DOL awards $14.8M labor hour contract for SEM database services to Paragon Technical Services

Contract Overview

Contract Amount: $14,789,156 ($14.8M)

Contractor: Paragon Technical Services, Inc.

Awarding Agency: Department of Labor

Start Date: 2020-04-30

End Date: 2025-12-14

Contract Duration: 2,054 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

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

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $14.8 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 supports critical workers' compensation program for energy employees. 2. Paragon Technical Services, Inc. is the sole awardee. 3. Risk of cost overruns due to labor hour pricing model. 4. Services fall under Professional, Scientific, and Technical Services sector.

Value Assessment

Rating: questionable

The labor hour contract type presents a risk for cost control. Without fixed deliverables or clear performance metrics tied to cost, the $14.8M could escalate. Benchmarking is difficult without specific task details.

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. However, the labor hour structure may limit price discovery and incentivize time spent rather than efficient completion.

Taxpayer Impact: Taxpayer funds are used for this contract. The labor hour nature raises concerns about potential inefficiencies and cost overruns, impacting the overall value for money.

Public Impact

Supports the compensation program for energy industry workers with occupational illnesses. Ensures database services are available for critical program operations. Potential for increased costs impacts the budget allocated for worker benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contract type
Lack of specific performance metrics tied to cost
Potential for cost escalation

Positive Signals

Supports a vital government program
Awarded under full and open competition

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically IT support for database services. Spending in this area is common across federal agencies for program management and data handling.

Small Business Impact

The contract was awarded to Paragon Technical Services, Inc. and does not indicate any specific set-asides or participation goals for small businesses in this award.

Oversight & Accountability

Oversight will be crucial to monitor the labor hours expended and ensure the services provided align with the objectives of the OWCP. The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this contract.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Labor hour pricing model
Potential for scope creep
Contract duration extends beyond current fiscal year
Lack of specific performance metrics tied to cost

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $14.8 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 $14.8 million.

What is the period of performance?

Start: 2020-04-30. End: 2025-12-14.

What specific metrics will be used to ensure the $14.8M labor hour contract delivers value for the SEM database services?

Value will be assessed by tracking the successful maintenance and availability of the SEM database, timely support for OWCP inquiries, and the contractor's adherence to agreed-upon service levels. Regular performance reviews and milestone tracking, even within a labor hour framework, are essential to ensure the contractor is meeting program needs efficiently and effectively.

What are the primary risks associated with a labor hour contract for database services, and how are they mitigated?

The primary risk is cost escalation due to the contractor incentivized to bill for more hours rather than efficient completion. Mitigation involves robust oversight, clear task definitions, regular performance reviews, and potentially establishing cost ceilings or incentivizing efficiency. The agency must actively manage the scope and monitor contractor performance closely.

How does this contract contribute to the overall effectiveness of the Office of Workers' Compensation Programs?

This contract is essential for maintaining the SEM database, which likely supports the processing and management of claims for energy employees' occupational illnesses. Its effectiveness directly impacts the agency's ability to administer benefits accurately and efficiently, ensuring timely support for beneficiaries and proper record-keeping.

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

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3455 MILL RUN DR STE 410, HILLIARD, OH, 43026

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

Financial Breakdown

Contract Ceiling: $14,789,156

Exercised Options: $14,789,156

Current Obligation: $14,789,156

Actual Outlays: $14,184,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline