Department of Labor's $77.6M IT contract with Intellibridge, LLC, for computer systems design services, ran for nearly six years

Contract Overview

Contract Amount: $77,634,019 ($77.6M)

Contractor: Intellibridge, LLC

Awarding Agency: Department of Labor

Start Date: 2014-06-30

End Date: 2020-03-31

Contract Duration: 2,101 days

Daily Burn Rate: $37.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF JOB CORP DATA CENTER

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78741

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $77.6 million to INTELLIBRIDGE, LLC for work described as: IGF::OT::IGF JOB CORP DATA CENTER Key points: 1. The contract's duration of 2101 days suggests a long-term need for the services provided. 2. A single award for this contract indicates a specific vendor was chosen, raising questions about the breadth of competition. 3. The firm-fixed-price contract type generally offers cost certainty for the government. 4. The contract was awarded under 'full and open competition after exclusion of sources,' a complex procurement method. 5. The services fall under Computer Systems Design, a critical area for federal IT infrastructure. 6. The total award value of over $77 million warrants scrutiny for value for money over its lifespan.

Value Assessment

Rating: fair

Benchmarking the value of this $77.6 million contract is challenging without specific performance metrics or comparable contract data. The firm-fixed-price structure provides some cost predictability. However, the extended duration of nearly six years means that the initial pricing may not reflect current market rates for computer systems design services, potentially impacting overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method implies that while the competition was intended to be broad, certain sources were excluded for reasons not detailed in the provided data. The fact that there was only one award suggests that either only one offeror met the requirements, or the exclusion criteria significantly limited the pool of potential bidders.

Taxpayer Impact: The limited competition, even if initially open, may have resulted in less aggressive pricing than a truly open competition with multiple bidders. Taxpayers may have paid a premium if the excluded sources could have offered better value.

Public Impact

Federal employees and agencies utilizing the IT systems designed and maintained under this contract benefit from improved functionality and support. The contract supports the Department of Labor's mission by ensuring robust IT infrastructure. The geographic impact is primarily within the Department of Labor's operational locations, likely nationwide. The contract supports a workforce skilled in computer systems design and IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type warrants further investigation to understand the rationale and potential impact on competition.
The long contract duration (nearly six years) could lead to technology obsolescence or inflated costs if not managed proactively.
Lack of detailed performance data makes it difficult to assess the true value and effectiveness of the services rendered.

Positive Signals

The firm-fixed-price contract type offers budget certainty for the Department of Labor.
The contract was awarded to a single entity, suggesting a potentially strong, focused relationship for service delivery.
The services provided are critical for the operational IT needs of the Department of Labor.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. This is a broad and essential category for government operations, encompassing the planning, design, development, and integration of IT systems. The market for these services is highly competitive, with numerous firms offering specialized expertise. The $77.6 million value over nearly six years places it as a significant, though not exceptionally large, IT contract within the federal landscape.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside or requirement for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Intellibridge, LLC, may engage small businesses as subcontractors, which is not detailed here. Without subcontracting plans, it's difficult to assess the broader impact on the small business IT 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 may also conduct audits or investigations into contract performance and spending. Transparency is generally facilitated through contract databases like FPDS, where basic award information is available. However, detailed performance reports and specific oversight activities are often not publicly accessible.

Related Government Programs

IT Services
Computer Systems Design
Federal IT Procurement
Department of Labor Contracts
Information Technology Support

Risk Flags

Limited Competition
Long Contract Duration
Potential for Technology Obsolescence
Lack of Detailed Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $77.6 million to INTELLIBRIDGE, LLC. IGF::OT::IGF JOB CORP DATA CENTER

Who is the contractor on this award?

The obligated recipient is INTELLIBRIDGE, 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 $77.6 million.

What is the period of performance?

Start: 2014-06-30. End: 2020-03-31.

What specific computer systems design services were provided under this contract?

The contract, NAICS code 541512, specifies 'Computer Systems Design Services.' This typically encompasses a range of activities including analyzing user needs, designing and developing IT systems, integrating hardware and software, and providing technical consulting. For the Department of Labor, these services likely supported the design, implementation, and maintenance of internal IT infrastructure, databases, and application systems critical for managing labor statistics, worker programs, and administrative functions. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not publicly available in this data.

How does the $77.6 million award compare to similar IT contracts within the Department of Labor?

The $77.6 million award over nearly six years represents a substantial investment in IT services for the Department of Labor. While specific comparable contracts require detailed analysis of scope, duration, and agency sub-component, this value suggests a significant, long-term engagement. Federal IT spending is vast, and contracts of this magnitude are common for core infrastructure and system development. To assess its relative value, one would need to compare it against other contracts for similar 'Computer Systems Design Services' (NAICS 541512) awarded by DOL or other large agencies, considering factors like the number of users supported, complexity of systems, and service level agreements.

What are the potential risks associated with a nearly six-year contract for computer systems design?

A contract duration of 2101 days (nearly six years) for computer systems design carries several risks. Firstly, technological obsolescence is a major concern; IT landscapes evolve rapidly, and systems designed early in the contract may be outdated by its end. Secondly, vendor lock-in can occur, making it difficult and costly to switch providers. Thirdly, the fixed-price nature over such a long period might not adequately account for inflation or changes in market labor rates, potentially leading to the contractor absorbing unexpected costs or, conversely, the government overpaying if initial estimates were too high. Finally, maintaining consistent service quality and innovation over an extended period requires diligent government oversight.

What does 'full and open competition after exclusion of sources' mean for this contract?

This procurement method is complex. 'Full and open competition' is the standard preferred by the government to ensure the widest possible participation and best value. However, 'after exclusion of sources' indicates that specific, pre-identified sources were deliberately excluded from the competition. This exclusion must be justified by law or regulation (e.g., national security, specific technological requirements, or prior unique development). It implies that while the competition was open to all *other* responsible sources, the pool of potential bidders was intentionally narrowed, which can impact the level of price competition achieved compared to a truly unrestricted competition.

What is the track record of Intellibridge, LLC, in securing and performing federal IT contracts?

Intellibridge, LLC, has a history of performing federal IT contracts, as evidenced by this award. To fully assess their track record, one would need to examine their complete contract history, including past performance evaluations, any contract disputes or terminations, and the types and values of other contracts they have held. Information from sources like the Federal Procurement Data System (FPDS) and potentially contractor performance assessment reporting (CPARS) would be necessary to gauge their reliability, quality of service, and adherence to contract terms across their federal engagements.

How has federal spending on computer systems design services evolved over the period of this contract (2014-2020)?

Federal spending on computer systems design services (NAICS 541512) generally saw an upward trend during the 2014-2020 period, reflecting the increasing reliance on IT across all government agencies. Agencies continued to modernize legacy systems, develop new digital services, and enhance cybersecurity measures. While this specific $77.6 million contract represents a portion of that spending, the overall federal IT budget grew significantly during these years, driven by digital transformation initiatives and evolving technological demands. This contract's value aligns with the broader trend of substantial federal investment in IT infrastructure and design.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1430 SPRING HILL RD STE 200, MCLEAN, VA, 22102

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Not Designated a Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $77,634,019

Exercised Options: $77,634,019

Current Obligation: $77,634,019

Actual Outlays: $7,482,028

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200181W

IDV Type: GWAC

Timeline