State Dept. Awards $3.45M for PeopleSoft GEMS O&M Support to Eagle Harbor Solutions LLC
Contract Overview
Contract Amount: $3,452,883 ($3.5M)
Contractor: Eagle Harbor Solutions LLC
Awarding Agency: Department of State
Start Date: 2024-03-17
End Date: 2025-09-16
Contract Duration: 548 days
Daily Burn Rate: $6.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: LABOR HOURS
Sector: IT
Official Description: PEOPLESOFT GEMS O&M SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20522
Plain-Language Summary
Department of State obligated $3.5 million to EAGLE HARBOR SOLUTIONS LLC for work described as: PEOPLESOFT GEMS O&M SUPPORT Key points: 1. Contract awarded for essential IT operations and maintenance. 2. Sole-source award raises questions about competition and potential cost savings. 3. Risk of vendor lock-in and potential for cost overruns due to limited competition. 4. Spending falls within the 'Other Computer Related Services' NAICS code.
Value Assessment
Rating: questionable
The contract's value of $3.45M for O&M support appears high given the sole-source nature. Without competitive bids, it's difficult to benchmark against similar contracts for PeopleSoft GEMS support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for the government.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, potentially leading to a less efficient use of resources.
Public Impact
Ensures continued operation of critical PeopleSoft GEMS system for the Department of State. Potential for increased costs due to lack of competitive bidding. Limited transparency on how the vendor was selected and pricing was determined.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Essential IT support for a critical system
Sector Analysis
This contract falls under IT services, specifically 'Other Computer Related Services'. Benchmarks for O&M support for large enterprise systems like PeopleSoft can vary widely, but sole-source awards often exceed competitive pricing.
Small Business Impact
The contract was awarded to Eagle Harbor Solutions LLC, a company that may or may not be a small business. The data does not specify if small business participation was a consideration or requirement for this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing is fair and reasonable and that the services provided are essential and effectively delivered.
Related Government Programs
- Other Computer Related Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for inflated costs due to lack of competitive pressure.
- Risk of vendor lock-in for critical IT systems.
- Limited transparency on vendor selection and pricing justification.
Tags
other-computer-related-services, department-of-state, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $3.5 million to EAGLE HARBOR SOLUTIONS LLC. PEOPLESOFT GEMS O&M SUPPORT
Who is the contractor on this award?
The obligated recipient is EAGLE HARBOR SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $3.5 million.
What is the period of performance?
Start: 2024-03-17. End: 2025-09-16.
What is the justification for the sole-source award, and was any market research conducted to confirm the necessity of this approach?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent requirements where only one vendor can meet the need. Without specific details, it's presumed the Department of State determined Eagle Harbor Solutions LLC possessed unique qualifications or that competition was not feasible or practical for this specific PeopleSoft GEMS O&M support.
How does the labor hour rate for this contract compare to industry benchmarks for similar PeopleSoft O&M support services, especially considering the sole-source nature?
Benchmarking labor hour rates for sole-source contracts is challenging as there's no direct competitive pricing. However, industry standards for experienced PeopleSoft O&M support professionals typically range from $150-$250 per hour, depending on skill set and location. The government should have conducted an independent government estimate (IGE) to validate the proposed rates against market data.
What mechanisms are in place to ensure the effectiveness and efficiency of the O&M support provided by Eagle Harbor Solutions LLC under this sole-source contract?
Effectiveness and efficiency are typically ensured through clearly defined Service Level Agreements (SLAs) within the contract, performance metrics, regular progress reviews, and robust contract management by the Department of State. The Contracting Officer's Representative (COR) plays a crucial role in monitoring performance and ensuring deliverables meet expectations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 19AQMM20R0215
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 3800 CENTERPOINT DR STE 502, 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: $3,511,110
Exercised Options: $3,511,110
Current Obligation: $3,452,883
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 19AQMM20D0095
IDV Type: IDC
Timeline
Start Date: 2024-03-17
Current End Date: 2025-09-16
Potential End Date: 2025-09-16 00:00:00
Last Modified: 2026-02-19
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