Department of Education awards $820K task order for organizational assessment of Federal Student Aid technology office

Contract Overview

Contract Amount: $820,899 ($820.9K)

Contractor: Chenega Professional & Technical Services, LLC

Awarding Agency: Department of Education

Start Date: 2019-05-22

End Date: 2020-09-30

Contract Duration: 497 days

Daily Burn Rate: $1.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO COMPLETE AN ORGANIZATIONAL ASSESSMENT OF THE FEDERAL STUDENT AID TECHNOLOGY OFFICE TO DETERMINE POSSIBLE CHANGES AND ORGANIZATIONAL DEVELOPMENT NECESSARY TO SUPPORT AND IMPLEMENT FEDERAL STUDENT AID NEXT GEN AND ORGANIZATIONAL TRANSFORMATION INITIATIVES.

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Education obligated $820,898.59 to CHENEGA PROFESSIONAL & TECHNICAL SERVICES, LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO COMPLETE AN ORGANIZATIONAL ASSESSMENT OF THE FEDERAL STUDENT AID TECHNOLOGY OFFICE TO DETERMINE POSSIBLE CHANGES AND ORGANIZATIONAL DEVELOPMENT NECESSARY TO SUPPORT AND IMPLEMENT FEDERAL STUDENT AID NEXT GEN AND ORGANIZATIONAL TRANSFORMATION I… Key points: 1. The contract focuses on organizational development to support Federal Student Aid's Next Gen and transformation initiatives. 2. The task order was awarded as a delivery order under an existing contract. 3. The contract duration was approximately 1.5 years, from May 2019 to September 2020. 4. The awarded amount was $820,898.59. 5. The contractor, Chenega Professional & Technical Services, LLC, was selected for this task. 6. The contract type was Time and Materials, indicating payment based on labor hours and material costs.

Value Assessment

Rating: fair

The awarded amount of $820,898.59 for an organizational assessment seems reasonable for a task order of this nature and duration. Without specific benchmarks for similar organizational assessment contracts within the federal student aid technology space, a direct value-for-money assessment is challenging. However, the Time and Materials contract type can sometimes lead to cost overruns if not closely managed, which warrants a 'fair' rating. Further analysis would require comparing the scope of work and deliverables to other similar assessments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was not competed and was awarded under an existing contract. The data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This suggests that the award was likely made to a pre-qualified vendor or under specific circumstances that allowed for a sole-source award, potentially due to the specialized nature of the required services or a need for continuity with an existing contractor.

Taxpayer Impact: Sole-source awards limit the opportunity for competitive bidding, which can potentially lead to higher costs for taxpayers compared to a fully competed contract. The lack of competition means there was no direct price comparison from multiple vendors.

Public Impact

The primary beneficiaries are the Federal Student Aid (FSA) technology office and its leadership, who will receive insights for organizational improvement. The services delivered include an organizational assessment to identify necessary changes and development for future initiatives. The geographic impact is primarily within the Department of Education's operational footprint, likely concentrated in Washington D.C. or where FSA operates. Workforce implications may include recommendations for staffing, skill development, and structural changes within the FSA technology office.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have limited price discovery and potentially increased costs for taxpayers.
Time and Materials contract type carries inherent risk of cost escalation if not rigorously managed.
The specific deliverables and success metrics of the organizational assessment are not detailed, making performance evaluation difficult.

Positive Signals

The task order aims to improve the efficiency and effectiveness of the Federal Student Aid technology office.
The focus on 'Next Gen' initiatives suggests a forward-looking approach to modernizing student aid systems.
The contractor, Chenega Professional & Technical Services, LLC, was selected, implying they met certain qualifications for the task.

Sector Analysis

The contract falls under the 'Other Computer Related Services' category (NAICS 541519), which is a broad sector encompassing IT consulting, systems integration, and technical support. This specific task order focuses on organizational assessment and development within the context of a government technology office. The market for such services is competitive, with numerous firms offering specialized consulting. Benchmarking would involve comparing the cost and scope of this assessment to similar organizational studies conducted for other federal agencies or large technology departments.

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 or specific impacts on the small business ecosystem stemming from this particular award. The prime contractor, Chenega Professional & Technical Services, LLC, is likely a larger entity.

Oversight & Accountability

Oversight for this task order would fall under the Department of Education's contracting and program management offices. As a delivery order under an existing contract, the original contract's oversight mechanisms would apply. Transparency is limited by the sole-source nature of the award. Specific Inspector General jurisdiction would depend on the nature of any potential issues arising from the contract's performance or financial management.

