Labor's $8.1M IT App Dev BPA Re-competition Awarded to Digital Management LLC
Contract Overview
Contract Amount: $8,130,788 ($8.1M)
Contractor: Digital Management LLC
Awarding Agency: Department of Labor
Start Date: 2023-02-01
End Date: 2026-06-12
Contract Duration: 1,227 days
Daily Burn Rate: $6.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: LABOR HOURS
Sector: IT
Official Description: IT APPLICATION DEVELOPMENT BPA RE-COMPETITION. ESTABLISHING A NEW MULTIPLE-AWARD BPA FOR IT APPLICATION DEVELOPMENT SERVICES FOR SOFTWARE DEVELOPMENT, INFORMATION ENGINEERING, ARCHITECTURE AND DOCUMENTATION, REQUIREMENTS ANALYSIS AND TESTING, CONFIGU
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210
Plain-Language Summary
Department of Labor obligated $8.1 million to DIGITAL MANAGEMENT LLC for work described as: IT APPLICATION DEVELOPMENT BPA RE-COMPETITION. ESTABLISHING A NEW MULTIPLE-AWARD BPA FOR IT APPLICATION DEVELOPMENT SERVICES FOR SOFTWARE DEVELOPMENT, INFORMATION ENGINEERING, ARCHITECTURE AND DOCUMENTATION, REQUIREMENTS ANALYSIS AND TESTING, CONFIGU Key points: 1. The BPA aims to establish a new multiple-award contract for IT application development services. 2. Key services include software development, information engineering, and requirements analysis. 3. The contract is set for re-competition, indicating a review of existing capabilities. 4. The total estimated value is over $8.1 million, with a duration of nearly 3.5 years.
Value Assessment
Rating: good
The contract value of $8.1M over 3.5 years appears reasonable for IT application development services. Benchmarking against similar BPAs for IT services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors are allowed to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives competitive pricing and the best value for services.
Public Impact
Ensures continued access to critical IT application development services for the Department of Labor. Supports modernization and maintenance of government software and information systems. Provides opportunities for various IT service providers through a multiple-award BPA structure.
Waste & Efficiency Indicators
Waste Risk Score: 66 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined.
- Vendor lock-in risk if not managed effectively.
- Dependence on a limited number of awardees for specific expertise.
Positive Signals
- Re-competition ensures updated technology and services.
- Multiple-award BPA allows for flexibility and choice.
- Clear service categories (software dev, engineering, etc.) provide focus.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on application development. Spending benchmarks for IT services vary widely based on complexity and scope, but this BPA appears to be a moderate-sized award for its category.
Small Business Impact
The data indicates this BPA was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses may have limited direct opportunities unless they are subcontractors to the prime awardee.
Oversight & Accountability
The award of a BPA implies a structured procurement process. Ongoing oversight will be crucial to ensure task orders align with the BPA's scope and deliver value, with accountability resting with the Department of Labor's contracting officers.
Related Government Programs
- Other Computer Related Services
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Potential for vendor performance issues.
- Risk of cost overruns if not managed closely.
- Dependency on the prime contractor's ability to deliver.
- Changes in technology rendering developed applications obsolete quickly.
Tags
other-computer-related-services, department-of-labor, dc, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $8.1 million to DIGITAL MANAGEMENT LLC. IT APPLICATION DEVELOPMENT BPA RE-COMPETITION. ESTABLISHING A NEW MULTIPLE-AWARD BPA FOR IT APPLICATION DEVELOPMENT SERVICES FOR SOFTWARE DEVELOPMENT, INFORMATION ENGINEERING, ARCHITECTURE AND DOCUMENTATION, REQUIREMENTS ANALYSIS AND TESTING, CONFIGU
Who is the contractor on this award?
The obligated recipient is DIGITAL MANAGEMENT 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 $8.1 million.
What is the period of performance?
Start: 2023-02-01. End: 2026-06-12.
What is the specific breakdown of services expected under this BPA and how do they align with the Department of Labor's strategic IT goals?
The BPA covers IT application development services, including software development, information engineering, architecture, documentation, requirements analysis, and testing. These services are crucial for maintaining and modernizing the Department of Labor's IT infrastructure and supporting its mission-critical applications. A detailed alignment with strategic goals would require reviewing the specific task orders issued against the BPA and the agency's IT modernization roadmap.
What are the key performance indicators (KPIs) that will be used to measure the success and effectiveness of the services provided under this BPA?
Key performance indicators for IT application development BPAs typically include metrics such as on-time delivery, adherence to budget, software quality (e.g., defect rates), user satisfaction, and achievement of technical requirements. Specific KPIs would be defined in the individual task orders issued against the BPA, tailored to the unique needs of each project and overseen by the Department of Labor's contracting officers.
How will the Department of Labor ensure fair and equitable distribution of task orders among the multiple awardees to maximize competition and value?
The Department of Labor should implement a clear strategy for distributing task orders, potentially through a 'fair share' approach or by soliciting competitive proposals for each task order above a certain value threshold. This ensures that all awardees have opportunities to compete, fostering continued competition and driving value for the government. Transparency in the task order award process is key.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 1605TA-23-Q-00007
Offers Received: 5
Pricing Type: LABOR HOURS (Z)
Contractor Details
Address: 6550 ROCK SPRING DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,203,919
Exercised Options: $8,203,919
Current Obligation: $8,130,788
Actual Outlays: $7,646,507
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 1605TA20A0003
IDV Type: BPA
Timeline
Start Date: 2023-02-01
Current End Date: 2026-06-12
Potential End Date: 2026-06-12 00:00:00
Last Modified: 2025-12-15
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