DOL's $10.3M contract for SEM database services awarded to Paragon Technical Services, Inc. under full and open competition

Contract Overview

Contract Amount: $10,318,596 ($10.3M)

Contractor: Paragon Technical Services, Inc.

Awarding Agency: Department of Labor

Start Date: 2015-05-01

End Date: 2019-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CT::IGF CONTRACT TO PROVIDE SITE EXPOSURE MATRICES (SEM) DATABASE SERVICES TO SUPPORT THE DEPARTMENT OF LABOR (DOL) OFFICE OF WORKERS COMPENSATION PROGRAMS (OWCP) DIVISION OF ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION (DEEOIC).

Place of Performance

Location: HILLIARD, FRANKLIN County, OHIO, 43026

State: Ohio Government Spending

Plain-Language Summary

Department of Labor obligated $10.3 million to PARAGON TECHNICAL SERVICES, INC. for work described as: IGF::CT::IGF CONTRACT TO PROVIDE SITE EXPOSURE MATRICES (SEM) DATABASE SERVICES TO SUPPORT THE DEPARTMENT OF LABOR (DOL) OFFICE OF WORKERS COMPENSATION PROGRAMS (OWCP) DIVISION OF ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION (DEEOIC). Key points: 1. The contract aimed to support the Office of Workers Compensation Programs (OWCP) with database services for energy employee occupational illness compensation. 2. Awarded via definitive contract, it spanned nearly four years, indicating a need for sustained support. 3. The use of 'Labor Hours' contract type suggests flexibility in tasking but requires careful monitoring of hours utilized. 4. The contract was awarded to a single vendor, Paragon Technical Services, Inc., following a full and open competition. 5. The total value of $10.3 million over 1460 days averages to approximately $7,074 per day. 6. The contract's focus on a specific division (DEEOIC) highlights its targeted nature within the DOL's broader mission.

Value Assessment

Rating: fair

The contract value of $10.3 million over four years for database services appears within a reasonable range for specialized IT support. Benchmarking against similar contracts for database management and environmental consulting services would provide a clearer picture of value for money. The 'Labor Hours' pricing structure necessitates vigilance to ensure efficient use of resources and prevent cost overruns. Without specific performance metrics or comparisons to industry standards for similar database solutions, a definitive assessment of excellent value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is generally expected to foster competitive pricing and encourage innovation. The fact that a definitive contract was awarded implies a structured procurement process. The number of bidders is not specified, which limits a deeper analysis of the competitive intensity and its impact on the final price.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overpayment.

Public Impact

The primary beneficiaries are employees and former employees seeking compensation for occupational illnesses related to energy industry work. The contract delivers essential database services to manage and process claims efficiently for the Division of Energy Employees Occupational Illness Compensation (DEEOIC). The geographic impact is national, supporting claims processing for individuals across the United States. The contract supports the administrative and IT workforce within the Department of Labor responsible for managing these complex compensation programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the 'Labor Hours' contract type if not managed tightly.
Reliance on a single vendor for critical database services could pose a risk if performance falters.
The effectiveness of the database in streamlining the claims process needs ongoing evaluation.

Positive Signals

Awarded through full and open competition, indicating a robust procurement process.
The contract duration suggests a stable and ongoing need for these services.
The specific focus on DEEOIC addresses a critical need within the DOL's mission.

Sector Analysis

This contract falls within the Environmental Consulting Services sector (NAICS 541620), specifically supporting a government agency's need for specialized database management. The market for such services is competitive, encompassing IT solutions providers and consulting firms. Government spending in this area is driven by the need to manage complex data, process claims, and ensure regulatory compliance. Comparable spending benchmarks would typically involve analyzing IT service contracts for data management and case processing within other federal agencies.

Small Business Impact

The provided data indicates that small business participation (ss and sb flags are false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Paragon Technical Services, Inc., may still engage small businesses as subcontractors, but this is not mandated by the contract's structure.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's contracting officers and program managers responsible for the OWCP. The Inspector General's office may also conduct audits or investigations into contract performance and financial management. Transparency is facilitated through contract databases like FPDS, which provide basic award details. Accountability is managed through performance reviews and adherence to the contract's terms and conditions.

