Education Dept. Spends $31.7M on IT O&M for Central Automated Processing System
Contract Overview
Contract Amount: $31,665,871 ($31.7M)
Contractor: Optumserve Technology Services, Inc.
Awarding Agency: Department of Education
Start Date: 2013-09-26
End Date: 2018-09-25
Contract Duration: 1,825 days
Daily Burn Rate: $17.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: "IGF::OT::IGF" OTHER FUNCTIONS THIS TASK ORDER PROVIDES OPERATION AND MAINTENANCE SUPPORT TO THE DEPARTMENT'S EDUCATION DEPARTMENT CENTRAL AUTOMATED PROCESSING SYSTEM.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202
Plain-Language Summary
Department of Education obligated $31.7 million to OPTUMSERVE TECHNOLOGY SERVICES, INC. for work described as: "IGF::OT::IGF" OTHER FUNCTIONS THIS TASK ORDER PROVIDES OPERATION AND MAINTENANCE SUPPORT TO THE DEPARTMENT'S EDUCATION DEPARTMENT CENTRAL AUTOMATED PROCESSING SYSTEM. Key points: 1. The contract supports critical IT operations and maintenance for a key Education Department system. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The fixed-price contract type shifts risk to the contractor. 4. The sector is IT services, specifically custom computer programming.
Value Assessment
Rating: fair
The contract value of $31.7M over five years averages $6.3M annually. Benchmarking against similar custom computer programming services contracts is difficult without more specific details on the system's complexity and support requirements.
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. The fixed-price nature of the contract further incentivizes the contractor to manage costs effectively.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by leveraging market forces to achieve a fair price.
Public Impact
Ensures continued operation of a vital Education Department system. Supports the processing of educational data and services. Potential for system improvements through ongoing maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for scope creep if not managed tightly.
Positive Signals
- Full and open competition.
- Firm fixed-price contract.
- Long-term operational support.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across government, with significant variation based on system complexity and criticality.
Small Business Impact
The contract was not awarded to small businesses, indicating a focus on larger, established IT service providers for this particular requirement.
Oversight & Accountability
Oversight would typically involve regular performance reviews and financial audits by the Department of Education to ensure contract compliance and effective service delivery.
Related Government Programs
- Custom Computer Programming Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Lack of specific performance metrics.
- Potential for vendor lock-in over time.
- Reliance on a single system for critical functions.
- Limited visibility into detailed cost breakdowns.
Tags
custom-computer-programming-services, department-of-education, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $31.7 million to OPTUMSERVE TECHNOLOGY SERVICES, INC.. "IGF::OT::IGF" OTHER FUNCTIONS THIS TASK ORDER PROVIDES OPERATION AND MAINTENANCE SUPPORT TO THE DEPARTMENT'S EDUCATION DEPARTMENT CENTRAL AUTOMATED PROCESSING SYSTEM.
Who is the contractor on this award?
The obligated recipient is OPTUMSERVE TECHNOLOGY SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $31.7 million.
What is the period of performance?
Start: 2013-09-26. End: 2018-09-25.
What specific metrics define the 'operation and maintenance support' provided, and how is performance measured against these metrics?
The specific metrics defining 'operation and maintenance support' are not detailed in the provided data. Effective oversight would require clearly defined Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) that measure system uptime, response times for issues, and successful processing rates. Without these, assessing the true value and effectiveness of the support is challenging.
Given the five-year duration and fixed-price nature, what mechanisms are in place to address potential cost overruns or underperformance by the contractor?
The firm fixed-price contract shifts cost overrun risk to the contractor. However, mechanisms for underperformance could include contract remedies, potential penalties for failing to meet SLAs (if defined), or termination for default. The government's ability to manage risk relies on robust contract administration and clear performance expectations.
How does the continued operation and maintenance of this system contribute to the Department of Education's overall mission effectiveness?
The Central Automated Processing System is crucial for the Department of Education's functions, likely involving student aid processing, data collection, or program administration. Its reliable operation ensures the continuity of these essential services, directly impacting students, educational institutions, and program beneficiaries. Effective O&M is foundational to the department's ability to execute its mission.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Unitedhealth Group Incorporated (UEI: 112871561)
Address: 10480 LITTLE PATUXENT PKWY SUITE 310, COLUMBIA, MD, 21044
Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,714,331
Exercised Options: $31,665,871
Current Obligation: $31,665,871
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F0308L
IDV Type: FSS
Timeline
Start Date: 2013-09-26
Current End Date: 2018-09-25
Potential End Date: 2018-09-25 00:00:00
Last Modified: 2022-02-07
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