Department of Labor awards $108M for IT services to Vangent, Inc. over 12 years

Contract Overview

Contract Amount: $108,093,770 ($108.1M)

Contractor: Vangent, Inc.

Awarding Agency: Department of Labor

Start Date: 2008-04-01

End Date: 2020-06-30

Contract Duration: 4,473 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY SERVICES, INCLUDING TELECOMMUNICATIONS

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 $108.1 million to VANGENT, INC. for work described as: INFORMATION TECHNOLOGY SERVICES, INCLUDING TELECOMMUNICATIONS Key points: 1. Significant long-term contract for IT services valued at over $108 million. 2. Vangent, Inc. secured this award through full and open competition. 3. The contract spans over 12 years, indicating a substantial need for sustained IT support. 4. The sector is Information Technology, a critical area for government operations.

Value Assessment

Rating: fair

The contract's total award value is substantial, but without per-unit cost data or comparison to similar contracts, assessing its value for money is difficult. The long duration suggests potential for price escalation or outdated technology if not managed carefully.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the extended duration and definitive contract nature might limit ongoing price discovery and optimization.

Taxpayer Impact: Over $108 million in taxpayer funds were allocated for these IT services. The long-term nature necessitates careful monitoring to ensure continued value and efficiency.

Public Impact

Ensures continuity of essential IT and telecommunications services for the Department of Labor. Supports federal agency operations through the provision of computer systems design services. The long contract duration may impact the adoption of newer, potentially more cost-effective technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (12+ years) may lead to price inflexibility.
Lack of specific performance metrics or cost-saving incentives.
Potential for vendor lock-in with extended service provision.

Positive Signals

Awarded through full and open competition, suggesting a competitive initial price.
Addresses critical IT infrastructure needs for a federal agency.
Consistent service provider over a significant period.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Government spending in IT is consistently high, with benchmarks varying widely based on service type and duration. Long-term contracts like this require careful management to ensure they remain cost-effective.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). This suggests that the scope or nature of the services required favored larger, established IT providers.

Oversight & Accountability

The long duration of this contract necessitates robust oversight from the Department of Labor to ensure performance standards are met, costs remain reasonable, and the services align with evolving technological needs. Regular reviews and potential renegotiations are crucial for accountability.

Related Government Programs

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

Risk Flags

Long contract duration (12+ years) increases risk of price inflexibility and technological obsolescence.
Lack of detailed performance metrics or cost-saving incentives in the provided summary.
No indication of small business participation.
Potential for vendor lock-in over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $108.1 million to VANGENT, INC.. INFORMATION TECHNOLOGY SERVICES, INCLUDING TELECOMMUNICATIONS

Who is the contractor on this award?

The obligated recipient is VANGENT, 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 $108.1 million.

What is the period of performance?

Start: 2008-04-01. End: 2020-06-30.

What was the average annual cost of these IT services, and how does it compare to industry benchmarks for similar government contracts?

The total award value is $108,009,376.66 over approximately 12 years (4473 days). This averages to roughly $9 million per year. Without specific service breakdowns or comparable contract data, a precise benchmark is difficult. However, for large-scale IT services supporting federal agencies, this annual figure might be within a reasonable range, assuming comprehensive support is provided.

Given the 12-year duration, what mechanisms were in place to mitigate the risk of technological obsolescence and ensure competitive pricing throughout the contract term?

The provided data does not detail specific clauses for technological updates or price adjustments. Long-term contracts inherently carry the risk of obsolescence. Effective mitigation would typically involve contract clauses allowing for periodic reviews, technology refresh options, or phased re-competition. The absence of such details raises concerns about long-term value.

How effectively did the full and open competition process ensure optimal value for taxpayers, considering the contract's extended lifespan?

Full and open competition is designed to maximize value by encouraging multiple bids. While it likely secured a competitive initial price, the 12-year term means the government is locked into this provider. Ongoing oversight and potential for contract modifications or re-competition at key intervals would be crucial to ensure sustained taxpayer value beyond the initial award.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 4250 FAIRFAX DR STE 1200, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $112,106,358

Exercised Options: $112,106,358

Current Obligation: $108,093,770

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline