Labor Department Awards $12.7M Contract for EDI Data Services to Telaforce LLC

Contract Overview

Contract Amount: $12,677,046 ($12.7M)

Contractor: Telaforce LLC

Awarding Agency: Department of Labor

Start Date: 2019-07-25

End Date: 2026-06-04

Contract Duration: 2,506 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CL::IGF DATA COLLECTION AND PROCESSING SERVICES FOR THE EDI PROJECT

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60604

State: Illinois Government Spending

Plain-Language Summary

Department of Labor obligated $12.7 million to TELAFORCE LLC for work described as: IGF::CL::IGF DATA COLLECTION AND PROCESSING SERVICES FOR THE EDI PROJECT Key points: 1. Contract value of $12.7 million for data collection and processing. 2. Awarded to Telaforce LLC under full and open competition. 3. Potential risk associated with contract duration and labor hours. 4. Sector is Marketing Research and Public Opinion Polling (NAICS 541910).

Value Assessment

Rating: fair

The contract is for labor hours, making direct price comparison difficult. The total award value of $12.7 million over approximately 2506 days suggests a daily burn rate of around $5,000, which needs further context against market rates for similar services.

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 a competitive process. This method generally promotes price discovery and ensures fair market value is sought.

Taxpayer Impact: Taxpayer funds are being used for essential data services, with competition aiming to ensure efficient use of these funds.

Public Impact

Ensures continued operation of the EDI project through data services. Supports the Department of Labor's administrative and management functions. Potential for job creation through contract execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Marketing Research and Public Opinion Polling sector involves gathering and analyzing data for various purposes. Spending in this sector can vary widely based on project scope and duration, but this contract appears substantial for its type.

Small Business Impact

The data does not indicate if this contract included provisions for small business participation or subcontracting. Further review would be needed to determine the impact on small businesses.

Oversight & Accountability

The contract is managed by the Office of the Assistant Secretary for Administration and Management. Oversight would focus on performance, delivery, and adherence to contract terms.

Related Government Programs

Risk Flags

Tags

marketing-research-and-public-opinion-po, department-of-labor, il, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $12.7 million to TELAFORCE LLC. IGF::CL::IGF DATA COLLECTION AND PROCESSING SERVICES FOR THE EDI PROJECT

Who is the contractor on this award?

The obligated recipient is TELAFORCE 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 $12.7 million.

What is the period of performance?

Start: 2019-07-25. End: 2026-06-04.

What is the specific nature of the EDI project and how critical are these data services to its success?

The EDI project's specific nature is not detailed in the provided data. However, data collection and processing services are fundamental to many projects, especially those involving research, analysis, or system operations. Understanding the project's objectives and the criticality of these services would help assess the value proposition of the $12.7 million award.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract to ensure effectiveness?

The provided data does not specify performance metrics or KPIs for this contract. Effective oversight would require clearly defined KPIs related to data accuracy, timeliness, processing efficiency, and overall project support to gauge the contractor's performance and ensure the government receives the expected value.

What is the potential for cost overruns given the labor hour contract type and long duration?

Contracts based on labor hours and with a long duration inherently carry a risk of cost overruns if not managed diligently. Factors like changing labor rates, scope creep, or inefficiencies in service delivery can inflate costs. Robust monitoring and strong contract management are crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesMarketing Research and Public Opinion Polling

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1625DCR00003

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Telaforce, LLC

Address: 1501 MERCHANTS WAY, NICEVILLE, FL, 32578

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $123,911,105

Exercised Options: $13,173,764

Current Obligation: $12,677,046

Actual Outlays: $10,036,017

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2019-07-25

Current End Date: 2026-06-04

Potential End Date: 2026-06-04 00:00:00

Last Modified: 2026-04-03

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