Labor Department awards $2.97M for Job Corps IT support, with 1 bid received

Contract Overview

Contract Amount: $2,970,813 ($3.0M)

Contractor: Phase LLC

Awarding Agency: Department of Labor

Start Date: 2025-02-18

End Date: 2027-02-17

Contract Duration: 729 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: GSA 8(A) STARS III DIRECT AWARD TO PHASE, LLC FOR JOB CORP REGIONAL OFFICE APPLICATION ASSESSMENT PROCESS (ROAP) OPERATIONS AND MAINTENANCE 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 $3.0 million to PHASE LLC for work described as: GSA 8(A) STARS III DIRECT AWARD TO PHASE, LLC FOR JOB CORP REGIONAL OFFICE APPLICATION ASSESSMENT PROCESS (ROAP) OPERATIONS AND MAINTENANCE SUPPORT SERVICES Key points: 1. Value for money appears fair given the labor-hour contract type and duration. 2. Competition was limited, raising questions about price discovery and potential overpayment. 3. Risk indicators are moderate, focusing on contractor performance and service delivery. 4. Performance context is tied to essential IT operations for the Job Corps program. 5. Sector positioning is within IT services, specifically computer systems design. 6. The contract's duration suggests a need for stable, ongoing support.

Value Assessment

Rating: fair

The contract's total value of $2.97 million over two years, based on labor hours, suggests a moderate hourly rate. Benchmarking against similar IT support contracts for federal agencies is necessary to confirm value. The absence of a fixed price or detailed scope makes direct comparison challenging, but the duration and nature of the services indicate a reasonable, though not exceptional, price point. Further analysis of the specific labor categories and rates billed would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'full and open competition after exclusion of sources' mechanism, which implies a specific justification for limiting the pool of potential bidders. While the exact reasons are not detailed here, such awards often stem from specific program requirements or existing contract vehicles. The fact that only one bid was received suggests a highly concentrated or specialized market, or potential barriers to entry for other firms. This limited competition could impact the government's ability to secure the most competitive pricing.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the full range of pricing options that a broader competition could have yielded. This could translate to higher costs for the services provided.

Public Impact

The primary beneficiaries are the Department of Labor's Office of the Assistant Secretary for Administration and Management, ensuring smooth IT operations. Services delivered include application assessment process operations and maintenance support for the Job Corps program. The geographic impact is centered in the District of Columbia, where the contract is managed. Workforce implications include the potential for direct employment by PHASE LLC and indirect support for Job Corps staff relying on these IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
Labor-hour contracts can be susceptible to scope creep and cost overruns if not closely monitored.
Reliance on a single bidder could create future dependency and reduce leverage in subsequent procurements.

Positive Signals

The contract supports the critical IT infrastructure of the Job Corps program.
PHASE LLC is likely chosen based on specific expertise relevant to the Job Corps IT environment.
The contract duration provides stability for essential IT support services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a crucial component of the broader IT services industry. The federal government is a significant consumer of these services, with spending often concentrated in areas like system integration, IT support, and software development. The market for such services is competitive, but specialized niches, like those supporting specific government programs such as Job Corps, can see less broad competition. Benchmarks for similar IT support contracts often range widely based on scope, duration, and security requirements.

Small Business Impact

The contract was not awarded as a small business set-aside, and the awardee, PHASE LLC, is not explicitly identified as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The absence of a small business focus means opportunities for small business participation through subcontracting are not a primary consideration for this particular contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Labor's contracting officers and program managers. Accountability measures would include performance reviews, adherence to labor hour reporting, and service level agreements. Transparency is facilitated through federal procurement databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Job Corps Program Operations
Federal IT Support Services
GSA 8(a) STARS III GWAC
Computer Systems Design Services

Risk Flags

Limited Competition
Potential for Cost Overruns (Labor Hour Contract)
Reliance on Single Bidder

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $3.0 million to PHASE LLC. GSA 8(A) STARS III DIRECT AWARD TO PHASE, LLC FOR JOB CORP REGIONAL OFFICE APPLICATION ASSESSMENT PROCESS (ROAP) OPERATIONS AND MAINTENANCE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PHASE 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 $3.0 million.

What is the period of performance?

Start: 2025-02-18. End: 2027-02-17.

What is the track record of PHASE LLC in performing similar IT support services for federal agencies, particularly within the Department of Labor?

Information regarding PHASE LLC's specific track record with the Department of Labor or similar federal IT support contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government engagements. Understanding their experience with application assessment processes and maintenance support for large-scale programs like Job Corps is crucial for evaluating their capability to fulfill this contract effectively. Without this historical data, the assessment relies heavily on the justification for the award and the limited competition.

How does the estimated value of $2.97 million compare to similar IT support contracts for federal programs of comparable size and complexity?

Direct comparison of the $2.97 million value is challenging without knowing the specific labor rates and the exact scope of work. However, for a two-year contract providing essential IT operations and maintenance support for a program like Job Corps, this figure appears within a reasonable range, assuming standard labor hour billing. Contracts for similar federal IT support can vary significantly, with some costing millions more or less depending on the criticality of the systems, the number of users supported, and the required service levels. The limited competition aspect suggests this figure might not represent the absolute lowest possible cost.

What are the primary risks associated with a labor-hour contract for IT support services, and how are they mitigated in this case?

The primary risks with labor-hour contracts include potential cost overruns if work is not efficiently performed or if the scope expands without proper controls. There's also a risk of 'scope creep' where tasks not originally envisioned are added, increasing costs. Mitigation strategies typically involve robust oversight by the government, detailed tracking of labor hours, clear performance metrics, and defined ceilings or task order limits. For this contract, the Department of Labor's contracting officers are responsible for monitoring performance and ensuring that the hours billed are reasonable and necessary for the services delivered.

What is the expected impact of this contract on the operational effectiveness of the Job Corps program?

This contract is expected to ensure the continued and effective operation of the IT systems that support the Job Corps program. Reliable application assessment processes and ongoing maintenance are critical for managing student data, program resources, and administrative functions. By securing these services, the Department of Labor aims to prevent disruptions, maintain system integrity, and support the overall mission of Job Corps in providing education and career training to young people. The success of these IT services directly correlates with the program's ability to function smoothly.

How has federal spending on computer systems design services, particularly for IT support, trended in recent years, and does this contract align with those trends?

Federal spending on computer systems design services, including IT support, has generally trended upwards over the past decade, driven by increasing digitization and the need for modern IT infrastructure across agencies. This contract, valued at approximately $1.5 million per year, aligns with the ongoing government investment in maintaining and upgrading its IT capabilities. While specific trends for 'application assessment process operations and maintenance support' are niche, the overall demand for such IT services remains strong. This award reflects the continued reliance on external contractors for specialized IT functions.

What are the implications of awarding this contract via the GSA 8(a) STARS III GWAC, especially concerning competition and pricing?

The GSA 8(a) STARS III GWAC (General Services Administration’s 8(a) Government-Wide Acquisition Contract) is designed to provide federal agencies with a streamlined way to procure IT services from small, disadvantaged businesses. However, the data indicates this was a 'direct award' under the GWAC, and the competition type is 'full and open competition after exclusion of sources,' with only one bid received. This suggests that while the GWAC facilitates procurement, the specific award mechanism and the nature of the requirement may have limited the actual competition, potentially impacting price discovery and value for taxpayers, despite the GWAC's intent.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605TA-25-Q-00013

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,738,373

Exercised Options: $3,738,373

Current Obligation: $2,970,813

Actual Outlays: $1,075,116

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0502

IDV Type: GWAC

Timeline