DOL Awards $28.3M IT Support Contract to Data Networks, Inc. for OWCP Services
Contract Overview
Contract Amount: $28,289,090 ($28.3M)
Contractor: Data Networks, Inc.
Awarding Agency: Department of Labor
Start Date: 2020-06-21
End Date: 2022-06-20
Contract Duration: 729 days
Daily Burn Rate: $38.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BRIDGE ORDER ISSUED TO PROVIDE OFFICE OF WORKERS COMPENSATION PROGRAMS INFORMATION TECHNOLOGY SUPPORT (OITS) SERVICES TO SUPPORT THE DEPARTMENT OF LABOR (DOL) OFFICE OF WORKERS COMPENSATION PROGRAMS (OWCP).
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210
Plain-Language Summary
Department of Labor obligated $28.3 million to DATA NETWORKS, INC. for work described as: BRIDGE ORDER ISSUED TO PROVIDE OFFICE OF WORKERS COMPENSATION PROGRAMS INFORMATION TECHNOLOGY SUPPORT (OITS) SERVICES TO SUPPORT THE DEPARTMENT OF LABOR (DOL) OFFICE OF WORKERS COMPENSATION PROGRAMS (OWCP). Key points: 1. Contract awarded to Data Networks, Inc. for IT support services. 2. Focus on supporting the Office of Workers Compensation Programs (OWCP). 3. The contract value is $28.3 million over two years. 4. This falls under Computer Systems Design Services (NAICS 541512).
Value Assessment
Rating: good
The contract value of $28.3 million for two years of IT support appears reasonable for specialized services. Benchmarking against similar government IT support contracts would provide a more precise assessment.
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. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT support services.
Public Impact
Ensures continued IT support for critical workers' compensation programs. Supports the operational efficiency of the Department of Labor. Provides essential technology infrastructure for OWCP services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if performance is exceptional.
- Reliance on a single vendor for critical IT infrastructure.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Supports a vital government function (workers' compensation).
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design. Government spending on IT services is substantial, with benchmarks varying widely based on complexity and scope.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract is a delivery order under a larger vehicle, implying some level of pre-competed terms. Oversight would focus on performance, adherence to scope, and financial management.
Related Government Programs
- Computer Systems Design Services
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Potential for scope creep.
- Dependence on vendor for critical IT functions.
- Risk of performance degradation over contract duration.
- Cybersecurity vulnerabilities associated with IT services.
Tags
computer-systems-design-services, department-of-labor, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $28.3 million to DATA NETWORKS, INC.. BRIDGE ORDER ISSUED TO PROVIDE OFFICE OF WORKERS COMPENSATION PROGRAMS INFORMATION TECHNOLOGY SUPPORT (OITS) SERVICES TO SUPPORT THE DEPARTMENT OF LABOR (DOL) OFFICE OF WORKERS COMPENSATION PROGRAMS (OWCP).
Who is the contractor on this award?
The obligated recipient is DATA NETWORKS, 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 $28.3 million.
What is the period of performance?
Start: 2020-06-21. End: 2022-06-20.
What is the specific scope of IT services provided under this contract?
The contract provides Office of Workers Compensation Programs Information Technology Support (OITS) services. While the specific tasks are not detailed in the provided data, it generally encompasses IT support, likely including system maintenance, network management, help desk support, and potentially software development or integration for OWCP's systems.
What are the key performance indicators (KPIs) for this contract?
Key performance indicators are not explicitly provided in the data. However, for IT support contracts, typical KPIs would include system uptime, response times for help desk tickets, resolution rates, and user satisfaction. The Department of Labor would likely have established specific metrics to ensure Data Networks, Inc. meets service level agreements.
How does the cost of this contract compare to industry benchmarks for similar IT support services?
Without detailed service scope and specific deliverables, a precise benchmark is difficult. However, $14.15 million per year for comprehensive IT support for a significant program like OWCP appears within a reasonable range, especially considering the government contracting environment. A detailed comparison would require analyzing labor rates, overhead, and profit margins against similar federal or commercial contracts.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 1605C3-20-Q-00005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arctic Slope Regional Corporation
Address: 11091 SUNSET HILLS RD STE 700, RESTON, VA, 20190
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,492,710
Exercised Options: $31,492,710
Current Obligation: $28,289,090
Actual Outlays: $27,846,691
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $8,140,332
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0026
IDV Type: GWAC
Timeline
Start Date: 2020-06-21
Current End Date: 2022-06-20
Potential End Date: 2022-06-20 00:00:00
Last Modified: 2022-09-22
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