Related Government Programs

Federal Student Aid Technology Modernization Programs
Department of Education IT Consulting Services
Government Organizational Development Services
Next Generation Government IT Initiatives

Risk Flags

Sole-source award limits competitive pricing.
Time and Materials contract type poses cost overrun risk.
Lack of detailed performance metrics in summary data.
Limited public information on specific assessment deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $820,898.59 to CHENEGA PROFESSIONAL & TECHNICAL SERVICES, LLC. THE PURPOSE OF THIS TASK ORDER IS TO COMPLETE AN ORGANIZATIONAL ASSESSMENT OF THE FEDERAL STUDENT AID TECHNOLOGY OFFICE TO DETERMINE POSSIBLE CHANGES AND ORGANIZATIONAL DEVELOPMENT NECESSARY TO SUPPORT AND IMPLEMENT FEDERAL STUDENT AID NEXT GEN AND ORGANIZATIONAL TRANSFORMATION INITIATIVES.

Who is the contractor on this award?

The obligated recipient is CHENEGA PROFESSIONAL & TECHNICAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $820,898.59.

What is the period of performance?

Start: 2019-05-22. End: 2020-09-30.

What was the specific scope of work for the organizational assessment conducted by Chenega Professional & Technical Services, LLC?

The provided data states the purpose was 'to complete an organizational assessment of the Federal Student Aid Technology Office to determine possible changes and organizational development necessary to support and implement Federal Student Aid Next Gen and organizational transformation initiatives.' However, the specific deliverables, methodologies, and detailed areas of assessment (e.g., specific teams, processes, technologies evaluated) are not detailed in the summary data. A full review of the task order document would be required to understand the precise scope, including any specific recommendations or reports generated.

How does the $820,898.59 cost compare to similar organizational assessment contracts within the federal government?

Benchmarking this specific cost requires comparing it to similar organizational assessment or IT transformation readiness contracts awarded by federal agencies, particularly those within the education or large technology sectors. Without access to a broader dataset of comparable contracts, it's difficult to definitively state if $820,898.59 is high or low. Factors influencing cost include the duration of the assessment (497 days), the number of personnel involved, the complexity of the organization being assessed, and the specific methodologies employed. The Time and Materials (T&M) nature of the award also means the final cost is dependent on actual hours worked and materials used, rather than a fixed price.

What are the potential risks associated with a sole-source award for this type of service?

Sole-source awards, like this one, carry several potential risks. Primarily, the lack of competition can lead to suboptimal pricing, as there is no market pressure to drive down costs. Taxpayers may end up paying more than they would in a competitive scenario. Furthermore, without multiple bidders, the government may not benefit from the full range of innovative solutions or the most qualified vendor if other capable firms were not considered. There's also a risk that the chosen contractor may not be as responsive to the government's needs if they perceive less risk of losing future business due to a lack of competition.

What does the 'Other Computer Related Services' (NAICS 541519) classification imply about the nature of this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that covers a wide array of IT services not specifically classified under other codes. This includes services like IT consulting, custom software development, systems integration, and IT support. For this specific task order, it indicates that the services provided by Chenega Professional & Technical Services, LLC, were focused on the IT and technology aspects of the Federal Student Aid office, specifically concerning organizational structure and development to support technology initiatives, rather than direct hardware procurement or basic IT maintenance.

What is the significance of the contract being a 'Delivery Order'?

A 'Delivery Order' typically refers to an order placed against an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of contract vehicle. This means that the Department of Education had a pre-existing contract in place with Chenega Professional & Technical Services, LLC, likely established through a prior competitive process. This specific delivery order then defined the scope, price, and delivery timeline for a particular requirement – in this case, the organizational assessment. This approach allows for flexibility and faster procurement for specific needs once a broader contract is established.

What are the implications of the 'Time and Materials' (T&M) contract type for this organizational assessment?

The Time and Materials (T&M) contract type means that the government agrees to pay the contractor based on the actual labor hours expended at specified hourly rates, plus the actual cost of materials used. For an organizational assessment, which can involve research, interviews, analysis, and report writing, a T&M structure can offer flexibility if the scope is not perfectly defined upfront. However, it also presents a higher risk of cost overruns for the government compared to a firm-fixed-price contract. Effective oversight and monitoring of labor hours and material costs are crucial to ensure the government receives good value and stays within budget.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3000 C ST STE 301, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $820,899

Exercised Options: $820,899

Current Obligation: $820,899

Actual Outlays: $545,081

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 91003118D0005

IDV Type: IDC

Timeline