Interior's $180M OHS Monitoring Support Services contract awarded to DLH, LLC, with 1,901 days duration

Contract Overview

Contract Amount: $180,029,198 ($180.0M)

Contractor: DLH, LLC

Awarding Agency: Department of the Interior

Start Date: 2020-08-17

End Date: 2025-10-31

Contract Duration: 1,901 days

Daily Burn Rate: $94.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OHS MONITORING SUPPORT SERVICES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $180.0 million to DLH, LLC for work described as: OHS MONITORING SUPPORT SERVICES Key points: 1. Contract awarded to DLH, LLC for administrative management and general management consulting services. 2. The contract has a significant duration of 1,901 days, spanning over five years. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The total value is substantial, indicating a significant need for these services. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this $180 million contract is challenging without specific performance metrics or comparable contract data. The Time and Materials pricing structure, while flexible, carries inherent risks for cost overruns if not managed diligently. The duration of over five years suggests a long-term need, but the absence of detailed performance data makes a definitive value assessment difficult. Compared to similar administrative management contracts, the pricing would need to be evaluated against specific labor categories and rates.

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 number of bidders is not specified, but this procurement method generally fosters a competitive environment, which should theoretically lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value available in the market for these essential monitoring support services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives competitive pricing and high-quality services.

Public Impact

The Department of the Interior benefits from enhanced monitoring support services, crucial for administrative and management functions. Services delivered likely include consulting, program management, and operational support to ensure compliance and efficiency. The geographic impact is primarily within the Department of the Interior's operational areas, potentially nationwide. Workforce implications may involve the utilization of DLH, LLC's personnel, potentially supplemented by government staff, to execute the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
Long contract duration (over 5 years) increases the risk of scope creep and potential for price increases.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services provided.
The contract is a delivery order, implying it's part of a larger IDIQ; understanding the parent IDIQ's terms is crucial for a full assessment.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield good value.
The substantial value indicates the critical nature of the services to the Department of the Interior's operations.
The long duration suggests a stable, ongoing need, allowing for continuity of essential support services.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector encompasses a wide range of professional services aimed at improving organizational efficiency and effectiveness. The market for these services is competitive, with numerous firms offering specialized expertise. The Department of the Interior's spending in this area is consistent with the need for robust administrative support to manage its diverse operations and programs.

Small Business Impact

The data indicates that small business participation (SB: false, SS: false) was not a primary set-aside consideration for this contract. Therefore, there are no direct small business set-aside benefits. Subcontracting opportunities for small businesses would depend on DLH, LLC's internal subcontracting plan and the specific requirements of the delivery orders issued under this contract. Without explicit set-aside goals, the impact on the small business ecosystem is indirect and contingent on the prime contractor's actions.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Interior's contracting officers and program managers. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of the Interior Administrative Support Contracts
Management and Consulting Services Contracts
Federal IT and Administrative Services IDIQs
Department of the Interior IT and Management Support

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of specific performance metrics makes value assessment difficult.
Long contract duration increases risk of scope creep.
Contract is a delivery order under a potential larger IDIQ, requiring review of parent contract terms.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $180.0 million to DLH, LLC. OHS MONITORING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DLH, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $180.0 million.

What is the period of performance?

Start: 2020-08-17. End: 2025-10-31.

What is the track record of DLH, LLC in performing similar government contracts, particularly within the Department of the Interior?

DLH, LLC has a significant history of performing government contracts, including those with the Department of the Interior and other federal agencies. Their portfolio often includes health, human services, and technology solutions. Analyzing their past performance on similar administrative management and consulting contracts would involve reviewing contract performance reports (CPARS), any past performance issues or commendations, and their financial stability. A deeper dive into their specific experience with OHS (Occupational Health and Safety) or similar monitoring support services would be crucial to assess their capability and reliability for this particular contract.

How does the awarded value of $180 million compare to similar OHS monitoring support services contracts across the federal government?

Comparing the $180 million value requires identifying comparable contracts based on scope, duration, and agency. Contracts for broad administrative management and general management consulting services can vary widely. If this contract specifically entails specialized OHS monitoring, its value should be benchmarked against contracts with similar technical requirements and service levels. Without more granular data on the specific services rendered (e.g., number of sites monitored, types of assessments performed), a precise comparison is difficult. However, a five-year contract of this magnitude suggests a significant operational requirement for the Department of the Interior.

What are the primary risks associated with the Time and Materials (T&M) contract type for this $180 million award?

The primary risk with a Time and Materials (T&M) contract, especially one valued at $180 million over five years, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer task durations or less efficient work if not managed rigorously. Effective oversight, detailed tracking of labor hours, and strict controls on material costs are essential to mitigate these risks and ensure the government pays only for necessary and efficient work performed.

What specific performance metrics or KPIs are being used to evaluate the effectiveness of DLH, LLC's services under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or performance metrics used to evaluate DLH, LLC's services. For a contract of this nature and value, typical KPIs might include timeliness of reports, accuracy of monitoring data, compliance rates achieved, client satisfaction scores, and adherence to project milestones. The effectiveness of the services is crucial for the Department of the Interior's operational success. Without these metrics, assessing the contractor's performance and the overall value derived from the $180 million investment is challenging.

How has the Department of the Interior's spending on OHS monitoring support services evolved over the past five years, and does this contract represent an increase or decrease?

Analyzing the historical spending trends for OHS monitoring support services within the Department of the Interior would require accessing historical procurement data. This $180 million contract, awarded in 2020 with an end date in 2025, represents a significant investment over its five-year term. Whether it signifies an increase or decrease in overall spending depends on prior contract values and the agency's evolving needs. Factors such as regulatory changes, increased operational scope, or shifts in agency priorities could influence spending levels in this category.

What is the potential impact of this contract on the broader market for administrative management and consulting services, particularly for mid-sized firms?

A $180 million contract awarded to a single entity like DLH, LLC can have a notable impact on the market for administrative management and consulting services. For the prime contractor, it represents a significant revenue stream and a substantial project. For the broader market, it signifies the government's continued reliance on external expertise for these functions. While this specific award might not directly create opportunities for smaller or mid-sized firms as prime contractors (given it's a single award), it could generate subcontracting opportunities if DLH, LLC engages them. It also highlights the demand and potential profitability within this service sector.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: DLH Holdings Corp

Address: 6720B ROCKLEDGE DR STE 777, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $187,903,039

Exercised Options: $187,903,039

Current Obligation: $180,029,198

Actual Outlays: $180,029,198

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F062CA

IDV Type: FSS

Timeline