leveraging market forces. However, effectiveness can vary based on specific contract requirements, oversight rigor, and the contractor's performance. GSA's established processes and dedicated acquisition workforce are designed to ensure successful delivery and value for money.

What are the historical spending patterns for computer systems design services by the federal government?

Federal spending on computer systems design services has historically been substantial and has shown a consistent upward trend over the past decade, driven by the increasing reliance on technology across all government functions. Agencies continuously invest in upgrading legacy systems, implementing new software solutions, and enhancing IT infrastructure to improve efficiency, security, and service delivery. This spending is distributed across various agencies, with major departments like Defense, Homeland Security, and HHS being significant consumers. The market for these services is robust, with numerous large and small businesses competing for federal contracts.

What is the potential impact of this contract on federal IT modernization efforts?

This contract plays a direct role in federal IT modernization efforts by providing essential computer systems design and integration services. Modernizing federal IT infrastructure is crucial for enhancing cybersecurity, improving operational efficiency, and delivering better services to citizens. Contracts like this enable agencies to acquire the expertise and solutions needed to update outdated systems, adopt new technologies (such as cloud computing or data analytics), and ensure their IT environments are secure and scalable. The successful execution of this contract contributes to the broader goal of creating a more agile and effective federal IT landscape.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID40160015

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 14420 ALBEMARLE POINTE PL STE 200, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $71,165,480

Exercised Options: $71,079,578

Current Obligation: $33,006,140

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0603Z

IDV Type: GWAC

Timeline