Commerce awards $3.4M web development contract to FOR PEOPLE LLC, a sole-source procurement

Contract Overview

Contract Amount: $3,411,282 ($3.4M)

Contractor: FOR People LLC

Awarding Agency: Department of Commerce

Start Date: 2024-01-26

End Date: 2027-01-25

Contract Duration: 1,095 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: BIS WEB-BASED DEVELOPMENT - PHASE 2

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $3.4 million to FOR PEOPLE LLC for work described as: BIS WEB-BASED DEVELOPMENT - PHASE 2 Key points: 1. The contract's value of $3.4 million over three years suggests a significant investment in web-based development services. 2. The sole-source nature of this award warrants scrutiny regarding the justification for limited competition. 3. Performance risk appears moderate given the contract type (labor hours) and defined duration. 4. The service category, 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services,' is broad and could encompass various development needs. 5. The contract's focus on web-based development positions it within the broader digital transformation efforts of federal agencies.

Value Assessment

Rating: questionable

Benchmarking the value of this $3.4 million contract is challenging without specific deliverables or performance metrics. However, the sole-source award raises concerns about potential overpricing compared to a competitive environment. The labor hours contract type can sometimes lead to cost overruns if not closely managed. Without comparable sole-source awards for similar web development projects within the Department of Commerce or other agencies, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The justification for this approach is not provided in the data. Typically, sole-source awards occur when only one responsible source can provide the required services. This lack of competition limits the government's ability to explore a wider range of solutions and potentially secure more favorable pricing through a bidding process.

Taxpayer Impact: The absence of competition means taxpayers may not benefit from the cost savings that could arise from a more open bidding process. This could translate to a higher overall cost for the services rendered.

Public Impact

The primary beneficiaries are likely the Department of Commerce, which will receive enhanced web-based development services. The contract aims to deliver improvements or new functionalities to the agency's web presence and related digital infrastructure. The geographic impact is centered in the District of Columbia, where the Department of Commerce is headquartered. Workforce implications may include the direct employment of individuals by FOR PEOPLE LLC for the duration of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition raises questions about whether the best possible solution was secured.
Contract type (labor hours) can present cost control challenges if not meticulously managed.
Limited data on specific deliverables makes it hard to assess the true value proposition.

Positive Signals

Contract awarded to a specific company, FOR PEOPLE LLC, indicating a known entity is performing the work.
Defined contract duration (3 years) provides a clear timeframe for service delivery.
Contract is for web-based development, a critical function for modern government operations.

Sector Analysis

The federal IT services market is vast, with significant spending on web development, cloud hosting, and related digital services. Agencies increasingly rely on these services to modernize operations and improve citizen engagement. This contract falls within the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' NAICS code, a sector characterized by both large established players and specialized smaller firms. Benchmarking requires comparing this award to similar sole-source or competed web development contracts within civilian agencies, considering the scope and complexity of the work.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses. The sole-source nature further reduces the likelihood of small business participation through subcontracting unless FOR PEOPLE LLC voluntarily engages them. This award does not appear to directly benefit the small business ecosystem within this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Commerce's contracting officers and program managers. The contract's performance will be monitored against the agreed-upon scope of work and deliverables. Transparency is limited due to the sole-source nature and the lack of publicly available detailed justification. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Department of Commerce IT Modernization initiatives
Federal civilian agency web development procurements

Risk Flags

Sole-source award raises concerns about competition and potential cost-effectiveness.
Lack of detailed performance metrics makes assessing value and success difficult.
Contract type (labor hours) requires diligent oversight to manage costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $3.4 million to FOR PEOPLE LLC. BIS WEB-BASED DEVELOPMENT - PHASE 2

Who is the contractor on this award?

The obligated recipient is FOR PEOPLE LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2024-01-26. End: 2027-01-25.

What specific web-based development services are being procured under this contract?

The provided data indicates the contract falls under NAICS code 518210 ('Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services') and is for 'BIS WEB-BASED DEVELOPMENT - PHASE 2'. However, the specific deliverables, functionalities, or technical requirements are not detailed. This could range from building new public-facing websites, developing internal applications, enhancing existing web platforms, or providing backend data processing and hosting for web services. Without a detailed statement of work, it's impossible to ascertain the precise nature and scope of the development services.

What is the justification for awarding this contract on a sole-source basis to FOR PEOPLE LLC?

The provided data states the contract was 'NOT COMPETED UNDER SAP' and implies a sole-source award. Federal procurement regulations typically require full and open competition unless specific exceptions apply. Common justifications for sole-source awards include unique capabilities possessed by only one vendor, urgent and compelling needs where competition is impractical, or when only one responsible source exists. The specific justification for this award to FOR PEOPLE LLC is not detailed in the provided information and would typically be documented in a Justification for Other Than Full and Open Competition (JOFOC) report.

How does the $3.4 million contract value compare to similar web development projects within the Department of Commerce or other federal agencies?

Direct comparison is difficult without knowing the specific scope and complexity of the 'BIS WEB-BASED DEVELOPMENT - PHASE 2' project. However, $3.4 million over three years for web development is a substantial investment. Many federal agencies procure web development services through various contract vehicles, including IT schedules and competitive solicitations. Sole-source awards, by their nature, often lack direct price comparison points. To assess value, one would need to compare the proposed labor rates, estimated hours, and expected outcomes against industry benchmarks and potentially against what a competitively procured contract might yield, which is inherently speculative in a sole-source scenario.

What are the potential risks associated with a sole-source contract for web development?

The primary risks of a sole-source contract include a lack of price competition, potentially leading to higher costs for the government. There's also a risk that the chosen vendor may not offer the most innovative or cost-effective solution available in the market, as alternatives were not explored. Furthermore, sole-source awards can sometimes indicate a lack of strategic planning or an over-reliance on a single vendor, which can create dependencies. Effective contract management, including rigorous oversight of performance and costs, becomes even more critical to mitigate these risks.

What is the track record of FOR PEOPLE LLC in performing federal government contracts, particularly in web development?

Information regarding the track record of FOR PEOPLE LLC in performing federal government contracts is not provided in the data snippet. To assess their capabilities and past performance, one would typically consult resources like the Federal Procurement Data System (FPDS), the Contractor Performance Assessment Reporting System (CPARS), or conduct market research. Understanding their history with similar projects, client satisfaction, and adherence to schedule and budget would be crucial for evaluating the risk associated with this award.

What are the expected outcomes or performance metrics for this web development contract?

The provided data does not specify the expected outcomes or performance metrics for the 'BIS WEB-BASED DEVELOPMENT - PHASE 2' contract. Typically, a contract of this nature would include a Statement of Work (SOW) or Performance Work Statement (PWS) detailing specific deliverables, functionalities, technical standards, and key performance indicators (KPIs). Without this information, it is challenging to measure the success of the contract or assess whether the $3.4 million investment is yielding the desired results for the Department of Commerce.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1331L524R0001

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1101 WILSON BLVD STE 600, ARLINGTON, VA, 22209

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,482,236

Exercised Options: $4,482,236

Current Obligation: $3,411,282

Actual Outlays: $2,801,558

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline