Labor Department awards $5.2M for OFCCP LMS support, continuing Booz Allen Hamilton's role

Contract Overview

Contract Amount: $5,207,632 ($5.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Labor

Start Date: 2022-04-15

End Date: 2025-09-30

Contract Duration: 1,264 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: FOLLOW-ON TASK ORDER FOR OFCCP LEARNING MANAGEMENT SYSTEMS (LMS) SUPPORT SERVICES.

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 $5.2 million to BOOZ ALLEN HAMILTON INC for work described as: FOLLOW-ON TASK ORDER FOR OFCCP LEARNING MANAGEMENT SYSTEMS (LMS) SUPPORT SERVICES. Key points: 1. This contract represents a follow-on task order, indicating continuity of services and potentially leveraging existing contractor expertise. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract type is 'Labor Hours', which can offer flexibility but requires careful monitoring of hours and rates. 4. The duration of over three years suggests a significant, ongoing need for these learning management system services. 5. The specific NAICS code (541511) points to custom computer programming services, a critical area for modern government operations. 6. The contract's value is moderate within the context of federal IT services, but its specific function is key to workforce development.

Value Assessment

Rating: good

The contract value of $5.2 million over approximately 3.5 years for learning management system support appears reasonable, especially given it's a follow-on task order. Benchmarking against similar custom computer programming services contracts for IT support and training platforms would provide a more precise value-for-money assessment. The 'Labor Hours' contract type necessitates close oversight to ensure efficient use of resources and prevent cost overruns compared to fixed-price arrangements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of competition was likely present.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs and encouraging innovation from multiple vendors, leading to better value for public funds.

Public Impact

Federal employees, particularly those within the Office of the Assistant Secretary for Administration and Management (OASAM) and the Office of Federal Contract Compliance Programs (OFCCP), will benefit from enhanced learning and development opportunities. The services delivered will support the OFCCP's mission by providing essential training and resources through a modern learning management system. The contract's impact is primarily national, supporting federal workforce development across various agencies that utilize the OFCCP's LMS. Workforce implications include the potential for specialized IT and training development roles, both within the contractor organization and potentially for federal staff managing the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in labor hour contracts if not tightly managed.
Reliance on a single vendor for critical LMS infrastructure could pose a risk if performance degrades.
Ensuring the LMS remains up-to-date with evolving training technologies and security standards requires ongoing vigilance.

Positive Signals

Follow-on nature suggests successful prior performance and institutional knowledge.
Full and open competition indicates a market-driven approach to service acquisition.
Focus on learning management systems supports federal workforce development and compliance.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and IT support. The market for learning management systems is robust, with numerous commercial and government-focused vendors. Federal spending in this area is significant, driven by the need for efficient, scalable, and secure training solutions for a large, distributed workforce. Comparable spending benchmarks would involve analyzing other federal contracts for LMS development, implementation, and maintenance.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Booz Allen Hamilton is a large business, the contract does not preclude subcontracting opportunities. However, without specific set-aside goals or reported subcontracting plans, the direct impact on the small business ecosystem is not explicitly defined by this award alone. Further analysis of subcontracting reports would be needed to assess SMB involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's contracting officers and program managers within OASAM and OFCCP. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Workforce Development Programs
IT Modernization Initiatives
E-Learning and Training Platforms
OFCCP Compliance Assistance
Custom Software Development Services

Risk Flags

Labor Hours contract type requires diligent oversight to control costs.
Follow-on nature implies reliance on incumbent, potential for vendor lock-in if not managed.
Cybersecurity risks associated with maintaining a critical IT system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $5.2 million to BOOZ ALLEN HAMILTON INC. FOLLOW-ON TASK ORDER FOR OFCCP LEARNING MANAGEMENT SYSTEMS (LMS) SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON 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 $5.2 million.

What is the period of performance?

Start: 2022-04-15. End: 2025-09-30.

What is the historical spending trend for OFCCP Learning Management System support services?

Analyzing historical spending data for OFCCP's LMS support reveals a pattern of consistent investment in this critical function. Prior to this $5.2 million follow-on task order awarded in April 2022, there were likely preceding contracts or task orders for LMS support. Understanding the total expenditure over the past 5-10 years would provide context on the program's growth or stability. For instance, if previous spending averaged $1-2 million annually, this new award represents a significant, potentially increased, level of investment. Conversely, if prior spending was similar, it indicates sustained commitment. Examining the nature of previous awards (e.g., sole-source vs. competitive) and the incumbent contractors can also shed light on the evolution of service provision and pricing dynamics.

How does the pricing structure (Labor Hours) compare to other federal LMS contracts?

The 'Labor Hours' pricing structure for this OFCCP LMS support contract offers flexibility, allowing the government to pay for actual hours worked. This contrasts with fixed-price contracts, which offer cost certainty but less flexibility. Compared to other federal LMS contracts, 'Labor Hours' is common for services requiring adaptable effort, such as custom development or ongoing support where the exact scope may evolve. However, it necessitates robust oversight to manage costs effectively. Benchmarking requires comparing the blended hourly rates or total project costs against similar LMS contracts, considering factors like complexity, security requirements, and the specific services rendered (e.g., development, maintenance, training delivery). If the average hourly rates paid under this contract are significantly higher than comparable contracts for similar skill sets, it could indicate a potential value concern.

What is Booz Allen Hamilton's track record with similar federal IT support contracts?

Booz Allen Hamilton has an extensive track record supporting federal agencies with a wide range of IT services, including custom computer programming, system integration, and management consulting. Their experience with learning management systems and workforce development solutions is well-documented across various civilian and defense agencies. Prior performance on similar contracts, particularly follow-on work, suggests a level of satisfaction and capability recognized by the government. Analyzing their past performance evaluations, contract awards, and any reported issues (e.g., through CPARS - Contractor Performance Assessment Reporting System) would provide a comprehensive view. Their ability to secure this follow-on task order indicates a positive assessment of their past performance in delivering LMS support.

What are the key performance indicators (KPIs) for this contract, and how are they measured?

While specific Key Performance Indicators (KPIs) are not detailed in the provided summary data, typical KPIs for an LMS support contract would likely include system uptime and availability, response times for technical support requests, user satisfaction rates, successful completion of training modules, and adherence to security protocols. Performance measurement would likely involve regular reporting from the contractor, user surveys, system monitoring tools, and periodic reviews by the government's Contracting Officer's Representative (COR). The 'Labor Hours' contract type emphasizes the importance of tracking effort against defined tasks and objectives. Failure to meet agreed-upon KPIs could trigger contractual remedies, including potential reductions in payment or termination, underscoring the need for clear, measurable, and achievable performance standards.

What is the risk associated with the 'Labor Hours' contract type for this specific service?

The primary risk associated with the 'Labor Hours' contract type for LMS support is the potential for cost overruns if the effort is not efficiently managed or if the scope expands without adequate controls. Unlike fixed-price contracts, the total cost is not predetermined, making budget forecasting more challenging. This necessitates strong government oversight to monitor the hours charged, ensure personnel are working on authorized tasks, and validate that the labor rates are fair and reasonable. For a follow-on task order, the government likely has historical data to estimate required hours, mitigating some risk. However, the risk remains that unforeseen technical challenges or scope changes could lead to expenditures exceeding initial expectations, impacting the overall value for money.

Industry Classification

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

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

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

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $6,602,685

Exercised Options: $5,480,013

Current Obligation: $5,207,632

Actual Outlays: $5,207,632

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1605TA22A0001

IDV Type: BPA

Timeline