Department of Labor awards $23.6M contract for financial system implementation support

Contract Overview

Contract Amount: $23,636,853 ($23.6M)

Contractor: Chevo LLC

Awarding Agency: Department of Labor

Start Date: 2016-04-01

End Date: 2021-12-29

Contract Duration: 2,098 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::OT::IGF THE DOL OCFO REQUIRES PROFESSIONAL SERVICES IN THE FORM OF ACQUISITION MANAGEMENT AND PROGRAM MANAGEMENT SUPPORT FOR THE NEW CORE FINANCIAL MANAGEMENT SYSTEM (NCFMS). THIS SUPPORT CONSISTS OF PLANNING, EXECUTION, AND MANAGEMENT OVERSIGHT RELATED TO THE IMPLEMENTATION OF NCFMS INCLUDING ARCHITECTURE ENTERPRISE AND SPECIAL PROJECTS AS ASSIGNED.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $23.6 million to CHEVO LLC for work described as: IGF::OT::IGF THE DOL OCFO REQUIRES PROFESSIONAL SERVICES IN THE FORM OF ACQUISITION MANAGEMENT AND PROGRAM MANAGEMENT SUPPORT FOR THE NEW CORE FINANCIAL MANAGEMENT SYSTEM (NCFMS). THIS SUPPORT CONSISTS OF PLANNING, EXECUTION, AND MANAGEMENT OVERSIGHT RELATED TO THE IMPLEMENTATIO… Key points: 1. Contract provides essential acquisition and program management support for the New Core Financial Management System (NCFMS). 2. Services include planning, execution, and oversight for NCFMS implementation, covering enterprise architecture and special projects. 3. The contract was awarded through full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is approximately 2098 days, indicating a long-term need for these services. 5. The contractor, CHEVO LLC, will deliver services primarily in Maryland. 6. The contract type is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The total award amount of $23.6 million over nearly six years for specialized acquisition and program management support appears reasonable given the scope of implementing a new core financial management system. Benchmarking against similar large-scale IT system implementation contracts, this level of investment is within expected ranges for comprehensive support services. The contract's focus on planning, execution, and oversight suggests a structured approach to managing project risks and ensuring successful delivery.

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 17 bids suggests a robust competitive environment for this requirement. A higher number of bidders generally leads to better price discovery and potentially more innovative solutions, benefiting the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that drives down costs and ensures the government receives the best value for its investment in critical financial system modernization.

Public Impact

The Department of Labor's Office of the Chief Financial Officer (OCFO) is the primary beneficiary, receiving critical support for its NCFMS. Services delivered include planning, execution, and management oversight for the NCFMS implementation. The geographic impact is primarily focused on Maryland, where the contractor will deliver services. Workforce implications include the potential for specialized roles in acquisition and program management to support this large-scale IT project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'special projects as assigned' are not clearly defined and managed.
Dependence on a single contractor for critical implementation support could pose a risk if performance issues arise.
The long duration of the contract requires continuous monitoring to ensure ongoing value and alignment with evolving needs.

Positive Signals

Awarded through full and open competition, indicating a competitive process that likely secured favorable pricing.
The contract specifies clear deliverables related to planning, execution, and oversight, providing a framework for performance measurement.
The contractor has a track record of delivering services, though specific performance on this contract needs further review.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on IT consulting and systems implementation support. The market for such services is large and competitive, with numerous firms offering expertise in financial system modernization. The Department of Labor's investment in NCFMS is a significant undertaking, typical of large federal agencies seeking to upgrade legacy systems for improved efficiency and data integrity. Comparable spending benchmarks for similar IT modernization projects often range from tens to hundreds of millions of dollars, depending on the system's complexity and scope.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to CHEVO LLC, a single entity, suggests that the primary focus was on securing specialized expertise rather than promoting small business participation through set-asides. This means opportunities for small businesses to directly participate in this specific contract are limited unless they are part of a larger subcontracting effort initiated by the prime contractor.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Labor's OCFO, which is procuring the services. Accountability measures would be embedded in the contract's performance work statement, delivery schedules, and payment terms. Transparency is facilitated through the contract award data, which is publicly available. Inspector General jurisdiction would typically extend to audits and investigations of potential fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Federal Financial Management Systems
IT Modernization Programs
Acquisition Management Support
Program Management Support
Core Financial Systems

Risk Flags

Long contract duration may lead to evolving requirements.
Dependence on a single contractor for critical support.
Need for clear definition of 'special projects'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $23.6 million to CHEVO LLC. IGF::OT::IGF THE DOL OCFO REQUIRES PROFESSIONAL SERVICES IN THE FORM OF ACQUISITION MANAGEMENT AND PROGRAM MANAGEMENT SUPPORT FOR THE NEW CORE FINANCIAL MANAGEMENT SYSTEM (NCFMS). THIS SUPPORT CONSISTS OF PLANNING, EXECUTION, AND MANAGEMENT OVERSIGHT RELATED TO THE IMPLEMENTATION OF NCFMS INCLUDING ARCHITECTURE ENTERPRISE AND SPECIAL PROJECTS AS ASSIGNED.

Who is the contractor on this award?

The obligated recipient is CHEVO 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 $23.6 million.

What is the period of performance?

Start: 2016-04-01. End: 2021-12-29.

What is the specific track record of CHEVO LLC in supporting large-scale federal financial system implementations?

Information regarding CHEVO LLC's specific track record in supporting large-scale federal financial system implementations is not detailed in the provided data. While the award of this contract suggests they possess relevant capabilities, a comprehensive assessment would require reviewing past performance evaluations, client testimonials, and the scope and success of previous similar projects undertaken by the company. Further investigation into their project portfolio and client feedback would be necessary to fully understand their expertise in this specialized area and their ability to successfully manage the complexities of the NCFMS implementation.

How does the per-unit cost or labor rate for this contract compare to market rates for similar acquisition and program management support services?

The provided data does not include specific labor rates or per-unit costs, making a direct comparison to market rates challenging. The contract is for 'LABOR HOURS' with a total award of $23.6 million over approximately 2098 days. To benchmark the value, one would need to analyze the average daily or hourly rates billed by CHEVO LLC and compare them against industry standards for acquisition and program management professionals with comparable experience and skill sets. Factors such as the seniority of personnel, specific expertise required, and geographic location of service delivery would influence these market rates. Without this granular data, a definitive assessment of value for money based on unit costs is not possible.

What are the key performance indicators (KPIs) used to measure the success of CHEVO LLC's support for the NCFMS implementation?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for acquisition and program management support in IT system implementations often include adherence to project timelines, budget management, quality of deliverables (e.g., planning documents, oversight reports), stakeholder satisfaction, risk mitigation effectiveness, and successful achievement of project milestones. The contract's performance work statement (PWS) would detail these specific metrics and the standards against which CHEVO LLC's performance would be evaluated. Regular performance reviews and reporting would be essential to track progress against these KPIs.

What is the historical spending pattern for acquisition and program management support services at the Department of Labor, and how does this contract compare?

The provided data focuses on a single contract award and does not offer historical spending patterns for the Department of Labor's acquisition and program management support services. To establish a historical context, one would need to analyze past contract awards for similar services over several fiscal years. This analysis would reveal trends in spending, average contract values, and the number of contracts awarded. Comparing this $23.6 million contract to historical data would indicate whether this represents a significant increase, decrease, or consistent level of investment in such support services. Understanding these patterns is crucial for assessing the long-term budgetary implications and strategic importance of these services.

What are the potential risks associated with the long duration (2098 days) of this contract, and what mitigation strategies are in place?

The long duration of this contract presents several potential risks, including the possibility of evolving technological requirements, changes in federal regulations or agency priorities, and potential contractor performance degradation over time. Mitigation strategies typically involve robust contract management, including regular performance reviews, change control processes to manage scope adjustments, and clear communication channels between the government and the contractor. The Department of Labor would likely have mechanisms in place to monitor contractor performance closely, ensure deliverables remain relevant, and address any issues proactively to prevent them from impacting the NCFMS implementation.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 17

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2275 RESEARCH BLVD., STE 100, ROCKVILLE, MD, 20850

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $46,063,655

Exercised Options: $46,063,655

Current Obligation: $23,636,853

Actual Outlays: $16,841,081

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $18,854,042

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0122R

IDV Type: FSS

Timeline