DOL Awards $14.4M for WHD Case Management Modernization to Horizon Industries

Contract Overview

Contract Amount: $14,448,946 ($14.4M)

Contractor: Horizon Industries, Limited

Awarding Agency: Department of Labor

Start Date: 2024-02-18

End Date: 2026-08-17

Contract Duration: 911 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ORDER ISSUED TO PROVIDE WAGE AND HOUR DIVISION (WHD) CASE MANAGEMENT MODERNIZATION (CMM) DEVELOPMENT SERVICES TO SUPPORT THE DEPARTMENT OF LABOR (DOL) WAGE AND HOUR DIVISION (WHD).

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $14.4 million to HORIZON INDUSTRIES, LIMITED for work described as: ORDER ISSUED TO PROVIDE WAGE AND HOUR DIVISION (WHD) CASE MANAGEMENT MODERNIZATION (CMM) DEVELOPMENT SERVICES TO SUPPORT THE DEPARTMENT OF LABOR (DOL) WAGE AND HOUR DIVISION (WHD). Key points: 1. Contract focuses on critical IT modernization for the Wage and Hour Division. 2. Horizon Industries, Limited, a single awardee, will provide custom programming services. 3. The contract is for labor hours, indicating a flexible service delivery model. 4. This award falls under the 'IT' sector, a common area for federal modernization efforts.

Value Assessment

Rating: fair

The contract is priced based on labor hours, making direct comparison difficult without detailed labor rates. The total award value of $14.4M over approximately 3 years suggests a moderate investment for system development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms are not detailed, making it hard to assess if the best possible price was achieved.

Taxpayer Impact: Taxpayer funds are being used to modernize a critical system for the Department of Labor, aiming for improved efficiency and service delivery.

Public Impact

Modernization of the WHD case management system is expected to improve efficiency in processing wage and hour complaints. Enhanced data management and accessibility could lead to better enforcement of labor laws. The project aims to streamline operations for DOL staff, potentially reducing processing times for businesses and workers. Improved system capabilities may also enhance reporting and analytics for labor law compliance. This investment supports the government's broader goal of modernizing legacy IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed pricing structure for labor hours.
Potential for scope creep in labor-hour based contracts.
Dependence on a single vendor for development services.

Positive Signals

Awarded under full and open competition.
Aims to modernize a critical government function.
Clear end date for service delivery.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming. Federal IT spending is substantial, with significant investments in modernization and cloud migration. Benchmarks for similar custom development contracts vary widely based on complexity and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee, Horizon Industries, Limited, is not explicitly identified as a small business in this context. Further analysis would be needed to determine the extent of small business participation as subcontractors.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this award. Standard government procurement oversight processes should apply, including monitoring performance and adherence to contract terms.

Related Government Programs

Custom Computer Programming Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Labor hour contracts can be susceptible to cost overruns if not closely managed.
Lack of specific performance metrics makes objective evaluation challenging.
Potential for vendor lock-in if knowledge transfer is insufficient.
The duration of the contract (over 2 years) increases exposure to changing technological landscapes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $14.4 million to HORIZON INDUSTRIES, LIMITED. ORDER ISSUED TO PROVIDE WAGE AND HOUR DIVISION (WHD) CASE MANAGEMENT MODERNIZATION (CMM) DEVELOPMENT SERVICES TO SUPPORT THE DEPARTMENT OF LABOR (DOL) WAGE AND HOUR DIVISION (WHD).

Who is the contractor on this award?

The obligated recipient is HORIZON INDUSTRIES, LIMITED.

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 $14.4 million.

What is the period of performance?

Start: 2024-02-18. End: 2026-08-17.

What is the estimated total cost per labor hour and how does it compare to industry benchmarks for similar custom programming services?

The provided data does not specify the hourly rates or the breakdown of labor categories. To assess value, a comparison of the blended average labor rate against industry benchmarks for custom computer programming services in the relevant geographic region would be necessary. Without this, it's difficult to determine if the pricing is competitive.

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

The contract details do not specify the key performance indicators (KPIs) or the methodology for measuring the success of the WHD Case Management Modernization. Effective oversight would require clearly defined KPIs related to system functionality, user adoption, processing efficiency gains, and data integrity to ensure the project meets its objectives.

How will the Department of Labor ensure the long-term maintainability and scalability of the modernized system developed under this contract?

The contract focuses on development services, and information regarding long-term maintainability and scalability strategies is not provided. The Department of Labor will need to ensure that knowledge transfer, comprehensive documentation, and potentially future contracts for maintenance and support are planned to guarantee the system's longevity and adaptability.

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

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8245 BOONE BLVD STE 300, VIENNA, VA, 22182

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,699,123

Exercised Options: $14,699,123

Current Obligation: $14,448,946

Actual Outlays: $10,778,346

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA19D0032

IDV Type: FSS

Timeline