ITES-4S and RS3 Recompete Methods Remain Undecided

Decisions on how the Army will procure successor services to its largest IT and Professional Services contracts remain in flux following the retraction of information released on August 5.

In February 2024, the Army Contracting Command (ACC) issued a Request for Information (RFI) for the successor to the $12.1B Information Technology Enterprise Solution-3 Services (ITES-3S) multiple-award, Indefinite Delivery, Indefinite Quantity (MA IDIQ) indicating a desire to change the name to something other than ITES-4S. Two months later, in April, ACC issued an RFI for the Army Contracting Commands Enterprise for Sourcing Services (ACCESS) contract as the follow-on to the $37.4B Responsive Strategic Sourcing for Service (RS3) MA IDIQ. In that RFI, the contracting office advised that they were also “considering” including ITES-3S in that procurement.

On August 5, ACC amended the original ITES-4S RFI confirming that the follow-on contract would consolidate services with RS3 and renamed the effort to Marketplace for the Acquisition of Professional Services (MAPS). However, on August 7, the agency removed the amendment leaving vendors in the dark about the upcoming solicitations.

Deltek has requested clarification on the final procurement plans. In the meantime, this article analyzes the RS2 and ITES-3S contracts and compares proposed changes under MAPS. Note: Reported spending data for FY2024 is for a partial year through August 7, 2024.

R3S and  ITES-3S Analysis

 

 

 

Total obligations ($6.2B) for RS3 are well below the ceiling at ~17%, and ITES-4 has utilized only about 24% or $2.9B of its ceiling. Both contracts have nearly three years remaining and base. With Presolicitation activities underway for both, the Army Computer Hardware Enterprise Software and Solutions (CHESS) and Army Contracting Command-Aberdeen Proving Ground sought to "create a comprehensive and premier marketplace for knowledge-based Professional Services and Staff Augmentation, provide maximum flexibility, and support to the Federal Government Missions.” Thus, the consolidation into the MAPS IDIQ instead of conducting two separate recompete efforts.

RS3 averaged about 875.5M annually while ITES-3S averaged about $386.5M. Both contracts have shown an upward trend in spending over the past four fiscal years. A consolidated contract would likely have similar spending trends. Therefore, an estimated value for the consolidated contract is likely to be around $50B. However, since the government usually frontloads large IDIQ contracts to avoid reaching the ceiling early and a need to add funding before contract expiration, and considering the need to scale up to address Artificial Intelligence technology requirements, the value could be a little higher.

The proposed expanded scope under MAPS, prioritizes Professional Services and Staff Augmentation and adds medical-based logistics services necessitating the inclusion of additional NAICS codes. The contracting office stated in the Q&As issued in March that a primary NAICS code will be assigned at the contract level but a different NAICS code may be used at the order level depending on the task order requirements.  The Army awarded the ITES-3S contracts under NAICS 541519 - Other Computer Related Services and RS3 under NAICS 51217 - Research and Development. These are likely to be the primary NAICS for the MAPS contract. However, the government has not officially announced a final procurement strategy. Firms planning to submit a proposal should rely on the final solicitation for the final codes.

The crosswalk below provides a snapshot of notable in MAPS.

 

What Contractors Need to Know

The agency previously announced plans to issue a draft Request for Proposals (RFP) this summer followed by a final RFP and Industry Day in September. However, the recent retraction of the ITES-4S RFI amendment indicates uncertainty surrounding the consolidation, and the Army may delay these. Additional market research may drive further changes or derail the consolidation completely, although that’s not likely.

Vendors must respond to RFIs and draft RFPs and attend Industry Day events since feedback from these impacts acquisition decisions. Incumbent ITES-3S and RS3 contractors should identify possible gaps in MAPS services that are not part of their current contract and seek ways to fulfill those “new to them” requirements. Expanding capabilities beyond existing contracted R&D, engineering and IT services and partnering or joint venture arrangements can fill those gaps. Firms not holding an existing contract and businesses entering the federal market can benefit from teaming with an incumbent. Finally, companies not positioned to bid as a prime contract should not negate future subcontracting opportunities and reach out to incumbents to market their capabilities.

It's critical to closely monitor SAM.gov for new information on ITES-4S and RS3 since the government continues releasing information under both. Additionally, a separate release with a new solicitation number under “Marketplace for the Acquisition of Professional Services (MAPS)” or MAPS is likely once the government finalizes the procurement strategies. GovWin subscribers can track MAPS under Opportunity ID 234430.