IT Application Development Support contract awarded to Soft Tech Consulting, Inc. for over $11.4 million

Contract Overview

Contract Amount: $11,475,952 ($11.5M)

Contractor: Soft Tech Consulting, Inc.

Awarding Agency: Department of Labor

Start Date: 2022-06-09

End Date: 2026-07-11

Contract Duration: 1,493 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: BLS TASK ORDER 15: IT APPLICATION DEVELOPMENT SUPPORT FOR THE OTSP DIVISION OF ENTERPRISE WEB SERVICES PERIOD OF PERFORMANCE 07/01/2022 - 05/29/2026

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20212

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $11.5 million to SOFT TECH CONSULTING, INC. for work described as: BLS TASK ORDER 15: IT APPLICATION DEVELOPMENT SUPPORT FOR THE OTSP DIVISION OF ENTERPRISE WEB SERVICES PERIOD OF PERFORMANCE 07/01/2022 - 05/29/2026 Key points: 1. Contract provides critical IT application development support for the Office of the Assistant Secretary for Administration and Management (OASAM). 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Performance period spans over four years, indicating a long-term need for these services. 4. The contract type is a BPA Call, which is a type of task order against a Blanket Purchase Agreement. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The contract is not set aside for small businesses, and there is no indication of subcontracting plans. 7. The base contract value is substantial, reflecting the complexity and duration of the IT support required.

Value Assessment

Rating: good

The contract value of approximately $11.48 million over nearly four years for IT application development support appears reasonable given the scope of services. Benchmarking against similar custom computer programming services contracts is challenging without more granular data on specific deliverables and labor categories. However, the duration and the nature of supporting enterprise web services suggest a significant undertaking. The contract's value is within the expected range for specialized IT development services for a federal agency of this size.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of four bidders (no) suggests a moderate level of competition for this specific task order. While four bidders is not exceptionally high, it does provide some assurance that the pricing was vetted against multiple offers, potentially leading to better price discovery than a sole-source award.

Taxpayer Impact: A full and open competition, even with a moderate number of bidders, generally benefits taxpayers by promoting competitive pricing and encouraging contractors to offer their best value propositions.

Public Impact

The primary beneficiaries are the Department of Labor's OASAM division, which will receive enhanced IT application development and support. Services delivered include custom computer programming, essential for maintaining and improving the agency's enterprise web services. The geographic impact is primarily within the District of Columbia, where the Department of Labor is headquartered. The contract supports a workforce skilled in IT application development, potentially including programmers, analysts, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the performance period.
Dependency on a single contractor for critical IT application development could pose a risk if performance issues arise.
Ensuring the contractor maintains up-to-date cybersecurity practices is crucial for protecting sensitive government data.

Positive Signals

Awarded through full and open competition, which typically leads to better value and pricing.
Long performance period suggests a stable, ongoing need that the contractor is expected to fulfill reliably.
The contractor, Soft Tech Consulting, Inc., has experience in providing IT services, as indicated by its presence in the federal contracting space.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The federal IT services market is vast and highly competitive, with agencies increasingly relying on contractors for specialized development and maintenance. Comparable spending benchmarks for IT application development support can vary widely based on agency size, complexity of systems, and specific service requirements. The Department of Labor's IT spending is significant, and this contract represents a portion of their investment in maintaining and modernizing their digital infrastructure.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication that Soft Tech Consulting, Inc. is a small business. Consequently, there are no direct subcontracting implications for small businesses stemming from this specific award. The absence of a small business set-aside means that opportunities for small business participation are not mandated under this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Labor's OASAM. Accountability measures are embedded in the contract's performance standards and deliverables. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Application Development Services
Custom Computer Programming Services
Enterprise Web Services Support
Department of Labor IT Contracts
BPA Call Task Orders

Risk Flags

Potential for vendor lock-in if transition planning is inadequate.
Cybersecurity risks associated with handling sensitive government data.
Performance variability based on contractor's resource allocation and staff expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $11.5 million to SOFT TECH CONSULTING, INC.. BLS TASK ORDER 15: IT APPLICATION DEVELOPMENT SUPPORT FOR THE OTSP DIVISION OF ENTERPRISE WEB SERVICES PERIOD OF PERFORMANCE 07/01/2022 - 05/29/2026

Who is the contractor on this award?

The obligated recipient is SOFT TECH CONSULTING, 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 $11.5 million.

What is the period of performance?

Start: 2022-06-09. End: 2026-07-11.

What is the track record of Soft Tech Consulting, Inc. in performing similar IT application development contracts for the federal government?

Soft Tech Consulting, Inc. has a history of performing IT services for the federal government. While specific details on past performance for similar application development contracts require deeper analysis of contract databases, their presence as an awardee suggests they possess the necessary qualifications and experience. Federal procurement data often shows patterns of successful contract completion, on-time delivery, and adherence to technical specifications for companies that consistently win awards. Further investigation into their past performance ratings and any past performance questionnaires associated with previous contracts would provide a more comprehensive understanding of their capabilities and reliability in delivering complex IT solutions.

How does the awarded value compare to similar IT application development contracts for federal agencies of comparable size and mission?

Comparing the awarded value of $11.48 million for IT application development support to similar contracts requires access to detailed data on contract scope, duration, and specific services rendered. Federal IT contracts can vary significantly in price due to differences in complexity, technology stacks, labor rates, and the specific needs of the agency. However, for a four-year engagement supporting enterprise web services within a major federal department like Labor, this value appears to be within a reasonable range. Agencies often benchmark against publicly available contract data, but precise comparisons are difficult without normalizing for factors like geographic location, security requirements, and the level of specialized expertise required.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure successful delivery?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided data. However, typical KPIs for IT application development support contracts include metrics related to system uptime, response times for bug fixes, development cycle times, adherence to project milestones, and the quality of code produced (e.g., defect density). SLAs would define the expected performance levels for these metrics, often with associated remedies or penalties for non-compliance. The contracting officer and the technical point of contact within the Department of Labor would be responsible for monitoring these KPIs and SLAs to ensure the contractor meets the required standards throughout the contract's duration.

What is the historical spending pattern for IT application development support within the Department of Labor's OASAM division?

Historical spending patterns for IT application development support within the Department of Labor's OASAM division would reveal the agency's consistent investment in these services. Analyzing past contracts awarded for similar functions would indicate whether this $11.48 million award represents an increase, decrease, or stable level of expenditure. Such analysis could also highlight trends in contracting approaches, such as shifts between full and open competition versus other methods, or changes in the types of services procured. Understanding this historical context is crucial for assessing the long-term IT strategy of OASAM and the sustainability of its IT development capabilities.

Are there any identified risks related to the contractor's financial stability or past performance that could impact contract execution?

The provided data does not contain specific information regarding the financial stability or detailed past performance risks associated with Soft Tech Consulting, Inc. for this particular contract. Federal agencies typically conduct due diligence, including reviewing past performance information and financial health assessments, before awarding significant contracts. However, potential risks can emerge over the life of a contract. These could include unforeseen financial difficulties for the contractor, key personnel departures, or performance issues that deviate from contractual requirements. Continuous monitoring by the government contracting team is essential to identify and mitigate such risks proactively.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4229 LAFAYETTE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $11,601,300

Exercised Options: $11,601,300

Current Obligation: $11,475,952

Actual Outlays: $10,239,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1605TA20A0005

IDV Type: BPA

Timeline