HHS-ACF IT and Grants Management Support contract awarded to DOVEL TECHNOLOGIES LLC for over $197 million

Contract Overview

Contract Amount: $197,214,234 ($197.2M)

Contractor: Dovel Technologies LLC

Awarding Agency: Department of the Interior

Start Date: 2012-09-17

End Date: 2017-08-31

Contract Duration: 1,809 days

Daily Burn Rate: $109.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: HHS-ACF GRANTS CENTER FOR EXCELLENCE - IT SUPPORT AND GRANTS MANGEMENT SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $197.2 million to DOVEL TECHNOLOGIES LLC for work described as: HHS-ACF GRANTS CENTER FOR EXCELLENCE - IT SUPPORT AND GRANTS MANGEMENT SUPPORT Key points: 1. The contract's value suggests a significant need for IT and grants management services within HHS-ACF. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The duration of the contract (over 5 years) points to a long-term need for these services. 4. The use of Time and Materials pricing may introduce cost variability if not closely managed. 5. The contract falls under custom computer programming services, a key area for federal IT infrastructure. 6. The award was a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific scope of IT and grants management support provided. However, a $197 million award over five years for specialized IT services suggests a substantial investment. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not managed with strict oversight and defined labor categories. Comparing this to similar large-scale IT support contracts within federal agencies would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves a broad solicitation to all responsible sources. This suggests that multiple bidders likely participated, fostering price discovery and potentially leading to more competitive pricing. The number of bidders (5) indicates a reasonable level of interest, though the specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of offers, which can drive down prices and improve the quality of services received.

Public Impact

Beneficiaries include the Administration for Children and Families (ACF) within HHS, which relies on these services for its operations. Services delivered encompass IT support and grants management, crucial for the efficient functioning of federal grant programs. The geographic impact is primarily federal, supporting national-level grant administration and IT infrastructure. Workforce implications may include the direct employment of IT and grants management professionals by the contractor, DOVEL TECHNOLOGIES LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not meticulously monitored and controlled.
The substantial dollar amount necessitates robust oversight to ensure value for money.
Lack of specific performance metrics in the provided data makes it difficult to assess service quality definitively.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that could yield favorable pricing.
The contract duration indicates a stable, long-term need, potentially leading to efficiencies through sustained support.
The contractor, DOVEL TECHNOLOGIES LLC, has secured a significant federal contract, implying a level of established capability.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and grants management support. The federal IT services market is vast, with agencies consistently investing in technology to improve operations and service delivery. This contract represents a significant portion of spending within this niche, supporting critical functions for the Administration for Children and Families. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded to manage complex federal programs.

Small Business Impact

The data indicates that small business participation was not a primary set-aside component for this contract (ss: false, sb: false). While DOVEL TECHNOLOGIES LLC may engage small businesses as subcontractors, the primary award was not directed towards small business set-asides. This means the direct impact on the small business ecosystem for this specific contract award is likely limited, though subcontracting opportunities could still exist.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting officers and the HHS-ACF program officials. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS IT Modernization Initiatives
Federal Grants Management Systems
Custom Software Development Services
IT Support Services for Federal Agencies
ACF Program Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for robust oversight to ensure value for money over the contract's duration.
Risk of technological obsolescence if solutions are not future-proofed.
Dependency on contractor performance for critical grants management functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $197.2 million to DOVEL TECHNOLOGIES LLC. HHS-ACF GRANTS CENTER FOR EXCELLENCE - IT SUPPORT AND GRANTS MANGEMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is DOVEL TECHNOLOGIES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $197.2 million.

What is the period of performance?

Start: 2012-09-17. End: 2017-08-31.

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

The provided data indicates the contract is for 'IT SUPPORT AND GRANTS MANAGEMENT SUPPORT' for the HHS-ACF GRANTS CENTER FOR EXCELLENCE. This likely encompasses a broad range of services including maintaining and enhancing IT infrastructure, developing and managing grants management software, providing technical assistance to grant recipients, ensuring data integrity, and supporting the overall operational efficiency of the grants process. Without access to the full contract statement of work, the precise details remain unspecified, but the core functions revolve around enabling the ACF to effectively administer its grant programs through robust IT systems and expert support.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as they do not have a ceiling on the total cost. For IT services where requirements are well-defined, fixed-price or cost-plus-fixed-fee contracts are generally preferred to provide better cost certainty and incentivize contractor efficiency. The use of T&M here suggests a need for adaptability in the services provided.

What is DOVEL TECHNOLOGIES LLC's track record with federal IT contracts of similar size and scope?

DOVEL TECHNOLOGIES LLC has a history of securing federal contracts, including significant awards in the IT services domain. This $197 million contract with HHS-ACF is a substantial award, indicating a proven capability to manage large-scale IT projects for federal agencies. Further analysis of their contract history would reveal their performance on other similar engagements, including their ability to meet deadlines, stay within budget, and deliver quality services. Their success in winning this competitive bid suggests they possess the necessary expertise and resources to fulfill the requirements.

What are the potential risks associated with a five-year IT support contract of this magnitude?

Risks associated with a five-year IT support contract of this magnitude include potential cost overruns, especially with a Time and Materials (T&M) pricing structure, if not rigorously managed. There's also the risk of technological obsolescence, where the IT solutions provided may become outdated before the contract concludes. Contractor performance degradation over time, scope creep, and security vulnerabilities are other significant concerns. Ensuring continuous alignment with evolving federal IT policies and cybersecurity standards is also critical. Effective contract management, regular performance reviews, and proactive risk mitigation strategies are essential to address these potential issues.

How does this contract's spending compare to overall federal IT spending or similar agency IT investments?

This contract, valued at approximately $197 million over five years, represents a significant investment by HHS-ACF in IT and grants management support. To contextualize this, it would need to be compared against the total federal IT budget, which runs into the tens of billions annually. Within HHS, this contract likely constitutes a notable portion of the ACF's IT expenditure. Benchmarking against similar IT support contracts awarded to other agencies for comparable functions (e.g., managing large grant programs or complex IT infrastructure) would provide a clearer picture of its relative scale and cost-effectiveness within the federal landscape.

What are the implications of this contract being awarded as a Delivery Order?

The fact that this contract was awarded as a Delivery Order (DO) implies it is likely a task order issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract vehicle. IDIQs allow agencies to procure a range of supplies or services over a set period, with specific quantities and delivery dates defined by individual task orders. This approach provides flexibility for agencies to order services as needed. For taxpayers, the implications depend on how the underlying IDIQ contract was competed and managed; a well-competed IDIQ can lead to better pricing and streamlined procurement for individual delivery orders.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: D12PS00433

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rnsolutions LLC (UEI: 078446976)

Address: 7901 JONES BRANCH DRIVE SUITE 600, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $207,537,340

Exercised Options: $207,537,340

Current Obligation: $197,214,234

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0239K

IDV Type: FSS

Timeline