Department of Labor awards $2.88M contract for IT support services to Capital Colors, LLC

Contract Overview

Contract Amount: $2,878,329 ($2.9M)

Contractor: Capital Colors, LLC

Awarding Agency: Department of Labor

Start Date: 2022-06-30

End Date: 2026-06-30

Contract Duration: 1,461 days

Daily Burn Rate: $2.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTRACTOR TASKS SHALL INCLUDE DATABASE AND PORTAL SUPPORT SERVICES FOR THE SPACE MANAGEMENT SYSTEM (SMS), MOTOR FLEET MANAGEMENT SUPPORT [AUTOMOTIVE UTILIZATION AND TRACKING ONLINE SYSTEM] (AUTOS), GOVERNMENT PURCHASE CARD TRANSACTION DATABASE, FACI

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $2.9 million to CAPITAL COLORS, LLC for work described as: CONTRACTOR TASKS SHALL INCLUDE DATABASE AND PORTAL SUPPORT SERVICES FOR THE SPACE MANAGEMENT SYSTEM (SMS), MOTOR FLEET MANAGEMENT SUPPORT [AUTOMOTIVE UTILIZATION AND TRACKING ONLINE SYSTEM] (AUTOS), GOVERNMENT PURCHASE CARD TRANSACTION DATABASE, FACI Key points: 1. Contract focuses on database and portal support for key management systems. 2. Includes support for fleet management and purchase card transaction databases. 3. The contract is a definitive contract with a firm-fixed-price structure. 4. Duration of the contract is approximately four years. 5. The contractor, Capital Colors, LLC, is based in the District of Columbia. 6. Services are categorized under Computer Facilities Management. 7. This contract was not competed.

Value Assessment

Rating: fair

The contract value of $2.88 million over four years suggests a moderate annual spend. Without specific performance metrics or comparable contract data, it is difficult to definitively assess value for money. The firm-fixed-price structure provides cost certainty for the government, but may limit flexibility. Benchmarking against similar IT support contracts for government agencies would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other vendors. The specific justification for this sole-source award is not detailed in the provided data. Sole-source awards can sometimes lead to higher prices due to the lack of competitive pressure, but may be justified in cases where a specific contractor possesses unique capabilities or when urgency dictates.

Taxpayer Impact: Taxpayers may not benefit from the most competitive pricing due to the absence of a bidding process. The government may not be achieving the best possible value for its investment without exploring multiple vendor options.

Public Impact

The Department of Labor benefits from continued IT support for critical management systems. Employees and administrators will have access to functional databases and portals for daily operations. Ensures the smooth operation of fleet management and government purchase card transactions. Supports administrative functions within the Office of the Assistant Secretary for Administration and Management. The primary geographic impact is within the District of Columbia, where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Potential for vendor lock-in due to sole-source award.
Limited transparency into the justification for sole-source procurement.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contract duration allows for stable service delivery.
Contractor is located in the District of Columbia, potentially facilitating easier communication and oversight.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Facilities Management Services. The market for government IT support is substantial, with numerous vendors offering a wide range of services. However, sole-source awards bypass the typical competitive landscape, making direct comparisons of market positioning challenging. Benchmarks for similar IT support contracts within federal agencies often vary widely based on scope and complexity.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. Further investigation into the contractor's subcontracting plans would be needed to fully assess any indirect effects.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency regarding the sole-source justification and performance monitoring would be key areas for assessment.

Related Government Programs

IT Services Contracts
Computer Facilities Management
Government Fleet Management Systems
Purchase Card Transaction Systems

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on justification for sole-source procurement.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $2.9 million to CAPITAL COLORS, LLC. CONTRACTOR TASKS SHALL INCLUDE DATABASE AND PORTAL SUPPORT SERVICES FOR THE SPACE MANAGEMENT SYSTEM (SMS), MOTOR FLEET MANAGEMENT SUPPORT [AUTOMOTIVE UTILIZATION AND TRACKING ONLINE SYSTEM] (AUTOS), GOVERNMENT PURCHASE CARD TRANSACTION DATABASE, FACI

Who is the contractor on this award?

The obligated recipient is CAPITAL COLORS, LLC.

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 $2.9 million.

What is the period of performance?

Start: 2022-06-30. End: 2026-06-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not contain the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as the availability of only one responsible source, urgent and compelling needs, or when a specific contractor possesses unique capabilities essential for the requirement. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the precise rationale. This lack of transparency can raise concerns about whether the government explored all viable competitive options and obtained the best possible value for taxpayer funds.

How does the annual cost of this contract compare to similar IT support contracts within the Department of Labor or other federal agencies?

The total contract value is $2.88 million over approximately 4 years, equating to an average annual cost of roughly $720,000. To benchmark this effectively, one would need to compare it against contracts for similar IT support services (e.g., database management, portal support, facilities management) awarded to other federal agencies or within different departments of the Department of Labor. Factors such as the specific systems supported, the level of service required, the number of users, and the contractor's overhead and profit margins significantly influence pricing. A direct comparison without these contextual details is difficult, but this annual figure appears moderate for comprehensive IT support.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are crucial elements that define the expected performance standards, response times, and quality of service the contractor must meet. Without defined KPIs/SLAs, it is challenging to objectively measure the contractor's performance and ensure the government is receiving the full value of the services procured. Typically, contracts of this nature would include metrics related to system uptime, issue resolution times, data accuracy, and user support responsiveness.

What is Capital Colors, LLC's track record with federal IT support contracts, particularly sole-source awards?

Information regarding Capital Colors, LLC's specific track record with federal IT support contracts, especially sole-source awards, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards, and any history of sole-source procurements. Understanding their experience with similar systems (Space Management System, AUTOS) and their performance history is essential for evaluating the risk associated with this award. Without this background, it's difficult to gauge their reliability and expertise.

What is the potential risk associated with a sole-source award for critical IT infrastructure support?

Sole-source awards for critical IT infrastructure support carry several potential risks. Firstly, the lack of competition can lead to inflated prices, meaning the government may be paying more than necessary. Secondly, it can reduce the incentive for the contractor to innovate or provide exceptional service, as there is no immediate threat of losing the business to a competitor. Thirdly, it can create vendor lock-in, making it difficult and costly to switch providers in the future. Finally, if the sole-source justification is weak or based on inaccurate information, it could indicate potential issues with the procurement process itself, raising concerns about fairness and efficiency.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1605-C3-22-Q-00020

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9611 COTTRELL TER, SILVER SPRING, MD, 20903

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,790,302

Exercised Options: $3,056,448

Current Obligation: $2,878,329

Actual Outlays: $1,105,946

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline