Labor Department awards $8.5M IT support contract to Advanced Management Technology, Inc. for application development

Contract Overview

Contract Amount: $8,511,819 ($8.5M)

Contractor: Advanced Management Technology, Inc.

Awarding Agency: Department of Labor

Start Date: 2022-07-15

End Date: 2026-07-11

Contract Duration: 1,457 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: IT

Official Description: TASK ORDER 4: BLS IT APPLICATION DEVELOPMENT SUPPORT FOR OTSP POP: 08/01/2022 - 05/29/2026

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 $8.5 million to ADVANCED MANAGEMENT TECHNOLOGY, INC. for work described as: TASK ORDER 4: BLS IT APPLICATION DEVELOPMENT SUPPORT FOR OTSP POP: 08/01/2022 - 05/29/2026 Key points: 1. Contract provides IT application development support for the Office of the Assistant Secretary for Administration and Management. 2. The contract duration is over three years, indicating a need for sustained support. 3. Awarded under a Blanket Purchase Agreement (BPA) Call, suggesting a pre-negotiated framework. 4. The North American Industry Classification System (NAICS) code 541519 points to specialized computer services. 5. The contract is not set aside for small businesses, implying larger prime contractors are involved. 6. The base contract value is $8.5 million, with potential for growth through task orders.

Value Assessment

Rating: fair

The contract value of $8.5 million for IT application development support over approximately three years appears to be within a reasonable range for specialized services. Benchmarking against similar contracts for IT application development and support within federal agencies is necessary for a definitive value assessment. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure cost-effectiveness and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, it is difficult to definitively assess the value for money.

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 offers. The presence of 5 bidders suggests a competitive environment, which generally leads to better pricing and service offerings for the government. The specific number of bidders (5) provides a moderate level of competition, allowing for comparison of proposals but not necessarily the intense price pressure seen in larger bid pools.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

The primary beneficiary is the Department of Labor, specifically the Office of the Assistant Secretary for Administration and Management, which will receive enhanced IT application development support. The services delivered will include the development and maintenance of IT applications crucial for the agency's operations. The geographic impact is primarily within the District of Columbia, where the Department of Labor is headquartered. The contract supports the federal IT workforce by engaging a contractor to provide specialized development skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not closely managed.
Risk of vendor lock-in if knowledge transfer is not adequately planned.
Dependence on a single contractor for critical IT application development.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract duration allows for sustained support and development.
BPA Call mechanism may indicate pre-negotiated favorable terms.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on application development and support. The federal IT services market is substantial, with agencies consistently investing in modernizing and maintaining their digital infrastructure. This contract represents a typical investment in specialized IT expertise to support administrative and management functions within a large federal agency. Comparable spending benchmarks would involve analyzing other federal contracts for similar IT application development services, considering factors like agency size, complexity of systems, and duration.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false, indicating no specific small business participation was mandated in the award. This suggests that the prime contractor, Advanced Management Technology, Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within the provided data, which could be a missed opportunity for small business engagement in this IT services contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Labor's contracting officers and program managers within the Office of the Assistant Secretary for Administration and Management. Accountability measures would be tied to the performance work statement and deliverables outlined in the task order. Transparency is facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Application Development Services
IT Support Services
Federal IT Modernization Programs
Department of Labor IT Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for scope creep due to labor-hour contract type.
Reliance on contractor for specialized IT skills.
Need for robust government oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $8.5 million to ADVANCED MANAGEMENT TECHNOLOGY, INC.. TASK ORDER 4: BLS IT APPLICATION DEVELOPMENT SUPPORT FOR OTSP POP: 08/01/2022 - 05/29/2026

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 $8.5 million.

What is the period of performance?

Start: 2022-07-15. End: 2026-07-11.

What is the track record of Advanced Management Technology, Inc. in performing similar IT application development contracts for the federal government?

A review of federal procurement data would be necessary to fully assess Advanced Management Technology, Inc.'s track record. However, their selection for this $8.5 million IT application development support contract by the Department of Labor suggests they possess the necessary qualifications and experience. Further analysis would involve examining past performance evaluations, contract history, and any reported issues on previous government contracts to gauge their reliability and success rate in delivering similar IT services. Understanding their experience with the specific technologies and methodologies relevant to the Department of Labor's needs would also be crucial.

How does the awarded value of $8.5 million compare to similar IT application development contracts within the federal government?

The $8.5 million value for a task order spanning approximately three years for IT application development support is within a common range for federal contracts of this nature. However, a precise comparison requires detailed benchmarking against contracts with similar scope, complexity, duration, and agency. Factors such as the specific IT applications being developed or supported, the required skill sets (e.g., cybersecurity, cloud integration, legacy system modernization), and the prevailing market rates for IT labor in the Washington D.C. area would influence this comparison. Without access to a comprehensive database of comparable contracts and their specific details, it's challenging to definitively state if this represents exceptional value or is on the higher end.

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

Key risks include potential cost overruns due to the labor-hour pricing model, which necessitates stringent monitoring of hours and task completion. There's also a risk of vendor lock-in if knowledge transfer and documentation are not prioritized, making future transitions difficult. Dependence on a single contractor for critical IT functions poses a risk if performance falters. Mitigation strategies likely involve robust contract oversight, regular performance reviews, clear deliverable milestones, and potentially incorporating clauses for knowledge transfer and documentation standards into the contract. The Department of Labor's contracting officer and program managers are responsible for implementing these oversight mechanisms.

How effective is the current IT application development support likely to be, given the contract's structure and the contractor's selection?

The effectiveness of the IT application development support will largely depend on the clarity of the Statement of Work (SOW), the contractor's technical capabilities, and the government's project management. The award under full and open competition with five bidders suggests a competitive selection process, which typically favors technically sound proposals. The labor-hour pricing allows flexibility but requires diligent management to ensure tasks are completed efficiently. The contract's duration of over three years indicates a commitment to sustained support, which can foster deeper understanding and more effective development over time. Regular performance evaluations and feedback loops will be critical indicators of effectiveness.

What are the historical spending patterns for IT application development support at the Department of Labor, and how does this contract fit within them?

Analyzing historical spending patterns for IT application development support at the Department of Labor would require access to multi-year budget and contract data. Generally, federal agencies like the Department of Labor consistently allocate significant resources to IT, including application development and maintenance, to support their vast operational needs. This $8.5 million contract appears to be a specific allocation for the Office of the Assistant Secretary for Administration and Management, likely part of a broader IT budget. Understanding if this represents an increase, decrease, or stable level of spending compared to previous years for similar services would provide context on the agency's strategic IT investment priorities.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $9,007,583

Exercised Options: $8,985,496

Current Obligation: $8,511,819

Actual Outlays: $7,569,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1605TA20A0006

IDV Type: BPA

Timeline