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This is part three of three in the GovTribe series on the General Services Administration (GSA) Alliant vehicle. For more intel, check out the other posts in the series.
In part 1, I covered the big picture with regard to the way agencies and vendors are using Alliant. In this post I'm going a little further into the weeds. We know that some agencies are using this GWAC to award huge, multi-year task orders. But which agencies? And what kinds of task orders?
The above chart shows non-defense agencies that have obligated the most money against Alliant contracts between FY 2011 and FY 2014. It's sorted according to FY 2014 obligations.
Homeland Security and Department of State are the biggest spenders, as discussed in part 1. State has had only two task orders under Alliant of any note, and the Vanguard program alone is driving its position on the chart. DHS holds the first position because of both task order volume and size. The bulk of 2014 activity is driven by two task orders, but they have several additional active contracts. This includes two that began ramping up just last year, so we can probably expect DHS to remain in first place.
Health and Human Services (HHS), the General Services Administration (GSA), Department of Agriculture, and Department of Justice each obligated about $100 million in 2014. The table below paints illustrates a somewhat different use of Alliant.
This table shows a summary of the task order statistics for all contracts that were active (i.e. had money obligated against them) in FY 2014. This is a good indication of which agencies are using Alliant today.
Note that HHS, GSA, Agriculture, and Justice have a higher number of task orders and a more moderate average award value per task order. Of interest to the companies that hold the Alliant vehicle - these four agencies seem to be the likeliest targets for future task order awards. More, smaller task orders means more opportunities to prime and (probably) shorter solicitation processes.
Two of these agencies – HHS and Agriculture - also burn really well against their task orders. For instance, HHS's largest task order is a $303 million Medicare/Medicaid contract awarded to IBM at the very end of FY 2012 with a completion date in 2018. So IBM is a little more than a third of the way into a nearly six-year contract. To-date they've been obligated $138 million – almost half of the contract value. All contractors want that kind of ahead-of-schedule burn rate.
Agriculture's pretty good on this front as well. They've got two task orders ending later this year totaling about $200 million. At about 80% through their contracting periods-of-performance, they've obligated about 70% of the contract ceilings. Considering the usual data delays in obligation data, these contracts are probably right on schedule to max out.
It is worth noting that DHS and State, despite the high obligations, have a burn rate somewhat less favorable to the contractor. The chart below drives this home
There's not a lot to say about the kind of work done under Alliant. It's mostly IT services and telecom task orders. Just to round out the picture though, the following chart shows the top categories, ranked by average value. The blue number to the right of each bar is the number of task orders active in that category.
SAIC is, by a pretty big margin, the most successful contractor under Alliant. They've received almost $908 million in prime contract obligations from non-defense agencies since 2009. This is 25% of all non-defense obligations under Alliant, and over twice that of the next most successful contractor, UNISYS. The majority is from State's Vanguard program, but they also hold task orders with Agriculture, NASA, HHS, and GSA.
Leidos, it should be noted, spun off of SAIC at the end of 2013 and took about half of SAIC's annual Alliant obligations. They now hold ten active task orders across six agencies and are likely to grow.
I should also point out that none of these figures include SAIC's subcontract awards. They are the largest subcontractor under DHS's campus infrastructure program, for instance – a $877 million program under which they've been awarded a $223 million slice.
In the number two slot, UNISYS has been chipping away at a $520 million O&M contract with DHS' Training Aircraft Systems Program Office since 2012 with no reported subs.
Finally, I'll highlight Northrop Grumman and Booz Allen. Both have seen steady growth in their Alliant business since 2011. Northrop has done so through one large task order with DHS. Booz, though, has 11 active task orders with eight agencies. More importantly, they have been picking up two or three new contracts every year since 2010. In short, Booz knows how to win on Alliant.
A Note On Defense Contracts
For the sake of length, I'm not going to go in to defense contracts here. Department of Defense (DoD) has spent more money through Alliant than all domestic agencies combined. $4.1 billion in obligations since 2009 for DoD vs. $3.6 billion for the rest of the government. There are some interesting trends and use cases within DoD and we cover them in detail in our complete Alliant Report, which is now available to GovTribe subscribers. Sign up today with an annual or monthly subscription and receive a PDF of a complete report on the Alliant GWAC as our welcome gift.
Additional content in the full report includes a full deep-dive in to defense agency contracts, extended agency and vendor details, seasonality analysis, contracting pricing structure evaluation, and more.
If you have any other questions or comments you can also send me a note.
You can also check out parts 1 and 3 of our Alliant blog series.