DOL Awards $29M for ECOMP Support to Eagle Harbor Solutions LLC

Contract Overview

Contract Amount: $28,968,689 ($29.0M)

Contractor: Eagle Harbor Solutions LLC

Awarding Agency: Department of Labor

Start Date: 2019-03-22

End Date: 2024-04-21

Contract Duration: 1,857 days

Daily Burn Rate: $15.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CONTRACT TO PROVIDE EMPLOYEES COMPENSATION OPERATIONS AND MANAGEMENT PORTAL (ECOMP) SUPPORT SERVICES FOR THE DEPARTMENT OF LABOR (DOL) OFFICE OF WORKERS COMPENSATION PROGRAMS (OWCP) DIVISION OF FEDERAL EMPLOYEES COMPENSATION (DFEC).

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 $29.0 million to EAGLE HARBOR SOLUTIONS LLC for work described as: CONTRACT TO PROVIDE EMPLOYEES COMPENSATION OPERATIONS AND MANAGEMENT PORTAL (ECOMP) SUPPORT SERVICES FOR THE DEPARTMENT OF LABOR (DOL) OFFICE OF WORKERS COMPENSATION PROGRAMS (OWCP) DIVISION OF FEDERAL EMPLOYEES COMPENSATION (DFEC). Key points: 1. Contract value of $28.97 million for IT support services. 2. Sole-source award to Eagle Harbor Solutions LLC. 3. Risk of limited competition and potentially higher costs. 4. Sector is IT services, specifically computer systems design.

Value Assessment

Rating: questionable

The contract value of $28.97 million over five years for IT support services appears high given the sole-source nature. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar government contracts for system operations and management portals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in less favorable pricing for the government compared to a competitive procurement.

Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, potentially leading to a higher overall cost for these essential IT support services.

Public Impact

Ensures continued operation of the ECOMP portal for federal employees' compensation. Supports the Department of Labor's critical workers' compensation programs. Potential for taxpayer funds to be used less efficiently due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Lack of price benchmark for comparison
Potential for cost overruns without oversight

Positive Signals

Ensures continuity of essential services
Supports federal employee benefits program

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. The benchmark for similar contracts can vary widely based on complexity and duration, but sole-source awards often warrant closer scrutiny for cost-effectiveness.

Small Business Impact

The contract was awarded to Eagle Harbor Solutions LLC, which is not identified as a small business in the provided data. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The sole-source nature of this contract raises questions about oversight and accountability. While the Department of Labor is responsible for managing the contract, the lack of competition limits the ability to independently verify cost-effectiveness.

Related Government Programs

Computer Systems Design Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Sole-source award limits competition
Potential for inflated pricing
Lack of transparency in cost justification
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $29.0 million to EAGLE HARBOR SOLUTIONS LLC. CONTRACT TO PROVIDE EMPLOYEES COMPENSATION OPERATIONS AND MANAGEMENT PORTAL (ECOMP) SUPPORT SERVICES FOR THE DEPARTMENT OF LABOR (DOL) OFFICE OF WORKERS COMPENSATION PROGRAMS (OWCP) DIVISION OF FEDERAL EMPLOYEES COMPENSATION (DFEC).

Who is the contractor on this award?

The obligated recipient is EAGLE HARBOR SOLUTIONS LLC.

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 $29.0 million.

What is the period of performance?

Start: 2019-03-22. End: 2024-04-21.

What is the justification for the sole-source award, and has the government explored all avenues for competitive procurement?

The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. The government must demonstrate that a competitive process is not feasible or would not be in the government's best interest. Without this specific justification, it's difficult to assess if taxpayer funds are being used efficiently or if alternative vendors could have provided similar services.

How does the per-unit cost of this contract compare to industry benchmarks for similar IT operations and management portal support services?

Benchmarking the per-unit cost is challenging due to the sole-source nature of this contract and the lack of detailed cost breakdowns. However, given the $28.97 million value over five years, a thorough analysis would be needed to compare it against market rates for comparable government or commercial contracts to identify potential inefficiencies or overpricing.

What measures are in place to ensure the effectiveness and efficiency of the ECOMP support services provided by Eagle Harbor Solutions LLC under this sole-source contract?

Effectiveness and efficiency are typically monitored through performance metrics, service level agreements (SLAs), and regular performance reviews. For sole-source contracts, robust oversight is crucial to ensure the vendor meets all contractual obligations and delivers value for money, even in the absence of competitive pressure.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1605DC-19-R-00011

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $56,083,679

Exercised Options: $56,083,679

Current Obligation: $28,968,689

Actual Outlays: $38,607,041

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline