Peace Corps awards $23M IT infrastructure support contract to Business Operational Concepts, LLC

Contract Overview

Contract Amount: $22,969,972 ($23.0M)

Contractor: Business Operational Concepts, LLC.

Awarding Agency: Peace Corps

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20526

State: District of Columbia Government Spending

Plain-Language Summary

Peace Corps obligated $23.0 million to BUSINESS OPERATIONAL CONCEPTS, LLC. for work described as: INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES Key points: 1. Contract focuses on essential IT infrastructure management, crucial for agency operations. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of three years provides stability for service delivery. 4. Service area is limited to Washington D.C., indicating a localized operational scope. 5. The contract type is labor hours, which can offer flexibility but requires careful monitoring. 6. No small business set-aside was noted, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The contract value of approximately $23 million over three years for IT infrastructure support appears reasonable given the scope of services. Benchmarking against similar IT support contracts for federal agencies of comparable size and complexity would provide a more precise value assessment. The labor hours contract type allows for flexibility in resource allocation, which can be cost-effective if managed efficiently. However, it also necessitates robust oversight to prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it was competed suggests that the agency sought competitive pricing and a range of technical solutions. The number of bidders is not specified, but full and open competition generally leads to better price discovery and a wider selection of qualified contractors.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the contract was awarded to the most capable and cost-effective provider through a transparent process.

Public Impact

The Peace Corps agency benefits from reliable IT infrastructure support, enabling its global mission. Services include computer facilities management, ensuring operational continuity. The geographic impact is primarily within Washington D.C., supporting the agency's headquarters. Workforce implications include the potential for skilled IT professionals to be employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours contract type requires diligent monitoring to ensure efficient use of resources and prevent scope creep.
Limited geographic scope may restrict opportunities for contractors with broader national reach.
Lack of specific performance metrics in the provided data makes it difficult to assess performance context.

Positive Signals

Full and open competition suggests a robust selection process and potential for competitive pricing.
Contract duration of three years provides stability for service delivery and contractor planning.
Focus on IT infrastructure is critical for the agency's core functions and mission delivery.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT infrastructure support services. The market for such services is large and competitive, with numerous firms offering specialized expertise in areas like network management, data center operations, and cybersecurity. Federal agencies are significant consumers of these services, often relying on external contractors to manage complex IT environments due to the specialized skills and rapid technological advancements required. Comparable spending benchmarks for IT infrastructure support can vary widely based on agency size, complexity of systems, and geographic distribution.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contract award went to a large business. However, the prime contractor, Business Operational Concepts, LLC, may engage small businesses as subcontractors to fulfill certain aspects of the contract, particularly if specialized services are required. The extent of small business subcontracting will depend on the contractor's strategy and the specific requirements of the Peace Corps.

Oversight & Accountability

Oversight for this contract will likely be managed by the Peace Corps' contracting officer and program managers, who are responsible for ensuring performance, compliance, and adherence to contract terms. Accountability measures are typically embedded within the contract through performance standards, delivery schedules, and payment terms. Transparency is facilitated by the contract's award under full and open competition, with details often available through federal procurement databases. Inspector General jurisdiction may apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

IT Infrastructure Management Services
Computer Facilities Management
Federal IT Support Contracts
Peace Corps IT Services
General Services Administration (GSA) IT Schedules

Risk Flags

Potential for cost overruns due to labor hours contract type.
Need for robust performance monitoring to ensure value for money.
Reliance on contractor for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Peace Corps awarded $23.0 million to BUSINESS OPERATIONAL CONCEPTS, LLC.. INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is BUSINESS OPERATIONAL CONCEPTS, LLC..

Which agency awarded this contract?

Awarding agency: Peace Corps (Peace Corps).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

What is the track record of Business Operational Concepts, LLC in performing similar IT infrastructure support services for federal agencies?

A thorough review of Business Operational Concepts, LLC's past performance is crucial for assessing their capability to successfully execute this contract. This would involve examining their contract history, including previous awards for IT infrastructure support, computer facilities management, and related services. Key indicators to evaluate include their performance ratings on past federal contracts, any documented instances of contract disputes or terminations, and their experience with similar contract types (e.g., labor hours) and scopes of work. Information from sources like the Federal Procurement Data System (FPDS) and past performance questionnaires can provide insights into their reliability, technical expertise, and ability to meet deadlines and quality standards. A strong track record with positive past performance reviews would indicate a lower risk for the Peace Corps.

How does the awarded price compare to market rates for similar IT infrastructure support services?

To benchmark the value for money, the awarded contract value of approximately $23 million over three years needs to be compared against market rates for comparable IT infrastructure support services. This involves analyzing the contract's labor categories, estimated hours, and overhead rates against industry benchmarks and pricing data from similar federal contracts. Factors such as the specific services provided (e.g., network management, help desk, data center operations), the geographic location of service delivery (Washington D.C.), and the contractor's overhead structure influence pricing. If the contract was awarded through full and open competition, it suggests that the pricing was likely competitive. However, a detailed analysis of the contractor's proposed labor rates and the total estimated cost against independent government cost estimates or commercial price lists would provide a more definitive assessment of whether the government received fair and reasonable pricing.

What are the primary risks associated with a labor hours contract for IT infrastructure support?

Labor hours contracts, like the one awarded to Business Operational Concepts, LLC, present specific risks that require diligent management. The primary risk is the potential for cost overruns if the scope of work is not clearly defined or if the contractor's labor hours exceed initial estimates without corresponding justification. This can lead to the contract exceeding its ceiling value. Another risk is the difficulty in precisely forecasting the total cost upfront, making budget planning more challenging for the agency. Furthermore, effective oversight is critical to ensure that the hours billed are reasonable, necessary, and directly related to the contract's objectives. Without strong performance monitoring and controls, there is a risk of inefficient resource utilization or scope creep, which can diminish the overall value for the taxpayer.

How effective is the Peace Corps' oversight of IT infrastructure support contracts to ensure optimal performance and value?

The effectiveness of the Peace Corps' oversight of this IT infrastructure support contract hinges on several factors. Robust oversight mechanisms typically include a dedicated contract specialist or contracting officer's representative (COR) responsible for monitoring contractor performance against the statement of work and performance metrics. Regular progress meetings, site visits, and review of deliverables are essential. The agency's ability to track labor hours accurately, validate invoices, and ensure adherence to security protocols is also critical. The presence of clear performance standards, defined remedies for non-performance, and a proactive approach to identifying and mitigating risks are indicators of strong oversight. Without specific details on the Peace Corps' internal processes, it's difficult to definitively assess their oversight effectiveness, but the contract's duration and value suggest a need for consistent and thorough management.

What is the historical spending pattern of the Peace Corps on IT infrastructure support services?

Analyzing the Peace Corps' historical spending on IT infrastructure support services provides context for the current $23 million contract. This involves examining past contract awards for similar services, including the number of contracts, their values, durations, and the contractors involved. Understanding trends in spending, such as whether spending has increased or decreased over time, and whether the agency has consistently used full and open competition or relied on other methods, can reveal patterns. For instance, if the Peace Corps has historically awarded large, multi-year contracts for IT support, this current award aligns with that pattern. Conversely, a shift towards smaller, more frequent contracts might indicate a change in strategy. Examining historical data can also highlight any significant fluctuations in spending that might warrant further investigation into the underlying causes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 11000 BROKEN LAND PKWY STE 600, COLUMBIA, MD, 21044

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $47,096,693

Exercised Options: $22,969,972

Current Obligation: $22,969,972

Actual Outlays: $13,936,422

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA19D00CL

IDV Type: FSS

Timeline