GSA decides not to pursue BearingPoint's HSPD-12 option years
Decision comes just two months after signing of $104 million contract; GSA prompted by increased maturity of the market and belief it could get a better price by resoliciting bids; quality not at issue; BearingPoint will compete for new terms
It was just two months ago that we reported that the General Services Administration (GSA) had awarded consulting powerhouse BearingPoint a $104 million, five-year contract (including four option years) to provide end-to-end services for government agencies yet to comply with HSPD-12 requirements. Under the contract, the McLean, Virginia-based company was to help cash-strapped and understaffed agencies coordinate the purchase and implementation of government-approved products and services. Now we hear that GSA has already decided not to pursue the option years and instead allow the contract to expire in January 2007.
“GSA has determined that it is in the best interest of the government to further compete all of its future HSPD-12 requirements,” the agency said in a statement. These interests most glaringly include the observation that the HSPD-12 marketplace is quickly maturing and that prices will decrease in the future. GSA, therefore, would rather resolicit bids than pay an unneccesary premium. BearingPoint, of course, is eligible to participate, and the company, though chastened by the bad news, seems eager to jump back into the fray.
“Frankly, we welcome the competition,” BearingPoint spokesman Steve Lunceford said. “We believe we have a very robust solution.”
Quality of service, we hasten to point out, played no part in GSA’s decision.
-read more in Matthew Weigelt’s FCW report
