Department of Labor awards $12.4M IT services contract to Cognosante, LLC for Job Corps support

Contract Overview

Contract Amount: $12,446,576 ($12.4M)

Contractor: Cognosante, LLC

Awarding Agency: Department of Labor

Start Date: 2020-12-05

End Date: 2026-06-04

Contract Duration: 2,007 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: JOB CORPS TASK ORDER. POP: 12/5/2020-12/4/2025 (BASE YEAR PLUS 4 OPTION YEARS). COR: KEVIN CULP.

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 $12.4 million to COGNOSANTE, LLC for work described as: JOB CORPS TASK ORDER. POP: 12/5/2020-12/4/2025 (BASE YEAR PLUS 4 OPTION YEARS). COR: KEVIN CULP. Key points: 1. Contract provides IT services for the Job Corps program, a critical initiative for youth workforce development. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract, spanning over five years, indicates a long-term need for these services. 4. The specific IT services are categorized under 'Other Computer Related Services,' suggesting a broad scope. 5. The contract value of $12.4 million over its base and option periods requires careful performance monitoring. 6. The award to Cognosante, LLC, a known government contractor, provides some level of performance predictability.

Value Assessment

Rating: good

The contract value of $12.4 million over approximately five years for IT services appears reasonable given the scope of supporting the Job Corps program. Benchmarking against similar IT service contracts for large federal programs would provide a more precise value-for-money assessment. The 'Labor Hours' contract type suggests that pricing is based on the time and effort of personnel, which can be efficient if managed well but also carries a risk of cost overruns if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. This method generally fosters a competitive environment, which can lead to better pricing and service quality. The specific number of bidders is not provided, but the designation implies a robust competition.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of innovative solutions, ultimately aiming for the best value.

Public Impact

The primary beneficiaries are the students and staff of the Job Corps program, who will receive enhanced IT support. The services delivered will ensure the smooth operation of IT infrastructure critical to Job Corps' educational and vocational training functions. The contract's impact is primarily national, supporting Job Corps centers across the country. The contract supports the IT workforce within Cognosante, LLC, and potentially subcontractors, contributing to employment in the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the broad 'Other Computer Related Services' category.
Reliance on 'Labor Hours' pricing model necessitates stringent oversight to control costs.
Performance metrics and service level agreements need to be clearly defined and enforced to ensure value.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract duration of over five years indicates a stable, long-term need and commitment.
Cognosante, LLC has existing experience as a government contractor, potentially reducing startup risks.

Sector Analysis

This contract falls within the Information Technology sector, specifically under IT professional services. The market for government IT services is substantial, with agencies increasingly relying on contractors for specialized expertise. The 'Other Computer Related Services' NAICS code (541519) covers a wide array of IT support, consulting, and integration services. Comparable spending benchmarks would typically involve analyzing IT support contracts for large-scale federal education or workforce development programs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Cognosante, LLC, may choose to engage small businesses as subcontractors to fulfill specific aspects of the contract, which would contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), with a designated Contracting Officer's Representative (COR). The contract type (BPA Call) suggests it is a task order under a broader agreement, which may have its own oversight structure. Transparency would be enhanced by public reporting of performance metrics and any modifications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Department of Labor IT Modernization Efforts
Federal Workforce Development Programs
IT Services for Education and Training

Risk Flags

Potential for cost overruns due to 'Labor Hours' pricing.
Scope definition clarity for 'Other Computer Related Services'.
Performance monitoring and accountability for service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $12.4 million to COGNOSANTE, LLC. JOB CORPS TASK ORDER. POP: 12/5/2020-12/4/2025 (BASE YEAR PLUS 4 OPTION YEARS). COR: KEVIN CULP.

Who is the contractor on this award?

The obligated recipient is COGNOSANTE, 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 $12.4 million.

What is the period of performance?

Start: 2020-12-05. End: 2026-06-04.

What is the track record of Cognosante, LLC in delivering IT services for federal programs, particularly those related to education or workforce development?

Cognosante, LLC has a history of contracting with various U.S. federal agencies, including the Department of Defense, Centers for Medicare & Medicaid Services (CMS), and the Department of Veterans Affairs (VA). Their experience spans health IT, data analytics, and IT modernization. While specific details on their performance for education or workforce development programs like Job Corps are not immediately available in this summary, their broader federal contracting experience suggests familiarity with government IT requirements and compliance. A deeper dive into their past performance evaluations and contract history within the Federal Procurement Data System (FPDS) would provide a more comprehensive understanding of their capabilities and reliability in similar contexts.

How does the estimated annual cost of this contract compare to similar IT support contracts for large federal programs?

The contract has a total value of $12.4 million over approximately five years, averaging around $2.48 million per year. To benchmark this effectively, we would need to compare it to IT support contracts for programs of similar scale and complexity, such as other large federal training initiatives or educational platforms. Factors like the number of users supported, the criticality of the IT systems, and the specific services provided (e.g., help desk, network management, software development) heavily influence costs. Without direct comparisons to peer programs, it's difficult to definitively state if this is high or low, but the average annual cost appears moderate for supporting a national program like Job Corps.

What are the primary risks associated with a 'Labor Hours' contract type for IT services, and how are they mitigated?

The primary risk with a 'Labor Hours' contract is the potential for cost overruns if the contractor's labor hours exceed initial estimates or if billing rates are not carefully managed. This can occur due to inefficiencies, scope creep, or inadequate project management by the contractor. Mitigation strategies employed by the government typically include establishing clear work scopes, setting ceilings on labor hours, requiring detailed timesheets and justifications for hours worked, and implementing robust oversight by the Contracting Officer's Representative (COR). Performance metrics and service level agreements (SLAs) also play a crucial role in ensuring that the labor hours translate into tangible, valuable outputs for the Job Corps program.

What is the expected impact of these IT services on the operational effectiveness and efficiency of the Job Corps program?

The IT services provided under this contract are expected to enhance the operational effectiveness and efficiency of the Job Corps program by ensuring the reliability and performance of its critical IT infrastructure. This includes maintaining systems that support student enrollment, training records, career placement services, and administrative functions. Improved IT support can lead to reduced downtime, faster resolution of technical issues, better data management, and potentially the implementation of new technologies that streamline processes. Ultimately, these improvements should allow Job Corps staff to focus more on their core mission of providing training and employment opportunities to young people.

How has federal spending on IT services for workforce development programs like Job Corps trended over the past five years?

Federal spending on IT services for workforce development programs, including initiatives like Job Corps, has generally seen an upward trend over the past five years. This is driven by several factors: the increasing digitization of government services, the need for more robust data analytics to track program outcomes, and the ongoing modernization of IT infrastructure across agencies. Agencies are increasingly relying on technology to deliver services more efficiently and effectively. While specific figures for Job Corps IT spending require detailed historical data analysis, the broader trend indicates a growing investment in technology to support the mission of federal workforce development programs.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3110 FAIRVIEW PARK DR STE 800, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,533,970

Exercised Options: $12,533,970

Current Obligation: $12,446,576

Actual Outlays: $9,936,409

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1605TA20A0008

IDV Type: BPA

Timeline