DOL Awards $45.4M IT Support Contract to Favor Techconsulting, LLC

Contract Overview

Contract Amount: $45,387,349 ($45.4M)

Contractor: Favor Techconsulting, LLC

Awarding Agency: Department of Labor

Start Date: 2019-08-21

End Date: 2025-07-31

Contract Duration: 2,171 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT INFRASTRUCTURE SUPPORT AND HELP DESK.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20212

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $45.4 million to FAVOR TECHCONSULTING, LLC for work described as: IT INFRASTRUCTURE SUPPORT AND HELP DESK. Key points: 1. Contract value of $45.4M over its period of performance. 2. Favor Techconsulting, LLC is the sole awardee. 3. Potential risks include vendor lock-in and limited market research. 4. IT Infrastructure Support and Help Desk services are critical for agency operations.

Value Assessment

Rating: fair

The contract's total value is $45.4M. Without specific benchmarks for similar IT support and help desk contracts, assessing value for money is difficult. The 'Labor Hours' pricing type can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition. This method may not have yielded the best possible price due to restricted vendor participation.

Taxpayer Impact: Taxpayer funds are being used for this contract. The limited competition raises concerns about whether the government secured the most cost-effective solution.

Public Impact

Ensures continued IT support for the Department of Labor's operations. Supports essential help desk functions for agency employees. The contract duration extends to July 2025, providing stability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Labor hours pricing can be difficult to control.
No small business participation noted.

Positive Signals

Provides essential IT infrastructure support.
Long-term contract provides operational stability.

Sector Analysis

This contract falls under IT Services, specifically Computer Systems Design Services. Spending in this sector is substantial across federal agencies, with significant variation based on complexity and duration. Benchmarks are often specific to the type of service and agency size.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). There is no indication of small business subcontracting goals or participation within the provided details.

Oversight & Accountability

The contract was awarded by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Oversight would typically involve contract officers and program managers to ensure performance and cost control.

Related Government Programs

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

Risk Flags

Limited competition
Labor hours pricing
No small business participation
Lack of detailed justification for source exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $45.4 million to FAVOR TECHCONSULTING, LLC. IT INFRASTRUCTURE SUPPORT AND HELP DESK.

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 $45.4 million.

What is the period of performance?

Start: 2019-08-21. End: 2025-07-31.

What is the estimated cost per labor hour, and how does it compare to industry standards for similar IT support services?

The provided data does not specify the estimated cost per labor hour. To assess value, this information is crucial. A comparison against industry benchmarks for IT support and help desk services would reveal if the government is paying a competitive rate. Without this, it's difficult to determine if the $45.4M represents good value.

What were the specific justifications for excluding other sources, and were alternative competition strategies considered?

The justification for 'Full and Open Competition After Exclusion of Sources' is not detailed here. Typically, this requires a strong rationale, such as unique capabilities or prior successful performance. A thorough review of the justification is needed to ensure fair competition principles were upheld and that taxpayer funds were used responsibly.

How will the agency ensure effective performance and cost control given the labor hours pricing structure?

Effective oversight is key. The agency must implement robust performance monitoring, track labor hours diligently, and establish clear deliverables and service level agreements. Regular reviews and audits of invoices and performance metrics will be essential to prevent cost overruns and ensure the contractor meets the required IT support standards.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1625DC-18-Q-00010

Offers Received: 11

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: $46,834,424

Exercised Options: $46,834,424

Current Obligation: $45,387,349

Actual Outlays: $40,421,946

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N98118D00012

IDV Type: GWAC

Timeline