Department of Labor awards $4.5M for Youthbuild and Native American program case management system support

Contract Overview

Contract Amount: $4,512,510 ($4.5M)

Contractor: Appteon, Inc.

Awarding Agency: Department of Labor

Start Date: 2022-06-30

End Date: 2025-07-10

Contract Duration: 1,106 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: YOUTHBUILD (YB) AND DIVISION OF INDIAN NATIVE AMERICAN PROGRAM (DINAP) CASE MANAGEMENT SYSTEM SUPPORT SERVICES. 8(A) STARS III DIRECT AWARD.

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21210

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $4.5 million to APPTEON, INC. for work described as: YOUTHBUILD (YB) AND DIVISION OF INDIAN NATIVE AMERICAN PROGRAM (DINAP) CASE MANAGEMENT SYSTEM SUPPORT SERVICES. 8(A) STARS III DIRECT AWARD. Key points: 1. Contract awarded to Appteon, Inc. under the 8(a) STARS III GWAC, indicating a focus on small business participation. 2. The contract type is 'Delivery Order' against a larger GWAC, suggesting a phased or task-based approach to service delivery. 3. The duration of over 1000 days points to a long-term need for system support and maintenance. 4. The North American Industry Classification System (NAICS) code 541512 categorizes this as Computer Systems Design Services. 5. The contract was awarded under 'Full and Open Competition after Exclusion of Sources', a specific procurement method that warrants further review. 6. The base contract value is approximately $4.5 million, with a potential for growth based on task orders.

Value Assessment

Rating: fair

The contract value of $4.5 million for case management system support appears reasonable for a multi-year engagement. Benchmarking against similar IT support contracts for federal agencies is necessary for a definitive value assessment. The pricing structure, noted as 'LABOR HOURS', can sometimes lead to cost overruns if not managed tightly, but also offers flexibility. Without specific performance metrics or detailed cost breakdowns, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources' via the 8(a) STARS III GWAC. This GWAC is a Government-Wide Acquisition Contract specifically for small businesses. While the GWAC itself is competed, the 'exclusion of sources' language suggests that only certain pre-qualified small businesses under the 8(a) program were eligible for this specific award, limiting the overall pool of potential bidders.

Taxpayer Impact: This limited competition approach, while intended to support small businesses, may not always yield the most competitive pricing for taxpayers compared to a truly full and open competition among all eligible vendors.

Public Impact

The primary beneficiaries are the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). The services delivered will ensure the continued operation and support of case management systems for the Youthbuild (YB) and Division of Indian Native American Programs (DINAP). These systems are critical for managing programs that provide job training and employment services to disadvantaged youth and Native Americans. The geographic impact is national, supporting federal programs administered across the United States. The contract supports the IT workforce within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' procurement method limits the competitive landscape, potentially impacting price discovery.
The 'LABOR HOURS' contract type requires diligent oversight to prevent scope creep and cost overruns.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness of the support services.
The contract is awarded to a single vendor, limiting redundancy and alternative solutions.

Positive Signals

Awarded under the 8(a) STARS III GWAC, which is designed to provide a streamlined acquisition process for IT services from small businesses.
The contract duration of over three years suggests a stable and ongoing need for these critical system support services.
The services directly support important federal programs aimed at workforce development for underserved populations.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. The federal government is a significant consumer of such services, with spending often channeled through GWACs like 8(a) STARS III to facilitate efficient procurement from small businesses. The market for IT support services is competitive, with numerous firms offering specialized solutions. This contract represents a small portion of the overall federal IT spending, which runs into billions annually.

Small Business Impact

The contract is an 8(a) STARS III direct award, which is a GWAC specifically set aside for small businesses under the Small Business Administration's 8(a) Business Development program. This means the primary contractor, Appteon, Inc., is an eligible 8(a) small business. While this contract itself is not a 'small business set-aside' in the traditional sense (as it's competed among 8(a) firms), it directly supports the government's goal of awarding contracts to disadvantaged small businesses. There is no explicit information provided regarding subcontracting requirements or impact on the broader small business ecosystem beyond the direct award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's contracting officers and program managers. As a delivery order under a GWAC, the underlying GWAC contract (8(a) STARS III) has its own oversight mechanisms managed by the General Services Administration (GSA). Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

8(a) STARS III GWAC
Department of Labor IT Support Contracts
Federal Case Management Systems
Youthbuild Program
Division of Indian Native American Programs (DINAP)

Risk Flags

Limited competition due to 'Exclusion of Sources' and 8(a) STARS III vehicle.
Potential for cost overruns with 'LABOR HOURS' contract type if not managed effectively.
Dependence on a single contractor for critical system support.
Lack of publicly available detailed performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $4.5 million to APPTEON, INC.. YOUTHBUILD (YB) AND DIVISION OF INDIAN NATIVE AMERICAN PROGRAM (DINAP) CASE MANAGEMENT SYSTEM SUPPORT SERVICES. 8(A) STARS III DIRECT AWARD.

Who is the contractor on this award?

The obligated recipient is APPTEON, 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 $4.5 million.

What is the period of performance?

Start: 2022-06-30. End: 2025-07-10.

What is the track record of Appteon, Inc. in performing similar IT support services for federal agencies?

Appteon, Inc. has a history of performing IT services for federal agencies, including work under various contract vehicles. Their past performance data, often available through federal procurement databases, would indicate their experience with system design, integration, and support. Specific details on their success with case management systems or programs similar to Youthbuild and DINAP would be crucial for a comprehensive assessment. Reviewing past performance evaluations and any reported issues or successes would provide insight into their capability to fulfill the requirements of this contract effectively and efficiently.

How does the awarded price compare to market rates for similar Computer Systems Design Services?

Benchmarking the awarded price against market rates for similar Computer Systems Design Services (NAICS 541512) requires access to detailed pricing data and market analysis reports. The 'LABOR HOURS' pricing structure means the total cost depends on the hours worked and the rates charged. Comparing Appteon's proposed labor rates for different roles (e.g., system analysts, programmers, support technicians) against industry benchmarks and rates paid by other federal agencies for comparable skill sets is essential. Without this granular data, a precise comparison is difficult, but the overall contract value of $4.5 million for over three years suggests a moderate level of investment for system support.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not specify the key performance indicators (KPIs) or the performance measurement framework for this contract. Typically, IT support contracts include metrics related to system uptime, response times for issue resolution, user satisfaction, and adherence to service level agreements (SLAs). The Department of Labor's contracting officer and program managers are responsible for establishing and monitoring these KPIs. The effectiveness of the contractor's performance is usually documented through Contractor Performance Assessment Reporting System (CPARS) reports, which are critical for evaluating value and future contract awards.

What is the historical spending pattern for case management system support within the Department of Labor, particularly for the YB and DINAP programs?

Historical spending data for case management system support within the Department of Labor, specifically for the Youthbuild (YB) and Division of Indian Native American Programs (DINAP), would provide context for the current $4.5 million award. Analyzing past contracts for similar services, including their duration, value, and awarded contractors, can reveal trends in IT investment and support strategies. Understanding if this award represents an increase, decrease, or stable level of spending compared to previous periods is important. It also helps identify if there has been a consistent reliance on specific vendors or contract vehicles for these types of services.

What are the potential risks associated with the 'Full and Open Competition after Exclusion of Sources' procurement method used for this award?

The 'Full and Open Competition after Exclusion of Sources' method, while compliant with federal acquisition regulations, presents specific risks. Primarily, it limits the pool of potential bidders to those meeting certain criteria (in this case, likely 8(a) STARS III eligible firms). This reduced competition might lead to less favorable pricing or innovation compared to a broader competition. It also requires a clear justification for excluding other sources. The risk lies in potentially missing out on a more capable or cost-effective solution from a vendor not included in the limited pool. Ensuring the justification for exclusion was robust and that the selected vendor truly offers the best value is paramount.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605-CIO-22-NAT-0643

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Appteon Inc.

Address: 1893 METRO CENTER DR STE 106, RESTON, VA, 20190

Business Categories: 8(a) Program Participant, 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: $4,512,510

Exercised Options: $4,512,510

Current Obligation: $4,512,510

Actual Outlays: $4,512,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0380

IDV Type: GWAC

Timeline