SBA's $36.5M IT Support Contract Awarded to Alpha Omega Integration LLC Under Full and Open Competition

Contract Overview

Contract Amount: $36,550,543 ($36.6M)

Contractor: Alpha Omega Integration LLC

Awarding Agency: Small Business Administration

Start Date: 2014-09-12

End Date: 2020-10-22

Contract Duration: 2,232 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF CFAS WEB AND BATCH IT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20416

State: District of Columbia Government Spending

Plain-Language Summary

Small Business Administration obligated $36.6 million to ALPHA OMEGA INTEGRATION LLC for work described as: IGF::OT::IGF CFAS WEB AND BATCH IT SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 2232 days (over 6 years) indicates a long-term need for IT support services. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The award was made to a single contractor, Alpha Omega Integration LLC, for a significant dollar value. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: good

The contract's total value of approximately $36.5 million over more than six years suggests a substantial investment in IT support. Benchmarking this against similar government IT support contracts requires detailed analysis of scope and duration. However, the firm fixed-price structure is generally favorable for the government, locking in costs and reducing the risk of unexpected increases. The number of offers received (7) indicates a reasonable level of interest, which can contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit an offer. The solicitation received 7 offers, indicating a healthy level of competition for this IT support services requirement. A competitive process like this generally leads to better price discovery and allows the government to select the offer that provides the best value, considering both price and technical factors.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation among contractors vying for the award. This process ensures that the government is not overpaying for essential services.

Public Impact

The Small Business Administration (SBA) is the primary beneficiary, receiving essential IT support services. The contract supports the delivery of computer systems design and related services. The contract was awarded to a company located in the District of Columbia, suggesting potential local economic impact. The services provided likely support the SBA's mission-critical operations and digital infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to contractor complacency if not managed effectively.
Reliance on a single contractor for critical IT support may pose a risk if performance degrades or the contractor faces financial instability.
The specific details of the IT support services are not fully elaborated, making it difficult to assess the full scope of potential risks.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Firm fixed-price contract type helps control costs and provides budget certainty.
Multiple offers received (7) suggest a competitive market and potential for good value.
The contractor, Alpha Omega Integration LLC, has secured this significant contract, indicating a level of capability and trust.

Sector Analysis

The IT services sector within the federal government is vast, encompassing a wide range of support, development, and maintenance activities. Contracts like this, for computer systems design and related services, are crucial for agencies to maintain and modernize their technological infrastructure. The market for these services is highly competitive, with numerous large and small businesses vying for government contracts. Spending in this category is consistently high across various agencies, reflecting the increasing reliance on digital systems for operations.

Small Business Impact

This contract was not specifically set aside for small businesses, nor does the data indicate any subcontracting requirements for small businesses. Alpha Omega Integration LLC is listed as the contractor, and while their size status isn't provided in this snippet, the award itself was made under full and open competition, not a small business set-aside. This means large businesses were also eligible to compete and potentially win.

Oversight & Accountability

Oversight for this contract would typically be managed by the Small Business Administration's contracting officers and program managers responsible for IT services. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is generally maintained through contract award databases and reporting requirements. Depending on the specific nature of the IT services, an Inspector General may have jurisdiction if fraud, waste, or abuse is suspected.

Related Government Programs

IT Support Services
Computer Systems Design
Information Technology Services
Federal IT Contracts
Small Business Administration IT Spending

Risk Flags

Long-term contract duration
Single awardee for significant value
Potential for scope creep
Reliance on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $36.6 million to ALPHA OMEGA INTEGRATION LLC. IGF::OT::IGF CFAS WEB AND BATCH IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ALPHA OMEGA INTEGRATION LLC.

Which agency awarded this contract?

Awarding agency: Small Business Administration (Small Business Administration).

What is the total obligated amount?

The obligated amount is $36.6 million.

What is the period of performance?

Start: 2014-09-12. End: 2020-10-22.

What is the track record of Alpha Omega Integration LLC with federal contracts, particularly in IT support?

Alpha Omega Integration LLC has a history of securing federal contracts, including those related to IT support and systems integration. Their performance on previous contracts, especially those with the Small Business Administration or similar agencies, would be a key indicator of their capability. Analyzing past performance reviews, contract modifications, and any reported issues or successes on prior awards would provide a comprehensive view. A review of their contract portfolio can reveal their experience level, the types of services they have successfully delivered, and their ability to manage complex IT projects within government frameworks. This specific contract, valued at over $36 million and spanning more than six years, suggests a significant level of trust and demonstrated capability by the SBA.

How does the value of this contract compare to similar IT support contracts awarded by the SBA or other agencies?

The $36.5 million value over approximately 6 years for IT support services is a substantial award. To benchmark it effectively, one would need to compare it against contracts with similar scopes of work, duration, and complexity. For instance, comparing it to other 'Computer Systems Design Services' (NAICS 541512) contracts awarded by the SBA or agencies of similar size and mission would be relevant. Factors like the number of end-users supported, the criticality of the systems, and the specific technical requirements (e.g., cloud services, cybersecurity, network management) heavily influence contract value. Without these specifics, a direct comparison is difficult, but the award size suggests a comprehensive IT support requirement.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance issues from the contractor, cost overruns (though mitigated by fixed-price), contractor viability, and the risk of technological obsolescence. The firm fixed-price structure is a primary mitigation for cost overruns. The SBA's oversight, including performance monitoring and contract management, is crucial for addressing performance issues. Contractor viability can be assessed through financial health checks and past performance. Mitigating technological obsolescence requires proactive contract management, potentially through contract modifications or future procurements that incorporate newer technologies. The long duration also presents a risk if the SBA's IT needs evolve significantly beyond the contract's scope.

How effective is the full and open competition process in ensuring value for money for this type of IT support contract?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, especially for IT services where the market is often robust. By allowing all responsible sources to compete, the government can leverage market forces to drive down prices and encourage innovation. The fact that 7 offers were received indicates sufficient competition. The evaluation process, which typically considers both technical merit and price, allows the SBA to select the offer that provides the best overall value. However, the effectiveness also depends on the clarity of the solicitation requirements and the rigor of the evaluation criteria used by the agency.

What is the historical spending pattern for IT support services at the Small Business Administration?

Historical spending data for IT support services at the SBA would reveal trends in their investment in technology infrastructure and support. Analyzing past contracts, including their value, duration, and the types of services procured, can indicate whether spending has been consistent, increasing, or decreasing. It can also show whether the SBA has historically relied on full and open competition or other methods like sole-source awards. Understanding these patterns helps contextualize the current $36.5 million award, assessing if it aligns with previous investment levels or represents a significant shift in strategy or need. This data is crucial for budget planning and identifying potential areas for cost savings or efficiency improvements.

What are the implications of this contract being awarded as a delivery order?

Awarding this contract as a delivery order implies it was likely issued under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award framework. This approach allows agencies to procure services more efficiently by having pre-competed contracts in place. For this specific IT support services requirement, it means the underlying IDIQ vehicle likely underwent a competitive process, and this delivery order represents the specific tasking and pricing for the SBA's needs. The advantage is faster procurement, but the initial competition for the IDIQ is critical for ensuring overall value.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8150 LEESBURG PIKE STE 1010, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $36,550,543

Exercised Options: $36,550,543

Current Obligation: $36,550,543

Actual Outlays: $8,125,583

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $4,360,663

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS06F0795Z

IDV Type: GWAC

Timeline