Labor Department's $16.9M IT Support Contract Awarded to Acentra Health LLC

Contract Overview

Contract Amount: $16,919,201 ($16.9M)

Contractor: Acentra Health LLC

Awarding Agency: Department of Labor

Start Date: 2007-03-14

End Date: 2012-07-06

Contract Duration: 1,941 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT SUPPORT SERVICES

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

Department of Labor obligated $16.9 million to ACENTRA HEALTH LLC for work described as: IT SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1941 days (over 5 years) indicates a long-term need for IT support. 3. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 4. The contract type is a Definitive Contract, typically used for straightforward procurements. 5. The award was made to Acentra Health LLC, a single entity. 6. The contract was not set aside for small businesses, implying larger firms were likely participants.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The total value of $16.9 million over approximately five years suggests an average annual spend of around $3.4 million. This figure needs to be assessed against the scope and complexity of the IT support services provided to determine if it represents good value for money. Without detailed service level agreements or performance reports, a definitive assessment of cost-effectiveness is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 11 bids suggests a healthy level of interest and competition for this IT support requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and encouraged innovative solutions from the bidders, ensuring the government received competitive pricing.

Public Impact

The primary beneficiaries are the Department of Labor's Mine Safety and Health Administration (MSHA), which receives essential IT support. The services delivered include a broad range of IT support, crucial for the agency's operational efficiency. The geographic impact is primarily within the agency's operational areas, likely supporting federal employees and operations. Workforce implications include the potential for employment opportunities within Acentra Health LLC and its subcontractors to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value for money.
The broad NAICS code could encompass a wide range of services, making precise cost comparison challenging.
Long contract duration might lead to vendor lock-in if not managed carefully.
Limited information on specific IT services provided hinders a deeper analysis of efficiency.

Positive Signals

Awarded through full and open competition with 11 bids, indicating a competitive market.
The contract is a Definitive Contract, suggesting a clear scope of work.
The contract has a defined start and end date, providing a clear timeframe for services.

Sector Analysis

The IT support services sector is a critical component of government operations, enabling agencies to manage data, communications, and infrastructure. This contract falls under the broader IT services market, which is highly competitive and constantly evolving. Government spending in this area is substantial, with agencies relying on external vendors for specialized expertise and support. Benchmarks for similar IT support contracts vary widely based on scope, duration, and service level agreements, but this contract's value appears moderate for a multi-year federal IT services award.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific small business subcontracting goals. This suggests that the primary award went to a larger entity, and any involvement of small businesses would likely be through subcontracting opportunities offered by Acentra Health LLC. The absence of explicit set-aside requirements means that the direct impact on the small business ecosystem is not guaranteed and depends on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Labor's Mine Safety and Health Administration. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
Information Technology Support Services
Government IT Contracts
Department of Labor IT Spending
Mine Safety and Health Administration Operations

Risk Flags

Potential for scope creep due to broad NAICS code.
Performance monitoring challenges without public KPIs/SLAs.
Long contract duration may limit flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $16.9 million to ACENTRA HEALTH LLC. IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ACENTRA HEALTH LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Mine Safety and Health Administration).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2007-03-14. End: 2012-07-06.

What is the specific nature of the IT support services provided under this contract?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad classification suggests a wide range of potential IT support activities, which could include help desk support, network administration, system maintenance, software installation and updates, hardware troubleshooting, and potentially IT consulting. However, without access to the detailed statement of work or contract line item numbers (CLINs), the precise scope of services remains general. The Department of Labor's Mine Safety and Health Administration (MSHA) would be the primary recipient of these services, indicating they are crucial for MSHA's internal IT infrastructure and operational needs.

How does the $16.9 million contract value compare to similar IT support contracts awarded by the Department of Labor or other federal agencies?

Comparing this $16.9 million contract value requires context regarding the duration and scope of services. Awarded in 2007 and ending in 2012, it spanned approximately five years. This translates to an average annual spend of roughly $3.4 million. For IT support services, this is a moderate-sized contract. Larger agencies or contracts with more complex requirements (e.g., cybersecurity, cloud migration, large-scale system development) can easily reach tens or hundreds of millions of dollars. Smaller, more specialized IT support contracts might be in the hundreds of thousands or low millions. Therefore, this contract appears to be within a typical range for comprehensive IT support for a specific administration within a large federal department over a multi-year period.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not publicly detailed in the provided data. Typically, IT support contracts include metrics such as response times for help desk tickets, resolution times for different issue severities, system uptime percentages, and user satisfaction ratings. The effectiveness and value for money of this contract would be directly tied to the achievement of these unstated KPIs and SLAs. The contracting officer and the Mine Safety and Health Administration's program managers would be responsible for monitoring Acentra Health LLC's performance against these agreed-upon metrics throughout the contract's duration.

What is Acentra Health LLC's track record with federal IT support contracts?

Acentra Health LLC has a history of performing federal contracts, including those related to health IT and administrative services. While this specific contract is for general IT support services under NAICS 541519, the company's broader experience likely involves managing complex IT systems and providing technical support within the healthcare and government sectors. A thorough review of their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their capabilities and reliability in fulfilling government IT requirements. Their ability to secure this $16.9 million contract suggests they met the government's requirements for experience and capability.

Were there any significant risks identified or mitigation strategies employed for this contract?

The provided data does not explicitly detail identified risks or mitigation strategies for this contract. However, common risks associated with large IT support contracts include scope creep, vendor performance issues, cybersecurity vulnerabilities, and budget overruns. Given that the contract was awarded under full and open competition with 11 bidders, the competitive process itself can be seen as a risk mitigation factor, encouraging better performance and pricing. The Definitive Contract type suggests a relatively well-defined scope, potentially reducing the risk of significant scope creep. Ongoing oversight by the contracting officer would be the primary mechanism for identifying and addressing any emerging risks during the contract's performance period.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 702 KING FARM BLVD FL 2, ROCKVILLE, MD, 20850

Business Categories: Category Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,471,871

Exercised Options: $58,788,430

Current Obligation: $16,919,201

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline