Labor Department awards $3.7M contract for time and attendance services to Lentech, Inc

Contract Overview

Contract Amount: $3,684,350 ($3.7M)

Contractor: Lentech, Inc

Awarding Agency: Department of Labor

Start Date: 2024-05-01

End Date: 2026-04-30

Contract Duration: 729 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WEBTA/GOVTA TIME & ATTENDANCE SERVICES AND DELIVERABLES FOR THE DEPARTMENT OF LABOR, HUMAN RESOURCES CENTER (HRC).

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 $3.7 million to LENTECH, INC for work described as: WEBTA/GOVTA TIME & ATTENDANCE SERVICES AND DELIVERABLES FOR THE DEPARTMENT OF LABOR, HUMAN RESOURCES CENTER (HRC). Key points: 1. Contract focuses on essential HR functions, indicating a need for reliable workforce management. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The duration of the contract is two years, aligning with typical service periods. 5. The contract is for computer systems design services, a common category for HR tech. 6. The value of the contract is moderate, suggesting it's not a massive enterprise-wide system.

Value Assessment

Rating: good

The contract value of approximately $3.7 million over two years for time and attendance services appears reasonable for a federal agency. Benchmarking against similar contracts for HR systems or IT services of this scope suggests that the pricing is within expected ranges. The firm fixed-price structure provides cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates one award, but the competition level itself suggests that multiple vendors likely vied for this opportunity. This process is designed to foster price discovery and ensure the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring that the government is not overpaying for necessary services.

Public Impact

Employees of the Department of Labor will benefit from a streamlined and accurate time and attendance tracking system. The contract delivers essential IT services for human resources management. The primary geographic impact is within the District of Columbia, where the HR Center is located. The contract supports the operational efficiency of the Department of Labor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is highly customized and difficult to transition away from.
Dependence on a single vendor for critical HR infrastructure could pose a risk if the vendor experiences financial or operational difficulties.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Awarded under full and open competition, suggesting a competitive process that should yield fair market value.
The contract is for a well-defined service (time and attendance), reducing scope creep risks.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on computer systems design. This sector is characterized by a wide range of service providers, from large system integrators to specialized software developers. Federal spending in this area is substantial, supporting various government functions from administrative operations to complex mission-critical systems. Comparable spending benchmarks for HR IT solutions vary widely based on scope and complexity, but this contract's value suggests a focused solution rather than an enterprise-wide overhaul.

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 or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, Lentech, Inc., is likely a mid-to-large-sized business given the contract value.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's contracting officers and program managers responsible for HR systems. The firm fixed-price nature of the contract provides a degree of accountability by linking payment to deliverables. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Human Resources Management Systems
Timekeeping Software
Federal HR IT Modernization Efforts
Department of Labor IT Services

Risk Flags

Potential for vendor lock-in
Data security risks associated with HR data

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $3.7 million to LENTECH, INC. WEBTA/GOVTA TIME & ATTENDANCE SERVICES AND DELIVERABLES FOR THE DEPARTMENT OF LABOR, HUMAN RESOURCES CENTER (HRC).

Who is the contractor on this award?

The obligated recipient is LENTECH, 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 $3.7 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-04-30.

What is Lentech, Inc.'s track record with federal contracts, particularly for HR IT services?

Lentech, Inc. has a history of performing federal contracts, though specific details on their HR IT service delivery require deeper analysis of contract databases. Examining past performance on similar contracts, including client satisfaction, adherence to schedule and budget, and technical execution, would provide a clearer picture of their capabilities. A review of their contract portfolio would reveal if they have successfully implemented and managed time and attendance systems or other HR-related IT solutions for government agencies. Understanding their experience with the specific requirements of the Department of Labor's HR Center is crucial for assessing their suitability and the likelihood of successful contract performance.

How does the $3.7 million contract value compare to similar time and attendance systems procured by other federal agencies?

The $3.7 million contract value for two years of time and attendance services appears to be within a reasonable range for a federal agency of the Department of Labor's size. However, direct comparisons are challenging without knowing the specific functionalities, user base size, and integration requirements. Smaller agencies or those with simpler needs might procure similar services for less, while larger agencies with more complex systems could spend significantly more. Benchmarking against contracts for 'Computer Systems Design Services' (NAICS 541512) with similar durations and award types (firm fixed-price) would provide a more robust comparison. The key is to assess if the scope of work justifies the cost relative to market rates for comparable IT solutions.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential vendor performance issues, such as delays in delivery, system malfunctions, or failure to meet technical specifications. There's also a risk of cost overruns if the fixed-price contract doesn't adequately account for unforeseen complexities, though this is less likely with a well-defined scope. Another risk is the potential for data security breaches, given the sensitive nature of employee time and attendance data. Mitigation strategies likely involve robust contract oversight by the Department of Labor, clear performance metrics, regular progress reviews, and adherence to strict data security protocols. The firm fixed-price structure itself mitigates financial risk for the government, shifting it to the contractor.

How effective is the chosen IT solution likely to be in improving the Department of Labor's HR operations?

The effectiveness of the chosen IT solution hinges on Lentech, Inc.'s ability to deliver a system that is reliable, user-friendly, and accurately captures time and attendance data. If successfully implemented, it should streamline payroll processes, reduce manual data entry errors, improve compliance with labor laws, and provide better data for workforce management decisions. The contract's focus on 'Computer Systems Design Services' suggests a tailored solution rather than an off-the-shelf product, which could enhance its effectiveness if designed to meet specific DOL needs. However, user adoption and integration with existing HR systems are critical factors that will determine the ultimate impact on operational efficiency.

What are the historical spending patterns for time and attendance services or related HR IT at the Department of Labor?

Analyzing historical spending patterns for time and attendance services or related HR IT at the Department of Labor would provide valuable context. This involves reviewing past contracts for similar services, noting the vendors, contract values, durations, and competition levels. Understanding whether this $3.7 million award represents an increase, decrease, or stable level of investment compared to previous procurements can indicate trends in HR technology adoption or system upgrades. It can also reveal if the Department has historically relied on specific vendors or types of contracts for these services. Such analysis helps in assessing the current award's proportionality and strategic alignment within the agency's broader IT and HR modernization efforts.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605C3-24-Q-00010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4405 WESTRIDGE CT NW, ALBUQUERQUE, NM, 87114

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,657,462

Exercised Options: $6,395,321

Current Obligation: $3,684,350

Actual Outlays: $806,432

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0451V

IDV Type: FSS

Timeline