Labor Awards $13.7M Contract to Appteon for Apprenticeship Training Services

Contract Overview

Contract Amount: $13,668,566 ($13.7M)

Contractor: Appteon, Inc.

Awarding Agency: Department of Labor

Start Date: 2020-09-28

End Date: 2025-09-27

Contract Duration: 1,825 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: APPTEON CONTRACT.

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22180

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $13.7 million to APPTEON, INC. for work described as: APPTEON CONTRACT. Key points: 1. Contract value of $13.7 million over 5 years. 2. Appteon, Inc. is the sole awardee. 3. Services fall under IT/Administrative Support (NAICS 611513). 4. Contract type is Time and Materials. 5. Potential for significant taxpayer impact due to contract structure.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure can lead to cost overruns if not closely managed. Benchmarking against similar T&M contracts for IT/administrative support services is crucial to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the T&M pricing model may limit price discovery and could lead to higher costs than fixed-price contracts.

Taxpayer Impact: The T&M nature of this contract poses a risk to taxpayers, as costs are not capped and could escalate beyond initial estimates without stringent oversight.

Public Impact

Supports critical apprenticeship training programs, potentially impacting workforce development. Award to Appteon, Inc. signifies a significant business opportunity for the contractor. The use of T&M pricing warrants close monitoring by the Department of Labor to ensure cost efficiency. Geographic location in Virginia may benefit local economy through contract execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure
Lack of a defined ceiling price
Potential for scope creep

Positive Signals

Full and open competition
Supports workforce development initiatives

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to training and administrative support. Spending benchmarks for similar IT/administrative support contracts vary widely, but T&M contracts often require higher scrutiny.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors. Further analysis is needed to determine the extent of small business participation.

Oversight & Accountability

Oversight will be critical to manage the Time and Materials aspect of this contract, ensuring that costs remain reasonable and that the scope of work is adhered to. The Office of the Assistant Secretary for Administration and Management is responsible for this oversight.

Related Government Programs

Apprenticeship Training
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns due to T&M pricing
Lack of a defined ceiling price in the provided data
Risk of scope creep without strict management
Limited visibility into subcontractor participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $13.7 million to APPTEON, INC.. APPTEON CONTRACT.

Who is the contractor on this award?

The obligated recipient is APPTEON, INC..

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2020-09-28. End: 2025-09-27.

What is the estimated total cost if the contract reaches its maximum potential value?

The contract has a base period and option periods totaling 1825 days (5 years). While the data provides a current award amount of $13,668,566.04, it does not explicitly state a maximum potential value. Given the Time and Materials structure, the final cost could exceed this amount significantly depending on labor hours and rates expended.

What specific metrics are in place to mitigate the risks associated with Time and Materials contracts?

The provided data does not detail specific metrics for mitigating T&M risks. Effective oversight would typically involve detailed tracking of labor hours, approved rates, regular performance reviews, and potentially establishing cost ceilings or incentivizing cost efficiency through contract modifications or future solicitations.

How does this contract contribute to the Department of Labor's overall mission effectiveness?

This contract directly supports the Department of Labor's mission by funding apprenticeship training programs, which are crucial for workforce development and economic opportunity. Effective execution of these training services can lead to a more skilled workforce, reduced unemployment, and increased economic productivity.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Apprenticeship Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1630DC-20-R-00020

Offers Received: 12

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Appteon Inc.

Address: 501 CHURCH ST STE 315, VIENNA, VA, 22180

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

Financial Breakdown

Contract Ceiling: $13,668,566

Exercised Options: $13,668,566

Current Obligation: $13,668,566

Actual Outlays: $11,705,515

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline