Department of Labor awards $5.3M contract for ERISA filing system support to SOFTRAMS LLC

Contract Overview

Contract Amount: $5,326,018 ($5.3M)

Contractor: Softrams LLC

Awarding Agency: Department of Labor

Start Date: 2022-09-01

End Date: 2025-06-30

Contract Duration: 1,033 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROGRAM MANAGEMENT OFFICE SUPPORT SERVICES FOR EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA) FILING ACCEPTANCE SYSTEM (EFAST).

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 $5.3 million to SOFTRAMS LLC for work described as: PROGRAM MANAGEMENT OFFICE SUPPORT SERVICES FOR EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA) FILING ACCEPTANCE SYSTEM (EFAST). Key points: 1. Contract focuses on essential IT support for the Employee Retirement Income Security Act (ERISA) filing system. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration extends over three years, indicating a need for sustained support. 4. Pricing is structured as Time and Materials, which can pose budget risks if not managed closely. 5. The specific NAICS code points to custom computer programming services. 6. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

The contract value of $5.3 million over approximately 3 years for custom computer programming services appears moderate for federal IT support. Benchmarking against similar contracts for program management and IT system support is crucial. The Time and Materials (T&M) pricing structure, while common, requires diligent oversight to ensure cost-effectiveness and prevent scope creep, as it doesn't inherently cap costs. Without detailed performance metrics or comparison data, assessing the true value for money is challenging, but the duration suggests a recognized need for the services.

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 number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions for the EFAST system support.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider pool of contractors to vie for government work, potentially driving down costs.

Public Impact

Benefits retirement plan administrators and employers by ensuring the smooth operation of the EFAST system for filing crucial ERISA documents. Delivers essential IT program management and custom computer programming services. Geographic impact is primarily federal, supporting a national regulatory function. Workforce implications include support for IT professionals and potentially specialized roles in system maintenance and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess contractor efficiency.
The contract is a delivery order, implying it might be part of a larger, potentially less scrutinized, IDIQ contract.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract duration indicates a stable, ongoing need for these critical IT services.
The specific focus on ERISA filing system support addresses a key regulatory requirement.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and IT support. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading critical systems like EFAST. Comparable spending benchmarks would involve looking at other contracts for similar system support, program management, and custom development within federal agencies, particularly those dealing with regulatory compliance and large data systems. The market size for federal IT services is in the tens of billions annually.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no explicit mention of subcontracting plans for small businesses. This suggests that the primary awardee, SOFTRAMS LLC, will likely perform the majority of the work, and the direct impact on the small business ecosystem through this specific contract may be limited unless subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's contracting officers and program managers. Accountability measures are inherent in the contract's performance requirements and the Time and Materials (T&M) structure, which necessitates detailed reporting of hours and costs. Transparency is facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Employee Retirement Income Security Act (ERISA) Administration
Federal IT System Modernization
Custom Computer Programming Services
Department of Labor IT Support Contracts
Regulatory Compliance Systems

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for strong contract oversight to manage scope and prevent inefficiencies.
Reliance on a single contractor for critical system support.
Potential lack of transparency if part of a less competitive IDIQ structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $5.3 million to SOFTRAMS LLC. PROGRAM MANAGEMENT OFFICE SUPPORT SERVICES FOR EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA) FILING ACCEPTANCE SYSTEM (EFAST).

Who is the contractor on this award?

The obligated recipient is SOFTRAMS 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 $5.3 million.

What is the period of performance?

Start: 2022-09-01. End: 2025-06-30.

What is the track record of SOFTRAMS LLC in performing similar federal IT support contracts?

Assessing the track record of SOFTRAMS LLC requires a review of their past performance on federal contracts, particularly those involving custom computer programming and support for complex systems. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable. Key indicators to examine include on-time delivery, adherence to budget, quality of work, and overall customer satisfaction. A history of successful, similar engagements would increase confidence in their ability to meet the requirements of this Department of Labor contract. Conversely, a history of performance issues or disputes could signal potential risks.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, as is common in custom programming and system support. Compared to fixed-price contracts, T&M offers flexibility but carries a higher risk of cost overruns for the government if not managed rigorously. Other contract types like Cost-Plus-Fixed-Fee (CPFF) or Firm-Fixed-Price (FFP) provide more cost certainty but may require a more defined scope upfront. For IT support and development, T&M is prevalent, but agencies must implement strong oversight, including labor hour limitations and regular reviews, to ensure value for money and prevent uncontrolled spending.

What are the potential risks associated with the duration and T&M pricing of this contract?

The primary risks associated with the 3-year duration and T&M pricing structure are cost escalation and potential scope creep. With T&M, the government pays for the actual labor hours and materials used, meaning costs can increase significantly if projects take longer than anticipated or if the scope expands without proper controls. For a contract of this length, there's a risk that initial cost estimates may become outdated, leading to budget challenges. Effective risk mitigation requires robust contract management, including detailed monitoring of labor hours, regular progress reviews, and clear change control processes to manage any scope adjustments.

How does this contract contribute to the Department of Labor's mission regarding ERISA compliance?

This contract is critical for the Department of Labor's mission to ensure compliance with the Employee Retirement Income Security Act (ERISA). The EFAST system is the primary mechanism for processing and managing the annual information returns required from retirement plans. By providing essential program management and custom computer programming support, SOFTRAMS LLC helps maintain the functionality, reliability, and security of this vital system. Ensuring EFAST operates efficiently directly supports the DOL's oversight responsibilities, protecting the retirement savings of millions of Americans by facilitating accurate and timely filing of plan data.

What are the implications of this contract being a delivery order under a potential IDIQ?

If this contract is a delivery order issued under an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract, it implies that the underlying IDIQ vehicle itself underwent a competitive process. However, the specific competition for this particular delivery order might be limited, depending on the terms of the IDIQ. Delivery orders allow agencies to procure specific services or supplies as needed over a set period. While IDIQs offer flexibility, the transparency and competition at the delivery order level can vary. It's important to understand if this delivery order was competed among multiple awardees of the IDIQ or if it was a sole-source task order against a pre-existing IDIQ.

Industry Classification

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

Solicitation ID: 1605TA-22-Q-00014

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3100 CLARENDON BLVD STE 1400, ARLINGTON, VA, 22201

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,326,018

Exercised Options: $5,326,018

Current Obligation: $5,326,018

Actual Outlays: $5,326,018

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $5,464,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F372DA

IDV Type: FSS

Timeline