ATI Government Solutions LLC awarded $24.8M for IT infrastructure upgrades across Job Corps centers and USFS

Contract Overview

Contract Amount: $24,792,332 ($24.8M)

Contractor: ATI Government Solutions LLC

Awarding Agency: Department of Labor

Start Date: 2021-06-29

End Date: 2023-12-29

Contract Duration: 913 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: JOB CORPS CENTER AND USFS FIBER, NETWORK, AND WIRELESS UPGRADES. LESLEY Y. SHEFFIELD IS THE COR. FUNDING IS FROM JCDC-0028, JCDC-0030, AND SPECIAL PROJECTS.

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21701

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $24.8 million to ATI GOVERNMENT SOLUTIONS LLC for work described as: JOB CORPS CENTER AND USFS FIBER, NETWORK, AND WIRELESS UPGRADES. LESLEY Y. SHEFFIELD IS THE COR. FUNDING IS FROM JCDC-0028, JCDC-0030, AND SPECIAL PROJECTS. Key points: 1. Contract focuses on essential IT, network, and wireless infrastructure upgrades, critical for modern operational efficiency. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract (913 days) indicates a substantial project scope. 5. Funding is sourced from multiple JCDC accounts and special projects, suggesting strategic allocation. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services.

Value Assessment

Rating: good

The total award of $24.8 million for IT infrastructure upgrades appears reasonable given the scope of work involving multiple Job Corps centers and USFS facilities. Benchmarking against similar large-scale IT modernization projects for federal agencies suggests that this pricing is within expected ranges. The firm fixed-price contract type provides cost certainty, which is a positive indicator for value for money. Further analysis would require detailed breakdowns of services and equipment costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders, though not explicitly stated, is implied by the nature of full and open competition. This level of competition generally leads to better price discovery and encourages contractors to offer competitive terms and pricing to secure the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for essential IT infrastructure upgrades, reducing the likelihood of overpayment.

Public Impact

Job Corps centers nationwide will benefit from improved IT infrastructure, enhancing training and administrative capabilities. The U.S. Forest Service (USFS) will receive network and wireless upgrades, supporting operational efficiency and data management. The project impacts federal IT infrastructure, ensuring modernization and security across critical government functions. Workforce implications include potential for IT specialists and technicians involved in the deployment and maintenance of these upgraded systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not precisely defined.
Dependence on timely delivery of specialized IT equipment and components.
Risk of integration challenges with existing legacy systems at various locations.

Positive Signals

Firm fixed-price contract structure limits financial risk for the government.
Full and open competition suggests a robust selection process.
Contract duration allows for thorough implementation and testing.
Funding from multiple sources may indicate strategic importance and broad support.

Sector Analysis

This contract falls within the broader Information Technology services sector, specifically focusing on network infrastructure and computer systems integration. The market for federal IT services is substantial, with agencies consistently investing in modernizing their digital capabilities. This award represents a significant investment in upgrading foundational IT elements, comparable to other large-scale infrastructure modernization efforts across government. The services provided are essential for maintaining secure and efficient government operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like ATI Government Solutions LLC are the primary awardees. There is no explicit information on subcontracting plans for small businesses within this data. The absence of a small business set-aside means that opportunities for small business participation may be limited unless proactively pursued through subcontracting by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Federal Information Technology Modernization Program
General Services Administration (GSA) IT Schedule Contracts
Department of Labor IT Infrastructure Projects
USFS Network and Communications Modernization

Risk Flags

Potential for integration issues with legacy systems.
Dependence on timely hardware and software delivery.
Cybersecurity risks during network transition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $24.8 million to ATI GOVERNMENT SOLUTIONS LLC. JOB CORPS CENTER AND USFS FIBER, NETWORK, AND WIRELESS UPGRADES. LESLEY Y. SHEFFIELD IS THE COR. FUNDING IS FROM JCDC-0028, JCDC-0030, AND SPECIAL PROJECTS.

Who is the contractor on this award?

The obligated recipient is ATI GOVERNMENT SOLUTIONS 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 $24.8 million.

What is the period of performance?

Start: 2021-06-29. End: 2023-12-29.

What is the track record of ATI Government Solutions LLC in delivering similar IT infrastructure projects for federal agencies?

ATI Government Solutions LLC has a history of performing IT services for the federal government. While specific details on past large-scale network and wireless upgrade projects are not provided in this data snippet, their award of this significant contract suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, past performance reviews, and client feedback would be required to fully assess their track record. Examining prior awards for similar scope and complexity, particularly within the Department of Labor or USFS, would offer more granular insights into their capabilities and reliability in executing such projects.

How does the awarded amount of $24.8 million compare to similar IT infrastructure upgrade contracts for federal agencies of comparable size and scope?

The $24.8 million award for IT infrastructure upgrades across multiple Job Corps centers and USFS facilities appears to be within a reasonable range for large-scale federal IT modernization projects. Similar contracts for network, wireless, and system upgrades at federal installations often range from tens to hundreds of millions of dollars, depending on the number of sites, complexity of the existing infrastructure, and the scope of modernization. Factors such as the specific technologies deployed, the duration of the project, and the level of customization required influence the overall cost. Without a detailed breakdown of the services and equipment included in this specific contract, a precise benchmark is difficult, but the total amount is consistent with significant federal IT investments.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential delays in equipment procurement and delivery, integration challenges with existing legacy systems, and the possibility of scope creep if requirements are not clearly defined and managed. Cybersecurity vulnerabilities during the upgrade process also pose a significant risk. Mitigation strategies likely include the firm fixed-price contract type, which incentivizes the contractor to manage costs and timelines effectively. Robust project management, detailed technical specifications, phased implementation plans, and stringent cybersecurity protocols during deployment are crucial mitigation measures. The contract's duration allows for careful planning and execution, and the full and open competition process should have vetted the contractor's ability to manage these risks.

How effective is the firm fixed-price contract type in ensuring value for money for this specific IT infrastructure project?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money for IT infrastructure projects where the scope of work is well-defined. It shifts the risk of cost overruns to the contractor, incentivizing them to complete the project within the agreed-upon budget. For this contract, the FFP structure provides cost certainty to the government, making the $24.8 million award a definitive ceiling. This encourages efficient resource management by the contractor and simplifies financial oversight for the Department of Labor. However, the effectiveness relies heavily on the accuracy and completeness of the initial scope definition; any significant unforeseen issues could lead to change orders, potentially impacting the overall value if not managed carefully.

What is the historical spending pattern for IT infrastructure upgrades within the Department of Labor and the USFS, and how does this contract compare?

Historical spending data for IT infrastructure upgrades within the Department of Labor and the USFS would reveal trends in their investment in modernization. Agencies typically allocate significant portions of their budgets to maintaining and upgrading IT systems due to evolving technological needs and security requirements. This $24.8 million contract represents a substantial, but likely not unprecedented, investment. Agencies often undertake such large-scale projects periodically to address aging infrastructure. Comparing this award to previous major IT modernization efforts within these agencies would indicate whether this spending is consistent with past patterns, an acceleration of investment, or a one-time major overhaul.

Industry Classification

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

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 47 E SOUTH ST, UNIT 002, FREDERICK, MD, 21701

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,792,332

Exercised Options: $24,792,332

Current Obligation: $24,792,332

Actual Outlays: $24,792,332

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA21D0079

IDV Type: FSS

Timeline