DOL awards $3.35M labor hour contract for energy employee occupational illness compensation database services

Contract Overview

Contract Amount: $3,353,576 ($3.4M)

Contractor: Paragon Technical Services, Inc.

Awarding Agency: Department of Labor

Start Date: 2025-12-15

End Date: 2026-12-14

Contract Duration: 364 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: LABOR HOUR CONTRACT TO PROVIDE SITE EXPOSURE MATRICES (SEM) DATABASE SERVICES TO SUPPORT THE U.S. DEPARTMENT OF LABOR (DOL), OFFICE OF WORKERS' COMPENSATION PROGRAMS (OWCP), DIVISION OF ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION (DEEOIC)

Place of Performance

Location: HILLIARD, FRANKLIN County, OHIO, 43026

State: Ohio Government Spending

Plain-Language Summary

Department of Labor obligated $3.4 million to PARAGON TECHNICAL SERVICES, INC. for work described as: LABOR HOUR CONTRACT TO PROVIDE SITE EXPOSURE MATRICES (SEM) DATABASE SERVICES TO SUPPORT THE U.S. DEPARTMENT OF LABOR (DOL), OFFICE OF WORKERS' COMPENSATION PROGRAMS (OWCP), DIVISION OF ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION (DEEOIC) Key points: 1. Contract focuses on critical database services for worker compensation programs. 2. Labor hour contract type allows flexibility but requires close monitoring of hours and rates. 3. The award is for a definitive contract, indicating a specific scope of work. 4. The contract duration is one year, suggesting a need for ongoing support. 5. The contractor, Paragon Technical Services, Inc., will support the Office of Workers' Compensation Programs. 6. The services are essential for managing claims related to energy employee occupational illnesses.

Value Assessment

Rating: fair

The contract value of $3.35 million for a one-year labor hour effort is within a reasonable range for specialized IT database services. However, without specific benchmarks for SEM database services or comparable labor hour contracts within DOL, a precise value-for-money assessment is challenging. The labor hour pricing structure necessitates careful oversight to ensure efficiency and prevent cost overruns. The benchmark of 9213 (likely a performance score or internal metric) suggests a potentially satisfactory performance history, but further context is needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The presence of two bids suggests a moderate level of competition for this specific requirement.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Benefits workers suffering from occupational illnesses related to energy industry employment. Delivers essential database management and support services for the Division of Energy Employees Occupational Illness Compensation. Geographic impact is national, supporting claims processing across the United States. Workforce implications include support for administrative and technical staff within DOL's OWCP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contracts can lead to cost overruns if not closely managed.
The specific nature of SEM database services may limit the pool of highly qualified bidders.
Performance metrics beyond the provided benchmark are needed for a comprehensive assessment.

Positive Signals

Awarded under full and open competition, suggesting a fair market approach.
The contract supports a critical program for worker compensation.
The contractor has a benchmark score of 9213, indicating potentially good performance.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This sector encompasses a wide range of specialized services. Comparable spending in this area often involves IT support, data management, and administrative services for government agencies. The market size for such specialized IT and administrative support services for federal agencies is substantial, with significant annual outlays.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means that opportunities for small businesses to participate in this specific contract are limited unless they are prime contractors or subcontractors to the prime. The impact on the small business ecosystem is neutral to negative for this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which is the servicing agency. Accountability measures will be tied to the contract's performance work statement and deliverables. Transparency is facilitated by the contract being awarded under full and open competition, with data likely available through federal procurement databases. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Federal Employee Compensation Act (FECA) programs
Workers' Compensation Administration
Occupational Illness and Disease Compensation
Government IT Database Management
Energy Sector Worker Support

Risk Flags

Labor Hour Contract Type
Potential for Cost Overruns
Need for Robust Oversight
Limited Competition Data (2 Bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $3.4 million to PARAGON TECHNICAL SERVICES, INC.. LABOR HOUR CONTRACT TO PROVIDE SITE EXPOSURE MATRICES (SEM) DATABASE SERVICES TO SUPPORT THE U.S. DEPARTMENT OF LABOR (DOL), OFFICE OF WORKERS' COMPENSATION PROGRAMS (OWCP), DIVISION OF ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION (DEEOIC)

Who is the contractor on this award?

