GSA's $35.9M IT Support Contract Awarded to Heartland Technology Group LLC for Computer Systems Design Services

Contract Overview

Contract Amount: $35,906,736 ($35.9M)

Contractor: Heartland Technology Group LLC

Awarding Agency: General Services Administration

Start Date: 2014-06-01

End Date: 2016-12-31

Contract Duration: 944 days

Daily Burn Rate: $38.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CL,CT::IGF NITC IT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $35.9 million to HEARTLAND TECHNOLOGY GROUP LLC for work described as: IGF::CL,CT::IGF NITC IT SUPPORT SERVICES Key points: 1. Contract value of $35.9 million over its period of performance. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. Performance period spans over 2.5 years (944 days). 5. The North American Industry Classification System (NAICS) code is 541512 for Computer Systems Design Services. 6. The contract was awarded as a Delivery Order. 7. The contractor is Heartland Technology Group LLC. 8. The awarding agency is the General Services Administration (GSA).

Value Assessment

Rating: fair

The contract value of $35.9 million for a period of approximately 2.5 years for IT support services appears within a reasonable range for federal contracts of this nature. However, without specific benchmarks for the exact services provided and the level of support, a precise value-for-money assessment is difficult. The Time and Materials pricing structure, while flexible, can lead to higher costs if not managed diligently compared to fixed-price contracts. Further analysis of the specific tasks and deliverables would be needed to confirm if the pricing is competitive.

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'. This indicates that the solicitation was broadly advertised, and multiple bidders were likely considered. The specific exclusion of sources clause suggests a potential prior relationship or specific requirement that led to a limited initial pool, but the overall 'full and open' designation implies a robust competitive process was ultimately employed. The presence of competition generally aids in price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging the best value solutions. This approach minimizes the risk of overpayment and promotes a healthy market for government IT services.

Public Impact

Federal agencies requiring computer systems design and IT support services benefit from this contract. The contract supports the operational needs of the General Services Administration (GSA). Services delivered likely include IT consulting, system integration, and technical support. The geographic impact is primarily within the District of Columbia, where the contract is registered. The contract supports the IT workforce by engaging a private sector contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
The 'after exclusion of sources' clause warrants a review to ensure full competition was truly achieved.
Limited public detail on specific performance metrics makes it hard to assess effectiveness.
The contract duration and value could be subject to scope creep if not managed properly.

Positive Signals

Awarded under full and open competition, suggesting a competitive market was leveraged.
The contract addresses a core IT support need for a major federal agency (GSA).
The contractor, Heartland Technology Group LLC, is established in the federal IT space.
The contract is a Delivery Order, indicating it's part of a larger framework agreement, potentially streamlining future procurements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The federal IT market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are crucial for ensuring agencies have the necessary expertise and support to operate efficiently. Benchmarks for similar IT support contracts vary widely based on scope, duration, and specific services, but a $35.9 million award over 2.5 years is a significant commitment, placing it in the mid-to-large tier for individual IT service contracts.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (ss: false) and does not explicitly mention subcontracting goals for small businesses (sb: false). This suggests that the primary award went to a large business or that subcontracting opportunities for small businesses were not a specific requirement of this particular delivery order. Further investigation into the contractor's subcontracting plan would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a Delivery Order issued under a larger contract vehicle, oversight mechanisms would likely be integrated into GSA's contract management processes. Transparency is generally facilitated through contract databases like FPDS, where award details are recorded. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

GSA IT Schedule 70 (now IT Professional Services)
CIO-SP3 Small Business
Alliant Government Services
IT Services and Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for clear definition and monitoring of 'materials' in T&M contract.
Ensuring genuine competition despite 'exclusion of sources' clause.
Scope creep risk without diligent project management.
Limited public data on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $35.9 million to HEARTLAND TECHNOLOGY GROUP LLC. IGF::CL,CT::IGF NITC IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is HEARTLAND TECHNOLOGY GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.9 million.

What is the period of performance?

Start: 2014-06-01. End: 2016-12-31.

What is the track record of Heartland Technology Group LLC with federal contracts, particularly in IT support?

Heartland Technology Group LLC has a history of receiving federal contracts, primarily within the IT services domain. Analysis of federal procurement data indicates multiple awards to the company across various agencies, including the General Services Administration (GSA). Their experience often centers around IT support, network management, and computer systems design, aligning with the NAICS code (541512) of this specific contract. While the data shows consistent contract awards, a deeper dive into past performance reviews, any past disputes, or specific project successes would provide a more comprehensive understanding of their track record and reliability as a federal contractor.

How does the $35.9 million contract value compare to similar IT support contracts awarded by GSA?

The $35.9 million contract value for Heartland Technology Group LLC, spanning approximately 2.5 years, positions it as a mid-to-large-sized IT support contract within the GSA's portfolio. GSA awards a wide range of IT contracts, from smaller task orders to multi-billion dollar indefinite delivery-indefinite quantity (IDIQ) vehicles. For IT support services under NAICS code 541512, contracts of this magnitude are not uncommon, especially when they involve comprehensive system design, integration, and ongoing support for significant agency operations. However, direct comparisons are challenging without knowing the specific service levels, deliverables, and geographic scope intended for this contract versus others. It suggests a substantial requirement was met through this award.

What are the primary risks associated with a Time and Materials (T&M) contract for IT support?

The primary risk associated with Time and Materials (T&M) contracts, like this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials used. This structure can incentivize longer project durations or less efficient work if not rigorously managed. For the government, it means less predictability in final costs. Effective risk mitigation requires robust oversight, detailed tracking of hours and materials, clear definition of 'materials,' and strong project management to ensure the work remains within budget expectations and scope.

How effective is 'full and open competition after exclusion of sources' in ensuring competitive pricing?

The 'full and open competition after exclusion of sources' clause is intended to balance the benefits of broad competition with specific circumstances that might initially limit the pool of eligible contractors. While 'full and open' implies a wide solicitation, the 'exclusion of sources' suggests that certain entities were initially removed from consideration, perhaps due to specific requirements, prior work, or security clearances. The effectiveness in ensuring competitive pricing depends heavily on how many qualified bidders remain after the exclusion. If a sufficient number of capable vendors can still compete, it can drive competitive pricing. However, if the exclusion significantly narrows the field, the competitive pressure might be reduced, potentially leading to less favorable pricing than true unrestricted full and open competition.

What is the historical spending trend for computer systems design services (NAICS 541512) by GSA?

Historical spending by the General Services Administration (GSA) on computer systems design services (NAICS 541512) has been substantial and generally increasing over the years, reflecting the government's continuous need for IT modernization and support. GSA, as a primary provider of IT services and procurement vehicles for other agencies, consistently awards significant contracts in this category. Trends often show a shift towards cloud computing, cybersecurity, and data analytics services within this NAICS code. While this specific $35.9 million contract is a single data point, it aligns with the broader pattern of significant federal investment in IT infrastructure and design services managed through agencies like GSA.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID05140028

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4620 N LEAMINGTON AVE, CHICAGO, IL, 60630

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,928,309

Exercised Options: $35,906,736

Current Obligation: $35,906,736

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F1249Z

IDV Type: GWAC

Timeline