Related Government Programs

Department of Labor IT Services
Workers Compensation Program IT Support
Occupational Illness Compensation Systems
Federal Database Management Contracts
Environmental Consulting Services Contracts

Risk Flags

Labor Hours Contract Type Oversight
Vendor Performance Monitoring
Scope Creep Risk
Data Security and Integrity

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $10.3 million to PARAGON TECHNICAL SERVICES, INC.. IGF::CT::IGF CONTRACT TO PROVIDE SITE EXPOSURE MATRICES (SEM) DATABASE SERVICES TO SUPPORT THE DEPARTMENT OF LABOR (DOL) OFFICE OF WORKERS COMPENSATION PROGRAMS (OWCP) DIVISION OF ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION (DEEOIC).

Who is the contractor on this award?

The obligated recipient is PARAGON TECHNICAL SERVICES, 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 $10.3 million.

What is the period of performance?

Start: 2015-05-01. End: 2019-04-30.

What is the track record of Paragon Technical Services, Inc. in delivering similar database services to federal agencies?

Assessing Paragon Technical Services, Inc.'s track record requires a review of their past performance on similar federal contracts. This would involve examining contract databases for awards to the company in areas such as database development, IT support, and claims processing systems. Key indicators to look for include contract values, durations, agencies served, and any reported performance issues or successes. A history of successful, on-time, and within-budget delivery on comparable projects would suggest a lower performance risk for this contract. Conversely, a pattern of disputes, contract modifications, or negative past performance reviews would raise concerns about their capability to meet the DOL's requirements effectively.

How does the daily cost of this contract compare to industry benchmarks for similar database management services?

The daily cost for this contract, averaging approximately $7,074 ($10.3M / 1460 days), needs to be benchmarked against industry standards for IT database management and environmental consulting services. Factors influencing this rate include the complexity of the database, the level of technical expertise required, and the specific services provided (e.g., maintenance, development, support). Comparing this daily rate to commercial IT service providers or other government contracts for similar scope can reveal whether the government is receiving competitive pricing. Without specific details on the service level agreements and the technical sophistication of the SEM database, a precise comparison is difficult, but the rate provides a starting point for value assessment.

What are the primary risks associated with using a 'Labor Hours' contract type for database services?

The 'Labor Hours' contract type, while offering flexibility, carries inherent risks for the government. The primary risk is the potential for cost overruns if the contractor's labor hours are not efficiently managed or if the scope of work expands beyond initial estimates without proper controls. This necessitates robust oversight from the contracting officer and program managers to monitor labor hours, ensure productivity, and validate the necessity of all tasks performed. Another risk is the difficulty in precisely forecasting the total cost upfront, which can complicate budget planning. Effective risk mitigation involves clear task definitions, regular progress reviews, and strict adherence to the contract's ceiling.

How effective has the SEM database been in supporting the OWCP's mission of processing energy employee occupational illness claims?

The effectiveness of the Site Exposure Matrices (SEM) database in supporting the OWCP's mission is a critical performance question. Answering this would require analyzing metrics related to claims processing times, accuracy rates, user satisfaction among OWCP staff, and the database's ability to integrate with other relevant systems. Data on the number of claims processed, the reduction in processing backlogs, or improvements in data accessibility and analysis would indicate its success. Without specific performance reports or program evaluations, it is difficult to quantify the database's contribution to the efficiency and effectiveness of the compensation program.

What has been the historical spending trend for SEM database services or similar IT support within the DOL's OWCP?

Analyzing historical spending trends for SEM database services or comparable IT support within the DOL's OWCP provides context for the $10.3 million award. This involves examining previous contracts for database management, IT infrastructure, or claims processing systems awarded to the OWCP or DEEOIC over several fiscal years. Understanding whether spending has increased, decreased, or remained stable can indicate shifts in program needs, technological adoption, or procurement strategies. Significant year-over-year changes might warrant further investigation into the underlying causes, such as system upgrades, expanded program scope, or changes in vendor contracts.

Were there any significant contract modifications or change orders issued during the performance period of this contract?

Investigating contract modifications and change orders provides insight into the contract's execution and potential issues. Significant modifications could indicate unforeseen challenges, scope changes, or adjustments to pricing. For this contract, reviewing the modification history would reveal if the initial $10.3 million award was adjusted substantially due to evolving requirements or performance issues. A high number of modifications, especially those increasing the contract value or extending the period of performance, might suggest initial planning deficiencies or evolving needs that were not fully captured in the original solicitation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL-OPS-15-R-00012

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3455 MILL RUN DR STE 410, HILLIARD, OH, 43026

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

Financial Breakdown

Contract Ceiling: $10,318,596

Exercised Options: $10,318,596

Current Obligation: $10,318,596

Actual Outlays: $1,321,479

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline