Department of Labor's $86.4M NCFMS contract awarded to Global Computer Enterprises, Inc. for financial system modernization

Contract Overview

Contract Amount: $86,421,788 ($86.4M)

Contractor: Global Computer Enterprises, Inc.

Awarding Agency: Department of Labor

Start Date: 2008-07-01

End Date: 2014-09-30

Contract Duration: 2,282 days

Daily Burn Rate: $37.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: MODERNIZATION OF DOLS CORE FINANCIAL MANAGEMENT FUNCTIONS TO THE NEW CORE FINANCIAL MANAGEMENT SYSTEM (NCFMS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $86.4 million to GLOBAL COMPUTER ENTERPRISES, INC. for work described as: MODERNIZATION OF DOLS CORE FINANCIAL MANAGEMENT FUNCTIONS TO THE NEW CORE FINANCIAL MANAGEMENT SYSTEM (NCFMS) Key points: 1. The contract aimed to modernize the Department of Labor's core financial management functions. 2. Awarded under full and open competition, suggesting a robust selection process. 3. The contract duration of approximately 6 years indicates a significant, long-term project. 4. The NAICS code 541511 points to custom computer programming services, a key area for financial system development. 5. The contract was a definitive contract, providing a clear framework for services. 6. The total award amount of $86.4M reflects the scale of the financial system modernization effort.

Value Assessment

Rating: fair

The total award of $86.4 million over approximately 6 years for a financial management system modernization is substantial. Benchmarking this against similar large-scale government IT modernization projects is challenging without more specific details on the scope and deliverables. However, the duration suggests a complex undertaking. The value-for-money assessment would depend heavily on the system's effectiveness, efficiency gains, and long-term cost savings it provided to the Department of Labor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 9 bids suggests a competitive environment, which typically benefits price discovery and innovation. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions being considered by the agency.

Taxpayer Impact: For taxpayers, full and open competition generally leads to better value by driving down costs and encouraging the most capable contractors to participate. This process helps ensure that federal funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of Labor's administrative and financial staff, who gain access to a modernized financial management system. The services delivered include custom computer programming to build and implement the New Core Financial Management System (NCFMS). The geographic impact is primarily within the District of Columbia, where the Department of Labor is headquartered. Workforce implications include potential changes in how financial personnel operate and the need for training on the new system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in large-scale IT modernization projects.
Risk of schedule delays in complex system development and integration.
Dependence on a single contractor for a critical financial system.
Ensuring the new system meets evolving regulatory and reporting requirements.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The contract duration suggests a commitment to a comprehensive solution.
The focus on modernization implies an effort to improve efficiency and reduce legacy system costs.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the IT services industry. The market for government IT modernization is substantial, driven by the need to replace aging systems, improve cybersecurity, and enhance operational efficiency. This contract represents a specific investment in upgrading financial management capabilities, a common area of focus for federal agencies seeking to streamline operations and ensure compliance.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale IT modernization project, it likely involved significant subcontracting opportunities. However, without specific subcontracting plans or goals, the direct impact on the small business ecosystem is unclear. Large prime contractors often utilize small businesses for specialized services, but the primary awardee here is Global Computer Enterprises, Inc.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's contracting officers and program managers. The contract's definitive nature suggests a structured approach to oversight. Transparency would be facilitated through contract award databases and potentially agency reports on project progress. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Financial Management Systems Modernization
Core Financial Systems
IT Services for Federal Agencies
Custom Software Development Contracts
Department of Labor IT Spending

Risk Flags

Large IT modernization projects carry inherent risks of cost overruns and schedule delays.
Ensuring successful integration with existing agency systems can be complex.
User adoption and training are critical for realizing the benefits of new financial systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $86.4 million to GLOBAL COMPUTER ENTERPRISES, INC.. MODERNIZATION OF DOLS CORE FINANCIAL MANAGEMENT FUNCTIONS TO THE NEW CORE FINANCIAL MANAGEMENT SYSTEM (NCFMS)

Who is the contractor on this award?