The obligated recipient is PARAGON TECHNICAL SERVICES, 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 $3.4 million.

What is the period of performance?

Start: 2025-12-15. End: 2026-12-14.

What is the typical cost range for similar SEM database services contracts within the federal government?

Determining a precise cost range for Site Exposure Matrices (SEM) database services is challenging without more specific details on the scope and complexity of the required services. However, general IT database management and support contracts within the federal government can range from tens of thousands to millions of dollars annually, depending on the scale, criticality, and duration. Labor hour contracts, like this one, are particularly sensitive to the hourly rates charged and the total hours expended. Benchmarking would ideally involve comparing Paragon Technical Services' proposed labor rates against government-wide IT service contracts or specific solicitations for similar database functionalities. Without access to the specific labor categories and rates proposed by Paragon, or a detailed breakdown of the expected hours, a direct cost comparison is difficult. The $3.35 million for a one-year effort suggests a moderately complex or resource-intensive requirement.

How does Paragon Technical Services, Inc. perform on other federal contracts?

Assessing Paragon Technical Services, Inc.'s performance on other federal contracts requires access to past performance information, which is typically found in federal procurement databases like the Federal Procurement Data System (FPDS) or through CPARS (Contractor Performance Assessment Reporting System) reports. Without direct access to these systems for this specific contractor, a detailed analysis of their track record is not possible. Generally, a benchmark score of 9213, as indicated in the data, suggests a strong performance history if it represents a standardized rating. However, the context of this score is crucial – is it an internal rating, a client satisfaction score, or a formal CPARS rating? A thorough review would examine the types of contracts they've held, their performance ratings on those contracts, any past issues or disputes, and their experience with similar government agencies and IT services.

What are the key risks associated with this labor hour contract type?

The primary risk associated with labor hour contracts is the potential for cost overruns if the effort takes longer than anticipated or if labor rates are higher than market averages. Unlike fixed-price contracts, the government pays for the actual time and materials expended, making cost control heavily reliant on effective project management and oversight. For this $3.35 million contract, risks include inefficient task execution, scope creep that isn't properly managed, or the contractor not having the most cost-effective personnel. To mitigate these risks, the Department of Labor must diligently monitor the hours billed, ensure that the work performed aligns with the contract's objectives, and regularly review the contractor's performance against established milestones and deliverables. Clear communication and proactive management are essential to ensure value for taxpayer money.

How effective is the SEM database in supporting the DEEOIC program's mission?

The effectiveness of the Site Exposure Matrices (SEM) database in supporting the Division of Energy Employees Occupational Illness Compensation (DEEOIC) program's mission is critical to ensuring timely and accurate processing of claims for workers affected by occupational illnesses. The SEM database likely contains vital information regarding workplace exposures to hazardous substances, which is essential for determining eligibility and calculating benefits under programs like the Energy Employees Occupational Illness Compensation Program Act (EEOICPA). Its effectiveness hinges on data accuracy, accessibility, and the system's ability to integrate with other claims processing tools. While this contract focuses on maintaining and supporting the database, its ultimate effectiveness is measured by its contribution to the DEEOIC's ability to administer benefits fairly and efficiently. Improvements or maintenance of this database directly impact the program's capacity to serve its intended beneficiaries.

What is the historical spending trend for SEM database services at DOL?

Analyzing historical spending trends for SEM database services at the Department of Labor (DOL) would provide valuable context for the current $3.35 million award. Without specific historical data for this particular service, it's difficult to ascertain if this contract represents an increase, decrease, or stable level of spending. Typically, such analysis would involve reviewing past contract awards for similar services, noting the contract types, durations, and values over several fiscal years. Understanding these trends can help identify patterns, potential cost efficiencies, or areas where spending has significantly fluctuated. This information is crucial for budget forecasting, identifying potential cost-saving opportunities, and assessing whether the current contract aligns with long-term strategic investments in IT infrastructure and claims processing capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1605C3-25-R-00002

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3455 MILL RUN DR, HILLIARD, OH, 43026

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $17,701,624

Exercised Options: $3,353,576

Current Obligation: $3,353,576

Actual Outlays: $394,169

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline