HUD awards $5.17M for LOCCS operations and maintenance, with 3 bidders competing

Contract Overview

Contract Amount: $5,165,686 ($5.2M)

Contractor: Lamb Informatics Limited

Awarding Agency: Department of Housing and Urban Development

Start Date: 2024-04-01

End Date: 2026-03-31

Contract Duration: 729 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTRACTOR TO PROVIDE OPERATIONS AND MAINTENTANCE (O&M)SUPPORT SERVICES REQUIRED TO MAINTAIN LOCCS.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $5.2 million to LAMB INFORMATICS LIMITED for work described as: CONTRACTOR TO PROVIDE OPERATIONS AND MAINTENTANCE (O&M)SUPPORT SERVICES REQUIRED TO MAINTAIN LOCCS. Key points: 1. The contract focuses on essential operations and maintenance for the LOCCS system, indicating a need for ongoing support of a critical financial infrastructure. 2. With three bidders, the competition level suggests a moderate but not extensive market for these specialized IT support services. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of 729 days (approximately 2 years) aligns with typical O&M contract lengths for IT systems. 5. The contract's value is relatively modest, suggesting it supports a specific, albeit important, function rather than a broad program. 6. The North American Industry Classification System (NAICS) code 541519 points to a general IT services category, potentially indicating a broad range of applicable skills.

Value Assessment

Rating: good

The contract value of approximately $5.17 million over two years for IT operations and maintenance appears reasonable given the scope. Benchmarking against similar O&M contracts for government financial systems would provide a more precise value-for-money assessment. The firm-fixed-price structure is a positive indicator for cost control. Without specific details on the LOCCS system's complexity, a direct comparison is challenging, but the price per day is roughly $7,086, which seems within a typical range for specialized IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders participating. This level of competition is adequate, suggesting that multiple vendors were aware of and capable of bidding on the requirement. While three bidders are better than one or two, a higher number could potentially drive prices down further and increase the range of innovative solutions. The agency's approach allowed for broad market participation.

Taxpayer Impact: The full and open competition with three bidders likely resulted in a fair market price for taxpayers, avoiding the premium often associated with sole-source or limited competition awards.

Public Impact

Federal agencies utilizing the LOCCS system will benefit from uninterrupted operations and maintenance, ensuring the continuity of financial management processes. The services delivered will maintain the functionality and reliability of a critical government financial system. The primary geographic impact is likely within the Department of Housing and Urban Development's operational centers, wherever LOCCS is accessed. The contract supports IT professionals, potentially including system administrators, network engineers, and help desk personnel, though specific workforce numbers are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if LOCCS is highly proprietary and requires specialized knowledge.
Risk of scope creep if maintenance requirements are not clearly defined and managed.
Dependence on a single contractor for critical system uptime could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Full and open competition suggests a competitive pricing environment.
Contract duration is reasonable for O&M, allowing for stable support.
Awarded by HUD, a major federal agency with established procurement processes.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on operations and maintenance for a government financial system. The market for IT O&M services is vast and highly competitive, with numerous companies offering specialized support. Comparable spending benchmarks for similar government IT O&M contracts vary widely based on system complexity, criticality, and duration. The value of $5.17 million over two years is moderate for federal IT spending, suggesting a focused support role rather than a large-scale system implementation or overhaul.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct beneficiaries of this award. However, the prime contractor, Lamb Informatics Limited, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem from this particular contract is minimal.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal Financial Management Systems
Government IT Operations and Maintenance
Financial Management Service (FMS) Contracts
Department of Housing and Urban Development IT Support

Risk Flags

Potential for system obsolescence given 'legacy' nature implied by LOCCS.
Dependence on a single contractor for critical system uptime.
Need for robust performance monitoring to ensure service levels are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $5.2 million to LAMB INFORMATICS LIMITED. CONTRACTOR TO PROVIDE OPERATIONS AND MAINTENTANCE (O&M)SUPPORT SERVICES REQUIRED TO MAINTAIN LOCCS.

Who is the contractor on this award?

The obligated recipient is LAMB INFORMATICS LIMITED.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-03-31.

What is the specific function and criticality of the LOCCS system that necessitates this O&M contract?

LOCCS stands for the Legacy Option Contract Control System. It is a critical financial management system used by the Department of Housing and Urban Development (HUD) and other federal agencies to manage and track federal grant obligations and payments. Its criticality stems from its role in ensuring the accurate and timely disbursement of funds, maintaining financial accountability, and complying with federal financial regulations. The O&M support ensures the system remains operational, secure, and capable of processing these vital financial transactions without interruption.

How does the contractor's past performance compare to similar IT O&M contracts?

Information regarding Lamb Informatics Limited's specific past performance on similar LOCCS O&M contracts or comparable federal IT O&M efforts is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, any contract disputes, or awards/debarments. Federal procurement databases often contain performance metrics, but these are not included here. Without this data, it's difficult to definitively benchmark their track record against industry standards or competitors for this specific type of critical system support.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, IT O&M contracts include metrics related to system uptime, response times for issue resolution, security patch implementation timelines, and data backup/recovery success rates. These KPIs are crucial for measuring the contractor's performance and ensuring the reliability and availability of the LOCCS system. The effectiveness of the contract is largely dependent on how well these performance standards are defined and monitored by HUD.

What is the historical spending trend for LOCCS O&M support by HUD?

The provided data only includes details for the current contract award (2024-2026). Historical spending trends for LOCCS O&M support by HUD are not available in this dataset. To analyze historical spending, one would need to query federal procurement databases (like FPDS) for previous contracts related to LOCCS O&M, looking at award amounts, durations, and contractors over several fiscal years. This would help identify patterns, potential cost increases or decreases, and the stability of funding for this function.

Are there any known risks or vulnerabilities associated with the LOCCS system that this contract aims to address?

The provided data does not explicitly detail known risks or vulnerabilities associated with the LOCCS system. However, any contract for O&M of a legacy system inherently addresses risks related to system obsolescence, security vulnerabilities, performance degradation, and potential failures. The 'operations and maintenance' scope suggests the contract is focused on proactive measures (preventive maintenance, updates) and reactive measures (troubleshooting, repairs) to mitigate these inherent risks and ensure continued system functionality and security.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 86615322Q00028

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4000 LEGATO RD STE 600, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,471,606

Exercised Options: $5,165,686

Current Obligation: $5,165,686

Actual Outlays: $3,757,082

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F347AA

IDV Type: FSS

Timeline