Labor Department's $18.2M Administrative Management Consulting Contract Awarded to Sungard Availability Services

Contract Overview

Contract Amount: $18,225,145 ($18.2M)

Contractor: Sungard Availability Services, LP

Awarding Agency: Department of Labor

Start Date: 2004-01-23

End Date: 2009-09-30

Contract Duration: 2,077 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: OTHER PROFESSIONAL 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 $18.2 million to SUNGARD AVAILABILITY SERVICES, LP for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. Contract focused on administrative management and general management consulting services. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The contract duration of over 6 years indicates a long-term need for these services. 4. The contract was awarded to a single vendor, Sungard Availability Services, LP. 5. The total value of the contract was approximately $18.2 million. 6. The contract was performed in the District of Columbia.

Value Assessment

Rating: fair

The contract value of $18.2 million over more than six years for administrative management consulting services appears to be within a reasonable range for the federal government. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for management consulting services would provide a clearer picture of whether the pricing was competitive. The use of labor hours as the contract type suggests that costs could fluctuate based on actual hours worked.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it was competed suggests that the agency sought to leverage market forces to obtain the best value. The number of bidders is not specified, but full and open competition generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down prices and improve the quality of services received.

Public Impact

The primary beneficiary of this contract is the Department of Labor, which received administrative management and general management consulting services. These services likely supported the operational efficiency and effectiveness of the Office of the Assistant Secretary for Administration and Management. The geographic impact is concentrated in the District of Columbia, where the contract was performed. The contract may have implications for the administrative and management consulting workforce, potentially creating or sustaining jobs within this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness.
The long duration of the contract could lead to vendor lock-in if not managed carefully.
Reliance on labor hours can sometimes lead to cost overruns if not closely monitored.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The contract was awarded to a single, established vendor, suggesting a potentially stable and reliable service provider.
The contract duration implies a consistent need for these services, which the vendor has presumably met.

Sector Analysis

Administrative management and general management consulting services represent a significant segment of the professional services market. Federal agencies frequently procure these services to improve efficiency, streamline operations, and implement strategic initiatives. The market is characterized by a mix of large, established firms and smaller, specialized consultancies. Spending benchmarks for similar contracts can vary widely based on the complexity and duration of the services required.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The award was made to Sungard Availability Services, LP, a large entity. Further analysis would be needed to determine if any small business participation was mandated or occurred organically through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Labor. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Professional Services Contracts
Department of Labor Contracts

Risk Flags

Long contract duration may increase risk of vendor lock-in.
Labor hours contract type requires diligent monitoring to control costs.
Lack of specific performance metrics in summary data hinders outcome assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $18.2 million to SUNGARD AVAILABILITY SERVICES, LP. OTHER PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is SUNGARD AVAILABILITY SERVICES, LP.

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 $18.2 million.

What is the period of performance?

Start: 2004-01-23. End: 2009-09-30.

What specific administrative management and general management consulting services were provided under this contract?

The provided data indicates the contract was for 'Administrative Management and General Management Consulting Services' (NAICS code 541611). However, the specific nature of these services is not detailed. Typically, such services can encompass a wide range of activities including organizational analysis, process improvement, strategic planning, human capital management consulting, financial management consulting, and IT management consulting, all aimed at enhancing the efficiency and effectiveness of the agency's operations. Without the full contract details or statement of work, the precise deliverables remain unspecified.

How does the $18.2 million contract value compare to similar federal contracts for management consulting services?

Benchmarking the $18.2 million contract value requires comparing it to similar contracts awarded by federal agencies for administrative management and general management consulting services (NAICS 541611) over comparable durations. Contracts of this magnitude, spanning over six years, are not uncommon for large-scale consulting needs within federal agencies. However, the 'value for money' depends heavily on the scope, complexity, and outcomes achieved. A detailed comparison would involve analyzing the average cost per year or per labor hour for similar services, considering factors like the agency, the specific services rendered, and the contractor's experience. Without more granular data on the services provided and market rates, a definitive comparison is difficult.

What was the track record of Sungard Availability Services, LP with the federal government prior to or during this contract?

Sungard Availability Services, LP has a history of federal contracting. While specific performance details for this particular $18.2 million contract are not provided in the summary data, their broader federal contracting history can be reviewed through public databases like FPDS. This would reveal other contracts awarded, their values, agencies involved, and potentially any performance ratings or past performance information. A thorough review would assess their reliability, past performance on similar projects, and any history of disputes or contract terminations, which are crucial for understanding their track record.

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

Potential risks for a contract of this nature and duration include scope creep, cost overruns due to the labor hours pricing model, contractor performance issues, and potential obsolescence of recommended solutions. Risks related to data security and confidentiality would also be present, given the nature of management consulting. The management of these risks would typically involve robust contract oversight by the contracting officer and technical monitors, clear definition and enforcement of performance standards, regular progress reviews, and strict change control processes. The use of full and open competition at the outset aims to mitigate risks associated with selecting an unqualified vendor.

How did the Department of Labor ensure effective oversight and accountability for this contract?

Effective oversight and accountability for this contract would be established through several mechanisms. The Department of Labor's contracting officer and the Office of the Assistant Secretary for Administration and Management (the receiving office) would be responsible for monitoring performance against the contract's statement of work and any established performance metrics. Regular progress reports from the contractor, site visits, and performance reviews are standard oversight tools. Accountability is enforced through contractual remedies, including potential withholding of payment, contract termination for default, or claims for damages if performance standards are not met. Transparency is supported by the public availability of contract award data.

What is the historical spending pattern for administrative management and general management consulting services at the Department of Labor?

To understand the historical spending pattern for administrative management and general management consulting services at the Department of Labor, one would need to analyze aggregate spending data for NAICS code 541611 (and potentially related codes) across multiple fiscal years. This analysis would reveal trends in contract awards, average contract values, the number of contracts awarded, and the primary contractors utilized. Such a pattern could indicate whether this $18.2 million contract represents a typical investment, an increase, or a decrease in spending for these services within the department, and whether spending is concentrated in specific offices or spread broadly.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: Sungard Capital Corp. (UEI: 783824670)

Address: 680 EAST SWEDESFORD ROAD, WAYNE, PA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,634,898

Exercised Options: $24,634,898

Current Obligation: $18,225,145

Timeline