Education Department awards $7.5M for WebSphere Portal and Linux upgrades to OptumServe

Contract Overview

Contract Amount: $7,513,867 ($7.5M)

Contractor: Optumserve Technology Services, Inc.

Awarding Agency: Department of Education

Start Date: 2024-09-30

End Date: 2026-11-30

Contract Duration: 791 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: G5 UPGRADE FOR WEBSPHERE PORTAL AND LINUX COMPONENTS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $7.5 million to OPTUMSERVE TECHNOLOGY SERVICES, INC. for work described as: G5 UPGRADE FOR WEBSPHERE PORTAL AND LINUX COMPONENTS Key points: 1. Contract focuses on essential IT infrastructure upgrades for critical systems. 2. Competition was full and open, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks. 4. Performance period extends over two years, allowing for phased implementation. 5. Contractor has a track record in technology services, but specific performance on this contract is yet to be determined. 6. Small business participation is not explicitly detailed, requiring further investigation.

Value Assessment

Rating: good

The contract value of $7.5 million for upgrading WebSphere Portal and Linux components appears reasonable for a two-year duration. Benchmarking against similar IT infrastructure upgrade contracts is challenging without more specific details on the scope of work and the exact versions of software being upgraded. However, the firm-fixed-price nature of the award provides cost certainty for the agency. The award to OptumServe Technology Services, Inc. suggests a selection based on technical capabilities and potentially past performance, though a detailed comparison would require access to the full proposal evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but a full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency's decision to use this procurement method suggests confidence in the market's ability to provide qualified vendors for this type of IT service.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through robust bidding and encourages vendors to offer their best pricing and solutions.

Public Impact

The primary beneficiaries are the Department of Education's IT operations, ensuring the stability and security of its WebSphere Portal and Linux systems. Services delivered include the upgrade and maintenance of critical software components, enhancing system performance and reducing vulnerabilities. The geographic impact is primarily within the District of Columbia, where the Department of Education is headquartered. Workforce implications may include the need for specialized IT personnel to manage and implement the upgrades, potentially benefiting skilled technology professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics in the provided data.
Potential for scope creep if upgrade requirements are not precisely defined.
Dependence on a single contractor for critical infrastructure upgrades.

Positive Signals

Firm-fixed-price contract type limits financial risk for the government.
Full and open competition suggests a competitive market was leveraged.
Award to an established technology services provider.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming and system maintenance. The market for enterprise software upgrades, such as WebSphere Portal and Linux components, is substantial, with numerous vendors offering specialized services. The Department of Education's spending on such services is typical for large federal agencies requiring robust and secure IT infrastructure to support their operations. Comparable spending benchmarks would depend on the scale and complexity of the specific upgrade.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all eligible offerors, including large businesses. While there is no explicit subcontracting plan detailed, large prime contractors are often required to provide opportunities for small businesses. Further analysis would be needed to determine if small businesses are involved as subcontractors on this BPA call.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program's technical points of contact within the Department of Education. The firm-fixed-price nature of the award provides a degree of financial oversight by locking in costs. Transparency is facilitated by the contract award notice, which is publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Modernization
Software Licensing and Maintenance
Custom Software Development
Enterprise Resource Planning (ERP) Systems Support
Cloud Migration Services

Risk Flags

Potential for vendor lock-in if not managed carefully.
Dependence on specific software versions may limit future flexibility.
Cybersecurity risks associated with software vulnerabilities if upgrades are delayed or incomplete.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $7.5 million to OPTUMSERVE TECHNOLOGY SERVICES, INC.. G5 UPGRADE FOR WEBSPHERE PORTAL AND LINUX COMPONENTS

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 $7.5 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-11-30.

What is OptumServe Technology Services, Inc.'s track record with the Department of Education and similar federal agencies?

OptumServe Technology Services, Inc. has a history of performing technology services for federal agencies. While specific details on their past performance with the Department of Education for WebSphere Portal and Linux upgrades are not provided in this summary, their engagement suggests they possess the necessary qualifications. A deeper dive into contract databases like FPDS or SAM.gov would reveal the extent and nature of their prior work, including any performance evaluations or past issues. Examining their award history for similar IT infrastructure projects would provide further context on their capabilities and reliability in delivering complex technical solutions.

How does the $7.5 million contract value compare to similar IT infrastructure upgrade projects within the federal government?

Benchmarking the $7.5 million contract value requires a detailed understanding of the scope, complexity, and duration of the upgrade. For a two-year project involving WebSphere Portal and Linux components, this amount can be considered moderate. Larger, more complex infrastructure overhauls or migrations to cloud environments can easily run into tens or hundreds of millions of dollars. Conversely, smaller, more targeted upgrades might cost significantly less. Without specific details on the number of servers, the versions being upgraded, the level of customization, and the required support services, a precise comparison is difficult. However, the firm-fixed-price structure suggests the agency has a defined scope and budget, aiming for cost efficiency.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential technical challenges during the upgrade process, the possibility of unforeseen compatibility issues between new and existing systems, and the risk of vendor performance not meeting expectations. Mitigation strategies are primarily embedded in the contract type and the procurement process. The firm-fixed-price contract shifts the financial risk of cost overruns to the contractor. The full and open competition aims to select a vendor with proven capabilities. Additionally, the Department of Education will likely have technical oversight and performance monitoring in place to ensure the contractor meets the defined requirements and timelines. Clear statement of work and acceptance criteria are crucial for managing these risks.

What is the expected impact of these upgrades on the Department of Education's operational efficiency and security posture?

These upgrades are expected to enhance the operational efficiency and security posture of the Department of Education's IT infrastructure. Upgrading WebSphere Portal can lead to improved performance, better user experience, and access to new features. Modernizing Linux components enhances system stability, reduces the attack surface, and ensures compatibility with current security protocols. By addressing potential vulnerabilities in older software versions, the upgrades contribute to a stronger cybersecurity framework, protecting sensitive data and ensuring the continuity of critical government functions. This proactive maintenance is essential for maintaining a reliable and secure digital environment.

What has been the historical spending pattern for similar IT infrastructure services by the Department of Education?

The Department of Education, like many large federal agencies, consistently invests in IT infrastructure to maintain and modernize its systems. Historical spending patterns for similar services would likely show a recurring need for software maintenance, upgrades, and support for core platforms like WebSphere and Linux. The total annual IT spending for the department can be substantial, often in the hundreds of millions of dollars, allocated across various categories including hardware, software, personnel, and services. Specific spending on portal and operating system upgrades would fluctuate based on the lifecycle of existing technologies and the agency's strategic IT modernization plans. Analyzing past contract awards for similar services would reveal trends in vendor selection and contract values.

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 › IT AND TELECOM - IT MANAGEMENT

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: $10,073,025

Exercised Options: $7,513,867

Current Obligation: $7,513,867

Actual Outlays: $4,917,574

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 91990020A0005

IDV Type: BPA

Timeline