Department of the Interior awards $23.7M contract for Head Start Enterprise System to Flexion Inc

Contract Overview

Contract Amount: $23,679,688 ($23.7M)

Contractor: Flexion Inc

Awarding Agency: Department of the Interior

Start Date: 2022-12-21

End Date: 2026-12-21

Contract Duration: 1,461 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ACF/OHS HEAD START ENTERPRISE SYSTEM (HSES)

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53703

State: Wisconsin Government Spending

Plain-Language Summary

Department of the Interior obligated $23.7 million to FLEXION INC for work described as: ACF/OHS HEAD START ENTERPRISE SYSTEM (HSES) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The award is a Delivery Order under a larger contract, indicating it's part of an existing framework. 4. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 5. The contract duration is approximately 4 years, aligning with typical IT system development and maintenance cycles. 6. The contractor, Flexion Inc., is a new awardee for this specific system, requiring performance monitoring. 7. The base contract value is over $16 million, with the current award adding significant funding. 8. The contract is not set aside for small businesses, indicating a focus on larger, established vendors.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure warrants close monitoring to ensure value for money. Benchmarking against similar custom computer programming services contracts for federal agencies would be beneficial to assess if the hourly rates and material costs are competitive. The total award value of $23.7 million over approximately four years needs to be evaluated against the scope of work and expected deliverables to determine overall cost-effectiveness. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a reasonably competitive environment. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government. The fact that it was competed openly is a positive sign for taxpayer value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. This approach ensures that the government explores a wide range of solutions and contractors, maximizing the chances of securing the best value.

Public Impact

The Head Start Enterprise System (HSES) is crucial for the administration and management of the Head Start program, which serves low-income children and families. This contract supports the delivery of essential IT services, including custom computer programming, to maintain and enhance the HSES. The system's functionality impacts the operational efficiency of Head Start programs across the nation, indirectly benefiting thousands of children and their families. The contract supports IT professionals and developers, contributing to the federal IT workforce and the broader technology sector. The geographic impact is nationwide, as the Head Start program operates in all states and U.S. territories.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not meticulously managed and monitored for scope creep.
The contractor is a new awardee for this specific system, necessitating robust performance oversight to ensure successful delivery.
The base contract value of $16.2 million indicates a significant investment, requiring careful tracking of expenditures against deliverables.
The specific details of the custom computer programming services are not fully elaborated, potentially obscuring specific performance risks.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract duration of approximately 4 years allows for system stability and long-term development planning.
The Department of the Interior's oversight is expected to ensure adherence to contract terms and performance standards.
The NAICS code 541511 indicates specialized IT services, suggesting the contractor possesses relevant technical expertise.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The federal IT services market is substantial, with agencies consistently investing in software development, system integration, and maintenance. This contract for the Head Start Enterprise System is a component of the broader federal spending on IT infrastructure and application development, aimed at improving program management and service delivery for critical social programs. Comparable spending benchmarks would involve analyzing other federal contracts for similar custom software development and enterprise system support.

Small Business Impact

This contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the competition was open to all eligible businesses, including large corporations. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The absence of a small business set-aside indicates that the primary focus was on securing the most capable vendor through open competition, rather than specifically promoting small business participation.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Interior's contracting officers and program managers. They are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. The Time and Materials nature of the contract necessitates particularly diligent oversight to control costs and prevent scope creep. Transparency is facilitated through contract award databases, but detailed performance reports and specific oversight mechanisms are not publicly detailed in the provided data. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Head Start Program
Federal IT Modernization Programs
Custom Software Development Contracts
Enterprise Resource Planning (ERP) Systems Support
Department of Health and Human Services IT Contracts (as HSES supports HHS mission)

Risk Flags

Time and Materials Pricing
New Contractor for System
Potential for Scope Creep
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $23.7 million to FLEXION INC. ACF/OHS HEAD START ENTERPRISE SYSTEM (HSES)

Who is the contractor on this award?

The obligated recipient is FLEXION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2022-12-21. End: 2026-12-21.

What is the track record of Flexion Inc. in delivering similar custom computer programming services to federal agencies?

Information regarding Flexion Inc.'s specific track record for delivering custom computer programming services, particularly for large-scale enterprise systems within the federal government, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client testimonials. Understanding their experience with systems similar in complexity and scope to the Head Start Enterprise System (HSES) is crucial for evaluating their capability to successfully execute this contract. Further research into their portfolio and past federal awards would be necessary to gauge their reliability and expertise in this domain.

How does the awarded value of $23.7 million compare to similar federal contracts for custom computer programming services?

The awarded value of $23.7 million over approximately four years for custom computer programming services is within a typical range for federal IT contracts of this nature. However, a precise comparison requires benchmarking against contracts with similar scope, complexity, and service level agreements. Factors such as the number of users supported, the criticality of the system, and the specific functionalities developed significantly influence cost. Without detailed project specifications and market data for comparable projects, it is difficult to definitively state whether this represents excellent or questionable value. The Time and Materials pricing structure also adds a layer of variability that complicates direct comparisons.

What are the primary risks associated with the Time and Materials (T&M) contract type for this project?

The primary risk associated with the Time and Materials (T&M) contract type for the Head Start Enterprise System (HSES) is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements do not have a ceiling on the total cost, making it imperative for the government to closely monitor labor hours, material costs, and scope creep. If not managed diligently, the contractor could incur significant hours or expenses, leading to a final cost substantially higher than initially anticipated. This necessitates robust oversight from the Department of the Interior to ensure efficient work and prevent unnecessary expenditures, thereby safeguarding taxpayer funds.

How effective is the Head Start Enterprise System (HSES) in supporting the goals of the Head Start program?

The effectiveness of the Head Start Enterprise System (HSES) in supporting the goals of the Head Start program is critical, as it underpins the administration and delivery of services to low-income children and families. While the provided data confirms the contract's purpose is to maintain and enhance this system, it does not offer specific metrics on its current effectiveness. An assessment would require analyzing data on user satisfaction, system uptime, data accuracy, reporting capabilities, and the system's contribution to program efficiency and compliance. The ongoing contract aims to ensure the system remains functional and potentially improves its support for program objectives.

What are the historical spending patterns for the Head Start Enterprise System (HSES) or similar IT systems within the Department of the Interior?

Historical spending patterns for the Head Start Enterprise System (HSES) or similar IT systems within the Department of the Interior are not detailed in the provided data. To understand these patterns, one would need to examine past contract awards, budgets allocated for HSES maintenance and development, and expenditures on comparable enterprise systems. Analyzing trends in spending over previous fiscal years would reveal whether investment in HSES has been consistent, increasing, or decreasing, and how it compares to other IT initiatives within the department. This historical context is vital for evaluating the current award's financial implications and future budget planning.

What is the significance of the base contract value of $16,208,000 mentioned in the data?

The base contract value of $16,208,000 represents the initial amount obligated or estimated under the parent contract from which this delivery order was issued. It signifies the foundational financial commitment made by the Department of the Interior for the services related to the Head Start Enterprise System (HSES). The current award of $23,679,687.99 indicates that the total value of the contract, including this delivery order, significantly exceeds the initial base amount. This suggests either an expansion of scope, exercise of options, or a substantial delivery order placed against a contract with a lower initial base value.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0422Q0719

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Flexion Inc.

Address: 811 E WASHINGTON AVE, MADISON, WI, 53703

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

Financial Breakdown

Contract Ceiling: $41,887,078

Exercised Options: $23,679,688

Current Obligation: $23,679,688

Actual Outlays: $13,611,135

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F523BA

IDV Type: FSS

Timeline