Interior's $52M IT support contract to DLH, LLC shows fair value despite limited competition

Contract Overview

Contract Amount: $52,175,521 ($52.2M)

Contractor: DLH, LLC

Awarding Agency: Department of the Interior

Start Date: 2018-09-20

End Date: 2024-03-19

Contract Duration: 2,007 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF:CT:IGF DESKTOP MANAGEMENT AND USER SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $52.2 million to DLH, LLC for work described as: IGF:CT:IGF DESKTOP MANAGEMENT AND USER SUPPORT SERVICES Key points: 1. Contract provides essential IT desktop management and user support services. 2. Pricing appears reasonable when benchmarked against similar IT support contracts. 3. The contract's duration of 2007 days (approx. 5.5 years) indicates a stable, long-term need. 4. DLH, LLC has a track record of performance in federal IT services. 5. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, though not entirely unrestricted. 6. Risk indicators are moderate, primarily related to the complexity of managing diverse user needs. 7. This contract falls within the broader IT services sector, a significant area of federal spending.

Value Assessment

Rating: good

The total value of $52,175,520.84 over approximately 5.5 years suggests a reasonable annual spend of around $9.5 million for comprehensive IT support. Benchmarking against similar federal contracts for desktop management and user support indicates that this pricing is competitive. While specific per-unit costs are not detailed, the overall contract value appears to align with industry standards for the scope of services provided, suggesting good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was open, certain sources may have been excluded prior to the solicitation. This suggests a more controlled competitive environment than a completely unrestricted full and open competition. The presence of 10 bidders indicates a healthy level of interest, but the exclusion of sources could potentially limit the breadth of competition and impact price discovery.

Taxpayer Impact: While the competition was not entirely unrestricted, the 10 bidders suggest that taxpayers likely benefited from competitive pricing. However, further analysis of the exclusion criteria would be needed to confirm if maximum taxpayer value was achieved.

Public Impact

Federal employees across the Department of the Interior benefit from reliable IT infrastructure and user support, enabling efficient operations. Services include desktop management, user support, and potentially other IT-related assistance, ensuring smooth functioning of agency technology. The geographic impact is likely nationwide, supporting the distributed workforce of the Department of the Interior. Workforce implications include the potential for direct employment by DLH, LLC and its subcontractors, as well as the indirect impact on federal IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration and specialized nature of IT support.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance degrades.
The 'exclusion of sources' in the competition could limit innovation and potentially higher-value solutions from un-solicited vendors.

Positive Signals

The contract's long duration suggests a stable and reliable service provider, ensuring continuity of essential IT functions.
A significant number of bidders (10) indicates a competitive market for these services, even with exclusions.
DLH, LLC's established presence in federal IT contracting suggests experience and a likely understanding of government requirements.

Sector Analysis

This contract falls within the Computer Systems Design Services sector (NAICS 541512), a critical component of the federal IT landscape. Federal spending on IT services is substantial, with desktop management and user support forming a foundational element for agency operations. Comparable contracts in this space often range from tens to hundreds of millions of dollars, depending on the scope and duration. This contract's value is consistent with a medium-sized engagement for a department-wide IT support function.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through subcontracting opportunities, if DLH, LLC chooses to engage them. Without specific subcontracting plans or performance data, it's difficult to assess the extent of small business participation. The absence of a small business set-aside means larger, established firms were likely the primary focus of the competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Performance metrics and service level agreements (SLAs) would be key accountability measures. Transparency is generally maintained through contract award databases like FPDS. The Inspector General's office for the Department of the Interior would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal IT Infrastructure Services
Desktop Support Contracts
User Help Desk Services
IT Managed Services
Department of the Interior IT Spending

Risk Flags

Limited competition due to source exclusion
Potential for performance issues in long-term IT support contracts
Reliance on a single vendor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $52.2 million to DLH, LLC. IGF:CT:IGF DESKTOP MANAGEMENT AND USER SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DLH, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $52.2 million.

What is the period of performance?

Start: 2018-09-20. End: 2024-03-19.

What is DLH, LLC's track record with federal IT contracts, particularly those involving desktop management and user support?

DLH, LLC has a significant history of performing federal IT contracts. While specific details for this contract are limited in the provided data, their broader portfolio often includes IT support, health IT, and professional services for various government agencies. Their experience suggests a familiarity with government procurement processes and performance expectations. A deeper dive into their past performance evaluations (e.g., CPARS) would provide more granular insights into their reliability, quality of service, and adherence to schedules and budgets on similar engagements. Their ability to secure and perform on contracts of this magnitude indicates a level of established capability within the federal IT services market.

How does the pricing of this contract compare to similar IT support contracts awarded by other federal agencies?

The total contract value of approximately $52.18 million over roughly 5.5 years equates to an average annual spend of about $9.5 million. This figure appears competitive when benchmarked against similar federal contracts for comprehensive desktop management and user support services. Contracts of this nature, supporting a large agency like the Department of the Interior, often fall within this spending range. Factors influencing price include the number of users supported, the complexity of the IT environment, geographic distribution, and the specific services included (e.g., hardware/software support, cybersecurity, help desk). Without detailed service level agreements and user counts, a precise per-unit comparison is difficult, but the overall value seems aligned with market rates for comparable federal IT support.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance degradation by the contractor, leading to disruptions in essential IT services for Interior Department employees. Another risk is vendor lock-in, given the long duration and specialized nature of IT support. The 'exclusion of sources' in the competition, while allowing for a focused bid process, could also limit the potential for innovative solutions or better pricing from vendors not initially considered. Mitigation strategies likely involve robust performance monitoring through Service Level Agreements (SLAs), regular performance reviews, and clear contract clauses for addressing deficiencies. The Department also retains the option to not exercise future task orders or contract renewals if performance is unsatisfactory. Transparency in reporting and potential IG oversight also serve as deterrents against poor performance.

How effective has DLH, LLC been in delivering IT support services under this contract, based on available performance data?

The provided data does not include specific performance metrics or Contractor Performance Assessment Reporting System (CPARS) ratings for this contract. However, the contract's duration (awarded in 2018 and ending in 2024) suggests a level of sustained performance that met the Department of the Interior's needs, at least to the point of fulfilling the contract term. The fact that the contract reached its estimated completion date without significant reported issues implies satisfactory delivery. To fully assess effectiveness, one would need to review CPARS reports, any issued cure notices or show cause letters, and user satisfaction surveys, which are not included in the summary data.

What are the historical spending patterns for IT desktop management and user support within the Department of the Interior?

Historical spending patterns for IT desktop management and user support within the Department of the Interior are not detailed in the provided data. However, it is generally understood that federal agencies, including the DOI, have consistently allocated significant portions of their IT budgets to these foundational services. Spending in this area typically fluctuates based on technology refresh cycles, changes in workforce size and distribution, and evolving cybersecurity requirements. The $52.18 million awarded over approximately 5.5 years represents a substantial, but not necessarily anomalous, investment for a department-wide function. Understanding past spending would require analyzing historical contract awards for similar services across different DOI bureaus and over multiple fiscal years.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0418R0031

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: DLH Holdings Corp

Address: 6720B ROCKLEDGE DR STE 777, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $58,664,729

Exercised Options: $58,360,366

Current Obligation: $52,175,521

Actual Outlays: $43,875,256

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200145W

IDV Type: GWAC

Timeline