Department of Labor's $79.6M IT Services Contract Awarded to INUTEQ, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $79,618,965 ($79.6M)

Contractor: Inuteq, LLC

Awarding Agency: Department of Labor

Start Date: 2013-04-17

End Date: 2018-10-21

Contract Duration: 2,013 days

Daily Burn Rate: $39.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF - OFFICE OF WORKER'S COMPENSATION PROGRAMS(OWCP)INFORMATION TECHNOLOGY SERVICES (OITS), U.S. DEPARTMENT OF LABOR HEADQUARTERS AGENCY, WASHINGTON, D.C.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $79.6 million to INUTEQ, LLC for work described as: IGF::CL::IGF - OFFICE OF WORKER'S COMPENSATION PROGRAMS(OWCP)INFORMATION TECHNOLOGY SERVICES (OITS), U.S. DEPARTMENT OF LABOR HEADQUARTERS AGENCY, WASHINGTON, D.C. Key points: 1. The contract represents a significant investment in IT services for the Office of Worker's Compensation Programs. 2. INUTEQ, LLC secured this award through a full and open competition process, indicating a competitive bidding environment. 3. The contract duration spans over five years, suggesting a need for sustained IT support. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. The award value of nearly $80 million warrants scrutiny for value for money and performance. 6. The IT services are categorized under Computer Systems Design Services, a common area for federal IT procurement.

Value Assessment

Rating: fair

Benchmarking the value of this $79.6 million contract is challenging without specific performance metrics or detailed service breakdowns. However, the duration of over five years suggests a substantial commitment. Comparing the per-unit cost or overall value to similar IT services contracts within the Department of Labor or other federal agencies would be necessary for a comprehensive assessment. The firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively.

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 typically means the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The presence of four bids (no) suggests a reasonable level of competition, which is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific exclusion of sources might warrant further investigation to understand if it limited the competitive landscape.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among bidders.

Public Impact

The primary beneficiaries are the Office of Worker's Compensation Programs (OWCP) within the Department of Labor, which will receive enhanced IT support. The services delivered are expected to include computer systems design and related IT support, crucial for the operational efficiency of OWCP. The contract is geographically focused on the District of Columbia, where the Department of Labor headquarters is located. The contract supports the federal workforce by ensuring the IT infrastructure is robust and reliable for program administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration and IT services nature.
Ensuring INUTEQ, LLC's performance consistently meets the evolving IT needs of OWCP.
Monitoring the effectiveness of the 'exclusion of sources' clause in maintaining robust competition.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Firm Fixed Price contract type provides cost certainty.
Multiple bids received indicate market interest and potential for competitive pricing.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. This is a large and dynamic sector within federal procurement, with agencies constantly seeking to modernize their IT infrastructure and systems. The market size for federal IT services is substantial, with billions of dollars spent annually across various agencies. This contract represents a portion of the Department of Labor's investment in maintaining and improving its technological capabilities to support its mission.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside requirement. The primary contractor, INUTEQ, LLC, is not explicitly identified as a small business in the provided data. Further analysis would be needed to determine if INUTEQ, LLC itself is a small business or if there are any subcontracting plans in place that would benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's contracting officers and program managers. The Inspector General's office for the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency is generally maintained through contract award databases and reporting requirements, though detailed performance reviews are often internal.

Related Government Programs

Department of Labor IT Modernization Efforts
Office of Worker's Compensation Programs IT Support
Federal Civilian Agency IT Services Contracts
Computer Systems Design Services Procurement

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Need to verify contractor's past performance on similar large-scale IT projects.
Understanding the rationale behind 'exclusion of sources' in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $79.6 million to INUTEQ, LLC. IGF::CL::IGF - OFFICE OF WORKER'S COMPENSATION PROGRAMS(OWCP)INFORMATION TECHNOLOGY SERVICES (OITS), U.S. DEPARTMENT OF LABOR HEADQUARTERS AGENCY, WASHINGTON, D.C.

Who is the contractor on this award?

The obligated recipient is INUTEQ, LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $79.6 million.

What is the period of performance?

Start: 2013-04-17. End: 2018-10-21.

What is the track record of INUTEQ, LLC in performing similar federal IT services contracts?

A review of federal procurement databases would be necessary to fully assess INUTEQ, LLC's track record. Information such as past performance ratings on similar contracts, any history of contract disputes or terminations, and the types and values of previous awards would provide crucial insights. Without this specific data, it is difficult to definitively comment on their past performance. However, securing a contract of this magnitude from the Department of Labor suggests they met the agency's requirements during the solicitation process. Further investigation into their past performance reviews and any publicly available data on their contract history is recommended for a comprehensive understanding of their capabilities and reliability.

How does the awarded amount of $79.6 million compare to similar IT services contracts for worker's compensation programs in other federal agencies?

Direct comparison of this $79.6 million contract to similar IT services contracts for worker's compensation programs across federal agencies is challenging without specific details on the scope of services, duration, and complexity. However, the amount suggests a significant investment in IT infrastructure and support for the Office of Worker's Compensation Programs (OWCP). Federal IT contracts can range widely in value, from a few million to hundreds of millions of dollars, depending on the agency's needs and the services procured. To benchmark effectively, one would need to identify contracts with comparable objectives, such as IT system design, development, maintenance, and support for program administration within agencies managing large-scale benefits or compensation programs. The duration of over five years also influences the total value, making it appear substantial.

What are the key performance indicators (KPIs) used to measure the success of this contract for INUTEQ, LLC?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. Typically, for IT services contracts, KPIs would focus on aspects such as system uptime and availability, response times for technical support, successful implementation of system upgrades or new features, adherence to security protocols, and user satisfaction. The contract's firm fixed-price nature suggests that performance metrics would be tied to deliverables and service level agreements (SLAs) to ensure the government receives the agreed-upon services within the established budget. The Department of Labor's contracting officer and program managers would be responsible for monitoring these KPIs throughout the contract's lifecycle.

What is the historical spending pattern for IT services within the Department of Labor's Office of Worker's Compensation Programs?

Analyzing the historical spending patterns for IT services within the Department of Labor's Office of Worker's Compensation Programs (OWCP) would require access to historical contract data and budget allocations. This contract, awarded in 2013 for a duration extending to 2018 with a value of $79.6 million, represents a significant expenditure over that period. To understand the pattern, one would look at the frequency and value of previous IT contracts awarded to OWCP, whether they were sole-source or competed, and the types of IT services procured. This would help determine if this $79.6 million award is an increase, decrease, or consistent with past IT investments. Without that historical data, it's difficult to establish a trend.

What are the potential risks associated with a five-year IT services contract, and how are they mitigated?

Potential risks associated with a five-year IT services contract include technological obsolescence, changes in agency requirements, contractor performance issues, and cost overruns (though mitigated by fixed-price). Technological obsolescence is a significant risk, as IT evolves rapidly; mitigation involves ensuring the contract includes provisions for technology refresh and adaptation. Changes in agency requirements can lead to scope creep, which is managed through strict change control processes and clear initial scope definition. Contractor performance is monitored through performance metrics and SLAs, with remedies for non-performance. While this is a firm fixed-price contract, mitigating cost risks for the government involves thorough initial cost analysis and ensuring the contractor has the capacity to absorb unforeseen expenses within the agreed price.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation (UEI: 076637073)

Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $182,241,003

Exercised Options: $155,631,784

Current Obligation: $79,618,965

Actual Outlays: $16,023,665

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $33,230,527

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS06F0846Z

IDV Type: GWAC

Timeline