NLRB awards $24.4M for IT support services to Optimos, LLC over 5 years

Contract Overview

Contract Amount: $24,393,408 ($24.4M)

Contractor: Optimos, LLC

Awarding Agency: National Labor Relations Board

Start Date: 2012-04-02

End Date: 2017-04-12

Contract Duration: 1,836 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF "OTHER FUNCTIONS" BUSINESS APPLICATION DEVELOPMENT AND SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

National Labor Relations Board obligated $24.4 million to OPTIMOS, LLC for work described as: IGF::OT::IGF "OTHER FUNCTIONS" BUSINESS APPLICATION DEVELOPMENT AND SUPPORT SERVICES Key points: 1. Contract provides essential IT application development and support, crucial for NLRB's operational efficiency. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of 5 years allows for sustained support but requires ongoing performance monitoring. 5. The North American Industry Classification System (NAICS) code 541519 indicates a broad range of IT services. 6. Awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle.

Value Assessment

Rating: good

The total award amount of $24.4 million over five years averages to approximately $4.88 million annually. Benchmarking this against similar IT support contracts for federal agencies of comparable size and scope is challenging without more specific service details. However, the fixed-price nature of the contract suggests that the contractor is incentivized to manage costs effectively. The number of bids received (3) is moderate, which could indicate reasonable pricing, but a deeper analysis of the specific services and deliverables would be needed for a definitive value assessment.

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 bids. Three bids were received for this delivery order. While three bidders represent some level of competition, it is on the lower end for a contract of this value and duration. This suggests that while the process was open, the market for this specific type of specialized IT support might be limited, or other factors may have constrained the number of participants.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. However, with only three bids, the potential for significant cost savings may have been constrained compared to a scenario with a larger number of highly competitive offers.

Public Impact

The National Labor Relations Board (NLRB) benefits from enhanced IT infrastructure and support, enabling efficient case management and operations. Employees of the NLRB will have access to reliable IT systems and application support, improving their productivity. The contract supports IT services within the District of Columbia, where the NLRB is headquartered. The contract likely supports a workforce involved in IT development, maintenance, and support roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if knowledge transfer is not managed effectively.
Reliance on a single contractor for critical IT functions could pose risks if performance degrades.
Scope creep could lead to cost overruns if not managed tightly within the fixed-price structure.

Positive Signals

Fixed-price contract aligns contractor incentives with performance and cost control.
Full and open competition suggests a potentially robust selection process.
Contract duration allows for stability and continuity of essential IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT services and application development. The IT services market is vast and highly competitive, with numerous companies offering specialized solutions. Federal IT spending is a significant portion of the overall federal budget, with agencies constantly seeking to modernize systems and improve efficiency. This contract represents a typical expenditure for an agency requiring ongoing support for its business applications, fitting within the broader trend of federal agencies outsourcing IT functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, Optimos, LLC, is likely a mid-to-large-sized business. The absence of small business set-asides means that opportunities for small business participation would depend on Optimos's own subcontracting strategy, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Labor Relations Board's contracting officers and program managers. As a delivery order under a potential IDIQ contract, oversight would focus on performance against the specific task orders issued. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Federal IT Application Development and Support
IT Services for Government Agencies
National Labor Relations Board IT Modernization
Delivery Order Contracts
Fixed-Price IT Contracts

Risk Flags

Moderate competition level (3 bidders) may limit price discovery.
Contract duration (5 years) requires sustained performance monitoring.
Fixed-price contracts can sometimes stifle innovation if scope is not well-defined.
Potential for vendor lock-in if knowledge transfer is not managed.

Frequently Asked Questions

What is this federal contract paying for?

National Labor Relations Board awarded $24.4 million to OPTIMOS, LLC. IGF::OT::IGF "OTHER FUNCTIONS" BUSINESS APPLICATION DEVELOPMENT AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is OPTIMOS, LLC.

Which agency awarded this contract?

Awarding agency: National Labor Relations Board (National Labor Relations Board).

What is the total obligated amount?

The obligated amount is $24.4 million.

What is the period of performance?

Start: 2012-04-02. End: 2017-04-12.

What is the track record of Optimos, LLC in performing similar federal IT contracts?

A thorough review of Optimos, LLC's contract history would be necessary to assess their track record. This would involve examining past performance evaluations on similar federal contracts, particularly those involving application development and support for government agencies. Key indicators would include on-time delivery, adherence to budget (especially for fixed-price contracts), quality of deliverables, and customer satisfaction ratings. Analyzing their performance on previous delivery orders or task orders under IDIQ vehicles would provide insight into their ability to manage scope and execute effectively. Without specific past performance data, it's difficult to definitively assess their reliability for this $24.4 million contract.

How does the average annual cost of this contract compare to similar IT support contracts for federal agencies?

The average annual cost for this contract is approximately $4.88 million ($24.4M / 5 years). To benchmark this effectively, we would need to compare it against IT support contracts awarded to agencies of similar size and complexity, focusing on those with comparable service scopes (application development, maintenance, support). Factors like the specific technologies supported, the number of users, and the criticality of the applications would influence pricing. A comparison with contracts awarded under similar competition levels (full and open) and contract types (firm fixed price) would also be relevant. Without access to a detailed database of comparable contracts with specific service breakdowns, a precise value-for-money assessment is challenging, but the moderate competition suggests the price may be within a reasonable market range.

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

Primary risks include potential performance issues from the contractor (Optimos, LLC), scope creep leading to cost overruns despite the fixed-price structure, and over-reliance on a single vendor for critical IT functions. Mitigation strategies typically involve robust contract oversight by the NLRB, clear definition of tasks and deliverables in each delivery order, regular performance reviews, and potentially incorporating service level agreements (SLAs) with penalties for non-performance. The fixed-price nature itself is a risk mitigation tool, shifting financial risk to the contractor. However, ensuring the initial scope is well-defined and change management processes are strictly followed is crucial.

How effective is the fixed-price contract type in ensuring program effectiveness for IT support services?

The firm fixed-price (FFP) contract type is generally effective in ensuring cost control and shifting performance risk to the contractor. For IT support services, FFP incentivizes the contractor to deliver the agreed-upon services efficiently to maximize profit. This can lead to program effectiveness by ensuring that the NLRB receives the required support within the budgeted amount. However, FFP can sometimes disincentivize innovation or going 'above and beyond' if not carefully structured with performance metrics. It also requires a very clear and detailed statement of work to avoid disputes over scope. For ongoing support, the NLRB must ensure that the scope defined in the delivery orders accurately reflects their needs.

What are the historical spending patterns for IT support services at the National Labor Relations Board?

Analyzing historical spending patterns for IT support services at the NLRB would provide context for this $24.4 million award. This would involve examining previous contract awards for similar services, their values, durations, and the contractors involved. Understanding whether this contract represents an increase, decrease, or stable level of spending on IT support is important. It would also reveal trends in competition levels and contract types utilized by the NLRB for IT services. Without access to the NLRB's historical procurement data, it's impossible to provide specific spending patterns, but such analysis would be crucial for assessing the long-term IT investment strategy of the agency.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Maximus Inc (UEI: 082347477)

Address: 3130 FAIRVIEW PARK DR STE 800, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,733,051

Exercised Options: $24,393,408

Current Obligation: $24,393,408

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0051K

IDV Type: FSS

Timeline