Department of Labor awards $28M contract for business application support to Agile Decision Sciences, LLC

Contract Overview

Contract Amount: $28,025,459 ($28.0M)

Contractor: Agile Decision Sciences, LLC

Awarding Agency: Department of Labor

Start Date: 2024-02-21

End Date: 2026-08-20

Contract Duration: 911 days

Daily Burn Rate: $30.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OFFICE OF WORKERS COMPENSATION PROGRAMS BUSINESS APPLICATION SUPPORT (OBAS) SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Labor obligated $28.0 million to AGILE DECISION SCIENCES, LLC for work described as: OFFICE OF WORKERS COMPENSATION PROGRAMS BUSINESS APPLICATION SUPPORT (OBAS) SERVICES Key points: 1. Contract focuses on essential business application support services for the Office of Workers Compensation Programs. 2. Agile Decision Sciences, LLC, a relatively new entity, secured this significant award. 3. The contract duration extends over two years, indicating a need for sustained support. 4. Performance is expected in Alabama, suggesting a localized operational focus. 5. The award method, 'Full and Open Competition After Exclusion of Sources,' warrants further examination for its implications on competition. 6. The contract type is 'Labor Hours,' which can introduce variability in final costs based on actual hours worked.

Value Assessment

Rating: fair

The total contract value is $28,025,459.23 over approximately 2.5 years. Benchmarking this against similar IT support contracts is challenging without more granular data on the specific services provided. The 'Labor Hours' pricing structure means the final value is contingent on actual hours expended, making a direct comparison to fixed-price contracts difficult. The contract was awarded to Agile Decision Sciences, LLC, which appears to be a newer entrant in the federal contracting space, potentially impacting its established pricing benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded using 'Full and Open Competition After Exclusion of Sources.' This specific procurement method suggests that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The exact reasons for this exclusion are not detailed in the provided data. The number of bidders is not specified, but the method implies a potentially narrower field of competition than a standard 'Full and Open' competition, which could influence price discovery.

Taxpayer Impact: The exclusion of certain sources, even in an otherwise open competition, may limit the potential for the most competitive pricing for taxpayers. A more broadly open competition could have yielded more bids and potentially lower overall costs.

Public Impact

The Office of Workers Compensation Programs (OWCP) will benefit from enhanced business application support, potentially leading to more efficient operations. Employees within OWCP will have access to improved IT services, aiding their daily tasks and program administration. The contract's performance location in Alabama may create or sustain local IT support jobs. The services delivered are critical for the functioning of a key Department of Labor agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Labor Hours' contract type introduces cost uncertainty, as the final price depends on actual hours worked, potentially exceeding initial estimates.
The procurement method 'Full and Open Competition After Exclusion of Sources' raises questions about the breadth of competition and potential impact on cost savings.
Agile Decision Sciences, LLC's track record and experience with similar large-scale federal contracts are not detailed, posing a potential performance risk.
The specific nature of 'business application support' is broad and could encompass a wide range of services, making it difficult to assess value without further detail.

Positive Signals

The contract aims to provide essential support for critical government functions within the Department of Labor.
The award signifies a commitment to maintaining and improving the IT infrastructure supporting workers' compensation programs.
The duration of the contract suggests a stable, long-term need for these services, providing predictability for the contractor and agency.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. This sector encompasses a wide range of services, from custom software development to IT support and integration. Federal spending in this area is consistently high, driven by the need for agencies to modernize systems, manage data, and improve operational efficiency. Comparable spending benchmarks would typically involve analyzing IT support contracts across various agencies for similar scope and duration.

Small Business Impact

The provided 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. However, the prime contractor, Agile Decision Sciences, LLC, may choose to subcontract portions of the work to small businesses as part of its overall business strategy, though this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Labor's contracting officers and program managers within the Office of the Assistant Secretary for Administration and Management (OASAM). The contract's performance will be monitored against established deliverables and service level agreements. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Professional Services
Software Development Services
IT Operations and Maintenance
Business Application Support
Federal IT Modernization Programs

Risk Flags

Limited Competition Due to Source Exclusion
Potential Cost Overruns with Labor Hours Pricing
Uncertainty Regarding Contractor's Performance History
Broad Scope of Services Requires Careful Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $28.0 million to AGILE DECISION SCIENCES, LLC. OFFICE OF WORKERS COMPENSATION PROGRAMS BUSINESS APPLICATION SUPPORT (OBAS) SERVICES

Who is the contractor on this award?

