OPM Awards $24.4M for Enterprise Mainframe Support to Digital Management LLC
Contract Overview
Contract Amount: $24,438,245 ($24.4M)
Contractor: Digital Management LLC
Awarding Agency: Office of Personnel Management
Start Date: 2019-08-01
End Date: 2025-08-21
Contract Duration: 2,212 days
Daily Burn Rate: $11.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE MAINFRAME SYSTEM SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415
Plain-Language Summary
Office of Personnel Management obligated $24.4 million to DIGITAL MANAGEMENT LLC for work described as: ENTERPRISE MAINFRAME SYSTEM SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $24.4M over approximately 6 years indicates significant investment in IT infrastructure. 3. The NAICS code 541519 (Other Computer Related Services) is broad, requiring further detail on specific services. 4. The absence of small business participation warrants further investigation into opportunities for smaller firms.
Value Assessment
Rating: fair
The contract value of $24.4M over 2212 days (approx. 6 years) averages to about $11,048 per day. Without specific service details or benchmarks for mainframe support, a precise pricing assessment is difficult. However, the daily rate seems moderate for enterprise-level IT support.
Cost Per Unit: $11,048 per day (estimated)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and promotes price discovery. This method aims to secure the best value for the government.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure support, with the competitive process intended to ensure cost-effectiveness.
Public Impact
Ensures continued operation of critical government IT systems. Supports the Office of Personnel Management's (OPM) mission. Potential for modernization or transition challenges if mainframe systems are phased out. Digital Management LLC is the sole awardee for this specific delivery order.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Broad NAICS code may obscure specific service costs.
- Long contract duration could lead to vendor lock-in.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Supports critical federal IT infrastructure.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on mainframe support. Spending benchmarks for such specialized services can vary widely based on system complexity and vendor expertise. The $24.4M value over six years suggests a substantial, ongoing need for these services within OPM.
Small Business Impact
The data indicates that this contract did not involve small business participation (ss=false, sb=false). This suggests that either small businesses were not solicited, did not bid, or were not deemed capable of meeting the requirements for this specific mainframe support service.
Oversight & Accountability
The contract was awarded by the Office of Personnel Management (OPM), which is responsible for overseeing federal personnel policies and programs. Oversight would involve monitoring Digital Management LLC's performance against contract requirements and ensuring adherence to terms and conditions.
Related Government Programs
- Other Computer Related Services
- Office of Personnel Management Contracting
- Office of Personnel Management Programs
Risk Flags
- Potential for vendor lock-in due to long contract duration.
- Lack of transparency on specific services provided under a broad NAICS code.
- No indication of small business participation.
- Reliance on mainframe technology may pose future modernization challenges.
Tags
other-computer-related-services, office-of-personnel-management, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Office of Personnel Management awarded $24.4 million to DIGITAL MANAGEMENT LLC. ENTERPRISE MAINFRAME SYSTEM SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is DIGITAL MANAGEMENT LLC.
Which agency awarded this contract?
Awarding agency: Office of Personnel Management (Office of Personnel Management).
What is the total obligated amount?
The obligated amount is $24.4 million.
What is the period of performance?
Start: 2019-08-01. End: 2025-08-21.
What specific mainframe systems and services are covered under this contract, and how do they align with OPM's current and future IT strategy?
The contract details for 'ENTERPRISE MAINFRAME SYSTEM SUPPORT SERVICES' are broad. Understanding the specific systems (e.g., operating systems, databases, applications) and the scope of support (e.g., maintenance, upgrades, operations, disaster recovery) is crucial. This information would clarify the necessity of the contract and its alignment with OPM's long-term IT modernization or sustainment plans, impacting the overall value proposition.
Given the full and open competition, what was the competitive landscape, and how did the pricing reflect market rates for similar mainframe support services?
While awarded under full and open competition, the specific details of the bidding process and the number of competitors are not provided. Benchmarking the $11,048 daily rate against industry standards for comparable mainframe support contracts is essential to assess if the government achieved optimal price discovery and value. Variations in service scope and system complexity can significantly influence these rates.
What is the risk associated with relying on a single vendor, Digital Management LLC, for critical mainframe support over a six-year period, especially concerning potential service disruptions or cost
The primary risk is vendor dependency and potential lack of flexibility if Digital Management LLC's performance falters or if market conditions change. While a Firm Fixed Price contract mitigates cost escalation, long-term reliance could limit OPM's ability to adopt newer technologies or negotiate better terms later. Robust performance monitoring and contingency planning are vital to manage these risks.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 6550 ROCK SPRING DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Subchapter S Corporation, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $26,198,171
Exercised Options: $26,173,171
Current Obligation: $24,438,245
Actual Outlays: $14,546,226
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0854N
IDV Type: FSS
Timeline
Start Date: 2019-08-01
Current End Date: 2025-08-21
Potential End Date: 2025-08-21 00:00:00
Last Modified: 2025-08-21
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