Labor Department awards $10.8M for computer operations and data entry, with a 413-day duration

Contract Overview

Contract Amount: $10,759,884 ($10.8M)

Contractor: Orkand Corporation, the

Awarding Agency: Department of Labor

Start Date: 2004-08-13

End Date: 2005-09-30

Contract Duration: 413 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMPUTER OPERATIONS, DATA ENTRY AND SYSTEMS SUPPORT R OPERATIONS, DATA ENTRY AND SYSTEMS SUPPORT SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22043

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $10.8 million to ORKAND CORPORATION, THE for work described as: COMPUTER OPERATIONS, DATA ENTRY AND SYSTEMS SUPPORT R OPERATIONS, DATA ENTRY AND SYSTEMS SUPPORT SERVICES Key points: 1. The contract value of $10.8 million for computer operations and data entry appears reasonable given the 413-day performance period. 2. Full and open competition was utilized, suggesting a competitive bidding process that should have yielded fair market pricing. 3. The contract was awarded to The Orkand Corporation, a firm with a history of government contracting. 4. The fixed-price contract type suggests that the contractor assumes the risk for cost overruns. 5. The North American Industry Classification System (NAICS) code 541519 indicates services related to computer systems design and related services. 6. The contract was awarded by the Department of Labor's Office of the Assistant Secretary for Administration and Management. 7. The contract was awarded in August 2004 and completed in September 2005.

Value Assessment

Rating: good

The contract value of approximately $10.8 million over 413 days, averaging around $26,000 per day, seems within a reasonable range for IT operations and data entry services. Without specific benchmarks for 'Computer Operations, Data Entry and Systems Support Services' within the federal government for this exact period, a direct comparison is difficult. However, the fixed-price nature of the contract suggests that the government secured a defined scope of work at a set price, which is generally a good value proposition if the services were delivered as expected.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process where multiple companies likely vied for the contract. The presence of competition is generally expected to drive down prices and improve the quality of services offered, leading to better value for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and a wider selection of qualified contractors, ensuring that government funds are used efficiently.

Public Impact

The Department of Labor benefits from these services, ensuring the smooth operation of its computer systems and accurate data entry. Employees within the Department of Labor likely experienced improved efficiency and support for their IT-related tasks. The contract supported IT infrastructure and data management, crucial for the agency's administrative functions. The services provided contribute to the overall operational effectiveness of the Department of Labor's administrative and management offices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge was developed.
Risk of scope creep if requirements were not clearly defined initially.
Dependence on contractor performance for critical IT operations.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Fixed-price contract type shifts cost overrun risk to the contractor.
Contract duration of 413 days allowed for stable service provision.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer operations and data entry. The market for such services is vast, encompassing numerous private sector companies capable of providing these essential functions. Federal spending in this area is consistent, as agencies rely heavily on IT support for daily operations. Benchmarks for similar contracts would typically be assessed based on the scope of services, duration, and the specific IT environment being supported.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on full and open competition. There is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem would be minimal unless Orkand Corporation subcontracted portions of the work to small businesses, which is not detailed here.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Labor's contracting officers and program managers. As a fixed-price contract, the primary accountability measure is the delivery of the specified services within the agreed-upon timeframe and quality standards. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight reports or IG investigations related to this particular contract are not detailed in the provided data.

Related Government Programs

IT Operations Support Services
Data Entry Services
Computer Systems Support
Federal IT Contracts
Department of Labor IT Spending

Risk Flags

Contract Duration
Contract Value
Competition Type
Contractor Name
Agency
NAICS Code

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $10.8 million to ORKAND CORPORATION, THE. COMPUTER OPERATIONS, DATA ENTRY AND SYSTEMS SUPPORT R OPERATIONS, DATA ENTRY AND SYSTEMS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ORKAND CORPORATION, THE.

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 $10.8 million.

What is the period of performance?

Start: 2004-08-13. End: 2005-09-30.

What was the track record of The Orkand Corporation with federal contracts prior to and following this award?

To assess The Orkand Corporation's track record, a review of federal procurement databases like FPDS-NG (Federal Procurement Data System - Next Generation) or USASpending.gov would be necessary. This would reveal the number, value, and types of contracts awarded to the company, as well as any performance issues or awards. Without access to that historical data, it's difficult to provide a specific assessment of their track record beyond this single contract. Generally, companies that consistently win federal contracts have demonstrated capabilities and compliance with federal regulations. However, past performance is not always indicative of future results, and a thorough review would examine contract performance ratings and any disputes or terminations.

How does the awarded amount of $10.8 million compare to similar IT operations and data entry contracts awarded around 2004-2005?

Comparing the $10.8 million award to similar contracts from 2004-2005 requires access to historical federal procurement data that details contract scope, duration, and specific services. The provided data indicates a 413-day duration, which is roughly 1.13 years. This means the annual value was approximately $9.5 million ($10.8M / 1.13 years). Without specific benchmarks for 'Computer Operations, Data Entry and Systems Support Services' from that era, it's challenging to definitively state if this was high or low. However, given the full and open competition, it suggests the price was deemed fair and reasonable by the contracting agency at the time of award. Factors like geographic location, specific security requirements, and the complexity of the systems supported would also influence pricing.

What were the primary risks associated with this contract, and how were they mitigated?

Primary risks for an IT operations and data entry contract typically include performance failures (e.g., system downtime, data inaccuracies), security breaches, and contractor non-compliance. For this specific contract, the fixed-price nature inherently mitigates the risk of cost overruns for the government, shifting that financial risk to The Orkand Corporation. Performance risks would be managed through Service Level Agreements (SLAs) within the contract, clear performance metrics, and regular oversight by the Department of Labor. Security risks would be addressed through adherence to federal data security standards and potentially background checks for personnel. Mitigation strategies would involve detailed contract clauses, performance monitoring, and clear communication channels between the contractor and the government.

How effective was the 'full and open competition' in ensuring value for money for this specific contract?

The 'full and open competition' strategy is designed to maximize value for money by encouraging multiple bidders to offer their best pricing and technical solutions. For this $10.8 million contract, the fact that it was competed openly suggests that the Department of Labor sought to leverage market forces to achieve a competitive price. While the provided data doesn't include the number of bids received or the spread between them, the process itself is a strong indicator of an effort to secure value. The ultimate effectiveness would depend on the specific details of the solicitation, the evaluation criteria, and the final negotiated price relative to the services delivered. A competitive process generally leads to better pricing than sole-source or limited competition awards.

What is the historical spending pattern for 'Computer Operations, Data Entry and Systems Support Services' at the Department of Labor?

Analyzing the historical spending patterns for 'Computer Operations, Data Entry and Systems Support Services' at the Department of Labor would require a comprehensive review of federal procurement data over several fiscal years. This contract, awarded in 2004 for $10.8 million, represents a specific instance of spending within this category. To understand the pattern, one would look at the total amount spent annually on similar services, the number of contracts awarded, the primary contractors, and the types of services procured. This analysis could reveal trends such as increasing or decreasing reliance on external contractors, shifts in technology, or changes in pricing. Without broader data, this single contract provides only a snapshot.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 7799 LEESBURG PIKE STE 700 NORTH, FALLS CHURCH, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,782,676

Exercised Options: $11,782,676

Current Obligation: $10,759,884

Timeline