Army awards $3.5M IT portfolio support contract to GC&E FEDERAL, LLC for 3 years

Contract Overview

Contract Amount: $3,507,948 ($3.5M)

Contractor: GC&E Federal, LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-31

End Date: 2027-01-31

Contract Duration: 1,096 days

Daily Burn Rate: $3.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DUGWAY PROVING GROUND ARMY INFORMATION TECHNOLOGY PORTFOLIO SUPPORT

Place of Performance

Location: DUGWAY, TOOELE County, UTAH, 84022

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $3.5 million to GC&E FEDERAL, LLC for work described as: DUGWAY PROVING GROUND ARMY INFORMATION TECHNOLOGY PORTFOLIO SUPPORT Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, allowing for flexibility but requiring close monitoring of costs. 2. The contract duration of 1096 days suggests a need for sustained IT support at Dugway Proving Ground. 3. Limited competition raises concerns about potential overpricing and reduced incentive for cost efficiency. 4. The specific NAICS code (541513) indicates a focus on computer facilities management services. 5. The contract is not set aside for small businesses, suggesting larger firms are expected to compete or perform. 6. The award date of January 31, 2024, indicates recent activity in this IT support area.

Value Assessment

Rating: fair

Benchmarking the value of this $3.5 million contract is challenging without more detailed cost breakdowns and comparisons to similar IT portfolio support contracts. The cost-plus-fixed-fee structure means the final cost could exceed initial estimates if not managed carefully. The absence of a competitive bidding process limits the ability to assess if the pricing is at market rates or if taxpayers are receiving optimal value. Further analysis of GC&E FEDERAL, LLC's past performance and pricing on similar contracts would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the Army did not solicit bids from multiple vendors. This typically occurs when a specific capability is required that only one vendor can provide, or in situations where urgency or national security dictates a sole-source award. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The absence of competition means taxpayers may not be benefiting from the cost savings typically achieved through a competitive bidding process. This could result in a higher overall expenditure for the IT support services provided.

Public Impact

The primary beneficiaries are the Department of the Army, specifically personnel at Dugway Proving Ground, who will receive essential IT portfolio support. The services delivered will likely include IT infrastructure management, system maintenance, and potentially cybersecurity support to ensure operational readiness. The geographic impact is concentrated at Dugway Proving Ground in Utah, supporting its critical military operations. Workforce implications may include the direct employment of IT professionals by GC&E FEDERAL, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost-plus-fixed-fee contracts require diligent oversight to prevent cost overruns.
Performance metrics and quality assurance details are not provided, making it difficult to assess service delivery effectiveness.
The specific IT portfolio supported is not detailed, limiting understanding of the contract's scope and criticality.

Positive Signals

The contract provides essential IT support for a military installation, ensuring operational continuity.
The fixed-fee component of the contract provides some cost certainty for the government.
The contract duration suggests a stable, long-term need for these services, allowing for focused support.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer facilities management services. The IT services market is highly competitive, with numerous companies offering a wide range of solutions. However, specialized support for military installations often requires specific security clearances and expertise, which can limit the pool of eligible contractors. Comparable spending benchmarks for IT portfolio support at federal facilities vary widely based on the size and complexity of the IT infrastructure.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of subcontracting requirements for small businesses. This suggests that the primary contractor, GC&E FEDERAL, LLC, is expected to perform the majority of the work, and the scale or nature of the services may not have been suitable for a small business set-aside. The lack of small business involvement could limit opportunities for smaller IT firms to participate in this specific government contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and technical representatives within the Department of the Army. Accountability measures would typically involve performance reviews, adherence to contract terms, and financial audits. Transparency is limited due to the sole-source nature of the award and the lack of publicly available detailed cost breakdowns. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Army IT Services
Defense Information Technology Portfolio Management
Federal IT Infrastructure Support
Computer Facilities Management Contracts

Risk Flags

Sole-source award limits price competition.
Cost-plus-fixed-fee requires diligent cost oversight.
Lack of performance metrics hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.5 million to GC&E FEDERAL, LLC. DUGWAY PROVING GROUND ARMY INFORMATION TECHNOLOGY PORTFOLIO SUPPORT

Who is the contractor on this award?

The obligated recipient is GC&E FEDERAL, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2024-01-31. End: 2027-01-31.

What is GC&E FEDERAL, LLC's track record with similar IT portfolio support contracts for the Department of Defense?

Information regarding GC&E FEDERAL, LLC's specific track record with similar IT portfolio support contracts for the Department of Defense is not readily available in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract histories, and any reported issues or successes on previous government contracts. Understanding their experience with cost-plus-fixed-fee contracts and their ability to manage IT infrastructure at military installations would be crucial. Without this data, it's difficult to definitively gauge their capability and reliability for this specific requirement.

How does the awarded price compare to market rates for similar IT portfolio support services?

Direct comparison of the awarded price ($3.5 million over approximately three years) to market rates for similar IT portfolio support services is challenging due to the sole-source nature of this contract and the lack of detailed cost breakdowns. Typically, competitive bidding allows for price discovery and ensures the government receives fair market value. In a sole-source scenario, the government relies on negotiation and internal cost estimations. Without access to GC&E FEDERAL, LLC's proposed costs and a benchmark of what other comparable facilities pay for similar services, it is difficult to ascertain if this contract represents good value for money.

What are the primary risks associated with a sole-source award for IT portfolio support?

The primary risks associated with a sole-source award for IT portfolio support include potential overpricing, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Without competition, the government has less leverage to negotiate favorable terms and pricing. There's also a risk that the chosen contractor may not be the most capable or cost-effective solution available. Furthermore, the government may become overly reliant on a single vendor, creating potential vulnerabilities if that vendor's performance declines or if they exit the market.

What is the expected effectiveness of the IT portfolio support services under this contract?

The expected effectiveness of the IT portfolio support services under this contract hinges on the specific performance standards and deliverables outlined in the contract, which are not detailed here. However, the contract's purpose is to ensure the smooth operation and management of IT assets at Dugway Proving Ground. Effective service delivery would translate to reliable network performance, timely system maintenance, robust cybersecurity, and adequate support for end-users, all contributing to the military installation's operational readiness. The cost-plus-fixed-fee structure necessitates close monitoring of performance metrics to ensure value is achieved.

What are the historical spending patterns for IT portfolio support at Dugway Proving Ground?

Historical spending patterns for IT portfolio support at Dugway Proving Ground are not provided in the given data. To assess this contract's context, one would need to examine previous contracts awarded for similar services at this location, including their value, duration, and the contractors involved. Understanding whether this $3.5 million award represents an increase, decrease, or stable level of spending compared to prior periods would offer valuable insight into the Army's IT investment strategy for the facility and the potential impact of inflation or changing technological needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W91RUS24R0005

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5835 PEACHTREE CORS E STE A1, PEACHTREE CORNERS, GA, 30092

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

Financial Breakdown

Contract Ceiling: $9,682,389

Exercised Options: $5,556,751

Current Obligation: $3,507,948

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline