DOL Awards $9M for Ecomp Support Services to Arlluk Technology Solutions LLC

Contract Overview

Contract Amount: $9,007,685 ($9.0M)

Contractor: Arlluk Technology Solutions LLC

Awarding Agency: Department of Labor

Start Date: 2024-04-22

End Date: 2026-04-21

Contract Duration: 729 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OWCP OBAS ECOMP SUPPORT SERVICES.

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 $9.0 million to ARLLUK TECHNOLOGY SOLUTIONS LLC for work described as: OWCP OBAS ECOMP SUPPORT SERVICES. Key points: 1. Contract awarded for computer systems design services. 2. ARLLUK TECHNOLOGY SOLUTIONS LLC is the sole awardee. 3. The contract duration is 729 days. 4. The award is for Labor Hours pricing. 5. The contract was awarded under full and open competition after exclusion of sources.

Value Assessment

Rating: fair

The contract uses a labor hours pricing structure, which can be less predictable than fixed-price contracts. Benchmarking against similar contracts for computer systems design services is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating an attempt to broaden the competitive pool. However, the specific exclusion of sources warrants further investigation to understand its impact on price discovery.

Taxpayer Impact: The total award amount of $9,007,684.54 represents taxpayer funds allocated for essential IT support services.

Public Impact

Ensures continued operation of the OWCP OBAS ECOMP system. Supports critical administrative functions within the Department of Labor. Potential for cost overruns due to labor hours pricing. Impact on small businesses is not explicitly detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours pricing can lead to cost uncertainty.
Exclusion of sources in competition needs clarification.
No explicit small business participation noted.

Positive Signals

Awarded under full and open competition.
Supports essential government operations.
Clear start and end dates provided.

Sector Analysis

This contract falls under the IT sector, specifically computer systems design services. Spending benchmarks for similar services vary widely based on scope and complexity, but $9 million over two years for support services is a significant investment.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses in this procurement.

Oversight & Accountability

The contract's oversight will depend on the Department of Labor's internal controls and the contracting officer's monitoring of performance and costs, especially given the labor hours pricing structure.

Related Government Programs

Computer Systems Design Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns due to labor hours pricing.
Lack of clarity on the impact of 'exclusion of sources'.
No explicit small business participation mentioned.
Benchmarking difficulty without detailed scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $9.0 million to ARLLUK TECHNOLOGY SOLUTIONS LLC. OWCP OBAS ECOMP SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is ARLLUK TECHNOLOGY SOLUTIONS 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 $9.0 million.

What is the period of performance?

Start: 2024-04-22. End: 2026-04-21.

What specific services are included under 'ECOMP SUPPORT SERVICES' and how do they align with the NAICS code 541512?

The NAICS code 541512, Computer Systems Design Services, typically includes designing, developing, and implementing software and hardware solutions. 'ECOMP SUPPORT SERVICES' likely refers to the maintenance, operation, and enhancement of the Electronic Case Management system used by the Office of Workers' Compensation Programs (OWCP). This could encompass help desk support, system updates, troubleshooting, and potentially minor development work to ensure the system's functionality and efficiency.

What was the rationale for excluding specific sources during the full and open competition, and did this exclusion impact the final price?

The rationale for excluding specific sources during a 'full and open competition after exclusion of sources' needs to be clearly documented by the agency. Typically, such exclusions are based on specific technical requirements, existing infrastructure compatibility, or unique capabilities. Without this documentation, it's difficult to assess if the exclusion limited competition and potentially led to a higher price than might have been achieved otherwise. Further review of the solicitation documents is required.

How does the labor hours pricing model for this $9M contract ensure effective use of taxpayer funds for IT support?

The labor hours pricing model can pose a risk to effective use of taxpayer funds due to its inherent uncertainty in total cost. Unlike fixed-price contracts, the final cost is directly tied to the hours worked by contractor personnel. Effective oversight is crucial, requiring rigorous monitoring of labor hours, task completion, and adherence to the Statement of Work. The agency must ensure that the contractor is efficient and that the hours billed are reasonable and necessary for the services provided.

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 - IT MANAGEMENT

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-00039

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 700, ANCHORAGE, AK, 99503

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

Financial Breakdown

Contract Ceiling: $14,795,667

Exercised Options: $13,151,724

Current Obligation: $9,007,685

Actual Outlays: $7,137,611

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0302

IDV Type: GWAC

Timeline