DoD's $24.7M IT Services Contract Awarded to Human Resources Technologies, Inc. for 5 Years

Contract Overview

Contract Amount: $24,680,153 ($24.7M)

Contractor: Human Resources Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-25

End Date: 2020-07-27

Contract Duration: 1,767 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ORGANIZATION ASSESSMENT PROGRAM

Place of Performance

Location: PATRICK AFB, BREVARD County, FLORIDA, 32925

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to HUMAN RESOURCES TECHNOLOGIES, INC. for work described as: IGF::OT::IGF ORGANIZATION ASSESSMENT PROGRAM Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 1767 days (approx. 5 years) indicates a long-term need for IT services. 3. Fixed-price contract type may limit cost overruns but could also reduce flexibility. 4. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of IT services. 5. Awarded by Washington Headquarters Services, indicating a significant internal support function for the DoD. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific service details and comparable contract data. The fixed-price nature suggests an attempt to control costs, but the total value over nearly five years needs to be assessed against the specific deliverables. Without knowing the scope of 'Other Computer Related Services,' it's difficult to compare pricing to market rates or similar contracts. Further analysis would require understanding the specific IT support provided and its criticality to DoD operations.

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 offers. The fact that it resulted in a single award suggests that Human Resources Technologies, Inc. was the most advantageous offer received based on the evaluation criteria. The level of competition, while initially broad, ultimately led to one selected vendor.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government explores a wide range of options before making an award.

Public Impact

The Department of Defense benefits from the provision of IT services essential for its operations. Personnel within the Washington Headquarters Services are likely direct or indirect beneficiaries of the IT support. The contract supports IT infrastructure and potentially cybersecurity measures within a key DoD agency. Workforce implications are likely internal to the contractor, with potential for IT specialists to be engaged on this project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness.
The broad NAICS code could mask a narrow or specialized service offering, potentially limiting competition.
Fixed-price contracts can sometimes lead to scope creep or reduced quality if not managed carefully.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The fixed-price contract type provides cost certainty for the government.
The long duration suggests a stable, ongoing need that the contractor is well-positioned to meet.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading technological infrastructure. Contracts like this are common as agencies rely heavily on external vendors for specialized IT support, cybersecurity, and system maintenance. Comparable spending benchmarks would typically involve analyzing other IT support contracts awarded by large federal agencies for similar durations and service scopes.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this contract (ss: false, sb: false). There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal unless Human Resources Technologies, Inc. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within Washington Headquarters Services. Performance monitoring, delivery tracking, and invoice review are standard accountability measures. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Support Services
Washington Headquarters Services Contracts
Information Technology Professional Services
Other Computer Related Services Contracts
Fixed-Price IT Contracts

Risk Flags

Potential for scope creep in long-term fixed-price contracts.
Broad NAICS code may obscure specific service limitations.
Lack of detailed performance metrics in summary data.
Limited information on small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to HUMAN RESOURCES TECHNOLOGIES, INC.. IGF::OT::IGF ORGANIZATION ASSESSMENT PROGRAM

Who is the contractor on this award?

The obligated recipient is HUMAN RESOURCES TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2015-09-25. End: 2020-07-27.

What specific IT services are covered under NAICS code 541519 for this contract?

NAICS code 541519, 'Other Computer Related Services,' is a broad category encompassing a wide range of IT services not elsewhere classified. For this specific contract, the services could include IT consulting, systems integration, network management, data processing, IT support, and potentially custom software development or IT infrastructure design. Without the detailed statement of work (SOW) or task orders associated with this delivery order, the precise nature of the services remains unspecified. However, given the awarding agency (Washington Headquarters Services), it likely pertains to internal IT support, system maintenance, or specialized IT solutions critical for the administrative and operational functions of the Department of Defense.

How does the $24.7 million contract value compare to similar IT services contracts awarded by the DoD?

The $24.7 million contract value over approximately five years represents a moderate investment for IT services within a large organization like the Department of Defense. While the DoD awards numerous IT contracts, many can range from tens of millions to billions of dollars, especially for large-scale system modernization or enterprise-wide solutions. This specific contract's value suggests it may cover specialized support, maintenance, or a defined set of IT functions rather than a comprehensive IT overhaul. To provide a precise comparison, one would need to analyze contracts with similar scopes of work, durations, and specific IT service categories awarded by the DoD or its various components during the same period.

What are the primary risks associated with a fixed-price contract of this duration?

The primary risks associated with a fixed-price contract of this duration (nearly five years) include potential scope creep, where the government may request additional services beyond the original agreement, leading to cost increases if not managed through formal change orders. Conversely, the contractor might be incentivized to cut corners on quality or service levels to maximize profit if the initial price was set too low or if costs escalate unexpectedly. For the government, the risk is paying for services that become outdated or less effective over the contract's lifespan without sufficient flexibility to adapt. Effective contract management, clear performance metrics, and robust oversight are crucial to mitigate these risks.

What is the track record of Human Resources Technologies, Inc. in performing federal IT contracts?

Information regarding the specific track record of Human Resources Technologies, Inc. in performing federal IT contracts is not detailed in the provided data snippet. To assess their track record, one would need to consult federal procurement databases (like FPDS or SAM.gov) to review past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A thorough review would reveal their experience with similar contract types, agencies, and service requirements, providing insight into their reliability and past performance quality.

How does the competition level (full and open) typically influence pricing for IT services?

Awarding IT services contracts through full and open competition generally fosters a more competitive pricing environment. When multiple vendors are allowed to bid, they are incentivized to offer competitive prices to win the contract. This process allows the government to solicit proposals from a wide range of qualified companies, increasing the likelihood of receiving proposals that are both technically sound and cost-effective. While full and open competition doesn't guarantee the lowest price, it typically leads to better price discovery and value for the government compared to sole-source or limited competition scenarios, as vendors must differentiate themselves on price and overall value proposition.

What are the potential implications of this contract on IT workforce dynamics within the DoD?

This contract primarily impacts the IT workforce by outsourcing specific 'Other Computer Related Services' to Human Resources Technologies, Inc. This means that the workload associated with these services will be handled by the contractor's personnel rather than DoD employees. The implications include a potential reduction in the need for certain in-house IT specialists within Washington Headquarters Services, while simultaneously creating opportunities for IT professionals employed by Human Resources Technologies, Inc. The DoD may retain core IT functions internally while relying on the contractor for specialized or supplementary support, influencing the skill sets and numbers of government IT personnel required.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003415R0052

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 5400 SHAWNEE RD STE 201, ALEXANDRIA, VA, 22312

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $25,372,069

Exercised Options: $24,680,153

Current Obligation: $24,680,153

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0290M

IDV Type: FSS

Timeline