Department of Labor's $97.5M IT Facilities Management Contract Awarded to Buchanan & Edwards, Inc

Contract Overview

Contract Amount: $97,478,023 ($97.5M)

Contractor: Buchanan & Edwards, Inc.

Awarding Agency: Department of Labor

Start Date: 2020-09-28

End Date: 2026-05-23

Contract Duration: 2,063 days

Daily Burn Rate: $47.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: JOB CORPS DATA CENTER IT FACILITIES MANAGEMENT CONTRACT

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78741

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $97.5 million to BUCHANAN & EDWARDS, INC. for work described as: JOB CORPS DATA CENTER IT FACILITIES MANAGEMENT CONTRACT Key points: 1. The contract value is substantial at $97.5 million over its duration. 2. Buchanan & Edwards, Inc. secured this contract. 3. The contract falls under IT Facilities Management, a critical operational area. 4. The award was made under full and open competition.

Value Assessment

Rating: good

The contract is a Time and Materials type, which can be less predictable in final cost compared to fixed-price contracts. However, the benchmark of $47,251 for this type of service suggests the pricing is within a reasonable range, pending detailed analysis of labor categories and rates.

Cost Per Unit: $47,251

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the IT facilities management services provided.

Public Impact

Ensures continued operation of critical IT infrastructure for the Department of Labor. Supports the agency's mission by maintaining essential technology services. Potential for job creation and economic activity through the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Lack of specific small business participation noted.

Positive Signals

Awarded under full and open competition.
Contract duration extends to May 2026, providing stability.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on facilities management. Spending in this area is crucial for government operations, and benchmarks vary widely based on the scope and complexity of IT infrastructure managed.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small business subcontracting goals were established or met.

Oversight & Accountability

The award was made by the Office of the Assistant Secretary for Administration and Management, suggesting internal oversight. The duration and value warrant ongoing monitoring to ensure performance and cost control.

Related Government Programs

Computer Systems Design Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Time and Materials contract type.
No explicit small business participation noted.
Limited detail on specific services and performance metrics.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $97.5 million to BUCHANAN & EDWARDS, INC.. JOB CORPS DATA CENTER IT FACILITIES MANAGEMENT CONTRACT

Who is the contractor on this award?

The obligated recipient is BUCHANAN & EDWARDS, INC..

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 $97.5 million.

What is the period of performance?

Start: 2020-09-28. End: 2026-05-23.

What specific IT facilities management services are included in this contract?

The contract details are limited in the provided data. Typically, IT facilities management encompasses the maintenance, operation, and support of data centers, server rooms, network infrastructure, and related physical environments. This can include power, cooling, physical security, and hardware lifecycle management.

Are there performance metrics or Service Level Agreements (SLAs) associated with this contract?

Performance metrics and SLAs are not explicitly detailed in the provided data. However, for a contract of this nature and value, it is highly probable that the Department of Labor has established specific performance standards and reporting requirements to ensure the contractor meets operational needs and maintains system availability.

What is the potential for cost escalation given the Time and Materials contract type?

Time and Materials contracts carry inherent risks of cost escalation if labor hours or material costs exceed initial projections. Effective oversight, clear task definitions, and robust monitoring by the Department of Labor are crucial to mitigate this risk and ensure the final cost remains aligned with the benchmark and expected value.

Industry Classification

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

Solicitation ID: 1605DC-20-R-00021

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8200 GREENSBORO DR STE 1100, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $97,478,023

Exercised Options: $97,478,023

Current Obligation: $97,478,023

Actual Outlays: $86,637,471

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $7,878,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200055W

IDV Type: GWAC

Timeline