Labor Awards $11.56M for OWCS Development Services to Acuity Systems

Contract Overview

Contract Amount: $11,560,221 ($11.6M)

Contractor: Acuity Systems, LLC

Awarding Agency: Department of Labor

Start Date: 2019-02-12

End Date: 2020-11-11

Contract Duration: 638 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OWCS DEVELOPMENT SERVICES TO ACUITY SYSTEMS

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 $11.6 million to ACUITY SYSTEMS, LLC for work described as: OWCS DEVELOPMENT SERVICES TO ACUITY SYSTEMS Key points: 1. Contract awarded to Acuity Systems, LLC for custom computer programming. 2. The contract value is $11.56 million over 638 days. 3. Full and open competition was utilized for this award. 4. The sector is Information Technology, specifically custom computer programming services.

Value Assessment

Rating: fair

The contract value of $11.56 million for 638 days suggests a daily rate of approximately $18,119. This rate needs to be benchmarked against similar custom programming services contracts to assess its competitiveness.

Cost Per Unit: $18,119

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive bidding process.

Public Impact

Supports the Department of Labor's administrative and management functions. Enhances IT capabilities through custom software development. Potential for improved operational efficiency within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the daily rate is not competitive.
Risk of vendor lock-in if the developed system is highly specialized.

Positive Signals

Awarded through full and open competition.
Clear contract duration and delivery order structure.

Sector Analysis

This contract falls within the Information Technology sector, specifically under NAICS code 541511 for Custom Computer Programming Services. Spending in this area is critical for government modernization and operational efficiency.

Small Business Impact

The data does not indicate whether small businesses participated in or benefited from this contract award. Further analysis would be needed to determine small business inclusion.

Oversight & Accountability

The contract was awarded as a delivery order, suggesting it is part of a larger framework or contract vehicle. Oversight would involve monitoring performance against the Statement of Work and adherence to the firm-fixed-price terms.

Related Government Programs

Custom Computer Programming Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

High daily rate requires validation against benchmarks.
Potential for scope creep in custom development.
Dependence on a single vendor for critical IT services.
Lack of small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $11.6 million to ACUITY SYSTEMS, LLC. OWCS DEVELOPMENT SERVICES TO ACUITY SYSTEMS

Who is the contractor on this award?

The obligated recipient is ACUITY SYSTEMS, 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 $11.6 million.

What is the period of performance?

Start: 2019-02-12. End: 2020-11-11.

What is the benchmark pricing for similar custom computer programming services in the federal market?

Benchmarking custom computer programming services requires detailed analysis of contract scope, complexity, and vendor rates. Factors like security clearances, specific technologies, and project duration significantly influence pricing. A typical range might be from $100 to $300 per hour, translating to daily rates that vary widely but should be assessed against the $18,119 daily rate here for comparable projects.

What are the specific risks associated with custom software development contracts?

Risks in custom software development include scope creep, where requirements expand beyond the initial agreement, leading to cost and schedule overruns. Technical challenges, integration issues with existing systems, and the potential for the developed software to become obsolete quickly are also significant concerns. Ensuring clear requirements and robust project management is crucial to mitigate these risks.

How effectively does this contract contribute to the Department of Labor's mission?

The contract's effectiveness hinges on the successful delivery of custom programming services that enhance the Office of the Assistant Secretary for Administration and Management's operational capabilities. If the developed solutions streamline processes, improve data management, or enhance user experience, it contributes positively. Measuring this requires post-award performance reviews and user feedback.

Industry Classification

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

Solicitation ID: 1605DC-19-Q-00053

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11911 FREEDOM DR STE 650, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,719,617

Exercised Options: $12,719,617

Current Obligation: $11,560,221

Actual Outlays: $6,748,175

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F114CA

IDV Type: FSS

Timeline