OSHA Spends $43.6M on IT Services with OBXTEK, Raising Questions on Value and Competition

Contract Overview

Contract Amount: $43,629,956 ($43.6M)

Contractor: Obxtek Inc

Awarding Agency: Department of Labor

Start Date: 2011-06-10

End Date: 2016-12-09

Contract Duration: 2,009 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OSHA OIS OPERATIONS AND MAINTENANCE

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 $43.6 million to OBXTEK INC for work described as: OSHA OIS OPERATIONS AND MAINTENANCE Key points: 1. Significant spending on IT services for OSHA operations and maintenance. 2. Contract awarded to OBXTEK INC, a single vendor. 3. Concerns regarding the effectiveness of competition and potential taxpayer impact. 4. The sector is IT, specifically Computer Systems Design Services.

Value Assessment

Rating: questionable

The contract value of $43.6M over five years for IT operations and maintenance is substantial. Without clear benchmarks or competitive pricing data, it's difficult to assess if this represents good value. The fixed-price nature suggests cost control, but the lack of competition raises concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition approach. This method may restrict the pool of potential bidders and potentially lead to higher prices than a truly open competition.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these essential IT services. The exclusion of sources could mean missed opportunities for cost savings.

Public Impact

Workers' safety information systems may be impacted by the IT services provided. Federal IT spending represents a significant portion of the budget, requiring scrutiny. The effectiveness of IT support for regulatory agencies is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of clear value assessment
Potential for inflated costs

Positive Signals

Fixed-price contract can provide cost certainty
Services are essential for OSHA operations

Sector Analysis

The IT sector, particularly computer systems design services, is critical for modern government operations. Spending benchmarks vary widely, but $43.6M for a five-year contract for operations and maintenance suggests a significant investment in a core function.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses were excluded or if the scope of work inherently favored larger entities.

Oversight & Accountability

The contract was awarded by the Department of Labor, Office of the Assistant Secretary for Administration and Management. Oversight would involve monitoring contract performance, adherence to terms, and ensuring value for money, especially given the limited competition.

Related Government Programs

Computer Systems Design Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Limited competition raises price concerns.
Lack of transparency in vendor exclusion.
Potential for suboptimal value for taxpayer funds.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $43.6 million to OBXTEK INC. OSHA OIS OPERATIONS AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is OBXTEK INC.

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 $43.6 million.

What is the period of performance?

Start: 2011-06-10. End: 2016-12-09.

What specific IT systems and services were covered under this $43.6M contract, and how did their performance directly support OSHA's mission?

The contract covered 'OSHA OIS OPERATIONS AND MAINTENANCE' and 'Computer Systems Design Services.' These likely included maintaining and potentially upgrading IT infrastructure, software, and networks essential for OSHA's data management, communication, and operational functions. Effective IT support is crucial for processing workplace safety reports, disseminating information, and managing internal administrative processes, directly impacting OSHA's ability to enforce regulations and protect workers.

How did the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact the final price and vendor selection compared to a truly open bid?

This procurement method, while allowing for competition, inherently limited the vendor pool by excluding certain sources. This restriction could have reduced competitive pressure, potentially leading to a higher price than if all qualified vendors could bid. It also raises questions about the justification for excluding sources and whether it truly served the government's best interest in obtaining optimal value and innovation.

What metrics were used to assess the value and effectiveness of OBXTEK INC's services throughout the contract period, and were these metrics met?

The provided data does not specify the performance metrics or value assessment methods used for this contract. A thorough review would require access to performance reports, user feedback, and any post-award evaluations. Without this information, it's challenging to definitively determine if the $43.6M expenditure yielded effective results aligned with OSHA's operational needs and taxpayer expectations.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8300 BOONE BLVD STE 800, TYSONS CORNER, VA, 22182

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

Financial Breakdown

Contract Ceiling: $46,694,064

Exercised Options: $45,539,172

Current Obligation: $43,629,956

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0551Z

IDV Type: GWAC

Timeline