Telaforce LLC awarded $10.3M for JOLTS data collection, facing limited competition

Contract Overview

Contract Amount: $10,316,361 ($10.3M)

Contractor: Telaforce LLC

Awarding Agency: Department of Labor

Start Date: 2019-06-10

End Date: 2026-04-24

Contract Duration: 2,510 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: LABOR HOURS

Sector: Other

Official Description: JOLTS PROJECT DATA COLLECTION SERVICES

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30303

State: Georgia Government Spending

Plain-Language Summary

Department of Labor obligated $10.3 million to TELAFORCE LLC for work described as: JOLTS PROJECT DATA COLLECTION SERVICES Key points: 1. Value for money appears fair given the contract's duration and scope. 2. Competition was limited, potentially impacting price discovery and overall value. 3. Risk indicators are moderate, with performance context suggesting a need for close monitoring. 4. The contract positions the agency to continue essential labor market data collection. 5. This contract falls within the professional services sector, specifically marketing research.

Value Assessment

Rating: fair

The contract value of $10.3 million over approximately 6.8 years suggests an average annual cost of around $1.5 million. Benchmarking this against similar large-scale data collection and analysis contracts is challenging without more specific service details. However, the duration implies a steady, ongoing need for these services. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. The number of bidders is not explicitly stated, but the 'limited' designation suggests fewer than a full and open competition. This level of competition may lead to less aggressive pricing compared to a scenario with numerous bidders vying for the contract.

Taxpayer Impact: Limited competition can mean taxpayers may not benefit from the most competitive pricing achievable through broad market engagement. This could translate to a higher overall cost for the government.

Public Impact

The Department of Labor benefits through the continued collection of critical labor market data. Services delivered include data collection for the Job Openings and Labor Turnover Survey (JOLTS). The geographic impact is national, as JOLTS data is a key economic indicator for the entire U.S. Workforce implications include the need for skilled personnel to manage and execute data collection efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs for taxpayers.
The 'after exclusion of sources' clause warrants scrutiny to understand the rationale.
Long contract duration requires sustained performance monitoring to ensure continued value.

Positive Signals

The contract supports a vital government function: labor market data collection.
The awardee, Telaforce LLC, is tasked with a critical national economic survey.
The contract's structure allows for flexibility in adapting to evolving data needs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under the North American Industry Classification System (NAICS) code 541910 for Marketing Research and Public Opinion Polling. This sector is characterized by firms providing specialized expertise in data gathering, analysis, and reporting. The market size for government contracting in this area is substantial, driven by the need for data-driven decision-making across various agencies. This contract represents a significant investment in maintaining a crucial economic data series.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Telaforce LLC, may still engage small businesses as subcontractors, depending on their own business practices and the specific needs of the JOLTS data collection services. The absence of a set-aside means the opportunity was open to all eligible large and small businesses.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures would include performance reviews, adherence to contract terms, and delivery of accurate data. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Bureau of Labor Statistics (BLS) Data Collection
Economic Surveys and Data Analysis
Federal Statistical Programs
Labor Market Information Services

Risk Flags

Limited competition may impact cost-effectiveness.
Need to verify contractor's past performance and capabilities.
Ensure robust oversight due to contract duration and labor-hour basis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $10.3 million to TELAFORCE LLC. JOLTS PROJECT DATA COLLECTION SERVICES

Who is the contractor on this award?

The obligated recipient is TELAFORCE 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 $10.3 million.

What is the period of performance?

Start: 2019-06-10. End: 2026-04-24.

What is the historical spending pattern for JOLTS project data collection services?

Historical spending data for the JOLTS project specifically, prior to this definitive contract, is not detailed in the provided information. However, the award of a $10.3 million definitive contract with an end date in April 2026 suggests a significant and ongoing investment in this data collection effort. Definitive contracts are typically used for requirements that are expected to continue over a period. The duration of approximately 2510 days (around 6.8 years) and the total value indicate a substantial, long-term commitment by the Department of Labor to maintain the JOLTS survey. Further analysis would require accessing historical contract awards for similar services or previous iterations of the JOLTS data collection.

How does Telaforce LLC's track record influence the risk assessment of this contract?

The provided data does not include specific details on Telaforce LLC's past performance or track record with the federal government or in similar data collection projects. A comprehensive risk assessment would necessitate reviewing their performance history, including any past issues with contract delivery, quality of work, or compliance. Without this information, the risk assessment is based primarily on the contract's structure, competition level, and the inherent complexities of large-scale data collection. If Telaforce LLC has a history of successful contract performance, it would mitigate perceived risks. Conversely, a history of poor performance would elevate concerns regarding timely and accurate data delivery.

Can the value for money be benchmarked against other similar government data collection contracts?

Benchmarking the value for money for this $10.3 million JOLTS data collection contract against similar government contracts is challenging without more granular data on the specific services provided, the methodologies employed, and the unit costs. The contract is for 'Marketing Research and Public Opinion Polling' (NAICS 541910) and is based on 'Labor Hours' (pt: LABOR HOURS). To perform a robust benchmark, one would need to compare the hourly rates, overhead, and profit margins to those of other contracts for large-scale surveys, data processing, and analysis services awarded by agencies like the Bureau of Labor Statistics (BLS) or Census Bureau. The 'limited' competition also complicates direct value comparisons, as it may have influenced pricing.

What are the potential program effectiveness implications of the limited competition?

Limited competition can have several implications for program effectiveness. On one hand, it might mean that the selected contractor has specialized expertise highly relevant to the JOLTS program's unique requirements, potentially leading to efficient and effective data collection. However, a lack of robust competition can reduce the incentive for the contractor to innovate or optimize processes to achieve the best possible value. It may also lead to less rigorous price negotiation, potentially resulting in higher costs that could otherwise be reinvested in program improvements or expanded data collection scope. The effectiveness hinges on whether the limited competition still yielded a capable and reasonably priced provider.

What is the typical duration and value range for contracts of this nature?

Contracts for large-scale, ongoing data collection services, such as the JOLTS survey, typically involve significant multi-year commitments. The duration of this contract, approximately 6.8 years (2510 days), and its value of $10.3 million are indicative of a substantial federal program requirement. Similar contracts supporting national economic indicators or large surveys often span several years and can range from several million to tens or even hundreds of millions of dollars, depending on the scope, complexity, and frequency of data collection. The 'definitive contract' type suggests a long-term need, aligning with the typical lifecycle of such essential government data programs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Marketing Research and Public Opinion Polling

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1625DC-17-R-00003

Offers Received: 7

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Telaforce, LLC

Address: 1501 MERCHANTS WAY, NICEVILLE, FL, 32578

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,473,741

Exercised Options: $11,937,687

Current Obligation: $10,316,361

Actual Outlays: $8,105,659

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline