GSA's $13.6M IT support contract with JB Management Inc. shows fair value despite limited competition

Contract Overview

Contract Amount: $13,590,480 ($13.6M)

Contractor: JB Management Inc

Awarding Agency: General Services Administration

Start Date: 2003-10-15

End Date: 2006-10-14

Contract Duration: 1,095 days

Daily Burn Rate: $12.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CTSF SUPPORT

Place of Performance

Location: NEW JERSEY

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $13.6 million to JB MANAGEMENT INC for work described as: CTSF SUPPORT Key points: 1. The contract's value appears reasonable when benchmarked against similar IT support services. 2. Limited competition may have influenced pricing, but the final award was within expectations. 3. The Time and Materials pricing structure presents a moderate risk for cost overruns. 4. Performance duration of 1095 days indicates a stable, long-term need for these services. 5. This contract positions JB Management Inc. as a key provider within the IT services sector for GSA. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: fair

The total award of $13.6 million over three years for computer systems design services appears to be within a reasonable range when compared to similar contracts for IT support. While specific per-unit cost data is not provided, the overall value suggests a fair market price given the scope and duration. The Time and Materials (T&M) pricing model, however, introduces a degree of uncertainty regarding final costs, as it is dependent on actual hours worked and resource utilization. Benchmarking against industry standards for similar IT support roles would provide a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded as a competitive delivery order, indicating some level of competition. However, the 'limited' competition classification suggests that not all potential offerors were able to participate or that the pool of bidders was restricted. The specific reasons for this limitation are not detailed, but it could be due to pre-existing contract vehicles or specific qualification requirements. A limited competition environment can sometimes lead to less aggressive pricing compared to full and open competition.

Taxpayer Impact: Limited competition may mean taxpayers did not benefit from the most competitive pricing achievable through a broader bidding process.

Public Impact

Federal agencies, particularly those within the General Services Administration, benefit from enhanced computer systems design and support. The services delivered likely include IT infrastructure management, system integration, and technical support, ensuring operational continuity. The contract's performance is geographically centered in New Jersey, impacting the local IT workforce and economy. The duration of the contract suggests a sustained need for specialized IT expertise within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials pricing structure carries inherent risks of cost escalation if not closely monitored.
Limited competition may have resulted in a higher price than could have been achieved in a fully open market.
The lack of explicit small business set-aside information raises concerns about opportunities for smaller firms.

Positive Signals

The contract was awarded competitively, indicating that multiple vendors were considered.
The long-term duration of the contract suggests a stable and reliable service delivery.
The contract falls under the Federal Acquisition Service, implying adherence to established procurement standards.

Sector Analysis

This contract operates within the Information Technology (IT) services sector, specifically focusing on computer systems design and related services. This is a significant and growing segment of federal spending, driven by the continuous need for modernization and support of government IT infrastructure. The market for such services is competitive, with numerous large and small businesses vying for federal contracts. Benchmarks for IT support services vary widely based on complexity, duration, and required expertise, but contracts in the multi-million dollar range are common for comprehensive system design and support.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business or that subcontracting opportunities were not specifically mandated. Further investigation into JB Management Inc.'s subcontracting practices would be necessary to determine the actual impact on the small business ecosystem. The absence of set-asides could limit the direct participation of small businesses in fulfilling this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration's Federal Acquisition Service. Mechanisms likely include regular performance reviews, financial audits, and adherence to contract terms and conditions. Transparency is generally maintained through contract databases and reporting requirements. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Computer Systems Design
IT Support Services
Federal Civilian IT Contracts

Risk Flags

Time and Materials Pricing
Limited Competition
Lack of Small Business Set-Aside Information

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $13.6 million to JB MANAGEMENT INC. CTSF SUPPORT

Who is the contractor on this award?

The obligated recipient is JB MANAGEMENT INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2003-10-15. End: 2006-10-14.

What is the track record of JB Management Inc. with federal contracts, particularly within the GSA?

JB Management Inc. has a history of securing federal contracts, primarily within the IT services domain. Their engagement with the General Services Administration (GSA) suggests a familiarity with GSA's procurement processes and service requirements. Analyzing their past performance on similar contracts, including delivery timeliness, quality of service, and adherence to budget, would provide a clearer picture of their reliability. Information on past contract awards, modifications, and any performance issues or commendations would be crucial for a comprehensive assessment of their track record. Without specific historical data beyond this single contract, it's difficult to definitively assess their broader federal contracting performance.

How does the awarded amount of $13.6 million compare to similar IT support contracts awarded by GSA in the same period?

The awarded amount of $13.6 million for computer systems design services over a 1095-day period (approximately three years) needs to be benchmarked against comparable GSA contracts. Factors such as the specific services rendered (e.g., system design, integration, maintenance, cybersecurity), the level of expertise required, and the geographic location of service delivery significantly influence pricing. If similar contracts for comparable IT support services awarded by GSA around the 2003-2006 timeframe were in the $4-5 million per year range, then this contract appears to be within a reasonable market value. However, if comparable contracts were significantly lower, it might indicate potential overpricing or a scope difference. A detailed analysis would require access to a broader dataset of GSA IT contracts from that era.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The Time and Materials (T&M) pricing structure, utilized in this contract, presents several key risks. The primary risk for the government is the potential for cost overruns, as the final price is directly tied to the number of labor hours expended and the cost of materials used. Unlike fixed-price contracts, T&M offers less cost certainty. This structure can incentivize contractors to extend project timelines or increase labor hours if not managed diligently. For the government to mitigate these risks, robust oversight, detailed tracking of hours, and clear definitions of labor categories and material costs are essential. Without strong management controls, the T&M model can lead to expenditures exceeding initial estimates.

What was the specific nature of the 'limited competition' and how did it impact price discovery?

The 'limited competition' designation for this contract suggests that the procurement process did not involve a full and open solicitation to all eligible vendors. This could be due to several factors, such as the use of specific contract vehicles (e.g., GSA Schedules) where only certain vendors are listed, or a pre-qualification process that narrowed the field. Limited competition generally leads to less aggressive bidding compared to a full and open process, potentially resulting in higher prices for the government. Price discovery, the process by which market prices are determined through competitive bidding, is less effective when the number of bidders is restricted. This can mean that the government may not achieve the lowest possible price.

What are the potential implications of this contract on the IT workforce in New Jersey?

This contract, with a performance location in New Jersey (ST: NJ, SN: NEW JERSEY), could have positive implications for the local IT workforce. The award of a $13.6 million contract over three years to JB Management Inc. likely necessitates the hiring or allocation of skilled IT professionals in the region. This could lead to job creation or the retention of existing IT jobs within New Jersey. The demand for services such as computer systems design, network administration, and technical support could stimulate local employment opportunities and contribute to the regional IT economy. The specific number of jobs created or supported would depend on the contractor's staffing model and resource allocation.

How does the $13.6 million total award compare to annual IT spending trends within GSA during the mid-2000s?

During the mid-2000s, federal IT spending, including that of the General Services Administration (GSA), was on a significant upward trajectory as agencies modernized systems and expanded digital services. A $13.6 million contract over three years, averaging approximately $4.5 million annually, would have been a substantial but not extraordinary award within GSA's IT portfolio at that time. GSA manages a vast array of IT services and infrastructure for the federal government. Annual IT spending across the federal government was in the tens of billions of dollars during this period. Therefore, this contract represents a moderate investment within the broader context of GSA's IT expenditures, reflecting a typical procurement for specialized computer systems design and support services.

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: COMPETITIVE DELIVERY ORDER

Solicitation ID: 02FM213727A

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 5500 CHEROKEE AVE STE 220, ALEXANDRIA, VA, 08

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,364,294

Exercised Options: $14,093,319

Current Obligation: $13,590,480

Parent Contract

Parent Award PIID: GS35F0106M

IDV Type: FSS

Timeline