Labor Department's $32.3M IT services contract awarded to The Orkand Corporation shows fair value with moderate competition

Contract Overview

Contract Amount: $32,346,084 ($32.3M)

Contractor: Orkand Corporation, the

Awarding Agency: Department of Labor

Start Date: 2003-12-03

End Date: 2007-08-28

Contract Duration: 1,364 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OHER COMPUTER RELATED SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22043

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $32.3 million to ORKAND CORPORATION, THE for work described as: OHER COMPUTER RELATED SERVICES Key points: 1. The contract provided essential IT services, contributing to the operational efficiency of the Department of Labor. 2. Competition was moderate, with three bidders vying for the contract, suggesting a reasonable level of market interest. 3. The firm-fixed-price structure likely incentivized cost control by the contractor. 4. Performance was situated within the 'Other Computer Related Services' NAICS code, a common area for federal IT procurement. 5. The contract duration of 1364 days indicates a significant, long-term need for these services. 6. Awarded in Virginia, the contract's geographic impact is localized to the state where services were likely performed.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific service details or comparable contract data. However, the award amount of approximately $32.3 million over roughly 3.7 years suggests an average annual spend of around $8.7 million for IT services. This figure appears within a reasonable range for comprehensive IT support for a federal agency of the Department of Labor's size, assuming the scope of work was broad. The firm-fixed-price contract type generally aims for predictable costs, but the ultimate value depends on the efficiency and effectiveness of the services delivered by The Orkand Corporation.

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 offers. With three bidders participating, the competition level can be considered moderate. This suggests that while the market was engaged, it may not have been as robust as in some other federal procurements, potentially limiting the downward pressure on pricing that a larger number of bidders might exert. The moderate competition implies a balance between attracting qualified vendors and ensuring a degree of price discovery.

Taxpayer Impact: Moderate competition means taxpayers likely benefited from a reasonably competitive price, avoiding the potential overpayment associated with sole-source awards, but perhaps not achieving the absolute lowest price possible if more firms had participated.

Public Impact

The primary beneficiaries of this contract were the various administrations and offices within the Department of Labor, which received essential IT support. Services delivered likely included IT infrastructure management, software support, and potentially help desk functions, enabling the agency's mission. The geographic impact was concentrated in Virginia, where the contract was awarded and services were likely rendered. The contract supported the workforce within The Orkand Corporation, providing employment opportunities in the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not accurately reflect the full scope of work or unforeseen technical challenges.
Risk of vendor lock-in if the agency became heavily reliant on The Orkand Corporation's specific expertise and systems.
Dependence on contractor performance for critical IT functions, where any lapse could impact agency operations.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, The Orkand Corporation, likely possesses relevant experience in providing IT services to federal agencies.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically under the 'Other Computer Related Services' category (NAICS 541519). This is a significant area of federal spending, encompassing a wide range of IT support, consulting, and integration services. The market for such services is highly competitive, with numerous large and small businesses vying for government contracts. Federal spending in this category often benchmarks against industry standards for IT support, managed services, and project-based IT solutions, reflecting the ongoing digital transformation efforts across government agencies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be indirect, through potential subcontracting opportunities if The Orkand Corporation chose to engage small businesses for specialized tasks. Without explicit subcontracting plans or goals mandated in the contract, the direct benefit to small businesses is uncertain. The focus of this award was on full and open competition, likely prioritizing established vendors with the capacity to handle the contract's scope and duration.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Labor's contracting officers and program managers responsible for IT services. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally facilitated through contract award databases like FPDS, which provide public access to contract details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract emerged.

Related Government Programs

IT Services
Computer Systems Design Services
Professional, Scientific, and Technical Services
Information Technology Management
Federal IT Procurement
Department of Labor IT Contracts

Risk Flags

Moderate competition may limit price optimization.
Firm-fixed-price contracts can carry risk if scope is not well-defined.
Long contract duration increases exposure to technological obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $32.3 million to ORKAND CORPORATION, THE. OHER COMPUTER RELATED 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 $32.3 million.

What is the period of performance?

Start: 2003-12-03. End: 2007-08-28.

What specific IT services were included under the 'Other Computer Related Services' category for this contract?

The provided data categorizes the contract under NAICS code 541519, 'Other Computer Related Services.' While the specific details of the services rendered are not explicitly listed in the abbreviated data, this category typically encompasses a broad range of IT support functions. These can include IT consulting, systems integration, custom software development, IT project management, network support, and potentially data processing services. For the Department of Labor, these services would have been crucial for maintaining its operational infrastructure, supporting its various programs, and ensuring the efficient delivery of its services to the public. Without the full contract statement of work, the precise nature of the IT support remains generalized within this broad classification.

How does the $32.3 million award amount compare to other similar IT service contracts awarded by the Department of Labor during that period?

Comparing the $32.3 million award to other Department of Labor IT contracts from the 2003-2007 period requires access to historical procurement data beyond the provided snippet. However, as a general benchmark, an average annual spend of approximately $8.7 million for comprehensive IT services is not uncommon for a federal agency of the Department of Labor's size and scope. Larger agencies often award multi-million dollar IT contracts annually. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes (e.g., 541511, 541512, 541513) awarded by the DOL or comparable agencies during the same timeframe. Factors like contract duration, specific services, and competition levels would influence the comparability.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided abbreviated data does not contain specific details regarding the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for IT service contracts, such metrics would be defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These would likely include measures related to system uptime, response times for help desk support, project completion timelines, software bug resolution rates, and data security compliance. The firm-fixed-price nature of the contract suggests that performance would be monitored against these agreed-upon standards, with potential penalties or incentives tied to meeting or exceeding them. Without the full contract documentation, these specific performance expectations remain unknown.

What is the track record of The Orkand Corporation in fulfilling federal IT service contracts?

The Orkand Corporation, as the awardee of this $32.3 million Department of Labor contract, would have a track record reflected in its past performance evaluations for federal contracts. While this specific data snippet doesn't detail their history, federal agencies typically assess a contractor's past performance as a critical factor in the award decision. This assessment usually involves reviewing previous contract performance, including adherence to schedule, cost control, quality of work, and customer satisfaction. A contract of this size and duration suggests The Orkand Corporation likely had prior experience and demonstrated capability in delivering IT services to government entities. Further investigation into federal procurement databases would reveal more about their specific performance history across various agencies and contract types.

Were there any significant risks or challenges identified during the performance of this contract?

The abbreviated data does not explicitly list any significant risks or challenges encountered during the performance of this contract. However, common risks associated with large IT service contracts include scope creep, unforeseen technical difficulties, contractor performance issues, cybersecurity threats, and budget overruns, even with fixed-price contracts. Given the contract's duration (over 3.5 years), it's plausible that the Department of Labor and The Orkand Corporation navigated various operational and technical challenges. The effectiveness of risk mitigation strategies employed by both parties would have been crucial to the contract's successful completion. Without specific reports or contract close-out documentation, identifying actual challenges is speculative.

How did the 'Other Computer Related Services' category evolve within the Department of Labor's IT spending over time?

The provided data focuses on a single contract awarded between 2003 and 2007. To understand the evolution of 'Other Computer Related Services' spending within the Department of Labor, a longitudinal analysis of their IT procurement history would be necessary. This would involve examining spending trends in NAICS code 541519 and related IT service categories across multiple fiscal years. Factors influencing this evolution could include changes in technology, agency priorities, federal IT modernization initiatives (like FITARA), shifts towards cloud computing, and the increasing demand for cybersecurity services. This single contract offers a snapshot but not a trend.

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: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 7799 LEESBURG PIKE, SUITE 700N, FALLS CHURCH, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $125,794,673

Exercised Options: $125,794,673

Current Obligation: $32,346,084

Timeline