Department of Labor's $41.1M IT Support Contract Awarded to Alliant SB CTA, LLC

Contract Overview

Contract Amount: $41,126,089 ($41.1M)

Contractor: Alliant SB CTA, LLC

Awarding Agency: Department of Labor

Start Date: 2018-11-14

End Date: 2024-06-26

Contract Duration: 2,051 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUPPORT SERVICES INCLUDING PROJECT MANAGEMENT SUPPORT, TECHNICAL WRITING SUPPORT, PRODUCTION, MAINTENANCE, DEVELOPMENT, DATA WAREHOUSING, BUSINESS INTELLIGENCE, AND ADMINISTRATIVE SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $41.1 million to ALLIANT SB CTA, LLC for work described as: IT SUPPORT SERVICES INCLUDING PROJECT MANAGEMENT SUPPORT, TECHNICAL WRITING SUPPORT, PRODUCTION, MAINTENANCE, DEVELOPMENT, DATA WAREHOUSING, BUSINESS INTELLIGENCE, AND ADMINISTRATIVE SUPPORT Key points: 1. Contract provides comprehensive IT support, including project management, development, and data warehousing. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 2051 days indicates a long-term need for these services. 4. Services encompass a wide range of IT functions, from technical writing to business intelligence. 5. The contract is a Delivery Order under a larger IDIQ vehicle, indicating task-based execution. 6. The fixed-price contract type aims to control costs and provide budget certainty.

Value Assessment

Rating: good

The contract's total value of approximately $41.1 million over its period of performance appears reasonable for the extensive IT support services provided. Benchmarking against similar large-scale IT support contracts within federal agencies suggests that the pricing is competitive, especially given the broad scope of work. The firm-fixed-price structure further supports value for money by shifting cost risk to the contractor. Without specific cost breakdowns for each service, a precise value-for-money assessment is challenging, but the overall award seems aligned with market expectations for comprehensive IT solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the opportunity was broadly advertised and multiple bidders were likely considered. While the specific number of bidders is not provided, this procurement method generally fosters robust competition, leading to better pricing and service offerings. The use of a large IDIQ vehicle like Alliant SB CTA likely means that the competition occurred at the task order level, with many qualified vendors vying for the work.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. This approach maximizes the potential for obtaining the best value and quality of IT services for the government.

Public Impact

Federal employees within the Department of Labor benefit from enhanced IT infrastructure and support. The contract delivers critical IT services including system development, maintenance, and data warehousing. Services are likely concentrated within the Department of Labor's administrative and operational functions. The contract supports IT professionals and administrative staff, potentially impacting workforce efficiency. Improved IT systems can lead to more efficient government operations and service delivery to the public.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for a broad range of critical IT functions could pose a risk.
Ensuring continued innovation and adaptation to evolving IT landscapes over the contract's lifespan.

Positive Signals

Firm-fixed-price contract type helps manage cost overruns.
Awarded under a competitive IDIQ vehicle, suggesting a vetted and capable contractor.
Long contract duration allows for stability and deep integration of services.
Comprehensive IT support can lead to improved operational efficiency and system reliability.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The federal IT services market is substantial, with agencies consistently investing in modernization, cybersecurity, and data analytics. Contracts like this, providing broad support functions, are common across government. The award to Alliant SB CTA, LLC, a holder of a major IT IDIQ contract, signifies the government's strategy of leveraging large, pre-competed vehicles for efficient procurement of complex IT solutions.

Small Business Impact

While the prime contractor is Alliant SB CTA, LLC, the 'SB' in its name suggests a focus on Small Business participation. However, the data indicates this specific contract was not a small business set-aside (ss: false, sb: false). It's possible that subcontracting opportunities exist for small businesses under this award, which is a common practice for large IDIQ vehicles. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the small business ecosystem.

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). As a Delivery Order under a larger IDIQ, oversight would involve monitoring performance against the specific task order requirements, adherence to the firm-fixed-price terms, and ensuring compliance with federal acquisition regulations. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Alliant Government Services Administration (GSA) Schedule
IT Services for Federal Agencies
Department of Labor IT Modernization Efforts
Computer Systems Design and Related Services
Large-Scale IT Support Contracts

Risk Flags

Potential for vendor lock-in due to long-term nature and specialized services.
Risk of underutilization if specific task orders do not fully leverage contractor capabilities.
Dependency on contractor's ability to maintain security and data integrity.
Challenges in adapting rapidly to emerging technologies if contractor's innovation is limited.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $41.1 million to ALLIANT SB CTA, LLC. IT SUPPORT SERVICES INCLUDING PROJECT MANAGEMENT SUPPORT, TECHNICAL WRITING SUPPORT, PRODUCTION, MAINTENANCE, DEVELOPMENT, DATA WAREHOUSING, BUSINESS INTELLIGENCE, AND ADMINISTRATIVE SUPPORT

Who is the contractor on this award?

The obligated recipient is ALLIANT SB CTA, 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 $41.1 million.

What is the period of performance?

Start: 2018-11-14. End: 2024-06-26.

What is the track record of Alliant SB CTA, LLC in delivering similar IT support services to federal agencies?

Alliant SB CTA, LLC is a prime contractor on the GSA Alliant Small Business (SB) Government-wide Acquisition Contract (GWAC), a highly competitive vehicle designed for IT solutions. As a holder of this GWAC, the company has likely undergone rigorous vetting. While specific performance data for this particular delivery order is not detailed here, contractors on such GWACs are generally expected to have a proven track record in delivering a wide array of IT services, including project management, software development, data warehousing, and technical support. Agencies typically monitor contractor performance through past performance evaluations and contract administration processes. Further investigation into specific past performance ratings and client feedback for Alliant SB CTA, LLC on other federal contracts would provide a more comprehensive understanding of their capabilities and reliability.

How does the cost of this contract compare to similar IT support services procured by other federal agencies?

The total contract value of approximately $41.1 million over roughly 5.7 years (2051 days) for comprehensive IT support services is in line with many large federal IT procurements. The firm-fixed-price (FFP) contract type suggests that the contractor assumed the primary risk for cost overruns, which is generally favorable for the government. Benchmarking requires comparing the specific services rendered against similar task orders or contracts. Given the broad scope—encompassing project management, development, data warehousing, and administrative support—this price point appears competitive, especially considering it was awarded under a full and open competition. However, a detailed cost-benefit analysis would require comparing the unit costs or labor rates against market data and other agency contracts for equivalent services.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost increases or delays. Mitigation involves robust contract management, clear definition of work statements, and change control processes. Another risk is contractor performance failure; this is mitigated by the competitive nature of the award, the contractor's likely experience on the Alliant SB GWAC, and ongoing performance monitoring by the Department of Labor. Dependence on a single vendor for critical IT functions also poses a risk, which could be addressed through contingency planning and knowledge transfer. The FFP structure helps mitigate cost overrun risks for the government.

How effective is the Department of Labor in managing this contract to ensure optimal performance and value?

The effectiveness of the Department of Labor's contract management is inferred from the contract's structure and award process. Awarding under a full and open competition via a GWAC suggests a commitment to obtaining competitive pricing and qualified vendors. The firm-fixed-price type indicates an effort to control costs. Ongoing effectiveness relies on the Contracting Officer's Representative (COR) and the program office actively monitoring performance, managing scope, and ensuring deliverables meet requirements. While specific oversight metrics aren't provided, the long-term nature and significant value suggest a structured management approach is in place, likely involving regular performance reviews and reporting.

What are the historical spending patterns for IT support services within the Department of Labor, and how does this contract fit?

The Department of Labor, like most large federal agencies, consistently spends significant amounts on IT support services to maintain and modernize its infrastructure and operations. Historical data would likely show a continuous need for services ranging from help desk support to complex system development and data management. This $41.1 million contract represents a substantial, but not necessarily anomalous, investment within this context. It likely consolidates or continues a stream of IT support spending, reflecting the ongoing reliance on external expertise for specialized IT functions. Understanding the historical trend would reveal if this award represents an increase, decrease, or stable level of IT support expenditure for the agency.

What is the significance of the contract type (Delivery Order under IDIQ) for IT support services?

A Delivery Order (DO) under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract, such as the Alliant SB GWAC, is a common and efficient method for procuring IT services. The IDIQ establishes pre-negotiated terms, conditions, and pricing for a broad range of services, allowing agencies to issue task orders quickly as needs arise. This specific DO represents a defined scope of work with a fixed price, awarded competitively among eligible IDIQ holders. This approach provides flexibility for the agency to order services as needed while ensuring competition and fair pricing for each specific requirement, streamlining the procurement process compared to individual sole-source or full-and-open procurements for each need.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1645-PEI-18-NAT-0096

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1502 JFK KENNEDY DR STE 1A, BELLEVUE, NE, 68005

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $53,746,406

Exercised Options: $53,545,382

Current Obligation: $41,126,089

Actual Outlays: $26,580,364

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0601Z

IDV Type: GWAC

Timeline