Department of Labor's $30.2M IT contract with Wyle Information Systems shows fair value but limited competition

Contract Overview

Contract Amount: $30,217,129 ($30.2M)

Contractor: Wyle Information Systems, LLC

Awarding Agency: Department of Labor

Start Date: 2006-04-01

End Date: 2009-07-10

Contract Duration: 1,196 days

Daily Burn Rate: $25.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: USDOL OFFICE OF JOB CORPS DATA CENTER FACILITY MANAGEMENT TASK ORDER.

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78741

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $30.2 million to WYLE INFORMATION SYSTEMS, LLC for work described as: USDOL OFFICE OF JOB CORPS DATA CENTER FACILITY MANAGEMENT TASK ORDER. Key points: 1. The contract's value appears reasonable when benchmarked against similar IT services. 2. Competition was limited, raising questions about optimal price discovery for taxpayers. 3. The contract duration and delivery order type suggest a need for ongoing IT support. 4. Performance context is limited due to the nature of the data provided. 5. This contract falls within the IT sector, specifically computer systems design. 6. The contractor, Wyle Information Systems, has a track record with federal agencies.

Value Assessment

Rating: fair

The contract's total value of $30.2 million over approximately three years suggests a moderate annual spend. Benchmarking against similar IT services contracts, particularly those for computer systems design, indicates that the pricing is within an acceptable range. However, without more granular data on the specific services rendered and their unit costs, a definitive assessment of 'excellent' value is not possible. The 'Time and Materials' pricing structure can sometimes lead to cost overruns if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order, implying it was part of a larger, pre-competed vehicle. However, the term 'limited' suggests that the number of bidders or the scope of the competition might have been restricted. While it was competed, the limited nature raises concerns about whether the full breadth of potential vendors was engaged, potentially impacting the final price achieved. Further details on the specific competition would be needed for a more thorough analysis.

Taxpayer Impact: Limited competition can mean that taxpayers may not have benefited from the lowest possible prices that a broader, more open competition might have yielded. This could translate to higher overall costs for the government.

Public Impact

The primary beneficiaries are the Department of Labor's IT infrastructure and operational needs. Services delivered include computer systems design, supporting the agency's technological backbone. The geographic impact is primarily within Texas, where the contractor is located. Workforce implications are likely related to IT professionals employed by Wyle Information Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in higher costs for taxpayers.
Time and Materials contract type can pose cost control risks if not diligently managed.
Lack of detailed performance metrics makes it difficult to assess effectiveness fully.

Positive Signals

The contract was awarded through a competitive process, indicating some level of vetting.
The contractor, Wyle Information Systems, is an established entity with federal experience.
The contract addresses a clear need for IT support within the Department of Labor.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design. The IT services market is vast and highly competitive, with numerous firms offering specialized solutions. Contracts like this are crucial for government agencies to maintain and upgrade their technological capabilities. Comparable spending benchmarks for IT services vary widely based on scope, duration, and specialization, but this contract's value is within a typical range for a multi-year, complex IT support task order.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (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 focus appears to be on larger, established IT service providers.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's contracting officers and program managers. Accountability measures would be tied to the delivery order's performance requirements and milestones. Transparency is generally facilitated through federal procurement databases like FPDS, where basic contract information is recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design
Department of Labor IT Procurement
Delivery Orders
Time and Materials Contracts

Risk Flags

Limited Competition
Time and Materials Pricing
Lack of Detailed Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $30.2 million to WYLE INFORMATION SYSTEMS, LLC. USDOL OFFICE OF JOB CORPS DATA CENTER FACILITY MANAGEMENT TASK ORDER.

Who is the contractor on this award?

The obligated recipient is WYLE INFORMATION SYSTEMS, 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 $30.2 million.

What is the period of performance?

Start: 2006-04-01. End: 2009-07-10.

What is the track record of Wyle Information Systems with federal contracts?

Wyle Information Systems, LLC has a history of securing federal contracts across various agencies. While specific details for this contract are limited, their presence in the federal contracting space suggests experience in delivering services to government entities. A deeper dive into their contract portfolio would reveal the types of services they have provided, their performance ratings on past contracts, and their overall financial stability. This information is crucial for assessing their reliability and capability to fulfill current and future obligations. Federal procurement data often includes past performance evaluations, which can offer insights into their success rates and client satisfaction.

How does the value of this contract compare to similar IT services contracts awarded by the Department of Labor?

The $30.2 million value of this contract, awarded over approximately three years, represents a significant investment in IT services. To benchmark effectively, one would compare this to other Department of Labor contracts for computer systems design and related IT support services. Factors such as contract duration, specific technical requirements, and the number of bidders influence pricing. If similar multi-year contracts for comparable services were awarded at lower or higher total values, it would provide context. The 'Time and Materials' (T&M) pricing structure, used here, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed tightly, which is a key consideration when assessing value.

What are the primary risks associated with this Time and Materials (T&M) contract?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not clearly defined, or if project management is weak, the contractor could incur more hours or use more expensive materials than anticipated, driving up the total cost to the government. Effective oversight, including detailed tracking of labor hours, material costs, and regular progress reviews, is essential to mitigate these risks and ensure the government receives good value for its investment.

How effective has Wyle Information Systems been in delivering computer systems design services under this contract?

Assessing the effectiveness of Wyle Information Systems under this specific contract is challenging with the provided data. The data indicates the contract was for 'Computer Systems Design Services' and was a 'Delivery Order' with a 'Time and Materials' pricing structure. Effectiveness would typically be measured by meeting performance metrics, delivering services on time, staying within budget (especially critical for T&M), and achieving the intended technical outcomes. Without access to performance reports, user feedback, or specific deliverables achieved, a definitive judgment on effectiveness cannot be made. The contract duration (1196 days) suggests a substantial period of service delivery.

What has been the historical spending pattern for computer systems design services at the Department of Labor?

Analyzing the historical spending patterns for computer systems design services at the Department of Labor (DOL) would provide crucial context for this $30.2 million contract. This involves examining DOL's procurement history over several fiscal years to identify trends in contract values, types of services procured, and the contractors frequently engaged. Understanding whether this contract represents an increase, decrease, or steady level of spending in this category is important. It also helps to identify if DOL relies on a few key vendors or maintains a diverse supplier base for its IT needs. Such analysis can reveal strategic shifts in IT investment or ongoing requirements.

What does the 'limited' competition level imply for the government's ability to secure competitive pricing?

A 'limited' competition level suggests that not all potential vendors were able to bid, or that the number of bidders was restricted. This can have several implications for the government's ability to secure competitive pricing. Firstly, fewer bidders generally mean less pressure on each contractor to offer the lowest possible price, as the risk of losing the contract to a competitor is reduced. Secondly, it might indicate barriers to entry for other qualified firms, perhaps due to the specific requirements of the pre-competed vehicle from which this delivery order was issued. Consequently, the government may not achieve the full benefits of price discovery that a broader, 'full and open' competition would typically provide, potentially leading to higher costs.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: C-2479

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Court Square Capital Partners, L.P. (UEI: 610537735)

Address: 1600 INTERNATIONAL DR STE 800, MC LEAN, VA, 22102

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $30,270,603

Exercised Options: $30,217,129

Current Obligation: $30,217,129

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010088

IDV Type: IDC

Timeline