OPM's $22.3M IT contract with ESP GROUP, INC, THE for computer systems design services awarded in 2010

Contract Overview

Contract Amount: $22,312,486 ($22.3M)

Contractor: ESP Group, Inc, the

Awarding Agency: Office of Personnel Management

Start Date: 2010-06-01

End Date: 2015-11-30

Contract Duration: 2,008 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SECURE DATA PORTAL

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $22.3 million to ESP GROUP, INC, THE for work described as: SECURE DATA PORTAL Key points: 1. The contract value of $22.3 million over its period of performance suggests a significant investment in IT infrastructure. 2. The award was made under full and open competition, indicating a potentially competitive bidding process. 3. The fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 4. The duration of the contract, spanning from 2010 to 2015, suggests a long-term need for these services. 5. The services provided fall under computer systems design, a critical area for government operations. 6. The agency and servicing administration are both the Office of Personnel Management, indicating internal IT support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of services and comparable market rates at the time of award. However, a $22.3 million IT services contract over five years is a substantial commitment. The fixed-price nature suggests an attempt to control costs, but the ultimate value for money depends on the successful delivery of complex systems design services and their alignment with OPM's evolving needs. Without data on performance metrics or cost overruns, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves a broad solicitation to all responsible sources. This method is generally preferred as it maximizes the pool of potential bidders and fosters a competitive environment. The fact that it was competed fully suggests that OPM sought to leverage market competition to obtain the best value. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a wider range of offers and encouraging innovation from multiple vendors, leading to potentially more cost-effective solutions.

Public Impact

Federal employees and retirees benefit from the improved IT systems supporting personnel management. The contract delivers essential computer systems design services to the Office of Personnel Management. The geographic impact is primarily within the federal government's operational sphere, supporting national personnel data management. Workforce implications include the potential for IT professionals to be engaged in designing and implementing these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term IT design contracts if not managed rigorously.
Reliance on a single contractor for critical systems design over an extended period could pose risks.
Ensuring the technology remains current and adaptable throughout the contract's lifespan is a challenge.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Fixed-price contract type provides cost predictability for the agency.
The contract supports a critical government function related to personnel management.

Sector Analysis

The IT services sector is a vast and dynamic market. Contracts for computer systems design are fundamental to government modernization efforts, enabling agencies to manage data, improve citizen services, and enhance operational efficiency. Spending in this area is consistently high across federal agencies. Comparable spending benchmarks would typically involve analyzing other large-scale IT system design contracts awarded to similar-sized firms or for comparable agency functions.

Small Business Impact

This contract does not indicate any specific small business set-aside. The award to ESP GROUP, INC, THE suggests a prime contractor that may or may not be a small business itself, but the contract was not specifically designated for small business participation. Subcontracting opportunities for small businesses would depend on the prime contractor's strategy and the nature of the work required, which is not detailed here.

Oversight & Accountability

Oversight of this contract would typically be managed by the Office of Personnel Management's contracting officers and program managers. Accountability measures would be embedded in the contract's performance standards and delivery schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arose during the contract's performance.

Related Government Programs

Federal Civilian IT Modernization Programs
Governmentwide IT Services Contracts
Personnel Management Information Systems
Computer Systems Design and Related Services

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Reliance on a single vendor for critical design services over an extended period.
Potential for scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $22.3 million to ESP GROUP, INC, THE. SECURE DATA PORTAL

Who is the contractor on this award?

The obligated recipient is ESP GROUP, INC, THE.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $22.3 million.

What is the period of performance?

Start: 2010-06-01. End: 2015-11-30.

What was the specific nature of the computer systems design services provided under this contract?

The provided data indicates the contract was for 'Computer Systems Design Services' (NAICS code 541512). This broad category typically encompasses services such as analyzing user needs and designing computer systems to meet those needs, including software and hardware design, integration, and implementation planning. For OPM, these services likely supported the design, development, or enhancement of systems related to federal employee data, benefits, retirement, or other personnel management functions. Without access to the detailed SOW (Statement of Work) or task orders, the precise technical details and specific systems involved remain unspecified.

How does the $22.3 million contract value compare to similar IT design contracts awarded by OPM or other agencies during the 2010-2015 period?

Comparing the $22.3 million value requires context regarding the specific IT services and the period. During 2010-2015, federal agencies were actively investing in IT modernization. Large-scale IT system design and integration contracts could range from a few million to tens or hundreds of millions of dollars, depending on complexity and duration. A five-year contract of this magnitude for systems design suggests a significant project. To benchmark effectively, one would need to compare it against contracts for similar NAICS codes (e.g., 541512, 541511, 541519) awarded by agencies of similar size and mission to OPM, considering factors like the number of users supported, data sensitivity, and integration requirements.

What were the key performance indicators (KPIs) or metrics used to evaluate the success of ESP GROUP, INC, THE under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate the contractor's performance. Typically, for computer systems design services, KPIs might include adherence to project timelines, successful completion of design milestones, quality of design documentation, system performance post-implementation (if applicable), user satisfaction, and adherence to budget. The contract type (Firm Fixed Price) implies that meeting the defined scope and deliverables within the agreed price was a primary measure of success. Further details would likely be found in the contract's Statement of Work (SOW) or associated performance work statements.

What is the track record of ESP GROUP, INC, THE with federal contracts, particularly in IT services?

ESP GROUP, INC, THE has been awarded federal contracts, including this $22.3 million IT services contract with OPM. Analyzing their broader federal contracting history would involve reviewing databases like FPDS to identify other awards, agencies served, contract types, dollar values, and performance history. A comprehensive track record assessment would look for patterns in contract performance, any past performance issues or awards, and their experience with similar IT services (e.g., systems design, integration, software development) across different federal agencies. This specific contract represents a substantial engagement, suggesting a level of capability recognized by OPM at the time of award.

Were there any significant risks identified or mitigation strategies employed for this contract?

The provided data does not explicitly list identified risks or mitigation strategies for this contract. However, common risks in large IT systems design contracts include technological obsolescence, integration challenges with existing systems, cybersecurity vulnerabilities, schedule delays, cost overruns (less likely with FFP but possible through change orders), and contractor performance issues. Mitigation strategies often involve robust project management, clear SOWs, phased development, regular progress reviews, contingency planning, and strong government oversight. Given the contract's duration and nature, OPM likely had internal risk management processes in place.

How has OPM's spending on computer systems design services evolved since this contract ended in 2015?

To assess OPM's spending evolution on computer systems design services since 2015, one would need to analyze subsequent contract awards for relevant NAICS codes (primarily 541512) issued by OPM. This would involve tracking the total dollar value of contracts awarded annually, the number of contracts, and the types of services procured. Trends might indicate increased or decreased reliance on external contractors, shifts towards cloud services, or investments in specific technological areas. Comparing spending patterns before, during, and after this $22.3 million contract provides insight into OPM's sustained investment in its IT infrastructure and systems design capabilities.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ESP Group Inc the (UEI: 117496371)

Address: 1225 JEFFERSON DAVIS HWY, ARLINGTON, VA, 22202

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $34,111,230

Exercised Options: $22,312,486

Current Obligation: $22,312,486

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0740M

IDV Type: FSS

Timeline