Labor Department's $22.4M IT Services Contract with EXCEED, LLC Faced Limited Competition
Contract Overview
Contract Amount: $22,429,584 ($22.4M)
Contractor: Exceed, LLC
Awarding Agency: Department of Labor
Start Date: 2007-07-03
End Date: 2013-02-28
Contract Duration: 2,067 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 12
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Official Description: IT SVCS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Labor obligated $22.4 million to EXCEED, LLC for work described as: IT SVCS Key points: 1. Contract awarded to EXCEED, LLC for IT services. 2. Totaling $22.4 million over its duration. 3. Awarded under 'Full and Open Competition After Exclusion of Sources'. 4. Contract duration was 2067 days. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract's value of $22.4 million over approximately 5.6 years suggests a moderate annual spend. Benchmarking against similar IT services contracts would be necessary to determine if this pricing is competitive, especially given the competition method.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'Full and Open Competition After Exclusion of Sources' method implies that while competition was sought, specific sources were excluded, potentially limiting the pool of bidders and impacting price discovery. This approach warrants scrutiny to ensure fair market value was obtained.
Taxpayer Impact: The limited competition method may have resulted in a higher cost to taxpayers than a truly open competition, though the exact impact is difficult to quantify without further data.
Public Impact
Taxpayers may have paid more due to restricted competition. The long contract duration could lead to outdated technology or services. Lack of small business involvement limits opportunities for smaller IT firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- No small business participation
- Long contract duration
Positive Signals
- Awarded under a competitive process (albeit limited)
Sector Analysis
This contract falls under IT services, specifically 'Other Computer Related Services'. The benchmark for IT services spending can vary widely based on complexity and scope, but a $22.4 million contract over nearly six years represents a significant investment.
Small Business Impact
The contract explicitly states no small business participation (ss: false, sb: false). This indicates a missed opportunity to engage smaller, potentially innovative IT firms and could raise concerns about equitable distribution of federal contracts.
Oversight & Accountability
The contract was awarded by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Oversight would focus on ensuring service delivery meets requirements and that the pricing remains fair throughout the contract's life, especially given the competition method.
Related Government Programs
- Other Computer Related Services
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Limited competition may have inflated costs.
- Lack of small business participation.
- Long contract duration risks obsolescence and inefficiency.
- Broad service category makes precise benchmarking difficult.
Tags
other-computer-related-services, department-of-labor, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $22.4 million to EXCEED, LLC. IT SVCS
Who is the contractor on this award?
The obligated recipient is EXCEED, 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 $22.4 million.
What is the period of performance?
Start: 2007-07-03. End: 2013-02-28.
What was the justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and did it lead to a fair market price?
The justification for excluding sources is critical. If based on specific technical requirements or past performance, it might be valid. However, if the exclusions were arbitrary, it could have stifled competition, leading to inflated prices. A thorough review of the solicitation documents and award decision would be needed to assess the fairness of the price obtained under these conditions.
How did the long duration of the contract (2067 days) impact the cost-effectiveness and relevance of the IT services provided?
A contract spanning nearly six years for IT services carries inherent risks of technological obsolescence and potential cost inefficiencies. While longer contracts can offer stability and reduce administrative burden, they must include mechanisms for regular review and potential renegotiation to ensure services remain current and competitively priced. Without such provisions, the government might overpay for outdated solutions.
What was the specific nature of the 'Other Computer Related Services' and how does its $22.4M cost benchmark against similar procurements?
The 'Other Computer Related Services' category is broad, encompassing a wide range of IT support. To benchmark the $22.4 million cost, detailed service descriptions, deliverables, and performance metrics are needed. Comparing this to contracts with similar scopes, durations, and competition levels would reveal if the price paid by the Department of Labor was reasonable or if it represented a potential overpayment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DOLO79RP20335
Offers Received: 12
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 8100 PROFESSIONAL PLACE, SUITE 211, HYATTSVILLE, MD, 20785
Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $223,085,809
Exercised Options: $42,498,201
Current Obligation: $22,429,584
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-07-03
Current End Date: 2013-02-28
Potential End Date: 2013-02-28 00:00:00
Last Modified: 2017-05-26
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