Department of Education awards $35.6M for IT operations and maintenance support to OptumServe

Contract Overview

Contract Amount: $35,664,054 ($35.7M)

Contractor: Optumserve Technology Services, Inc.

Awarding Agency: Department of Education

Start Date: 2020-06-26

End Date: 2025-06-25

Contract Duration: 1,825 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS REQUIREMENT IS FOR OPERATIONS AND MAINTENANCE SUPPORT OF THE U.S. DEPARTMENT OF EDUCATION'S OFFICE OF BUSINESS SUPPORT SERVICES SYSTEM SUPPORT SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $35.7 million to OPTUMSERVE TECHNOLOGY SERVICES, INC. for work described as: THIS REQUIREMENT IS FOR OPERATIONS AND MAINTENANCE SUPPORT OF THE U.S. DEPARTMENT OF EDUCATION'S OFFICE OF BUSINESS SUPPORT SERVICES SYSTEM SUPPORT SERVICES. Key points: 1. Contract focuses on essential IT systems supporting business operations. 2. Long-term contract duration suggests a need for stable, ongoing support. 3. Firm Fixed Price contract type aims to control costs and provide predictability. 4. Operations and maintenance focus indicates a mature system requiring upkeep. 5. The award is a BPA Call, suggesting it leverages an existing framework agreement. 6. No small business set-aside was utilized for this specific award.

Value Assessment

Rating: fair

The contract value of $35.6 million over five years for IT operations and maintenance support appears within a reasonable range for a federal agency of this size. Benchmarking against similar contracts for custom computer programming services (NAICS 541511) is challenging without more specific details on the scope of services. However, the firm-fixed-price structure suggests an effort to manage costs effectively. Further analysis would require comparing the specific deliverables and service levels to industry standards and other government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of a BPA Call suggests that the underlying contract vehicle was also competed.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative solutions, thereby ensuring better value for public funds.

Public Impact

Benefits the Department of Education by ensuring the continuous operation of critical business support systems. Delivers essential IT operations and maintenance services. Geographic impact is primarily within Washington D.C., where the Department is headquartered. Workforce implications include the potential for IT professionals to be employed by the contractor to fulfill these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs in the provided data makes it difficult to assess the quality of service.
The duration of the contract (5 years) could lead to vendor lock-in if not managed carefully.
Reliance on a single BPA Call award might limit future competition if the underlying BPA is not re-competed broadly.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Full and open competition suggests a robust bidding process.
Awarding to OptumServe, a known entity in government contracting, may indicate a level of trust in their capabilities.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on custom computer programming services and IT support. The market for IT operations and maintenance services for federal agencies is substantial, with significant spending allocated annually. This contract represents a portion of the Department of Education's IT budget, aimed at maintaining its internal business support infrastructure. Comparable spending benchmarks would typically involve analyzing IT support contracts across various federal agencies with similar operational needs.

Small Business Impact

This contract was not awarded as a small business set-aside. The data indicates that the contractor, OptumServe Technology Services, Inc., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific BPA Call award. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this particular contract are limited unless they are part of the larger contractor's supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Education's contracting officers and program managers. As a firm-fixed-price contract, performance standards and deliverables are key to monitoring. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

Department of Education IT Modernization Efforts
Federal Civilian Agency IT Operations Support
Custom Computer Programming Services Contracts
IT Operations and Maintenance Services
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on contractor performance for critical business operations.
Risk of outdated technology if maintenance does not include modernization planning.
Cybersecurity vulnerabilities inherent in any IT system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $35.7 million to OPTUMSERVE TECHNOLOGY SERVICES, INC.. THIS REQUIREMENT IS FOR OPERATIONS AND MAINTENANCE SUPPORT OF THE U.S. DEPARTMENT OF EDUCATION'S OFFICE OF BUSINESS SUPPORT SERVICES SYSTEM SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is OPTUMSERVE TECHNOLOGY SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $35.7 million.

What is the period of performance?

Start: 2020-06-26. End: 2025-06-25.

What is the specific scope of 'operations and maintenance support' for the U.S. Department of Education's Office of Business Support Services System?

The provided data indicates the contract is for 'operations and maintenance support of the U.S. Department of Education's Office of Business Support Services System Support Services.' While the exact scope is not detailed, typical operations and maintenance support for such systems includes ensuring system availability, performing routine updates and patches, managing user access, troubleshooting issues, providing help desk support, and maintaining system documentation. It likely covers the infrastructure, software, and databases that enable the Office of Business Support Services to function. The firm-fixed-price nature suggests that a defined set of services and service levels are expected to be delivered consistently throughout the contract period.

How does the $35.6 million contract value compare to historical spending on similar IT support services at the Department of Education?

Without access to historical spending data specifically for the Office of Business Support Services System Support Services, a direct comparison is difficult. However, $35.6 million over five years (approximately $7.1 million annually) for comprehensive IT operations and maintenance for a federal agency's business support systems is not uncommon. To provide a precise comparison, one would need to analyze past contracts for similar functions within the Department of Education or other agencies of comparable size and complexity. Factors such as the number of users supported, the criticality of the systems, and the specific technologies involved would influence historical spending patterns.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure value for money?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. However, for an operations and maintenance contract of this nature, common KPIs and SLAs would likely include system uptime percentages (e.g., 99.9% availability), response times for incident resolution (categorized by severity), patch management timelines, user satisfaction ratings, and adherence to security protocols. The firm-fixed-price structure implies that the contractor is obligated to meet certain performance standards, and the Department of Education's contracting officer would be responsible for monitoring adherence to these standards to ensure value for money is achieved.

What is the track record of OptumServe Technology Services, Inc. in providing similar IT operations and maintenance services to federal agencies?

OptumServe Technology Services, Inc. has a significant presence in federal contracting, often providing a range of IT and health services. While specific details on their track record for *this exact type* of system support at the Department of Education are not in the provided data, their broader experience suggests they possess the capabilities to manage complex IT environments. A thorough assessment would involve reviewing their past performance evaluations (e.g., CPARS reports) for similar contracts, looking at their history with other civilian agencies, and examining any past issues or commendations related to IT operations and maintenance.

Given this is a BPA Call, what does it imply about the underlying Blanket Purchase Agreement (BPA) and its competition?

A BPA Call indicates that this specific task order was placed against an existing Blanket Purchase Agreement (BPA). BPAs are simplified acquisition vehicles that agencies can establish with vendors to streamline the purchasing of recurring needs. The fact that this is a 'BPA Call' suggests the underlying BPA itself was likely established through a competitive process (though the data specifies 'FULL AND OPEN COMPETITION' for *this award*, implying the BPA itself might have been competed or was established under a previously competed contract). The existence of a BPA often allows for faster ordering and potentially pre-negotiated pricing, but the competition for the BPA itself is crucial for ensuring long-term value.

Are there any specific cybersecurity requirements or risks associated with the systems being supported under this contract?

The provided data does not detail specific cybersecurity requirements or risks. However, any IT system supporting a federal agency, especially one handling business operations, is subject to stringent cybersecurity mandates under regulations like FISMA (Federal Information Security Modernization Act). This would typically involve requirements for access controls, data encryption, vulnerability management, incident response, and regular security audits. The contractor, OptumServe, would be expected to adhere to the Department of Education's cybersecurity policies and relevant federal standards. Potential risks could include data breaches, system outages due to cyber-attacks, or non-compliance with security protocols.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Unitedhealth Group Incorporated

Address: 10480 LITTLE PATUXENT PKWY SUITE 310, COLUMBIA, MD, 21044

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $36,180,525

Exercised Options: $35,664,054

Current Obligation: $35,664,054

Actual Outlays: $37,031,708

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 91990020A0005

IDV Type: BPA

Timeline