Labor awards RIVA SOLUTIONS INC $5.7M for case processing support, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $5,735,984 ($5.7M)

Contractor: Riva Solutions Inc

Awarding Agency: Department of Labor

Start Date: 2025-05-08

End Date: 2026-06-07

Contract Duration: 395 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CASE PROCESSING SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $5.7 million to RIVA SOLUTIONS INC for work described as: CASE PROCESSING SUPPORT SERVICES Key points: 1. Contract value of $5.7M for case processing support services indicates a significant investment in administrative efficiency. 2. The IT services category, specifically data processing and hosting, is crucial for modern government operations. 3. A firm fixed-price contract structure aims to control costs and provide predictable spending. 4. The contract duration of 395 days suggests a need for ongoing, sustained support. 5. Awarded to RIVA SOLUTIONS INC, a company with a role in providing IT infrastructure. 6. The geographic location of the award in Washington D.C. aligns with federal agency concentration.

Value Assessment

Rating: good

The contract value of $5.7M for case processing support services appears reasonable given the scope of IT infrastructure and data processing required. Benchmarking against similar contracts for IT support and case management systems would provide a more precise value-for-money assessment. The firm fixed-price nature of the award suggests an effort to manage costs effectively, but detailed cost breakdowns are not available to fully assess pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a competitive process but with specific exclusions. The exact number of bidders is not detailed, but this type of competition typically involves a pre-selected pool of qualified vendors. While not fully open, it implies some level of market vetting to ensure qualified offerors participated.

Taxpayer Impact: This limited competition structure may offer some price discovery but could potentially limit the number of innovative solutions or the most competitive pricing available in a truly open market.

Public Impact

The primary beneficiaries are the Department of Labor's Office of the Assistant Secretary for Administration and Management, which will receive enhanced case processing capabilities. Services delivered include computing infrastructure, data processing, and web hosting, essential for efficient administrative functions. The geographic impact is centered in Washington D.C., where the Department of Labor is headquartered. This contract supports the federal workforce by providing the necessary technological tools for administrative tasks, potentially improving productivity and service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may restrict the full range of market innovation and potentially lead to higher costs than a fully open bid.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's past performance effectiveness.
The specific nature of 'case processing support' could be broad, requiring careful monitoring to ensure the services align precisely with the stated needs.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
Awarding to a known IT infrastructure provider like RIVA SOLUTIONS INC suggests a strategic choice based on existing capabilities.
The contract is for essential IT services that underpin administrative operations, indicating a focus on core government functions.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on data processing, hosting, and related services. The market for these services is highly competitive, with numerous providers ranging from large corporations to specialized firms. Government spending in this area is substantial, driven by the need for secure, scalable, and efficient digital infrastructure to support agency operations. Comparable spending benchmarks would typically involve analyzing IT service contracts for similar agencies or functions.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests that the contract was likely awarded based on technical qualifications and price, rather than a specific mandate to support small businesses. There is no explicit information on subcontracting plans for small businesses, which would typically be detailed in a full contract award notice.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated through contract award databases, though detailed performance reports and Inspector General reviews would depend on specific agency policies and any identified issues.

Related Government Programs

Federal IT Infrastructure Services
Case Management Systems Support
Data Processing and Hosting Contracts
Department of Labor Administrative Support

Risk Flags

Limited competition may impact price competitiveness.
Scope creep risk for 'case processing support' services.
Dependence on a single vendor for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $5.7 million to RIVA SOLUTIONS INC. CASE PROCESSING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is RIVA SOLUTIONS 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 $5.7 million.

What is the period of performance?

Start: 2025-05-08. End: 2026-06-07.

What is RIVA SOLUTIONS INC's track record with federal IT service contracts, particularly in case processing support?

RIVA SOLUTIONS INC has a history of securing federal contracts, often within the IT services domain. While specific details on their performance in 'case processing support' require deeper analysis of past contract performance reports and user feedback, their presence in the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services NAICS code suggests relevant experience. Examining their award history for similar service types and agencies would provide a clearer picture of their capabilities and reliability in delivering these critical administrative functions. Past performance evaluations, if publicly accessible, would be key to assessing their suitability for this role.

How does the $5.7M contract value compare to similar case processing support services awarded by the Department of Labor or other federal agencies?

Benchmarking the $5.7M contract value requires comparing it against contracts for similar IT infrastructure, data processing, and case management support services across federal agencies. The Department of Labor, like many large agencies, procures a variety of IT services. A comprehensive comparison would involve analyzing contract databases for awards with similar NAICS codes (e.g., 518210) and service descriptions, considering contract duration and scope. Without access to specific comparable contract data, it's challenging to definitively state if this represents a high, low, or average cost. However, the firm fixed-price nature suggests an effort to contain costs within a defined budget.

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

Key risks for this contract include potential cost overruns if the scope of 'case processing support' is not precisely defined or managed, vendor lock-in if the chosen IT infrastructure is proprietary, and performance issues if RIVA SOLUTIONS INC fails to meet service level agreements. Mitigation strategies likely involve robust contract management by the Department of Labor, clear performance metrics and deliverables, regular progress reviews, and contingency planning for service disruptions. The firm fixed-price structure itself acts as a cost mitigation tool, shifting some financial risk to the contractor.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for taxpayers for IT services?

This procurement method aims to balance competition with efficiency. By excluding certain sources, the agency might be targeting specific capabilities or pre-qualifying vendors known to meet stringent requirements, potentially reducing the time and cost of evaluation. However, it inherently limits the pool of potential bidders compared to truly 'full and open' competition. The effectiveness for taxpayers hinges on whether the exclusions were justified and if the resulting competition among the remaining vendors still drove competitive pricing and innovative solutions. If the exclusions were arbitrary or too restrictive, it could lead to suboptimal value.

What are the historical spending patterns for case processing support or similar IT services within the Department of Labor?

Analyzing historical spending patterns for case processing support and related IT services within the Department of Labor is crucial for context. This would involve examining prior contract awards for similar services, including their values, durations, and awarded contractors. Understanding trends in IT spending, such as shifts towards cloud-based solutions or specific types of data processing, can reveal whether this $5.7M award aligns with established patterns or represents a new investment direction. Significant year-over-year increases or decreases in spending for these services could indicate evolving needs or changes in procurement strategies.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1605C2-25-Q-00015

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8000 WESTPARK DR STE 450, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $5,735,984

Exercised Options: $5,735,984

Current Obligation: $5,735,984

Actual Outlays: $3,645,452

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1630DC19D0001

IDV Type: IDC

Timeline