Department of Labor awards $7.28M contract for IT support, highlighting custom programming services

Contract Overview

Contract Amount: $7,281,491 ($7.3M)

Contractor: Systems Integration & Development Inc

Awarding Agency: Department of Labor

Start Date: 2021-09-30

End Date: 2026-06-29

Contract Duration: 1,733 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: O&M SUPPORT FOR BOTH VCMS AND VDEI PRODUCTION OPERATION, IMPLEMENT BUG FIXES AND MINOR ENHANCEMENTS TO ADDRESS SOLUTIONS TO KNOWN TECHNICAL DEBTS, SUPPORT TO ENSURE UPGRADE TO OPERATING SYSTEMS, DATABASES, AND INTERFACE SYSTEMS

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 $7.3 million to SYSTEMS INTEGRATION & DEVELOPMENT INC for work described as: O&M SUPPORT FOR BOTH VCMS AND VDEI PRODUCTION OPERATION, IMPLEMENT BUG FIXES AND MINOR ENHANCEMENTS TO ADDRESS SOLUTIONS TO KNOWN TECHNICAL DEBTS, SUPPORT TO ENSURE UPGRADE TO OPERATING SYSTEMS, DATABASES, AND INTERFACE SYSTEMS Key points: 1. Contract focuses on essential IT operations and maintenance, including bug fixes and system upgrades. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract extends over several years, indicating a need for sustained support. 4. The specific NAICS code points to custom computer programming services, a specialized IT sector. 5. The contract is a BPA Call, a type of task order under a broader agreement. 6. The contractor, SYSTEMS INTEGRATION & DEVELOPMENT INC, will provide ongoing support for critical systems.

Value Assessment

Rating: fair

The contract value of $7.28 million over its period of performance appears to be within a reasonable range for IT operations and maintenance support, especially for custom systems. Benchmarking against similar custom computer programming services contracts would provide a clearer picture of value for money. The labor hour pricing structure allows for flexibility but requires careful monitoring to ensure efficiency and prevent cost overruns.

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 process is designed to foster price discovery and ensure the government receives competitive offers. The specific number of bidders is not provided, but the competition type suggests a robust selection process was intended.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, leading to more cost-effective procurement of IT services.

Public Impact

The Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM) benefits from this contract through sustained IT operations. Services delivered include bug fixes, minor enhancements, and support for operating system and database upgrades. The geographic impact is primarily within the District of Columbia, where the Department of Labor is headquartered. The contract supports the IT infrastructure necessary for the department's administrative and management functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if enhancements are not strictly managed.
Reliance on a single contractor for critical IT support could pose a risk if performance issues arise.
The labor hour pricing model necessitates diligent oversight to ensure efficient use of resources.

Positive Signals

The contract is awarded under full and open competition, suggesting a competitive selection process.
The contractor has a defined role in maintaining and upgrading essential IT systems.
The contract duration provides stability for IT operations.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming services (NAICS 541511). This is a significant market segment within federal IT procurement, encompassing a wide range of software development, integration, and maintenance activities. Federal spending in this area is substantial, driven by the need to maintain and modernize complex government IT systems. Comparable spending benchmarks would typically involve analyzing IT support contracts for other large federal agencies with similar operational complexities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, SYSTEMS INTEGRATION & DEVELOPMENT INC, is likely a mid-to-large-sized firm, and the contract's value suggests it is not a small business set-aside. The impact on the small business ecosystem is indirect, as opportunities may arise if the prime contractor chooses to subcontract, but this is not mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's contracting officers and program managers within OASAM. Accountability measures are inherent in the contract's performance requirements and the labor hour tracking. Transparency is facilitated by the contract's award under full and open competition, with details often available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Custom Computer Programming Services
IT Operations and Maintenance
Software Development Support
IT System Upgrades
Federal IT Services

Risk Flags

Potential for cost overruns due to labor hour pricing
Risk of vendor lock-in with specialized IT systems
Dependency on contractor performance for critical IT functions
Need for robust oversight to manage scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $7.3 million to SYSTEMS INTEGRATION & DEVELOPMENT INC. O&M SUPPORT FOR BOTH VCMS AND VDEI PRODUCTION OPERATION, IMPLEMENT BUG FIXES AND MINOR ENHANCEMENTS TO ADDRESS SOLUTIONS TO KNOWN TECHNICAL DEBTS, SUPPORT TO ENSURE UPGRADE TO OPERATING SYSTEMS, DATABASES, AND INTERFACE SYSTEMS

Who is the contractor on this award?

The obligated recipient is SYSTEMS INTEGRATION & DEVELOPMENT 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 $7.3 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-06-29.

What is the track record of SYSTEMS INTEGRATION & DEVELOPMENT INC with the Department of Labor and other federal agencies?

A thorough review of federal procurement data (e.g., FPDS) would be necessary to assess SYSTEMS INTEGRATION & DEVELOPMENT INC's track record. This would involve examining past contract awards, performance evaluations (if available), and any history of contract disputes or terminations. Understanding their experience with similar IT support and custom programming services, particularly for agencies of the Department of Labor's size and complexity, is crucial. A positive track record with consistent satisfactory performance ratings would indicate lower risk, while a history of issues could signal potential performance concerns for this current contract.

How does the awarded value compare to similar custom computer programming services contracts within the federal government?

To benchmark the $7.28 million contract value, one would need to analyze recent federal contracts awarded under NAICS code 541511 for custom computer programming services. Key comparison points would include contract duration, scope of work (e.g., maintenance, development, integration), agency size, and geographic location. For instance, comparing this contract's average annual value ($7.28M / ~4.8 years duration) to similar multi-year O&M support contracts for large agencies could reveal if it is high, low, or average. The labor hour pricing model also requires comparison against prevailing government labor rates for comparable skill sets to assess pricing reasonableness.

What are the primary risks associated with the 'O&M SUPPORT FOR BOTH VCMS AND VDEI PRODUCTION OPERATION' contract?

Key risks include potential technical obsolescence if system upgrades are not timely or effective, leading to security vulnerabilities or operational inefficiencies. There's also a risk of vendor lock-in if the contractor develops deep, proprietary knowledge of the systems, making future transitions difficult or costly. Performance risk exists if the contractor fails to meet service level agreements for bug fixes or system availability. Furthermore, the labor hour pricing structure carries a risk of cost overruns if not meticulously managed and monitored for efficiency. Ensuring continuity of operations during system upgrades and bug fixes is also a critical risk area.

How effective is the 'bug fixes and minor enhancements' aspect of the contract in addressing known technical debts?

The effectiveness of bug fixes and minor enhancements hinges on the contractor's ability to accurately diagnose issues, develop robust solutions, and implement them without introducing new problems. 'Known technical debts' implies a backlog of issues that have accumulated over time, potentially due to previous underfunding or rapid development cycles. The contract's success in addressing these debts depends on the clarity of definitions for 'bug fixes' versus 'enhancements,' the efficiency of the development and testing process, and the responsiveness of the contractor. Regular reporting on the types and resolution times of bugs, as well as the impact of enhancements, would be necessary to gauge effectiveness.

What is the historical spending trend for custom computer programming services at the Department of Labor?

Analyzing historical spending data for custom computer programming services (NAICS 541511) at the Department of Labor over the past 5-10 years would provide valuable context. This would involve identifying trends in contract values, the number of awards, and the primary contractors utilized. Understanding whether spending has been increasing, decreasing, or remaining stable can indicate shifts in IT strategy or operational needs. Comparing this $7.28 million award to historical averages or peaks would help determine if it represents a significant investment or a routine expenditure within the department's IT budget.

What are the implications of this contract being a BPA Call for overall IT procurement strategy?

A BPA Call (Blanket Purchase Agreement Call) signifies that this contract is a task order issued under a pre-existing BPA. BPAs are typically established for a wide range of supplies or services that are used repeatedly by multiple government agencies or offices. The implications are that the foundational terms, conditions, and pricing structures were likely negotiated at the BPA level, potentially streamlining the procurement process for this specific call. It suggests a strategic approach to consolidating IT support needs under a flexible, pre-vetted framework, aiming for efficiency and potentially better pricing through volume commitments established in the parent BPA.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605TA-21-Q-00041

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1801 RESEARCH BLVD STE 500, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,333,227

Exercised Options: $7,333,227

Current Obligation: $7,281,491

Actual Outlays: $6,525,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1605DC20A0002

IDV Type: BPA

Timeline