Labor Department awards $3.56M for New Matter Management System modernization

Contract Overview

Contract Amount: $3,557,426 ($3.6M)

Contractor: Coresphere, LLC

Awarding Agency: Department of Labor

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: TASK ORDER FOR SOL NEW MATTER MANAGEMENT SYSTEM (NEWMMS) MODERNIZATION 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 $3.6 million to CORESPHERE, LLC for work described as: TASK ORDER FOR SOL NEW MATTER MANAGEMENT SYSTEM (NEWMMS) MODERNIZATION SERVICES. Key points: 1. Contract aims to modernize critical case management systems. 2. CoreSphere, LLC, a relatively small contractor, secured this award. 3. The contract is structured as a delivery order under a larger IDIQ. 4. Performance period extends over four years, indicating a long-term need. 5. The specific NAICS code suggests a focus on IT services. 6. The contract was awarded using full and open competition.

Value Assessment

Rating: fair

The contract value of $3.56 million over four years suggests a moderate annual spend. Without specific details on the scope of modernization, it's difficult to benchmark against similar contracts. The pricing structure, based on labor hours, can lead to cost overruns if not managed tightly. The award amount appears reasonable for a system modernization project of this nature, but a detailed cost breakdown would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The number of bidders is not specified, but the use of full and open competition suggests a robust process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value by allowing a wide range of qualified contractors to compete, driving down costs and improving service quality.

Public Impact

Benefits the Department of Labor by improving efficiency in managing legal and administrative matters. Services delivered include modernization of the New Matter Management System (NEWMMS). Geographic impact is primarily within the District of Columbia, where the agency is headquartered. Workforce implications include potential for new skills development for IT staff involved in the modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in labor-hour contracts if not meticulously managed.
Reliance on a single contractor for a critical system modernization carries inherent risk.
The long performance period could lead to vendor lock-in if not carefully monitored.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
The modernization of a core system indicates a commitment to improving operational efficiency.
The contractor, CoreSphere, LLC, is likely experienced in IT services based on the NAICS code.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on software and system modernization. The market for IT services supporting government agencies is substantial, with significant spending on system upgrades and maintenance. Comparable spending benchmarks would typically involve other federal agencies modernizing their case management or internal operational systems, often falling within the $1M-$10M range for projects of this duration and scope.

Small Business Impact

The contract data indicates that small business participation (ss and sb fields) is false, meaning this was not set aside for small businesses. There is no explicit mention of subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, CoreSphere, LLC, will likely perform the majority of the work, with limited direct impact on the small business ecosystem unless they voluntarily engage small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's contracting officers and program managers. Accountability measures would be tied to the delivery order requirements, performance metrics, and milestones outlined in the contract. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal IT Modernization Programs
Case Management Systems
Department of Labor IT Contracts
Software Development Services

Risk Flags

Potential for cost overruns in labor-hour contracts.
Risk of disruption to critical operations during system modernization.
Dependency on contractor performance for a vital system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $3.6 million to CORESPHERE, LLC. TASK ORDER FOR SOL NEW MATTER MANAGEMENT SYSTEM (NEWMMS) MODERNIZATION SERVICES.

Who is the contractor on this award?

The obligated recipient is CORESPHERE, 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 $3.6 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What is the track record of CoreSphere, LLC with the Department of Labor and other federal agencies?

A review of federal procurement data would be necessary to fully assess CoreSphere, LLC's track record. Based on the provided data, this is a delivery order under a larger IDIQ, suggesting prior vetting or a pre-existing relationship. Further investigation into their past performance on similar IT modernization projects, client satisfaction ratings, and any past performance issues or awards would provide a clearer picture of their reliability and capability. Understanding their history with the Department of Labor specifically would indicate their familiarity with the agency's unique needs and operational environment.

How does the estimated annual cost compare to similar IT modernization projects within the federal government?

The total award is $3.56 million over 1460 days (approximately 4 years), equating to roughly $890,000 per year. This annual figure is moderate for federal IT modernization projects. Projects involving significant system overhauls, cloud migration, or integration with multiple legacy systems can range from several hundred thousand to tens of millions of dollars annually, depending on complexity, scope, and agency size. Without detailed scope information for the NEWMMS modernization, a precise comparison is difficult, but the annual spend appears within a reasonable range for a specialized system upgrade.

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

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for a system modernization project, KPIs would include metrics related to system uptime, performance speed, user satisfaction, successful data migration, reduction in processing errors, and adherence to project timelines and budget. The success of the modernization will likely be measured against the baseline performance of the existing NEWMMS and the defined requirements for the modernized system. The contracting officer's representative (COR) would be responsible for monitoring these KPIs.

What is the potential risk associated with modernizing a 'New Matter Management System' and what mitigation strategies are in place?

Modernizing a 'New Matter Management System' carries risks such as data loss or corruption during migration, disruption to ongoing operations, integration issues with other agency systems, and potential cost overruns due to unforeseen complexities. Mitigation strategies typically include rigorous testing phases (unit, integration, user acceptance), phased rollouts, comprehensive data backup and recovery plans, clear communication protocols, and strong project management with defined change control processes. The contract's structure as a delivery order under an IDIQ may also imply some level of pre-qualification for the contractor's risk management capabilities.

How has the Department of Labor's spending on IT services, particularly system modernization, trended over the past five years?

Analyzing the Department of Labor's IT spending trends over the past five years would require access to historical budget and contract data. Generally, federal agencies have been increasing their investment in IT modernization, driven by mandates like the Modernizing Government Technology (MGT) Act and the need to improve cybersecurity and operational efficiency. Spending often shifts towards cloud services, agile development, and data analytics. Without specific data for the DOL, it's presumed their spending on system modernization has been consistent with broader federal trends, potentially increasing as legacy systems require replacement.

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

Solicitation ID: 1605TA-22-Q-00063

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Coresphere LLC

Address: 6700A ROCKLEDGE DR STE 220, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,796,638

Exercised Options: $3,557,426

Current Obligation: $3,557,426

Actual Outlays: $3,393,098

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D00DU

IDV Type: FSS

Timeline