Interior Department awards $24.8M contract for application development support to Octo Consulting Group

Contract Overview

Contract Amount: $24,830,155 ($24.8M)

Contractor: Octo Consulting Group LLC

Awarding Agency: Department of the Interior

Start Date: 2022-09-18

End Date: 2026-09-17

Contract Duration: 1,460 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: IT

Official Description: APPLICATION DEVELOPMENT SUPPORT SERVICES (ADSS)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $24.8 million to OCTO CONSULTING GROUP LLC for work described as: APPLICATION DEVELOPMENT SUPPORT SERVICES (ADSS) Key points: 1. Contract provides essential IT support for application development, crucial for agency operations. 2. Competition was full and open after exclusion of sources, indicating a broad search for qualified vendors. 3. The contract duration of 1460 days suggests a long-term need for these services. 4. The award value is moderate within the context of federal IT services. 5. Performance is expected to be in Maryland, aligning with federal IT hubs. 6. The contract type is labor hours, allowing flexibility in resource allocation.

Value Assessment

Rating: good

The contract value of $24.8 million over approximately four years for application development support services appears reasonable. Benchmarking against similar IT services contracts within the federal government suggests that this pricing is within expected ranges for specialized technical expertise. The labor hours contract type allows for adjustments based on actual needs, which can be cost-effective if managed efficiently. However, without detailed breakdowns of labor categories and rates, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This typically means that while the competition was intended to be broad, certain sources were excluded based on specific criteria, possibly related to prior performance or specialized capabilities. The number of bidders is not specified, but the 'full and open' nature suggests a competitive process was intended to yield fair pricing.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, leading to a more cost-effective outcome.

Public Impact

Federal agencies requiring application development and maintenance will benefit from enhanced IT capabilities. The services delivered will support the modernization and operational efficiency of critical government applications. The primary geographic impact is expected to be in Maryland, where the contractor is located. The contract supports skilled IT professionals in the Washington D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical application development support could pose a risk.
Ensuring consistent quality and timely delivery of services over the contract's duration.

Positive Signals

Award to an established IT consulting group with a track record in federal contracting.
The 'full and open' competition suggests a robust selection process.
Long-term contract duration allows for continuity of essential IT services.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending on application development, maintenance, and modernization. This contract falls within the Computer Systems Design Services category, which is a core component of government IT infrastructure. Comparable spending benchmarks for similar application development support contracts can range from a few million to tens of millions of dollars annually, depending on the scope and complexity. The Department of the Interior's reliance on such services highlights the ongoing need for digital transformation within federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Octo Consulting Group LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Interior's contracting officers and program managers responsible for IT services. Accountability measures are typically embedded within the contract's performance work statement, including defined deliverables, service level agreements, and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Federal Civilian IT Modernization
Application Development Services
IT Support Services
Cloud Migration Support
Cybersecurity Services

Risk Flags

Potential for vendor lock-in
Scope creep risk
Performance quality assurance
Justification for source exclusion in competition

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $24.8 million to OCTO CONSULTING GROUP LLC. APPLICATION DEVELOPMENT SUPPORT SERVICES (ADSS)

Who is the contractor on this award?

The obligated recipient is OCTO CONSULTING GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.8 million.

What is the period of performance?

Start: 2022-09-18. End: 2026-09-17.

What is the track record of Octo Consulting Group LLC in delivering similar application development support services to federal agencies?

Octo Consulting Group LLC has a notable track record in providing IT services to various federal agencies, including application development, cloud solutions, and cybersecurity. Their past performance data, often available through federal procurement databases, generally indicates experience with complex IT projects. Specific to application development support, they have been involved in projects requiring system design, integration, and maintenance. A deeper dive into their contract history would reveal the scale and success rates of these past engagements, providing a clearer picture of their capabilities and reliability in delivering similar services.

How does the awarded value of $24.8 million compare to similar application development support contracts awarded by the Department of the Interior or other agencies?

The $24.8 million contract value for application development support services over approximately four years is within a moderate range for federal IT contracts of this nature. Similar contracts for specialized IT support, system integration, and application modernization can vary significantly, but this figure is not exceptionally high or low. For instance, larger agencies might award contracts in the hundreds of millions for enterprise-wide application overhauls, while smaller, more focused contracts could be in the low millions. The Department of the Interior's specific needs and the scope of services defined in this particular contract would be the primary drivers for its value, making direct comparisons dependent on matching contract specifics.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Another risk is the potential for vendor lock-in or over-reliance on Octo Consulting Group, which could reduce flexibility. Performance risks, such as failure to meet service level agreements or deliver high-quality code, are also present. Mitigation strategies likely include robust contract management, clearly defined performance metrics and deliverables, regular progress reviews, and contingency planning for technical challenges. The 'full and open competition' aspect also serves as a risk mitigation by ensuring a competitive environment that incentivizes good performance.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' approach aims to balance broad market reach with specific capability requirements. By opening competition broadly, it encourages multiple vendors to bid, fostering price competition and innovation, which benefits taxpayers. However, the 'exclusion of sources' element means that not all potential vendors are considered, which could potentially limit competition if the exclusions are too broad or not well-justified. The effectiveness in ensuring value for taxpayers hinges on whether the exclusions were necessary to obtain specialized skills or meet critical requirements, and whether sufficient competition remained among the eligible bidders to drive competitive pricing and performance.

What are the historical spending patterns for application development support services within the Department of the Interior?

Historical spending patterns for application development support services within the Department of the Interior (DOI) reflect a consistent and significant investment in maintaining and modernizing its IT infrastructure. Over the past several fiscal years, DOI has allocated substantial funds towards IT services, including application development, system integration, and IT modernization efforts across its various bureaus and offices. This spending is driven by the need to support diverse operational requirements, from resource management and environmental monitoring to public services and internal administration. The trend generally shows an increasing emphasis on digital transformation and cloud adoption, suggesting a sustained or growing demand for specialized application development support.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0422R0042

Offers Received: 8

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 10780 PARKRIDGE BLVD 4TH FL, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,455,191

Exercised Options: $25,187,797

Current Obligation: $24,830,155

Actual Outlays: $20,733,696

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200121W

IDV Type: GWAC

Timeline