The obligated recipient is AGILE DECISION SCIENCES, 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 $28.0 million.

What is the period of performance?

Start: 2024-02-21. End: 2026-08-20.

What is the specific nature of the 'business application support' required under this contract?

The provided data identifies the contract as 'OFFICE OF WORKERS COMPENSATION PROGRAMS BUSINESS APPLICATION SUPPORT (OBAS) SERVICES' and the North American Industry Classification System (NAICS) code as 541512 for Computer Systems Design Services. While this indicates IT-related support, the precise functions are not detailed. Typically, such services could include help desk support, system maintenance, software updates, troubleshooting, user training, and potentially minor enhancements or configuration changes for the business applications used by the Office of Workers Compensation Programs (OWCP). A deeper dive into the contract's Statement of Work (SOW) would be necessary to ascertain the full scope of responsibilities.

How does the pricing structure ('Labor Hours') compare to other federal IT support contracts?

Contracts priced on a 'Labor Hours' basis are common for IT support and services where the exact effort required can be variable and difficult to predict upfront. This contrasts with fixed-price contracts, which offer more cost certainty but may require more detailed scope definition. For federal agencies, 'Labor Hours' contracts can be flexible, allowing them to scale support up or down based on actual needs. However, they also carry a risk of cost overruns if not managed diligently. Benchmarking requires comparing the hourly rates for specific labor categories (e.g., senior analyst, junior technician) against government-wide IT service contracts or agency-specific rate agreements to assess if they are competitive and reasonable for the skill sets required.

What are the potential risks associated with Agile Decision Sciences, LLC being a relatively newer entity in federal contracting?

When a contractor is a newer entity, potential risks can include a less established track record of performance on large-scale federal contracts, potentially limited financial depth to absorb unexpected project costs, and less familiarity with the nuances of federal procurement regulations and agency-specific processes. While the government typically vets contractors, a shorter history might mean less data available for assessing past performance and reliability. This could translate to a higher risk of project delays, cost overruns, or quality issues if the contractor encounters unforeseen challenges. However, newer companies can also bring innovation and competitive pricing.

What does 'Full and Open Competition After Exclusion of Sources' imply for the level of competition and taxpayer value?

The procurement method 'Full and Open Competition After Exclusion of Sources' is a specific type of solicitation. It means that the agency intended to compete the requirement broadly but identified specific sources that were excluded from consideration *before* the solicitation was issued. The reasons for exclusion must be justified (e.g., based on specific capabilities, prior performance issues, or statutory limitations). While it's a form of open competition, the exclusion inherently limits the pool of potential bidders compared to a standard 'Full and Open' competition. This reduced competition could potentially lead to less aggressive pricing and therefore less optimal value for taxpayers, as the agency might not receive the lowest possible price achievable with a wider range of bidders.

What is the historical spending pattern for OBAS services within the Department of Labor?

The provided data focuses on a single, current contract award. To understand historical spending patterns for OBAS services, one would need to analyze federal procurement databases (like FPDS or USASpending) for previous contracts awarded by the Department of Labor, specifically to the Office of Workers Compensation Programs (OWCP) or related entities, for similar business application support or IT services. This analysis would involve looking at contract values, durations, awardees, and procurement methods over several fiscal years to identify trends, average spending levels, and the typical competitive landscape for these types of services.

Are there any specific performance metrics or Service Level Agreements (SLAs) associated with this contract?

The provided summary data does not detail specific performance metrics or Service Level Agreements (SLAs). However, for a contract of this nature and value, it is highly probable that a detailed Statement of Work (SOW) is included, which outlines specific performance standards, deliverables, and KPIs. These would typically cover aspects like system uptime, response times for support requests, issue resolution rates, and user satisfaction. The contracting officer's representative (COR) would be responsible for monitoring adherence to these metrics throughout the contract period.

Industry Classification

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

Product/Service Code: 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: 1605TA-24-Q-00006

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 350 VOYAGER WAY STE 100B, HUNTSVILLE, AL, 35806

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,581,358

Exercised Options: $31,581,358

Current Obligation: $28,025,459

Actual Outlays: $23,253,267

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $1,870,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0256

IDV Type: GWAC

Timeline