Department of Labor awards $5.1M IT support contract to Favor Techconsulting, LLC for 15 months

Contract Overview

Contract Amount: $5,105,154 ($5.1M)

Contractor: Favor Techconsulting, LLC

Awarding Agency: Department of Labor

Start Date: 2025-08-01

End Date: 2026-08-15

Contract Duration: 379 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: BLS LAN/WAN INFRASTRUCTURE AND IT HELP DESK SUPPORT SERVICES

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $5.1 million to FAVOR TECHCONSULTING, LLC for work described as: BLS LAN/WAN INFRASTRUCTURE AND IT HELP DESK SUPPORT SERVICES Key points: 1. Contract focuses on essential IT infrastructure and help desk services, critical for agency operations. 2. Favor Techconsulting, LLC, a new awardee, will provide these services. 3. The contract duration is over a year, indicating a need for sustained support. 4. The award was made under full and open competition, suggesting a competitive bidding process. 5. The specific services are categorized under Computer Systems Design, a broad IT sector. 6. The contract type is a Delivery Order, implying it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: fair

The contract value of $5.1 million over approximately 15 months for IT help desk and infrastructure support appears to be within a reasonable range for federal IT services. However, without specific details on the scope of services, number of users supported, or service level agreements, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for IT support services would provide a clearer picture of whether the pricing is competitive. The contract is a delivery order, which might indicate it was awarded under a pre-existing master contract, potentially influencing pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This indicates that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the 'exclusion of sources' phrasing is unusual and warrants further investigation, the 'full and open' aspect suggests a competitive environment. The number of bidders is not specified, but the competitive nature should theoretically drive price discovery and offer the government the best value.

Taxpayer Impact: A competitive award process generally benefits taxpayers by ensuring that the government receives services at a fair market price, minimizing the risk of overpayment and maximizing the efficient use of public funds.

Public Impact

Employees within the Department of Labor will benefit from reliable IT infrastructure and help desk support, ensuring operational continuity. The contract delivers essential IT services, including network maintenance, system support, and user assistance. The geographic impact is primarily within the Department of Labor's operational locations, likely concentrated in administrative centers. The contract supports the IT workforce by providing necessary tools and technical assistance for their daily tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires clarification to ensure no potential bidders were unfairly prevented from participating.
Lack of detailed performance metrics or service level agreements in the provided data makes it difficult to assess the contractor's performance expectations.
The specific IT infrastructure and help desk services are broadly defined, potentially leading to scope creep or ambiguity if not managed closely.

Positive Signals

The award was made under full and open competition, indicating a robust and fair bidding process.
The contract duration of over a year suggests a stable and predictable need for these critical IT services.
The services provided are fundamental to the agency's ability to function, ensuring essential IT support is available.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT infrastructure and support services. The market for IT services to the federal government is substantial, with agencies consistently outsourcing these functions to leverage specialized expertise and manage costs. Comparable spending benchmarks for IT help desk and systems design services vary widely based on scope, complexity, and service levels, but agencies typically allocate significant portions of their IT budgets to such support.

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 small business set-aside. The award to Favor Techconsulting, LLC, a single entity, does not inherently create opportunities for small business subcontractors unless it is part of a larger strategy by the prime contractor to engage them. Further analysis would be needed to determine if Favor Techconsulting has a history of subcontracting with small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract specialist within the Department of Labor's Office of the Assistant Secretary for Administration and Management. Performance monitoring would likely involve regular reviews of service delivery against contract requirements and performance standards. Transparency is generally maintained through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

IT Help Desk Services
Computer Systems Design Services
Network Infrastructure Support
IT Managed Services
Federal IT Procurement

Risk Flags

Competition Type Ambiguity: The 'exclusion of sources' clause requires further investigation to ensure fair competition.
Performance Metrics Unclear: Lack of specific performance standards makes assessing contractor effectiveness challenging.
Cybersecurity Risk: As with any IT contract, ensuring robust cybersecurity measures is paramount.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $5.1 million to FAVOR TECHCONSULTING, LLC. BLS LAN/WAN INFRASTRUCTURE AND IT HELP DESK SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is FAVOR TECHCONSULTING, 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 $5.1 million.

What is the period of performance?

Start: 2025-08-01. End: 2026-08-15.

What is the track record of Favor Techconsulting, LLC in performing similar federal IT support contracts?

Based on the provided data, Favor Techconsulting, LLC is a new awardee for this specific contract. Information regarding their past performance on similar federal IT support contracts is not detailed here. A comprehensive assessment would require reviewing their contract history in federal procurement databases (e.g., FPDS) to identify previous awards, performance evaluations, and any reported issues. Understanding their experience with LAN/WAN infrastructure and help desk support, particularly within a government context, is crucial for evaluating their capability to meet the Department of Labor's needs effectively and efficiently.

How does the awarded amount of $5.1 million compare to similar IT support contracts within the federal government?

The awarded amount of $5.1 million for approximately 15 months of IT help desk and infrastructure support services needs to be benchmarked against contracts with comparable scope, duration, and service levels. Federal IT support contracts can vary significantly in cost depending on factors such as the number of users supported, complexity of the network, required response times, and specific technologies involved. Without these details, a direct comparison is difficult. However, for a contract of this duration and general service category, $5.1 million is within the expected range for federal IT services, but a detailed analysis of service level agreements and user base would be necessary to determine if it represents excellent value for money.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks associated with this contract include potential underperformance by the contractor, scope creep, and cybersecurity vulnerabilities. Underperformance could lead to disruptions in IT services, impacting agency operations. Scope creep might result in cost overruns if not managed properly. Cybersecurity risks are inherent in IT support contracts, requiring robust security protocols. Mitigation strategies would typically involve clear performance standards and service level agreements (SLAs) in the contract, rigorous oversight by the contracting officer, regular performance reviews, and adherence to strict cybersecurity requirements mandated by the government. The 'exclusion of sources' in the competition type also presents a risk if it was not justified, potentially limiting competition and leading to suboptimal pricing.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring best value for taxpayers?

The 'full and open competition after exclusion of sources' approach is intended to ensure a competitive environment while potentially focusing the procurement on specific capabilities or market segments. When properly justified and executed, it can lead to competitive pricing and innovative solutions. However, the 'exclusion of sources' aspect requires careful scrutiny. If sources are excluded without a valid justification (e.g., specific technical requirements, past performance issues), it could limit competition, potentially leading to higher prices or less optimal solutions for taxpayers. The effectiveness hinges on the transparency and validity of the exclusion criteria and the breadth of the remaining competitive field.

What is the historical spending pattern for IT help desk and infrastructure support services at the Department of Labor?

Historical spending data for IT help desk and infrastructure support services at the Department of Labor would provide context for the current $5.1 million award. Analyzing past contracts in this category would reveal trends in contract values, durations, awarded contractors, and competition levels. This analysis helps determine if current spending is consistent with historical patterns, if there has been an increase or decrease in IT support costs, and whether the agency relies heavily on external contractors for these services. Understanding this history is vital for assessing the long-term IT budget and identifying potential efficiencies or areas of concern in federal IT spending.

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 - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605TA-25-Q-00045

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8075 LEESBURG PIKE STE 300, VIENNA, VA, 22182

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,160,231

Exercised Options: $7,160,231

Current Obligation: $5,105,154

Actual Outlays: $2,725,030

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $521,604

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00231

IDV Type: GWAC

Timeline