FTC's $47.9M contract for consumer complaint processing awarded to Leidos Aspen Systems Corp

Contract Overview

Contract Amount: $47,889,739 ($47.9M)

Contractor: Leidos Aspen Systems Corp

Awarding Agency: Federal Trade Commission

Start Date: 2007-04-24

End Date: 2012-07-05

Contract Duration: 1,899 days

Daily Burn Rate: $25.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: IT

Official Description: PROCESSING OF INFORMATION, COMPLAINTS AND REPORTS FROM CONSUMERS USING THE DO-NOT-CALL, CONSUMER RESPONSE CENTER, AND CUSTOMER INFORMATION SYSTEMS OF THE FTC.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20580

State: District of Columbia Government Spending

Plain-Language Summary

Federal Trade Commission obligated $47.9 million to LEIDOS ASPEN SYSTEMS CORP for work described as: PROCESSING OF INFORMATION, COMPLAINTS AND REPORTS FROM CONSUMERS USING THE DO-NOT-CALL, CONSUMER RESPONSE CENTER, AND CUSTOMER INFORMATION SYSTEMS OF THE FTC. Key points: 1. The contract focuses on critical consumer protection functions, including Do-Not-Call and complaint handling. 2. Leidos Aspen Systems Corp. is the sole awardee, raising questions about competition. 3. The fixed-price, level-of-effort contract type may pose risks if scope creep occurs. 4. Services fall under 'Other Computer Related Services', a broad category.

Value Assessment

Rating: fair

The contract's value of $47.9M over five years appears reasonable for the scope of consumer data processing and complaint management services. Benchmarking against similar IT support contracts for federal agencies is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was awarded as a competitive delivery order, but the data indicates it was a sole-source award. This limits price discovery and potentially reduces the incentive for the contractor to offer the most competitive pricing.

Taxpayer Impact: Taxpayer funds are used to support essential consumer protection infrastructure, ensuring the FTC can manage complaints and enforce regulations.

Public Impact

Ensures continued operation of vital consumer protection hotlines and complaint systems. Supports the FTC's mission to prevent deceptive and unfair business practices. Provides a mechanism for consumers to report issues and seek redress. Facilitates data collection for identifying market trends and potential enforcement actions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Fixed-price, level-of-effort contract may not incentivize efficiency.
Broad service category makes specific performance assessment challenging.

Positive Signals

Supports critical consumer protection functions.
Contract duration provides stability for essential services.
Awardee has experience in government contracting.

Sector Analysis

This contract falls under IT services, specifically 'Other Computer Related Services'. Spending in this sector is substantial across government, supporting a wide range of functions from data processing to cybersecurity. Benchmarks vary widely based on service complexity.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. As a sole-source award to a large corporation, it is unlikely that small businesses were directly involved as prime contractors.

Oversight & Accountability

The Federal Trade Commission is the contracting agency, implying internal oversight. However, the sole-source nature of the award warrants scrutiny to ensure fair pricing and necessity.

Related Government Programs

Other Computer Related Services
Federal Trade Commission Contracting
Federal Trade Commission Programs

Risk Flags

Sole-source award limits competition and price discovery.
Potential for cost overruns if scope is not tightly managed.
Lack of transparency regarding the justification for sole-source procurement.
Difficulty in benchmarking 'Other Computer Related Services' without specific details.

Frequently Asked Questions

What is this federal contract paying for?

Federal Trade Commission awarded $47.9 million to LEIDOS ASPEN SYSTEMS CORP. PROCESSING OF INFORMATION, COMPLAINTS AND REPORTS FROM CONSUMERS USING THE DO-NOT-CALL, CONSUMER RESPONSE CENTER, AND CUSTOMER INFORMATION SYSTEMS OF THE FTC.

Who is the contractor on this award?

The obligated recipient is LEIDOS ASPEN SYSTEMS CORP.

Which agency awarded this contract?

Awarding agency: Federal Trade Commission (Federal Trade Commission).

What is the total obligated amount?

The obligated amount is $47.9 million.

What is the period of performance?

Start: 2007-04-24. End: 2012-07-05.

What was the justification for awarding this contract sole-source, and were alternative competitive options explored?

The justification for a sole-source award is crucial for understanding the procurement process. Without this information, it's difficult to assess if the government received the best possible value or if competitive pressures were bypassed. Exploring alternatives ensures taxpayer money is spent efficiently and promotes a fair marketplace for contractors.

How does the per-unit cost of processing complaints compare to industry benchmarks or previous contracts?

Assessing the per-unit cost of complaint processing is vital for determining value for money. If costs are significantly higher than benchmarks or historical data, it could indicate inefficiencies or overpricing. This analysis helps ensure that taxpayer funds are used effectively to support the FTC's mission.

What performance metrics are in place to ensure the effectiveness and efficiency of Leidos Aspen Systems Corp.'s services?

Robust performance metrics are essential for ensuring the contractor meets the FTC's needs for processing information, complaints, and reports. Tracking key performance indicators related to response times, accuracy, and system uptime allows the agency to hold the contractor accountable and verify the effectiveness of the services provided.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 2277 RESEARCH BLVD, ROCKVILLE, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $230,234,618

Exercised Options: $69,711,557

Current Obligation: $47,889,739

Parent Contract

Parent Award PIID: GS35F0004J

IDV Type: FSS

Timeline