Department of Labor awards $17.5M IT task order for compensation and working conditions applications

Contract Overview

Contract Amount: $17,456,109 ($17.5M)

Contractor: Advanced Management Technology, Inc.

Awarding Agency: Department of Labor

Start Date: 2021-04-15

End Date: 2026-06-12

Contract Duration: 1,884 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: IT

Official Description: FIVE YEAR RE-COMPETE: OFFICE OF COMPENSATION AND WORKING CONDITIONS (OCWC) IT APPLICATION DEVELOPMENT TASK ORDER.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $17.5 million to ADVANCED MANAGEMENT TECHNOLOGY, INC. for work described as: FIVE YEAR RE-COMPETE: OFFICE OF COMPENSATION AND WORKING CONDITIONS (OCWC) IT APPLICATION DEVELOPMENT TASK ORDER. Key points: 1. Contract awarded to Advanced Management Technology, Inc. for IT application development. 2. Task order is a re-compete, indicating potential for stable performance. 3. Full and open competition suggests a competitive bidding process. 4. Contract duration of 1884 days (approx. 5 years) allows for long-term project planning. 5. Focus on IT application development for the Office of Compensation and Working Conditions. 6. Geographic focus on District of Columbia.

Value Assessment

Rating: good

The contract value of $17.5 million over approximately five years for IT application development appears reasonable, especially given it's a re-compete. Benchmarking against similar IT development contracts within the Department of Labor or other federal agencies would provide a clearer picture of value for money. The 'Labor Hours' contract type suggests that pricing is based on the time and materials, which can sometimes lead to cost overruns if not managed closely. However, the competitive nature of the award may have helped to secure a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With 6 bidders participating, the competition level appears healthy, which generally leads to better price discovery and potentially more innovative solutions. The presence of multiple bidders suggests that the market for these IT application development services is robust.

Taxpayer Impact: A competitive bidding process for this task order likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

Benefits the Office of Compensation and Working Conditions by providing necessary IT application development. Services delivered include the development and maintenance of IT applications critical to the OCWC's mission. Geographic impact is primarily within the District of Columbia, where the Department of Labor is headquartered. Workforce implications may include the need for skilled IT professionals to support application development and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor Hours contract type can lead to cost uncertainty if not closely monitored.
Reliance on a single contractor for a significant period (5 years) may limit future flexibility.
Specific details on the scope of 'IT application development' are not provided, making it difficult to assess the full complexity and potential risks.

Positive Signals

Awarded under full and open competition with multiple bidders, suggesting a competitive market.
Task order is a re-compete, implying a degree of familiarity and potentially stable performance from the incumbent.
Contract duration allows for sustained development and support of critical applications.

Sector Analysis

This contract falls within the Information Technology sector, specifically IT application development services. The federal IT services market is substantial, with agencies constantly seeking to modernize systems and develop new applications to improve efficiency and service delivery. This task order aligns with the broader trend of federal agencies investing in digital transformation and maintaining their core IT infrastructure. Comparable spending benchmarks for IT application development services can vary widely based on complexity, duration, and specific technologies used.

Small Business Impact

The 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 stemming from a small business set-aside. Advanced Management Technology, Inc. is likely a large business, and their subcontracting practices would need to be assessed separately to understand their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this task order would typically be managed by the Department of Labor's contracting officers and program managers responsible for the Office of Compensation and Working Conditions. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the contract terms, performance metrics, and the potential for future recompetes. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Application Development Services
Software Development
IT Support Services
Department of Labor IT Contracts
Office of Compensation and Working Conditions IT Needs

Risk Flags

Potential for cost overruns due to 'Labor Hours' contract type.
Need for strong government oversight to ensure efficient use of labor.
Scope of 'IT application development' needs clear definition to manage expectations and risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $17.5 million to ADVANCED MANAGEMENT TECHNOLOGY, INC.. FIVE YEAR RE-COMPETE: OFFICE OF COMPENSATION AND WORKING CONDITIONS (OCWC) IT APPLICATION DEVELOPMENT TASK ORDER.

Who is the contractor on this award?

The obligated recipient is ADVANCED MANAGEMENT TECHNOLOGY, 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 $17.5 million.

What is the period of performance?

Start: 2021-04-15. End: 2026-06-12.

What is the track record of Advanced Management Technology, Inc. with the Department of Labor and similar IT development contracts?

A review of federal procurement data would be necessary to fully assess Advanced Management Technology, Inc.'s track record. Specifically, examining past performance evaluations for this contractor on previous Department of Labor contracts, especially any related to IT application development or support for the Office of Compensation and Working Conditions, would be crucial. Understanding their performance on prior task orders under this BPA, if applicable, and their overall history with the agency can provide insights into their reliability, quality of work, and ability to meet deadlines and budget constraints. A lack of negative past performance indicators would be a positive signal, while a history of issues could raise concerns about future performance.

How does the estimated value of this task order compare to similar IT application development contracts awarded by the Department of Labor or other federal agencies?

To benchmark the value, one would compare the $17.5 million over approximately five years against similar IT application development task orders. Key comparison points include the scope of work (e.g., new development vs. maintenance), the complexity of the applications, the technologies involved, and the contract type. For instance, if similar contracts for developing complex case management or data analysis applications within the Department of Labor or agencies like the Social Security Administration (which also deals with compensation) have similar or higher values, this contract might be considered within a reasonable range. Conversely, if comparable projects were significantly less expensive, it could indicate potential overpricing or a less complex scope than initially assumed.

What are the primary risks associated with a 'Labor Hours' contract type for IT application development, and how are they mitigated in this award?

The primary risk with a 'Labor Hours' contract is cost escalation, as the government pays for the time and materials used, which can be less predictable than fixed-price contracts. If development efforts take longer than anticipated or require more resources, costs can increase significantly. Mitigation strategies often include robust oversight, detailed work breakdown structures, clear performance metrics, and regular progress reviews. The Department of Labor would need to actively manage the contractor's hours, ensure efficient resource allocation, and closely monitor the project's progress against defined milestones to control costs and ensure value. The competitive nature of the award may also have incentivized the contractor to propose efficient labor rates.

What is the expected effectiveness of the IT applications to be developed or maintained under this task order for the Office of Compensation and Working Conditions?

The effectiveness of the IT applications hinges on how well they support the core mission of the Office of Compensation and Working Conditions (OCWC). This office likely deals with processing claims, managing compensation data, ensuring compliance, and providing information related to workplace safety and compensation laws. Well-developed applications could streamline these processes, improve data accuracy, enhance reporting capabilities, and ultimately lead to more efficient and equitable outcomes for workers and employers. Conversely, ineffective applications could lead to delays, errors, and increased administrative burden. Specific effectiveness metrics would ideally be defined within the task order's statement of work.

How has the Department of Labor's spending on IT application development services, particularly for the OCWC, trended over the past five years?

Analyzing historical spending patterns for IT application development within the Department of Labor, and specifically for the Office of Compensation and Working Conditions (OCWC), would provide valuable context. If spending has been consistently high or increasing, it suggests a sustained need for these services. If this task order represents a significant increase or decrease compared to previous spending levels for similar functions, it warrants further investigation. Understanding these trends can help assess whether the current award is in line with historical investment in IT capabilities and whether the OCWC's needs are growing, stable, or potentially decreasing.

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

Offers Received: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 1515 WILSON BLVD, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $17,526,592

Exercised Options: $17,510,293

Current Obligation: $17,456,109

Actual Outlays: $16,834,752

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1605TA20A0006

IDV Type: BPA

Timeline