Contracts to Watch GSAs 8a STARS III Paul

Contracts to Watch: GSA’s 8(a) STARS III Paul Murphy, Senior Data Analyst July 14, 2020

Executive Summary • The 8(a) STARS III Contract • Certified 8(a) companies only, no set limit on the number of awardees • Five year base period, three one-year options; period of performance up to 13. 5 years • $50 billion ceiling, more than double the STARS II ceiling • IDV with emphasis on performance based, fixed price task orders • The 8(a) STARS III Market: IT Services • Primary NAICS – 541512, Computer Systems Design Services ($24. 5 B in FY 2019) • Secondary NAICS in scope: 541511; 541513; 541519; 518210 ($28. 6 B in FY 2019) • 8(a) set-aside spending in these 5 NAICS, FY 2019: $4. 8 B • Focus on emerging technologies (ET) and OCONUS work • Positioning to Win Business on 8(a) STARS III • Beginning March 1, 2021: 1, 060 expiring STARS II task orders worth $2. 4 • Strategic targeting of other tasks – Alliant SB; TIPSS-4; EAGLE 2 • Use data-driven analysis to target agencies and STARS III primes Notes: data as of May-June 2020, FOIA – Freedom of Information Act Source: Bloomberg Government data, General Services Administration’s 8(a) STARS II Governmentwide Acquisition Contract website 2

8(a) STARS III Contract: Overview of purpose, requirements

8(a) STARS III Contract: Overview What is the purpose of 8(a) STARS III? • Purpose: “ 8(a) STARS III, a small business set-aside GWAC, will provide flexible access to customized IT solutions from a large, diverse pool of 8(a) industry partners. This next-generation GWAC will build upon the framework of 8(a) STARS II and expand capabilities for emerging technologies and OCONUS requirements. ” • Market being addressed: “. . . customized IT services and IT services-based solutions, both commercial and non-commercial, as defined in the Clinger-Cohen Act and FAR 2. 101” (p. 50) • Examples of work to be performed: “(1) Data Management; (2) Information and Communications Technology; (3) IT Operations and Maintenance; (4) IT Security / IT workforce augmentation; (5) Software Development; (6) Systems Design • Available to all Defense and Civilian agencies: As a GWAC managed by the U. S. General Services Administration, 8(a) STARS III is available to all agencies • Category Management, socioeconomic goal fulfillment: “All GSA GWACs are designated as Best-in-Class contract solutions and small business set-aside GWACs also provide socioeconomic credit. ” Sources: GSA 8(a) STARS III web site; 8(a) STARS III RFP Statement of Work, GSA’s GWAC web site 4

8(a) STARS III Contract: Bidder qualifications Who can participate in bids on 8(a) STARS III? • Prime Contractors: “Only legal entities that are SBA 8(a) certified small business concerns at the time of initial offer submission that includes pricing will be considered for award as prime contractors. . . ” (p. 50) • Subcontractors: “The offeror and all proposed subcontractors must be current participants in the 8(a) Business Development program at the time of this Solicitation’s closing date. ” (p. 53) • Joint Ventures: “The joint venture agreement satisfying the SBA program requirements must be submitted with the offer. Joint venture offers must be made in the name of the joint venture entity. . . Joint venture agreements do not have to be approved at the time of offer submission, but must be approved prior to contract award. ” (p. 52) • Joint Ventures: “Except for verification of each joint venture member’s size status and representations and certifications, it is the joint venture as a whole, and not the individual members, that submits the information required of offerors. ” (p. 52) • Mentor-Protégé: Only SBA approved 8(a) Mentor-Protégé arrangements will be considered for award. (p. 52) Sources: 8(a) STARS III RFP Statement of Work. 5

8(a) STARS III Contract: Targeted & In-scope Markets What markets does STARS III serve? • Primary NAICS: “The primary NAICS code for the Master Contract is designated as 541512 Computer Systems Design Services. This NAICS code will apply for size representation purposes. The current size standard is $30 million. ” (p. 51) • “Aligned” NAICS: “Requirements that align with other IT services NAICS codes are within the scope of the STARS III GWAC. These NAICS codes include, but are not limited to: 541511, 541513, 541519, 518210. ” (p. 7) • Scope sub-areas, Emerging Technology: “. . . technologies that are not yet mature in the marketplace and have the potential for wide-spread adoption. . . Artificial Intelligence (including Machine Learning, Deep Learning/Neural Networks, Natural Language Generation); Autonomic Computing; Blockchain / Distributed Ledger; Quantum Computing; Robotic Process Automation; Technological Convergence; Virtual Reality (including Augmented Reality, Extended Reality, Mixed Reality) (pp. 7, 8) • Scope sub-areas, OCONUS: “IT services-based solutions to be performed outside the contiguous United States (OCONUS). ” (p. 8) • Ancillary markets: Ancillary Services (IT project planning/management, clerical support, training. . . Ancillary Equipment (hardware, software licenses , , , ) • Other: No Functional Areas or Constellations (as in STARS II) Sources: 8(a) STARS III RFP Statement of Work. 6

8(a) STARS III Contract: Labor Categories What labor categories does STARS III require? • General: 118 separate categories divided into four groups: Junior; Journeyman; Senior; Subject Matter Expert (Attachment J. 2) • Qualifications: No minimum education and experience requirements. Focus is on competencies and responsibilities. (p. 9) Sources: 8(a) STARS III RFP Statement of Work, Attachment J. 2. 7

8(a) STARS III Contract: Cybersecurity & Risk Management Compliance Cybersecurity and Supply Chain Risk Management (SCRM) Assessment • “Cybersecurity and SCRM Assessment will be evaluated on a pass/fail basis. In order to attain a passing score, the assessment must address the following elements: (1) How the Offeror will identify, manage and mitigate supply chain and cybersecurity risk. (2) The offeror’s intention in regards to obtaining a Cyber Maturity Model Certification (CMMC), the target certification level, and a tentative timetable for attaining it. (3) The identification of any cybersecurity and SCRM-related industry certifications currently held by the offeror, to include ISO certifications (e. g. ISO/IEC 27001: 2013, ISO 28000: 2007 and ISO 9001: 2015). (4) How hardware, software, firmware/embedded components and information systems are protected from component substitution, functionality alteration, and malware insertion while in the supply chain; and explain how the offeror will maintain a high level of cybersecurity and SCRM readiness for performance of IT services to federal customers. ” (p. 64) Sources: 8(a) STARS III RFP Statement of Work. 8

8(a) STARS III Contract: Other Key Terms and Conditions Other key terms and conditions • Past Performance: “The offeror must demonstrate relevant experience by submitting two (2) Relevant Experience Projects (REPs). . . ” (p. 57) • Minimum REP Value: “No individual REP value will be less than $100, 000. The REP value for completed projects is determined by the total obligated dollars; while the REP value for ongoing projects is determined based on the total estimated value (inclusive of all option periods). ” (p. 57) • Sole Source orders: “. . . Orders may be awarded on a sole source basis up to the 8(a) competition threshold based on the contractor’s self-marketing efforts or past performance. ” (p. 19) • On-boarding: “GSA reserves the right to periodically review the total number of Contractors participating in the STARS III ordering process and onboard additional Contractors if doing so is necessary to meet its acquisition goals. ” (p. 26) • Minimum performance: “Contractors awarded a STARS III contract are expected to meet a minimum contract sales (MCS) requirement during the base contract ordering period (contract years 1 through 5). The MCS is $100, 000 in Order value for each awardee. ” (p. 26) Sources: 8(a) STARS III RFP Statement of Work. 9

8(a) STARS III: Characteristics of potential bidders

STARS III Bidders: Building On Success of STARS II • • • As spending surged, the number of active vendors on STARS II grew to a peak of 488 in FY 2019 Since FY 2011, over 600 8(a) vendors have received awards on STARS II Year-over-year active vendor growth averaged 9% FY 15 -FY 19 STARS II: Steady Growth In Annual Spending, Participation 12. 2% year-over-year average spending growth, 9% average participant growth, FY 15 - FY 19 Contract obligations, in millions STARS II spending Participating 8(a) Vendors $2, 000 600 $1, 800 500 $1, 600 $1, 400 $1, 200 $1, 000 300 $800 200 $600 $400 100 $200 $0 0 FY 11 Sources: Bloomberg Government 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20

STARS III Bidders: Spending trend portends turnover • • Since FY 2017, companies classified as large have received an average of 13% of annual STARS II dollar awards GSA has permitted companies that outgrew their size standard over the course of the contract to remain on STARS II, but SB status required for STARS III Millions STARS II SB share dropped as successful vendors became large Other/Large Business Small Business $ Share 1800 120% 1600 100% 100% 1400 91% 87% 1200 89% 80% 79% 71% 1000 60% 800 600 40% 400 20% 200 0 0% FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Notes: Following Open Season 2016 -2017, GSA added approximately 500 new vendors to STARS II. Click here for details. Sources: Bloomberg Government 12 FY 19 FY 20

STARS III Bidders: Large STARS II vendors grew quickly • On average, top STARS II incumbents have received 29% of awards as LBs • Only four of the top 15 STARS II incumbents have remained small 8(a) STARS II has been an engine of growth for small businesses Millions Total 8(a) STARS II revenue $0 Buchanan. . . Dovel. . . Actio. Net Inc By Light. . . Nana. . . Acuity Inc Digital. . . Metro. Star. . . Telesis Corp Powertek. . . Arctic Slop. . . Informatics. . . Chenega. . . Network. . . Ishpi. . . Sources: Bloomberg Government 13 $50 $100 $150 8(a) STARS II revenue received as small business $200 $250 $300 $350 $400

STARS III Bidders: How big is the pool of certified 8(a)s in NAICS 541512? NAICS 541512 8(a) State Count Sources: SBA, Dynamic Small Business Search, Bloomberg Government 8(a) Re-competes Dashboard 14 Share VA 611 30. 5% MD 333 16. 6% TX 133 6. 6% GA 100 5. 0% CA 96 4. 8% AK 94 4. 7% DC 94 4. 7% FL 86 4. 3% AL 39 1. 9% CO 37 1. 8% OK 31 1. 5% IL 33 1. 6% NC 31 1. 5% NJ 31 1. 5% OH 31 1. 5% NY 30 1. 5% HI 27 1. 3% AZ 23 1. 1% MI 23 1. 1% PA 21 1. 0% Other 98 4. 9% Total 2002 100. 0%

STARS III Bidders: STARS II incumbents likely to bid Certified 8(a) STARS II Vendors (20 of 95) Creative Systems and Consulting LLC SJ Innovations LLC Kci-Acuity LLC United Solutions LLC Trillion Technology Solutions Inc Technik Inc Blueprint Consulting Services LLC Portfolio Management Solutions Pms LLC Appteon Inc Electrosoft Services Inc SD Solutions LLC Alpha Omega Integration LLC Koniag Inc Greenzone Solutions Inc Concept Plus LLC Technogems Inc Tic Security, Llc Enquizit Inc Vidoori Inc Gray Matters Technology Service LLC CAGE 8(a) Grad Date 646 P 8 11/22/2022 7 APH 7 7/29/2024 7 F 0 W 4 4/8/2021 38 XU 6 10/26/2021 54 PR 6 2/18/2024 33 XT 9 6/14/2021 6 ENG 6 3/5/2023 457 X 9 5/4/2021 5 KN 60 3/15/2022 1 UB 58 3/27/2024 6 WXX 6 5/1/2024 6 CZJ 6 10/16/2024 795 P 7 10/8/2021 6 F 6 T 0 5/5/2022 5 AF 73 3/22/2022 4 SCW 3 12/6/2020 5 WLV 9 12/29/2020 68 LC 2 1/16/2022 6 T 0 A 7 12/10/2022 4 VUH 8 12/24/2023 STARS II Total $36, 742, 917 $30, 994, 493 $24, 312, 597 $20, 228, 527 $19, 869, 209 $19, 676, 743 $16, 284, 175 $13, 530, 660 $11, 849, 840 $11, 511, 419 $11, 217, 524 $11, 182, 472 $10, 995, 949 $9, 673, 693 $9, 602, 129 $8, 936, 350 $8, 797, 494 $8, 585, 974 $7, 435, 530 $6, 261, 288 Certified 8(a) incumbents are likely offerors on STARS III • From FY 11 -FY 19, there have been about 609 active STARS II incumbents listed in FPDS • About 95, or 16% of all STARS II incumbents currently match companies with active 8(a) certifications in SBA’s DSBS database • Although these companies are likely STARS III bidders, incumbents will not be grandfathered into the new vehicle Sources: SBA, Dynamic Small Business Search, Bloomberg Government 8(a) Re-competes Dashboard 15

STARS III Bidders: Almost One Quarter of STARS II Vendors Have had $0 in Obligations • STARS III requires a minimum of $100, 000 in sales by the end of the contract’s base period, or else the option period will not be exercised • About 60% of STARS II contract holders have been obligated under $5 million • Of 787 vendors awarded 8(a) STARS II contracts, only 16 companies have been awarded more than $100 million Number of contractors by unclassified contract obligations awarded through 8(a) STARS II 184 179 103 92 115 61 $0 $1 -$1 M Note: data as of June 8, 2020 Source: Bloomberg Government data 16 $1 M-$5 M $5 M-$10 M-$25 M-$50 M 37 16 $50 M-$100 M More than $100 M

8(a) STARS III: Characteristics of STARS II/III markets

STARS III Markets: Overall, Robust Growth FY 15 -FY 19 • Primary NAICS 541512 market was worth $24. 5 billion overall in FY 2019 • At $1. 9 billion in FY 2019, STARS II accounted for 7. 8% of NAICS 541512 spending government-wide • The 8(a) set-aside share of total 541512 spending in FY 2019 was 11. 4%, or $2. 8 billion – so GSA is pursuing potentially another $900 million Top Three STARS III NAICS Markets Rose Steadily FY 15 -FY 19 Billions FY 19 $0 541512 - Computer Systems Design Services 541519 - Other Computer-Related Services 541511 - Custom Computer Programming Services 541513 - Computer Facilities Management Services 518210 - Data Processing, Hosting and Related Services Sources: Bloomberg Government 18 $5 FY 18 FY 17 $10 FY 16 FY 15 $20 $25

STARS III Markets: STARS II Usage by Major Agency Top agencies by contract obligations, dollars in millions FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 YTD Defense • DOD has been the top user • $616 million in fiscal 2019 – about a third of all obligations • $604 million in fiscal 2018 • State Department ranks second • Nearly $248 million in 2019, almost $229 million in 2018 State Agriculture HHS • USDA usage grows rapidly • Nearly $192 million in 2019 • 54% increase since 2016 driven by an IT management task order out of the Office of the Secretary DHS Commerce Treasury Justice Interior Transportation $0 $500 $1, 000 $1, 500 $2, 000 $2, 500 • HHS use also increased • $135 million in 2019 • 76% growth since 2016, driven by increased FDA, CMS, CDC use Notes: HHS – Health and Human Services Department; DHS – Homeland Security Department; FDA – Food and Drug Administration; CMS – Centers for Medicare and Medicaid; CDC – Centers for Disease Control; Defense Department fiscal 2020 obligations are incomplete due to a 90 -day reporting lag Source: Bloomberg Government data 19

STARS III Markets: STARS II Product Service Code Breakdown Shows More Contract Detail, Diversity 8(a) STARS II obligations by PSC, dollars in billions IT and Telecom - Other IT and Telecommunications IT and Telecom - Facility Operation and Maintenance IT and Telecom - Cyber Security and Data Backup IT and Telecom - Integrated Hardware/Software/Services Solutions, Predominantly Services Millions Other $2, 000 $1, 800 $1, 600 $1, 400 $1, 200 $1, 000 $800 $600 $400 $200 $0 FY 2016 FY 2017 Source: Bloomberg Government data 20 FY 2018 FY 2019 FY 2020 YTD STARS II task orders cover a wide range of IT services • Top four PSCs totaled $725 million in fiscal 2019 or 39% of total obligations • The top PSC – Other IT and Telecommunications (D 399) – grew to $407 million in fiscal 2019, an increase of 20% since fiscal 2016 • Cyber Security and Data Backup grew to $59 million in fiscal 2019, an increase of 55% since fiscal 2016 • SBA had no spending in this PSC in fiscal 2016, $10 million in fiscal 2019

STARS III Markets: STARS II Awards Have Heavily Emphasized Competition 8(a) STARS II obligations by competition type, dollars in billions • Of the $10. 3 billion obligated since fiscal 2011: • $8. 2 billion, or 80%, was awarded via $8. 2 8(a) competition • $1. 8 billion was 8(a) sole source • Sole source used most often at DOD and DHS. Examples include: • DISA legacy application and database $1. 8 $0. 2 8 A Competed 8(a) Sole Source support task order (Unitech Consulting LLC); • A DSCA IT services task order (Meridian Technologies Inc/united States); • CBP comprehensive it support for the chief technology officer task order (Digital Management Inc. ) Other Notes: DISA – Defense Information Systems Agency; DSCA – Defense Security Cooperation Agency; CBP - Customs and Border Protection Source: Bloomberg government data 21

STARS III Markets: Emerging Technology a Growth Area • GSA seeks to position 8(a) STARS III for larger role in growing tech markets • Traditional 8(a) role in development of cutting edge technology is small GSA Seeks To Carve Out Role for 8(a) STARS III in ET Market 0% 10% Blockchain Training & Simulation Non-8(a) $28, 744, 740 (Robotics) 8(a) Set-Aside $7, 323, 776 Unmanned Systems (Virtual Reality) Artificial Intelligence Blockchain Sources: Bloomberg Government 22 20% 30% 40% 50% 60% 70% Unmanned Systems Artificial Intelligence (Virtual Reality) $2, 828, 766, 275 $33, 477, 535, 152 $97, 785, 432 $217, 670, 867 80% 90% 100% Training & Simulation (Robotics) $36, 793, 256, 724 $454, 208, 091

STARS III Markets: Potential for more foreign work • New focus on foreign work highlights gap in STARS II spending • Only. 3% of STARS II work has been performed in foreign countries • 3. 2% percent of NAICS 541512, totaling $790 million, is foreign OCONUS STARS II Foreign OCONUS Share Is 10% of NAICS 541512 Foreign Share STARS II Foreign Share 4. 5% 4. 0% 3. 7% 3. 8% 3. 5% 3. 2% 3. 5% 3. 0% 2. 5% 2. 0% 1. 5% 1. 0% 0. 8% 0. 5% 0. 6% 0. 3% 0. 5%0. 2% 0. 0% FY 15 Notes: OCONUS = Outside Continental US Sources: Bloomberg Government 23 FY 16 FY 17 FY 18 FY 19

8(a) STARS III: Characteristics of IT Services Labor Rates

STARS III Labor Rates: Compare Rates on Similar Contracts With BGOV’s Labor Rates Dashboard • Published rates on key IT and Prof Svcs contracts, like Alliant and OASIS • Compare rates between categories, across years, on-site/govt site Notes: Rates shown are a subset of rates for GSA’s Alliant Small Business. Sources: BGOV Labor Rates Dashboard 25

STARS III Labor Rates: GSA Schedule Labor Rates Available Through CALC • GSA’s CALC dashboard offers regularly updated labor rate data for GSA Schedule vendors (latest update July 1) • CALC Labor categories enable some comparison based on descriptors (“Senior”, “Programmer”) and other criteria (market, SIN, seniority, education) Minimum Current Year Next year Second Year GSA Schedule Labor Category Acquisition Analyst - Senior Analyst-Senior Application Developer - Senior Application Developer- Senior Applications Developer - Senior (Contractor Facility) Applications Developer - Senior (Customer Facility) Applications Programmer - Senior Contract # Years Exp 47 QTCA 19 D 00 CT 7 GS-35 F-544 GA 5 47 QTCA 19 D 00 DV 7 47 QTCA 20 D 002 J 5 47 QTCA 18 D 00 KC 5 47 QTCA 19 D 00 DG 7 Vendor Name Tuknik Government Services LLC BTL Technologies, Inc ZANTECH IT SERVICES, INC. PMCG Spalding Consulting Inc INTEROP-ISHPI JV LLC Hourly Rate 158. 12 161. 76 165. 48 100. 5 95. 49 97. 4 99. 35 146. 6 149. 53 152. 52 72. 98 74. 18 75. 39 66. 83 67. 93 69. 04 104. 5 107. 11 109. 79 Applications Systems Analyst/ Programmer Senior Business Analyst - Senior Business Systems Analyst - Senior GS-35 F-506 BA 47 QTCA 19 D 00 CT 47 QTCA 19 D 00 DV 6 7 7 Scientific Systems and Software International Corp Tuknik Government Services LLC ZANTECH IT SERVICES, INC. 101. 3 143. 73 93. 14 101. 3 147. 04 95 101. 3 150. 42 96. 9 Business Systems Analyst - Senior Business Systems Analyst Senior (Contractor Facility) Business Systems Analyst Senior (Customer Facility) Change Management/ Communications - Senior Cloud Computing Specialist - Senior GS-35 F-506 BA 47 QTCA 18 D 00 KC 47 QTCA 19 D 00 CT GS-35 F-499 AA 6 5 5 7 6 Scientific Systems and Software International Corp Spalding Consulting Inc Tuknik Government Services LLC c. Focus Software, Inc. 120. 2 63. 32 57. 98 123. 44 90. 07 120. 2 64. 36 58. 93 126. 28 90. 07 120. 2 65. 41 59. 9 129. 18 90. 07 Notes: Rates shown are a subset of 219 uniquely named positions filtered by the keword “Senior” and grouped under the GSA IT Schedule legacy SIN 13251, the category defined as IT Professional Services. Sources: GSA CALC labor rates dashboard 26

8(a) STARS III: Looking Ahead: Winning New Business on STARS III

Looking Ahead: Plan For Expiring STARS II Task Orders 8(a) STARS II task order end dates Value of Expiring TOs Count of Expiring TOs 900 $7. 0 800 $6. 0 $5. 0 600 500 $4. 0 400 $3. 0 300 $2. 0 200 $1. 0 100 0 $0. 0 Q 1 2021 Q 2 2021 Q 3 2021 Source: Bloomberg Government data 28 Q 4 2021 Q 1 2022 Q 2 2022 Q 3 2022 Q 4 2022 Q 1 2023 Q 2 2023 Q 3 2023 Q 4 2023 Q 1 2024 Q 2 2024 Q 3 2024 Q 4 2024 Value of Expiring TOs in $B Number of Expiring TOs 700

Looking Ahead: Top Expiring STARS II Task Orders • 673 expiring STARS II task orders, worth $1. 6 billion to date, could be re- competed over the 24 -month period beginning March 1, 2021 Task order title Contract number / task order number Incumbent Computer Systems Design Services For The National Highway Traffic Safety Administration (Nhtsa) GS 06 F 1233 Z / DTNH 2216 F 00079 SVD Stars II LLC 12/21/2021 $64, 174, 988 100. 0% 8 A Competed SMXG Software Support Services GS 06 F 0686 Z / FA 857117 F 0003 Indrasoft Inc 11/22/2021 $30, 093, 996 63. 8% 8 A Competed Enterprise Information Technology Services And Support GS 06 F 1227 Z / HTC 71115 FD 021 By Light Professional It Services Inc 3/31/2021 $29, 700, 965 91. 4% 8 A Competed ID 09170049 Enterprise Visual Information GS 06 F 1234 Z / Management Services 47 QFPA 18 F 0004 Cosolutions Eis JV 6/14/2022 $28, 812, 485 66. 1% 8 A Competed New IDIQ Contract To Support Cdan Automated Data Systems Operations GS 06 F 1253 Z / DTNH 2216 F 00082 Advanced Quality Alliance LLC 10/2/2021 $27, 272, 486 91. 2% 8 A Competed Army Inscom C 2 IO Support Services GS 00 Q 17 GWD 2169 / HHSP 233201700138 G Nana Regional Corp Inc 9/18/2022 $24, 480, 368 35. 0% 8 A Competed IT Engineering & Enterprise Services GS 06 F 1038 Z / DJF 161200 G 0003938 22 nd Century Technologies Inc 3/24/2021 $22, 850, 725 58. 2% 8 A Competed EA 3 (Electronic Authentication, Authorization, Access) GS 00 Q 17 GWD 2184 / 2032 H 519 F 00030 TISTA Science & Technology Corp 8/31/2022 $20, 865, 179 23. 6% Small Business Set. Aside -- Total Maintenance And Support GS 06 F 0670 Z / N 0018916 FZ 094 Vector Planning & Services Inc 4/30/2021 $20, 036, 377 87. 2% 8 A Competed DCMS 2. 0 Phase II Modernization GS 00 Q 17 GWD 2423 / 73351018 F 0131 Mtspi LLC 11/8/2021 $19, 976, 990 86. 8% 8 A Competed Source: Bloomberg Government 29 Expiration date Spending to date Burn rate Set aside used

Looking Ahead: NAICS 541512 Stand-Alone Contracts • 629 expiring NAICS 541512 definitive (Tier 0) contracts worth $5. 4 billion to date, could be re-competed beginning March 1, 2021 • As a Best-In-Class contract, STARS III can be used to implement OMB’s Category Management strategy by helping migrate Tier 0 contracts to “Spend Expiration Spending to Burn Contract title Contract number Incumbent Set aside used Under Management” date rate NOAAs Next Generation Geostationary Operational Environmental Satellites DOCDG 133 E 09 CN 0094 L 3 Harris Technologies Inc 5/31/2022 $1, 603, 249, 804 95. 2% No set aside used. Series Health Care Quality Information Systems (HCQIS) Infrastructure and Data Center (HIDS) HHSM 500201500252 C Ventech Solutions Inc 3/15/2023 $574, 504, 896 72. 3% 8 A Competed Electronic Record Archive Development NAMA 04 C 0007 Leidos Holdings Inc 12/29/2021 $263, 675, 472 51. 4% - TERMINAL FLIGHT DATA MANAGER DTFAWA 16 C 00021 Leidos Holdings Inc 6/29/2028 $245, 630, 334 71. 3% No set aside used. U. S. Strategic Command Information Technology Capabilities Contract II Perspecta Inc 6/30/2026 $237, 943, 386 49. 4% No set aside used. Chronic Condition Warehouse (CCW) and Virtual Research Data Center HHSM 500201500261 C (VRDC) Newwave-Gdit LLC 4/29/2025 $196, 175, 730 69. 4% 8 A Competed Infrastructure Support Services (ISS) SECHQ 116 C 0032 General Dynamics Corp 12/31/2026 $194, 807, 291 55. 8% No set aside used. NEXT GENERATION DESKTOP HHSM 500201700002 C Anthem Inc 3/31/2026 $153, 495, 700 46. 2% No set aside used. FRAUD PREVENTION SYSTEM 2 (FPS 2) HHSM 500201600023 C Northrop Grumman Corp 3/31/2021 $132, 184, 112 98. 0% No set aside used. Bank of New York Mellon 12/31/2021 Corp/The $106, 022, 221 62. 4% No set aside used. FA 460016 C 0008 Hosting Migration, Pool Processing Agent And Central Paying And Transfer 47 QFDA 19 C 0002 Agent And Operations And Maintenance Services Source: Bloomberg Government 30

Looking Ahead: Tracking STARS II Primes Who Subcontract • BGOV is tracking $470 M in reported STARS II subcontract awards • Qualify 8(a) STARS II/III primes for subcontracting opportunities Source: Bloomberg Government Subcontracts Opportunity Module 31

BGOV FOIA Initiative • BGOV has submitted Freedom of Information Act requests for individual statements of work on major multiple-award contracts, including 8(a) STARS II • Effort is focused on task orders that are expiring in the future with values of at least $5 million • BGOV has received SOWs for 149 STARS II task orders to date • STARS III contract holders can use the SOWs to prepare for recompetes of STARS II task orders Source: Bloomberg Government data 32

About the Analysts Paul Murphy is a senior data analyst with Bloomberg Government. He has 30+ years of experience analyzing contract spend data for his former company, Eagle Eye Publishers, and since 2010 for BGOV. He brought the first desktop contracts database to market and authored analyses for the U. S. Small Business Administration that led to billions of dollars in increased awards to small businesses. He continues to pioneer new lines of research, creating hundreds of new features and custom reports annually for Bloomberg Government clients and colleagues. pmurphy@bgov. com +1 202 416 3452

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