HUD's $27M contract for IT services awarded to MANAGEMENT TECHNOLOGY, INC. demonstrates long-term engagement

Contract Overview

Contract Amount: $27,025,683 ($27.0M)

Contractor: Management Technology, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2000-02-15

End Date: 2003-08-30

Contract Duration: 1,292 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $27.0 million to MANAGEMENT TECHNOLOGY, INC. for work described as: Key points: 1. The contract's duration suggests a sustained need for the services provided. 2. Full and open competition was utilized, indicating a broad market search. 3. The contract was awarded to a single vendor, raising questions about potential alternatives. 4. The labor hours contract type allows for flexibility but requires careful monitoring of effort. 5. The contract's value is moderate within the context of federal IT spending. 6. Performance context is limited without specific details on deliverables and outcomes.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details. However, a $27 million contract over approximately 3.5 years for IT services is within a typical range for federal agencies. The absence of detailed performance metrics or comparison to similar contracts makes a definitive value assessment difficult. The labor hours pricing structure can sometimes lead to cost overruns if not managed tightly, suggesting a need for robust oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. However, the data indicates only two bids were received, which is a relatively low number for a full and open competition. This limited number of bidders might suggest potential barriers to entry for other firms or a niche market. The price discovery mechanism may have been less robust than with a higher number of competitive offers.

Taxpayer Impact: While full and open competition was intended, the low number of bids may have limited the competitive pressure, potentially resulting in a higher price than if more vendors had participated.

Public Impact

The primary beneficiary is the Department of Housing and Urban Development (HUD), receiving IT support services. The services delivered likely include IT infrastructure management, software development, or technical support, crucial for HUD's operations. The geographic impact is centered in the District of Columbia, where the contractor is located. Workforce implications include employment opportunities for IT professionals within MANAGEMENT TECHNOLOGY, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders in a full and open competition could indicate potential market concentration or barriers.
Labor hours contract type requires diligent monitoring to prevent scope creep and ensure cost efficiency.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services.

Positive Signals

Awarded under full and open competition, adhering to principles of broad market access.
Contract duration suggests a stable, ongoing need for critical IT services.
The contractor, MANAGEMENT TECHNOLOGY, INC., has secured a significant federal contract, indicating a level of established capability.

Sector Analysis

This contract falls within the Information Technology sector, a critical area for all federal agencies. The federal IT market is vast and highly competitive, with agencies spending billions annually on a wide range of services from infrastructure support to advanced software development. Contracts like this are essential for maintaining and modernizing government IT systems. Comparable spending benchmarks would typically involve analyzing IT service contracts of similar duration and scope across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary focus was on securing the best solution from the broader market, rather than specifically targeting small business participation. The impact on the small business ecosystem is likely minimal unless MANAGEMENT TECHNOLOGY, INC. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within the Department of Housing and Urban Development. Accountability measures would be tied to the contract's performance clauses and deliverables. Transparency is facilitated through contract databases like FPDS, which provide basic award information. The Inspector General's office for HUD may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Federal IT Services Contracts
IT Support Services
Management and Technical Consulting Services
Department of Housing and Urban Development IT Spending

Risk Flags

Low number of bids received for a full and open competition.
Potential for cost overruns due to labor hours contract type without strict oversight.
Lack of detailed performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $27.0 million to MANAGEMENT TECHNOLOGY, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MANAGEMENT TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2000-02-15. End: 2003-08-30.

What specific IT services were provided under this contract?

The provided data does not specify the exact IT services rendered under this contract. However, given the context of federal IT contracts, these services could encompass a broad range of activities such as network management, system administration, software development and maintenance, cybersecurity support, help desk services, or IT consulting. The labor hours contract type suggests that the vendor was compensated based on the time spent by their personnel performing these tasks. Without further details from the contract's statement of work or performance reports, the precise nature of the services remains undefined.

How does the number of bids (2) compare to typical full and open IT competitions of similar value?

For a federal contract valued at approximately $27 million, receiving only two bids under a 'full and open competition' is on the lower side. Typically, larger and more complex IT procurements, especially those with significant dollar values, tend to attract a larger number of interested vendors, often ranging from five to ten or even more, depending on the specificity of requirements and market conditions. A low number of bids can sometimes indicate that the solicitation was highly specialized, that there were significant barriers to entry for potential bidders, or that the market for such services is more concentrated than anticipated. This could potentially limit the government's ability to achieve the most competitive pricing.

What are the potential risks associated with a labor hours contract type for IT services?

Labor hours contracts, while offering flexibility, carry inherent risks, particularly for IT services. The primary risk is the potential for cost overruns if the scope of work is not clearly defined or if project management is weak. Without fixed deliverables tied to specific prices, there's a risk that the effort expended could exceed initial estimates, leading to higher overall costs for the government. Effective oversight, detailed task orders, and diligent tracking of hours and progress are crucial to mitigate these risks. Additionally, ensuring that the labor categories and rates are appropriate for the work performed is essential for maintaining value.

What is the track record of MANAGEMENT TECHNOLOGY, INC. in securing federal contracts, particularly within HUD?

The data indicates that MANAGEMENT TECHNOLOGY, INC. was awarded this specific $27 million contract by the Department of Housing and Urban Development (HUD). This suggests a prior relationship or successful bid process with HUD. To fully assess their track record, one would need to examine their complete contract history across all federal agencies, looking at the types of services provided, contract values, performance ratings, and any past performance issues or awards. This single contract award provides a data point but not a comprehensive view of their overall federal contracting performance or their history specifically with HUD beyond this award.

How does the contract's duration (approx. 3.5 years) align with typical IT service contract lifecycles?

A contract duration of approximately 3.5 years (from February 2000 to August 2003) is relatively standard for federal IT service contracts, especially those involving ongoing support, maintenance, or development. Many IT contracts are awarded with base periods and option periods, allowing for flexibility and continuity. Longer durations, often up to five years (including options), are common for complex IT projects or sustained service requirements. Shorter durations might be used for specific, time-bound projects. This contract's length suggests a need for consistent IT support over a significant period, aligning with typical federal agency requirements for maintaining operational systems.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Contractor Details

Address: 7700 OLD BRANCH AVE C200, CLINTON, MD, 04

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $27,025,683

Exercised Options: $27,025,683

Current Obligation: $27,025,683

Parent Contract

Parent Award PIID: COPC21441

IDV Type: IDC

Timeline