HUD's $11M contract for customer service IT support awarded to MARLAW SYSTEMS TECHNOLOGY INC

Contract Overview

Contract Amount: $11,052,256 ($11.1M)

Contractor: Marlaw Systems Technology Inc

Awarding Agency: Department of Housing and Urban Development

Start Date: 2003-10-01

End Date: 2008-02-29

Contract Duration: 1,612 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NATIONAL SERVICING CENTER - CUSTOMER SERVICE CENTER

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73102

State: Oklahoma Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $11.1 million to MARLAW SYSTEMS TECHNOLOGY INC for work described as: NATIONAL SERVICING CENTER - CUSTOMER SERVICE CENTER Key points: 1. Contract value appears reasonable for the duration and scope of IT support services. 2. Full and open competition suggests a competitive bidding process. 3. No immediate risk indicators are apparent from the provided data. 4. This contract supports essential IT infrastructure for a federal agency. 5. The contract falls within the IT services sector, specifically computer facilities management. 6. Fixed-price contract type helps manage cost certainty for the government.

Value Assessment

Rating: good

The contract's total value of approximately $11 million over roughly 4.5 years suggests a moderate annual spend. Benchmarking against similar IT support contracts for federal agencies of HUD's size would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure generally indicates a commitment to cost control by the government, assuming the scope was well-defined. The duration and total value do not immediately suggest overpricing without further market data.

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 bids. The presence of 6 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and achieving competitive pricing for the government.

Taxpayer Impact: A competitive bidding process like this typically leads to better pricing for taxpayers by encouraging multiple firms to offer their best terms and pricing to win the contract.

Public Impact

Citizens and stakeholders benefit from reliable IT infrastructure supporting HUD's customer service operations. The contract ensures the continuity of essential IT services for the National Servicing Center. Geographic impact is primarily national, supporting federal operations. Workforce implications include employment for IT professionals within MARLAW SYSTEMS TECHNOLOGY INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type provides cost certainty.
Contract duration is substantial, allowing for stable service delivery.
The contractor has a track record with this specific award.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically under the NAICS code 541513 for Computer Facilities Management Services. This sector is characterized by a wide range of providers, from large system integrators to specialized IT support firms. Federal spending in IT services is substantial, with agencies relying heavily on contractors for maintaining and upgrading complex systems. Comparable spending benchmarks would involve looking at other federal contracts for similar IT support and facilities management services, considering agency size and scope of operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside provision. The competition was open to all responsible sources, which may include small businesses if they chose to bid and were competitive.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Housing and Urban Development (HUD) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Facilities Management
Customer Service Support
Federal IT Infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $11.1 million to MARLAW SYSTEMS TECHNOLOGY INC. NATIONAL SERVICING CENTER - CUSTOMER SERVICE CENTER

Who is the contractor on this award?

The obligated recipient is MARLAW SYSTEMS TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2003-10-01. End: 2008-02-29.

What is the contractor's performance history with this specific contract?

The provided data indicates that MARLAW SYSTEMS TECHNOLOGY INC. was awarded this contract, designated with an award status of 'OK' and a status narrative of 'OKLAHOMA'. The contract ran from October 1, 2003, to February 29, 2008, for a duration of 1612 days. While the status 'OK' suggests satisfactory performance at the time of data recording, a comprehensive assessment would require reviewing performance evaluations, any contract modifications, and any disputes or issues that may have arisen during its term. Without access to detailed performance reports or contract close-out documentation, it's difficult to provide a definitive judgment beyond the initial 'OK' status.

How does the total contract value compare to similar IT support contracts at HUD?

The total contract value of approximately $11 million over roughly 4.5 years for IT support services at HUD is a moderate figure. To benchmark this effectively, one would need to compare it against other contracts for similar Computer Facilities Management Services (NAICS 541513) awarded by HUD or comparable federal agencies during the same period (2003-2008). Factors such as the number of users supported, the complexity of the IT environment, and the specific services included (e.g., help desk, network management, data center operations) would need to be considered. A higher annual spend per user or per service hour compared to benchmarks could indicate potential value concerns, while a lower spend might suggest good value.

What are the primary risks associated with this type of IT support contract?

Primary risks for IT support contracts include vendor lock-in, where the government becomes overly reliant on a single provider, making future transitions difficult and potentially costly. Performance risk is also significant; failure to meet service level agreements (SLAs) can disrupt critical government operations. Cybersecurity risks are paramount, as the contractor will have access to sensitive systems and data, requiring robust security protocols and vetting. Furthermore, scope creep, where the contract's requirements expand beyond the original agreement without corresponding adjustments in cost or timeline, can lead to budget overruns. Finally, the risk of contractor personnel turnover can impact service continuity and institutional knowledge.

How effective was the competition in driving down costs for this contract?

The contract was awarded under full and open competition with 6 bidders, which is a positive indicator for cost-effectiveness. A higher number of bidders generally increases the likelihood of competitive pricing as firms vie for the award. The firm-fixed-price (FFP) contract type further incentivizes the contractor to manage costs efficiently to maintain profitability. While the 'OK' status suggests the award was deemed appropriate, a detailed analysis would involve comparing the winning bid price against the independent government cost estimate and the bids of other competitors. Without that granular data, we infer that the competition likely contributed to achieving a reasonable price, but the exact degree of cost savings cannot be quantified from the provided summary.

What is the historical spending trend for similar IT support services at HUD?

Analyzing historical spending trends for similar IT support services at HUD would require accessing broader contract data beyond this single award. This would involve querying databases for all contracts under NAICS code 541513 (or related IT service codes) awarded by HUD over several fiscal years. Key metrics to examine would include the total annual spending on IT support, the average contract value, the number of contracts awarded, and the dominant contract types (e.g., FFP, cost-plus). Understanding these trends would reveal whether spending has been increasing, decreasing, or remaining stable, and whether HUD relies more on large, long-term contracts or smaller, more frequent awards for its IT support needs.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 8121 GEORGIA AVE STE 801, SILVER SPRING, MD, 08

Business Categories: Black American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $11,052,256

Exercised Options: $11,509,980

Current Obligation: $11,052,256

Timeline