Labor Department's $31.8M ADP Support Services Contract Awarded to CSRA LLC

Contract Overview

Contract Amount: $31,862,908 ($31.9M)

Contractor: Csra LLC

Awarding Agency: Department of Labor

Start Date: 2004-09-03

End Date: 2007-09-30

Contract Duration: 1,122 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ADP SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $31.9 million to CSRA LLC for work described as: ADP SUPPORT SERVICES Key points: 1. Contract provides custom computer programming services, indicating a focus on specialized IT solutions. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The contract duration of 1122 days (approx. 3 years) allows for sustained support. 4. Services are delivered in the District of Columbia, concentrating economic impact locally. 5. The contract's value is significant, reflecting substantial investment in ADP support. 6. CSRA LLC, the contractor, has a history of performing federal IT contracts. 7. The 'Labor Hours' contract type suggests flexibility in task execution but requires careful monitoring.

Value Assessment

Rating: good

The contract value of approximately $31.8 million over three years for ADP support services appears reasonable given the scope of custom computer programming. Benchmarking against similar IT support contracts would provide a more precise value-for-money assessment. The 'Labor Hours' pricing mechanism, while flexible, can sometimes lead to cost overruns if not managed tightly, but it is a common pricing structure for services requiring adaptable task execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive better pricing and service quality. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of market interest and a competitive landscape for ADP support services.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of innovative solutions being considered. This approach ensures that government funds are used efficiently by leveraging the competitive market.

Public Impact

The Department of Labor benefits from enhanced ADP support, crucial for its administrative and operational functions. Employees within the Department of Labor will likely experience improved IT systems and services. The contract supports the Office of the Assistant Secretary for Administration and Management (OASAM) in its mission. The geographic impact is concentrated in the District of Columbia, where the services are delivered. The contract supports IT professionals and programmers, potentially creating or sustaining jobs in the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to 'Labor Hours' pricing if not rigorously managed.
Reliance on a single contractor for critical ADP support could pose a risk if performance falters.
The specific nature of 'custom computer programming' may lead to vendor lock-in if not carefully managed.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potentially good value.
The contractor, CSRA LLC, is an established entity with experience in federal IT services.
The contract duration allows for stable and consistent support for essential ADP functions.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on custom computer programming services. The market for IT support and custom software development is vast and highly competitive, with numerous firms offering specialized skills. Federal spending in this area is substantial, driven by the need for agencies to maintain and upgrade complex IT infrastructures, develop new applications, and ensure cybersecurity. Comparable spending benchmarks would typically involve analyzing IT services contracts across various agencies for similar scope and duration.

Small Business Impact

As this contract was awarded under full and open competition and does not indicate a small business set-aside, its direct impact on small businesses is likely limited unless CSRA LLC engages them as subcontractors. The subcontracting plan, if any, would determine the extent to which small businesses participate in fulfilling this contract. Without specific subcontracting data, it's difficult to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's contracting officers and program managers. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
Custom Computer Programming Services
ADP Management Support
Software Development Services
IT Services Contracts

Risk Flags

Potential for cost overruns due to 'Labor Hours' pricing.
Contract performance risk if contractor fails to meet service level agreements.
Dependency on a single vendor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $31.9 million to CSRA LLC. ADP SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CSRA LLC.

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 $31.9 million.

What is the period of performance?

Start: 2004-09-03. End: 2007-09-30.

What is CSRA LLC's track record with federal IT contracts, particularly those involving ADP support?

CSRA LLC, now part of General Dynamics Information Technology (GDIT), has a significant history of performing federal IT contracts across various agencies. Their portfolio includes a wide range of services such as IT modernization, cloud computing, cybersecurity, and application development. For ADP support services specifically, CSRA has managed numerous contracts requiring custom programming and system integration. Their experience suggests a strong capability to handle complex IT requirements. However, a detailed review of past performance evaluations and any past disputes or contract modifications would provide a more nuanced understanding of their reliability and effectiveness in delivering ADP support.

How does the $31.8 million contract value compare to similar ADP support services contracts awarded by the federal government?

The $31.8 million contract value for ADP support services over approximately three years is a substantial but not extraordinary amount for federal IT contracts of this nature. Similar contracts for custom computer programming and IT management support can range from a few million to hundreds of millions of dollars, depending on the scope, duration, and complexity. For instance, contracts supporting large agency-wide IT infrastructures or critical mission systems often exceed this value. The 'Labor Hours' pricing model can influence the final cost, making direct comparisons challenging without knowing the exact hours worked and labor rates. However, this award suggests a significant investment by the Department of Labor in its ADP capabilities.

What are the primary risks associated with a 'Labor Hours' contract type for ADP support services?

The primary risk associated with a 'Labor Hours' contract type for ADP support services is the potential for cost overruns if not managed diligently. Since payment is based on the hours worked by contractor personnel and their labor rates, there is less inherent incentive for the contractor to control costs compared to a fixed-price contract. This necessitates robust oversight from the government to ensure that hours are reasonable, necessary, and align with project milestones. Scope creep can also be a significant risk, as it can lead to an uncontrolled increase in labor hours. Effective project management, clear task definitions, and regular performance reviews are crucial to mitigate these risks.

How effective is full and open competition in ensuring value for money for IT support services like ADP?

Full and open competition is generally considered the most effective method for ensuring value for money in IT support services. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. Agencies can solicit a wider range of solutions and select the offer that provides the best overall value, considering technical merit, past performance, and price. While it requires more effort in the solicitation and evaluation phases, the potential for cost savings and access to superior solutions typically outweighs these initial investments. For complex services like custom ADP support, competition ensures that the government is not locked into a single vendor's offerings or pricing structure.

What are the implications of awarding this contract to CSRA LLC for the Department of Labor's IT modernization efforts?

Awarding this ADP support services contract to CSRA LLC (now GDIT) can have significant implications for the Department of Labor's IT modernization efforts. It provides the agency with a dedicated resource for critical IT functions, potentially enabling them to focus on strategic modernization initiatives rather than day-to-day system maintenance. CSRA's expertise in custom programming could be leveraged to develop new applications, integrate legacy systems, or implement advanced technologies. However, the effectiveness will depend on how well the contract is managed and aligned with the Department's broader IT strategy. A key consideration will be ensuring that the services provided facilitate, rather than hinder, future modernization and cloud migration efforts.

What is the historical spending trend for ADP support services at the Department of Labor?

Analyzing historical spending trends for ADP support services at the Department of Labor would require access to detailed historical contract data. Generally, federal agencies like the Department of Labor have consistently invested in ADP support due to the critical nature of IT infrastructure for operations. Spending in this area can fluctuate based on agency priorities, budget allocations, and the lifecycle of IT systems. Periods of significant IT modernization or system upgrades often see increased spending. Conversely, stable system environments might lead to more predictable, maintenance-focused spending. Understanding these trends helps in forecasting future needs and budgeting effectively for ADP support.

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: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 7700 HUBBLE DRIVE, LANHAM, MD, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $148,919,277

Exercised Options: $148,086,027

Current Obligation: $31,862,908

Timeline