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Sole Source Justification to Systalex Corporation

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Special Notice from the Environmental Protection Agency.

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Solicitation numberSole_Source_Justification_to_Systalex_Corporation
AgencyEnvironmental Protection Agency
OfficeWater, Tribal & Science Division
Notice typeSpecial Notice
Set-asideNone
Trade (NAICS)Computer Systems Design Services (541512)
Product or service codeDA10
PostedOct 22, 2026
Response deadlineNot stated

Official notice and attachments

Description

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.

Contracting contact

As published on the official notice. Ask questions in writing and before any questions deadline the notice sets.

Is your business small enough?

For NAICS 541512, a business counts as small if it has no more than $34.0 million in average annual receipts (SBA size standard). This notice is set aside, so only businesses under that size, or in the named program, can bid. SBA table, current as of Oct 15, 2026.

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About the buyer

The Environmental Protection Agency awarded $1.3 billion in contracts in the last 12 months; its biggest suppliers were Kemron/Arrowhead JV, LLC, General Dynamics Information Technology, Inc. and Eastern Research Group Inc. See what EPA is buying now.

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There are 67 open government contract opportunities in this trade (NAICS 541512), 18 posted in the last 7 days; 36% are set aside for small businesses. The agencies buying the most are Department of the Army, Department of Veterans Affairs and Department of the Air Force. Most of the work with a stated place is in Virginia, Maryland and District of Columbia. A notice in this trade gives a median of 23 days from posting to deadline.

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