The obligated recipient is GLOBAL COMPUTER ENTERPRISES, INC..

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 $86.4 million.

What is the period of performance?

Start: 2008-07-01. End: 2014-09-30.

What was the specific scope of work for the modernization of the Department of Labor's core financial management functions?

The modernization of the Department of Labor's core financial management functions, under contract number [Contract Number - not provided], aimed to replace or significantly upgrade the existing financial systems with a New Core Financial Management System (NCFMS). This typically involves migrating data, re-engineering business processes, implementing new software modules for accounting, budgeting, procurement, and financial reporting, and ensuring integration with other agency systems. The goal is usually to enhance efficiency, improve data accuracy, strengthen internal controls, and ensure compliance with federal financial management regulations. The contract duration of approximately 6 years (2282 days) suggests a comprehensive, multi-phased approach to development, testing, deployment, and post-implementation support.

How does the $86.4 million award compare to other federal financial system modernization contracts?

The $86.4 million award for the Department of Labor's NCFMS project is a significant but not extraordinary figure for a large-scale federal IT modernization effort. Many federal agencies undertake similar multi-year projects to upgrade their financial systems, with costs often ranging from tens of millions to hundreds of millions of dollars, depending on the agency's size, complexity, and the scope of modernization. For instance, the Treasury's Financial Management Service (now Bureau of the Fiscal Service) has undertaken substantial modernization initiatives. The value of this contract should be assessed relative to the number of users, the complexity of financial operations managed, and the expected return on investment in terms of efficiency and cost savings over the system's lifecycle.

What were the key performance indicators (KPIs) or success metrics for this contract?

While specific KPIs are not detailed in the provided data, typical success metrics for a financial system modernization contract like the NCFMS project would include: system uptime and availability, data accuracy and integrity, successful completion of financial audits, reduction in manual processing or reconciliation efforts, timely financial reporting, user satisfaction rates among DOL staff, and adherence to project milestones and budget. The contract's performance would likely be evaluated against these or similar metrics to ensure the new system delivered the intended benefits of improved financial management and operational efficiency for the Department of Labor.

What is the track record of Global Computer Enterprises, Inc. in delivering large federal IT projects?

Global Computer Enterprises, Inc. (GCE) has a history of performing various IT services for federal agencies. Information on their track record for large-scale financial system modernizations specifically would require a deeper dive into contract databases and performance reviews. GCE has been involved in contracts across different agencies, often focusing on areas like software development, IT support, and system integration. Assessing their specific success with projects of similar scale and complexity to the DOL's NCFMS would involve examining past performance evaluations, any reported issues or successes, and their overall portfolio of completed government contracts.

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

Large IT modernization projects inherently carry risks such as scope creep, schedule delays, budget overruns, technical challenges, and user adoption issues. For the NCFMS contract, potential risks could include the complexity of integrating the new system with existing DOL infrastructure, ensuring data migration accuracy, and managing the transition for thousands of users. Mitigation strategies would typically involve robust project management, phased rollouts, comprehensive testing, strong change management and training programs, and clear communication channels between the contractor and the agency. The definitive contract structure itself provides a framework for managing performance and addressing issues as they arise.

How has the Department of Labor's spending on financial system modernization evolved over time?

Analyzing the historical spending patterns of the Department of Labor on financial system modernization requires access to multi-year budget and contract data. This specific $86.4 million contract represents a significant investment during its performance period (2008-2014). To understand the evolution, one would need to examine prior investments in legacy systems, subsequent upgrades or maintenance costs, and any further modernization efforts post-2014. Trends might show a shift from maintaining older systems to investing in integrated, cloud-based, or more agile financial management solutions over time, reflecting broader government IT modernization initiatives.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL089RP20497

Offers Received: 9

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Address: 10780 PARKRIDGE BLVD, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $232,200,689

Exercised Options: $224,561,247

Current Obligation: $86,421,788

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline