Gaver Technologies awarded $10.4M contract for IT services by Department of the Army, spanning 2007-2013

Contract Overview

Contract Amount: $10,437,846 ($10.4M)

Contractor: Gaver Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-08-13

End Date: 2013-02-12

Contract Duration: 2,010 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USAG/DOIM CSC BASE YEAR CLINS 0001 THRU 0003

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $10.4 million to GAVER TECHNOLOGIES, INC. for work described as: USAG/DOIM CSC BASE YEAR CLINS 0001 THRU 0003 Key points: 1. Contract value appears reasonable given the duration and scope of IT services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract was awarded as a firm-fixed-price type, which transfers risk to the contractor. 4. Performance period extended over several years, indicating a need for sustained IT support. 5. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of computer-related services. 6. The contract was not set aside for small businesses, indicating larger firms were likely participants.

Value Assessment

Rating: good

The contract's total value of approximately $10.4 million over its lifespan suggests a moderate annual expenditure for IT services. Benchmarking against similar multi-year IT support contracts for government agencies indicates this pricing is within a typical range, especially considering the firm-fixed-price structure which often includes a premium for contractor risk. Without specific details on the exact services rendered, a precise value-for-money assessment is challenging, but the overall expenditure does not appear excessive for the period covered.

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,' which implies that while the competition was generally open, certain sources may have been excluded for specific reasons, or it could refer to a specific type of competitive procedure. The presence of 14 bids indicates a healthy level of competition for this requirement. A robust competitive process generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The extensive competition suggests that taxpayer funds were likely used efficiently, as multiple companies vied to offer the best value. This competitive environment helps ensure that the government secures services at market-competitive rates.

Public Impact

The Department of the Army benefits from sustained IT support services. The contract likely supports various IT infrastructure and operational needs within the Army. Geographic impact is not specified but is presumed to be within the Army's operational areas. Workforce implications would include IT professionals employed by Gaver Technologies and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements were not clearly defined upfront.
Dependence on a single contractor for an extended period could lead to vendor lock-in.
The 'After Exclusion of Sources' clause warrants further investigation into the specific competitive process.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Multiple bids received indicate a competitive marketplace for these services.
Long-term contract suggests a stable and reliable IT support solution was established.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The IT services market for government contracts is substantial, with agencies constantly seeking support for their complex digital infrastructures. Comparable spending benchmarks for IT services contracts of this duration and scope typically range from several million to tens of millions of dollars annually, depending on the complexity and criticality of the services. This contract's value appears aligned with the general market for such services.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the requirement was likely too large or complex for small business participation as prime contractors, or that the competition was open to all qualified firms regardless of size. There is no explicit information on subcontracting plans, but larger contracts often include provisions for small business subcontracting to ensure broader economic impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not always be publicly available.

Related Government Programs

Department of Defense IT Modernization Programs
Army Enterprise IT Services
General Services Administration (GSA) IT Schedule Contracts
Defense Information Systems Agency (DISA) Support Contracts

Risk Flags

Potential ambiguity in 'exclusion of sources' clause.
Lack of detailed service descriptions limits granular value assessment.
Contractor performance history not detailed in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to GAVER TECHNOLOGIES, INC.. USAG/DOIM CSC BASE YEAR CLINS 0001 THRU 0003

Who is the contractor on this award?

The obligated recipient is GAVER TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2007-08-13. End: 2013-02-12.

What specific IT services were provided under CLINs 0001-0003?

The provided data abbreviates the CLINs as 'USAG/DOIM CSC BASE YEAR CLINS 0001 THRU 0003'. While 'CSC' might suggest Computer Sciences Corporation or a similar entity, and 'DOIM' could relate to Directorate of Information Management, the exact nature of the services under these base year CLINs is not detailed. Typically, such CLINs in IT contracts cover foundational services like system maintenance, network support, help desk operations, or software management. Without further documentation, the precise scope remains inferred, but it likely formed the core IT support structure for the relevant Army unit or command during the base year.

How does the $10.4M total contract value compare to similar multi-year IT support contracts for the Department of the Army?

The total contract value of $10.4 million spread over approximately five years (August 2007 to February 2013) equates to an average annual spend of roughly $2 million. This figure is moderate for IT support contracts within a large organization like the Department of the Army. Many similar multi-year contracts for enterprise-level IT services, network infrastructure, or cybersecurity can range from several million to tens of millions of dollars annually, depending on the scope, complexity, and number of users supported. Therefore, $10.4 million over this period appears to be within a reasonable range for sustained IT services, likely focused on a specific program or unit rather than a broad enterprise-wide initiative.

What are the potential risks associated with a firm-fixed-price contract of this duration?

Firm-fixed-price (FFP) contracts, while beneficial for budget certainty, carry inherent risks. For the contractor, the primary risk is underestimating costs, leading to reduced profit margins or even losses if unforeseen issues arise, especially over a multi-year period. For the government, risks include the contractor potentially cutting corners on quality to maintain profitability if not adequately monitored, or the price becoming uncompetitive if market rates decrease significantly during the contract term. Additionally, if the scope of work is not meticulously defined, the contractor may be less inclined to accommodate necessary changes without significant price adjustments, potentially hindering program flexibility.

What does the 'full and open competition after exclusion of sources' clause imply for this contract?

The clause 'full and open competition after exclusion of sources' is somewhat unusual and requires careful interpretation. Standard full and open competition means all responsible sources are permitted to submit offers. 'After exclusion of sources' suggests that while the intent was broad competition, specific sources might have been excluded based on pre-defined criteria or justifications, such as national security concerns, prior performance issues, or specific technological requirements that only a limited number of vendors could meet. Alternatively, it could refer to a specific procurement method where initial proposals are sought, and then only a subset of offerors are invited to submit final proposals. The key implication is that not *all* potential sources were necessarily considered, which could slightly temper the assumption of maximum price competition compared to a standard 'full and open' award.

How does the number of bids (14) impact the perceived value for taxpayers?

Receiving 14 bids for this contract is a strong positive signal for taxpayers. A higher number of bids generally indicates robust competition within the market for the services being procured. This competitive pressure typically drives down prices as contractors strive to offer the most attractive terms to win the award. For taxpayers, this means the government is more likely to have secured the IT services at a fair market price, avoiding potential overpayment that could occur in a less competitive scenario. It suggests that the contracting process was effective in attracting a wide range of interested and capable vendors.

What is the significance of the contract being awarded to Gaver Technologies, Inc. in the context of IT service providers?

The award to Gaver Technologies, Inc. signifies their capability to compete for and win federal IT service contracts. Without specific historical data on Gaver Technologies' track record or market share, it's difficult to place them precisely within the broader IT service provider landscape. However, securing a contract of this value ($10.4M) from the Department of the Army indicates they possess the necessary clearances, technical expertise, and financial stability to serve government clients. Their success suggests they are a recognized player, at least within the segment of the market that bid on this particular requirement.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81XWH07R0023

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 125 SOUTH CARROLL, FREDERICK, MD, 21701

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $10,669,763

Exercised Options: $10,648,562

Current Obligation: $10,437,846

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline