Background
The U.S. Environmental Protection Agency (EPA) is issuing a sole source award for a one-year extension of GSA Contract 47QTCA20D0006 Task Order Modification 68HERD21F0106 to Systalex Corporation.
This contract is managed within the Water and OITA Branch / Water Tribal Science Division for the Drinking Water Infrastructure Development Division (DWIDD). The justification for this sole source award is based on the unique capabilities of Systalex to provide essential support services that are critical to the national drinking water program.
Work Details
The contract extension will maintain uninterrupted delivery of essential support services from October 12, 2026, to October 11, 2027.
The scope of work includes:
1) program and project management;
2) design, development, and deployment of new software applications;
3) operations and maintenance of software applications;
4) program implementation; and
5) monthly progress reports.
Systalex is uniquely positioned to continue performing these tasks without interruption due to their deep integration into ongoing development activities and workflows. They provide data system support for implementing new National Primary Drinking Water Regulations (NPDWRs), which requires a thorough understanding of complex decision logic for water system compliance. Additionally, Systalex supports approximately 28 specialized IT systems and applications that are vital for maintaining the integrity and reliability of core drinking water program functions.
Period of Performance
October 12, 2026, to October 11, 2027
Place of Performance
U.S. Environmental Protection Agency facilities
Bidder Requirements
Systalex Corporation is the only vendor capable of fulfilling this requirement due to their unique expertise and historical knowledge related to the specific IT systems in use by the EPA. No other bidders can meet the level of quality required for these specialized services.
Incumbent Analysis (see Incumbents section for more detail)
The prior contract 47QTCA20D0006-68HERD21F0106 was awarded to Systalex Corporation for $89,333,350 (04/12/21–10/11/27) to provide EPA OW OGWDW DWPD IT system support services. The current sole-source action is a one-year extension intended to maintain uninterrupted performance of the same types of activities—program/project management, software application development and deployment, operations and maintenance, program implementation, and monthly progress reporting—supporting the same Drinking Water Infrastructure Development Division IT systems. This appears to be a continuation of the existing IT systems support effort rather than a new scope.
JUSTIFICATON
The purpose of this justification is to notify the public of the sole source award for a one (1) year extension of GSA Contract 47QTCA20D0006 Task Order Modification 68HERD21F0106 P00108 to Systalex Corporation. This has been awarded within the Water and OITA Branch /Water Tribal Science Division for the Drinking Water Infrastructure Development Division (DWIDD).
Authority Cited:
The statutory authority permitting other than full and open competition is 41 U.S.C. 253(c) (2) in accordance with GSAM/R 538.7104-3(b)(1)(ii) -Only one source is capable of providing the requirement at the level of quality required because the products, services, or solutions are unique or highly specialized; and GSAM/R 538.7104-3(b)(1)(iii) The order should be issued on a sole-source basis in the interest of economy and efficiency because it's a logical follow-on to an FSS order already issued on a competitive basis.
Need & Justification:
This requirement is for a one (1) year bridge/sole source action to extend the existing order 47QTCA20D0006/68HERD21F0106 with Systalex Corporation (Systalex) to maintain uninterrupted delivery of the current scope of work from October 12, 2026, to October 11, 2027. Order 47QTCA20D0006/68HERD21F0106 provides the following essential support services for the U.S. Environmental Protection Agency's (EPA), Office of Water, Office of Ground Water and Drinking Water (OGWDW), Drinking Water Infrastructure Development Division (DWIDD) IT Systems with the following task areas: 1) program and project management; 2) new software applications design, development, and deployment; 3) software application operations and maintenance; and 4. program implementation; and 5) monthly progress reports.
Systalex is the only vendor uniquely positioned to continue performing without interruption, delay, re-training, or re-engineering under the current PWS. The current contractor is fully embedded in ongoing development activities and workflows that are critical to supporting the national drinking water program. This includes providing data system support for the implementation of the following new National Primary Drinking Water Regulations (NPDWRs), with implementation dates shown in parentheses. Successful completion of data system support requires both thorough and accurate understanding of complex decision logic for determining water system compliance with the NPDWRs as well as a detailed understanding of how this logic has been coded to date. In addition to the agency's priority projects mentioned above, the current contractor provides ongoing operations and maintenance support for several smaller but highly specialized program systems (approximately 28 IT systems and applications as described in Appendix B to the Performance Work Statement (PWS)).
These applications are essential to maintaining the integrity, reliability, and continuity of core drinking water program functions and initiatives. Each system relies on niche technical knowledge, custom configurations, and historical context that Systalex 's subject-matter experts have developed for EPA over multiple years of direct involvement in these Agency specific systems. A lapse in support for these systems would create immediate operational challenges, including delays in defect resolutions, and user support. Thus, re-competing or transitioning the work at this time would introduce significant operational risks, including:
- A substantial time gap in not having critical contract support while re-competing or transitioning activities occur.
- Loss of historical knowledge, which is essential to maintaining upwards of 28 IT systems' performance quality.
- Disruptions to ongoing projects (listed in the above sections) that rely on Systalex's contractor personnel with unique familiarity and subject matter expertise with program requirements.
- Disruptions could further result in missed implementation of statutory deadlines for implementing the three new NPDWRs in 2027.
In summary, a competitive award for a short-term requirement would result in a risk of project failure of major Agency priority, as some of the projects are still in the development phase, with full implementation occurring during the 1- year extension. Additionally, there is a need successfully implement the newest applications with the legacy applications, lack of implementation would result in serious public health impacts, substantial additional costs to EPA, and potential for litigation and consent decrees. Therefore, it has been the EPA has approved a sole source justification to allow this contract to be extended for one (1) year.
