OPM awards $29.9M for Blackboard engagement services to FOUR LLC, highlighting IT support needs

Contract Overview

Contract Amount: $29,920,643 ($29.9M)

Contractor: Four LLC

Awarding Agency: Office of Personnel Management

Start Date: 2020-05-03

End Date: 2024-03-31

Contract Duration: 1,428 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BLACKBOARD COMMUNITY ENGAGEMENT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $29.9 million to FOUR LLC for work described as: BLACKBOARD COMMUNITY ENGAGEMENT Key points: 1. Contract value of $29.9M over 4 years suggests a significant investment in IT services. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The 'Other Computer Related Services' NAICS code points to a focus on specialized IT support. 4. A single award indicates FOUR LLC was the sole successful bidder. 5. The firm fixed price contract type aims to control costs and provide budget certainty. 6. The contract duration of 1428 days (approx. 4 years) allows for sustained service delivery.

Value Assessment

Rating: fair

The contract value of $29.9M over approximately four years for 'Other Computer Related Services' is substantial. Benchmarking this against similar IT support contracts is challenging without more specific service details. However, the firm fixed price structure suggests an attempt to manage costs effectively. The absence of a specific PWS makes a detailed value assessment difficult, but the duration implies a need for ongoing, reliable support.

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,' which implies that while the competition was intended to be broad, specific sources may have been excluded prior to the solicitation. The data indicates only one award was made, suggesting that despite the open competition, only one offer was deemed acceptable or competitive enough. This level of competition, while technically open, might limit price discovery if only one viable bidder emerged.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in an open competition, even if only one bid was ultimately successful. The exclusion of sources clause warrants further scrutiny to ensure no artificial limitations were placed on the bidding pool.

Public Impact

Federal employees and agency personnel benefit from improved community engagement platforms and IT services. The contract supports the Office of Personnel Management's (OPM) mission to serve the federal workforce. Services are likely delivered within the District of Columbia, where OPM is headquartered. The contract supports IT service delivery and potentially the workforce involved in managing and utilizing these platforms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if 'exclusion of sources' significantly narrowed the field.
Lack of detailed performance metrics or specific deliverables makes assessing service quality challenging.
Reliance on a single vendor for critical IT engagement services could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a structured procurement process.
Firm fixed price contract type provides cost certainty for the government.
Long contract duration indicates a stable, ongoing need for these services.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on 'Other Computer Related Services.' This category often includes IT consulting, system integration, and support services not covered by more specific NAICS codes. The federal IT services market is vast, with agencies consistently investing in platforms and tools to enhance communication, collaboration, and operational efficiency. OPM's spending on engagement platforms aligns with a government-wide trend towards modernizing digital infrastructure and improving citizen and employee interaction.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on larger, potentially specialized IT service providers capable of meeting the contract's requirements.

Oversight & Accountability

Oversight for this contract would primarily reside with the Office of Personnel Management (OPM), the contracting agency. As a firm fixed-price contract, performance monitoring and acceptance of deliverables are key oversight mechanisms. Transparency is facilitated by the contract award data being publicly available. Depending on the nature of the services, OPM's internal audit functions or potentially the Government Accountability Office (GAO) could provide further accountability.

Related Government Programs

Federal IT Services
IT Consulting and Integration Services
Community Engagement Platforms
Software and Application Development
Cloud Computing Services

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed performance metrics in summary data.
Risk of vendor lock-in with a long-duration contract.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $29.9 million to FOUR LLC. BLACKBOARD COMMUNITY ENGAGEMENT

Who is the contractor on this award?

The obligated recipient is FOUR LLC.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $29.9 million.

What is the period of performance?

Start: 2020-05-03. End: 2024-03-31.

What specific services are included under 'Blackboard Community Engagement' and what is the expected outcome?

The contract specifies 'BLACKBOARD COMMUNITY ENGAGEMENT' as the service description, falling under NAICS code 541519 (Other Computer Related Services). While the exact deliverables are not detailed in the provided data, 'Community Engagement' typically refers to platforms and services designed to facilitate communication, collaboration, and information sharing among users, which in this context likely means federal employees, stakeholders, or potentially the public. Expected outcomes would include enhanced internal communication, improved knowledge sharing, streamlined collaboration on projects, and potentially better dissemination of information from OPM. The specific functionalities of the Blackboard platform utilized under this contract would dictate the precise services and outcomes.

How does the $29.9M contract value compare to historical OPM spending on similar IT services?

Without access to historical OPM spending data specifically for 'Blackboard Community Engagement' or comparable IT services, a direct comparison is difficult. However, $29.9 million over approximately four years represents a significant investment, averaging around $7.5 million annually. This suggests a substantial and ongoing need for the services provided. To provide a robust comparison, one would need to analyze OPM's contract history for IT support, software licensing, and platform management over the past several fiscal years, looking for contracts with similar scope, duration, and service categories (e.g., IT support, collaboration tools, custom software development).

What are the key risks associated with a firm fixed-price contract for IT engagement services?

The primary risk with a firm fixed-price (FFP) contract for IT engagement services is that the contractor may cut corners on quality or scope to maintain profitability if costs exceed expectations. For 'Blackboard Community Engagement,' this could manifest as reduced support responsiveness, fewer feature updates, or a less robust user experience. Conversely, if the government's requirements change significantly after award, scope adjustments under an FFP contract can be complex and costly, potentially leading to disputes. The government also bears the risk if the contractor's initial cost estimates were too low and they become unable to deliver adequately without additional funding or concessions.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause imply for the bidding process and potential bidders?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause indicates that the solicitation was intended to be open to all responsible sources, but specific sources were excluded prior to the issuance of the solicitation. This exclusion must be justified by the agency, often based on factors like national security, proprietary information, or specific capabilities. For potential bidders, it means that while the competition was theoretically broad, the pool of eligible offerors was intentionally narrowed. This could impact the level of competition and potentially the final price if the excluded sources were significant competitors. It also suggests that the agency had specific reasons for limiting the initial pool, which could be related to the specialized nature of the services or existing relationships.

What is the track record of FOUR LLC in providing similar IT services to the federal government?

Information regarding the specific track record of FOUR LLC in providing 'Blackboard Community Engagement' or similar IT services to the federal government is not detailed in the provided data snippet. To assess their track record, one would need to examine past federal contract awards to FOUR LLC, focusing on contracts within the 'Other Computer Related Services' (NAICS 541519) category or related IT support and platform management services. Key aspects to investigate would include contract performance reviews, any past performance issues or disputes, and the types and values of previous government contracts they have held. This information is typically available through federal procurement databases like SAM.gov or FPDS.

How does the contract's duration of 1428 days impact service continuity and potential vendor lock-in?

The contract duration of 1428 days (approximately 3 years and 11 months) provides significant service continuity for OPM's community engagement needs, ensuring a stable platform and support over an extended period. This long duration allows the contractor, FOUR LLC, to become deeply familiar with OPM's specific requirements and infrastructure. However, such a long commitment also increases the risk of vendor lock-in, where OPM might become heavily reliant on FOUR LLC's proprietary systems or processes, making it difficult and costly to switch vendors in the future. This necessitates careful performance management and regular reviews to ensure continued value and to mitigate the risks associated with long-term dependency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2303 DULLES STATION BLVD STE 105, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $29,920,643

Exercised Options: $29,920,643

Current Obligation: $29,920,643

Actual Outlays: $17,438,522

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC73B

IDV Type: GWAC

Timeline