GSA raises Alliant 2 ceiling to $75B citing demand

The General Services Administration has increased the ceiling of its Alliant 2 contract from $50 billion to $75 billion, so agencies can continue using it to buy IT solutions while its successor is developed.

Market research for the already approved Alliant 3 contract is “well underway” with a draft request for proposals slated for the first quarter of fiscal 2023, according to GSA.

GSA bills Alliant 2 as its “premier” governmentwide acquisition contract for IT services and services-based solutions, providing access to more than 40 companies — some of which offer emerging technologies like artificial intelligence, big data, biometrics, health IT and virtual networking products — to more than 100 agencies to date.

“Alliant 2 has surpassed our expectations at every turn,” said Sonny Hashmi, commissioner of the Federal Acquisition Service, in the announcement. “With more than 465 task order awards exceeding $36 billion in estimated value already, it’s clear that this ceiling increase is critical to ensure consistent mission delivery for our customer agencies.”

The increase will also benefit small businesses, which have won more than $1.3 billion on Alliant 2, by providing more subcontracting opportunities.

GSA was already considering increasing the contract value of Alliant 3, in addition to incorporating supply chain risk management requirements and Section 876 authority for agencies to award contracts at an hourly rate without considering price in their evaluations. Business, and small businesses in particular, are concerned about how to manage resource costs and remain competitive while ensuring compliance with any Alliant 3 cybersecurity requirements.

Alliant 2’s success sped up the timeline for Alliant 3, said Laura Stanton, assistant commissioner for the Office of IT Category, previously.

“This increase, combined with the team’s efforts on Alliant 3, should signal loud and clear to our customers and industry partners that we are committed to ensuring the Alliant program remains the contract of choice for federal IT well into the future,” Stanton said, in a new statement.