OPM's $23.7M IT contract with LIST INNOVATIVE SOLUTIONS, INC. for case processing requirements

Contract Overview

Contract Amount: $23,728,429 ($23.7M)

Contractor: List Innovative Solutions, Inc.

Awarding Agency: Office of Personnel Management

Start Date: 2012-05-04

End Date: 2017-08-07

Contract Duration: 1,921 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CASE PROCESSING REQUIREMENTS IGF::CL,CT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $23.7 million to LIST INNOVATIVE SOLUTIONS, INC. for work described as: CASE PROCESSING REQUIREMENTS IGF::CL,CT::IGF Key points: 1. Contract awarded through a full and open competition, suggesting a potentially competitive pricing environment. 2. The contract duration of 1921 days (over 5 years) indicates a long-term need for these services. 3. The use of BPA CALL suggests a streamlined procurement process leveraging an existing agreement. 4. The contract was awarded for labor hours, which can sometimes lead to cost overruns if not managed closely. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The contract was awarded to a single vendor, LIST INNOVATIVE SOLUTIONS, INC., for the entirety of its term.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific performance metrics and comparable contract data. The total award amount of $23.7 million over approximately five years suggests a significant investment in IT services. However, the absence of detailed performance data or comparisons to similar government IT contracts makes it difficult to definitively assess value for money. The labor hour pricing model introduces a risk of cost escalation if not meticulously managed and monitored by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it resulted in a single award to LIST INNOVATIVE SOLUTIONS, INC. for the full duration suggests that this vendor was selected as the best value among the competitors. The level of competition at the initial award stage is a positive indicator for price discovery, though subsequent performance and potential for follow-on work would be more telling.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions. It ensures that the government explores a wide range of options before making an award.

Public Impact

Federal employees and agencies benefit from improved case processing capabilities, potentially leading to more efficient operations. The contract supports the delivery of custom computer programming services, crucial for modernizing government IT infrastructure. The primary geographic impact is within the District of Columbia, where the Office of Personnel Management is headquartered. The contract likely supports a workforce involved in IT development, programming, and potentially case management operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contracts can be susceptible to scope creep and cost overruns if not tightly managed.
The long duration of the contract may reduce flexibility to adopt newer technologies if they emerge.
Reliance on a single vendor for an extended period could pose risks if the vendor's performance degrades or they face financial instability.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract addresses critical IT needs for case processing, which is vital for agency operations.
The vendor, LIST INNOVATIVE SOLUTIONS, INC., was selected, implying they met the government's requirements at the time of award.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The federal IT services market is substantial, with agencies consistently investing in software development, system integration, and IT support to modernize operations and enhance service delivery. Contracts like this are typical for agencies seeking to build or maintain specialized software solutions for internal processes, such as case management. Benchmarks for similar custom programming contracts vary widely based on complexity, duration, and vendor rates.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from a set-aside provision. The primary focus was on full and open competition, which typically favors larger, established vendors capable of meeting complex requirements. Analysis of potential subcontracting opportunities would require further investigation into the prime contractor's practices.

Oversight & Accountability

Oversight for this contract would primarily reside with the Office of Personnel Management (OPM), the contracting agency. Mechanisms likely include contract performance reviews, regular reporting requirements from the contractor, and potentially the appointment of a Contracting Officer's Representative (COR) to monitor day-to-day performance. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal IT Services
Custom Software Development
Case Management Systems
IT Support Services
Government IT Modernization

Risk Flags

Potential for cost overruns due to labor-hour pricing model.
Long contract duration may limit adoption of newer technologies.
Single vendor reliance for an extended period.
Lack of detailed performance metrics in award data.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $23.7 million to LIST INNOVATIVE SOLUTIONS, INC.. CASE PROCESSING REQUIREMENTS IGF::CL,CT::IGF

Who is the contractor on this award?

The obligated recipient is LIST INNOVATIVE SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2012-05-04. End: 2017-08-07.

What was the specific nature of the 'CASE PROCESSING REQUIREMENTS' addressed by this contract?

The contract, awarded to LIST INNOVATIVE SOLUTIONS, INC., was for 'CASE PROCESSING REQUIREMENTS IGF::CL,CT::IGF'. While the specific details of these requirements are not fully elaborated in the provided data, the NAICS code 541511 (Custom Computer Programming Services) strongly suggests that the contract involved the development, modification, or integration of software systems designed to manage and process cases. This could pertain to various functions within the Office of Personnel Management, such as personnel actions, benefits processing, or other administrative workflows that require structured data handling and workflow automation. The 'IGF::CL,CT::IGF' notation might refer to internal agency codes or specific modules within a larger system.

How does the $23.7 million award compare to typical IT service contracts for similar functions?

Comparing the $23.7 million award requires context regarding the scope, duration, and complexity of the services. Over its approximately five-year term (1921 days), this averages to roughly $4.74 million per year. This figure is within the range for significant IT development and support contracts within the federal government. However, without knowing the specific deliverables, the number of users supported, or the criticality of the systems, a precise comparison is difficult. Contracts for custom programming can vary immensely; a simple application might cost tens of thousands, while a large-scale enterprise system could run into hundreds of millions. This contract appears to be a mid-to-large size investment for a specific functional requirement.

What are the primary risks associated with a labor-hour contract of this magnitude and duration?

Labor-hour contracts, like this one, carry inherent risks, primarily related to cost control and scope management. The main risk is that the total cost can escalate beyond initial estimates if the labor hours required exceed projections or if the hourly rates are not competitive. For a contract valued at $23.7 million over five years, there's a significant potential for cost overruns if project timelines slip, inefficiencies arise, or the scope of work expands without adequate oversight. Effective management by the agency, including diligent tracking of hours, regular performance reviews, and strict adherence to the defined scope, is crucial to mitigate these risks and ensure value for taxpayer money.

What does the 'BPA CALL' award type signify for this contract?

The 'BPA CALL' award type indicates that this contract was issued under a Blanket Purchase Agreement (BPA). A BPA is a simplified acquisition method that allows federal agencies to fill anticipated repetitive needs for supplies or services by establishing charge accounts with qualified sources. A 'BPA Call' is essentially an order placed against an existing BPA. This suggests that LIST INNOVATIVE SOLUTIONS, INC. likely had a pre-existing BPA with the agency, and this contract represents a specific task order or call against that agreement. Using BPAs can streamline the procurement process, reduce administrative burden, and potentially lead to better pricing through pre-negotiated terms.

What is the significance of the contract being awarded for 'Custom Computer Programming Services' (NAICS 541511)?

The NAICS code 541511 signifies that the core service procured under this contract was the creation of unique software or the significant modification of existing software, tailored to the specific needs of the Office of Personnel Management. This is distinct from off-the-shelf software procurement or general IT support. It implies a need for specialized development expertise to build or enhance systems for functions like case processing. Such contracts often involve close collaboration between the government and the contractor to define requirements, design solutions, develop code, test, and deploy the software, requiring a high degree of technical skill and project management.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Governmentcio LLC (UEI: 080006028)

Address: 2963 MOTHER WELL CT, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $23,752,929

Exercised Options: $23,728,429

Current Obligation: $23,728,429

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: OPM3212A0013

IDV Type: BPA

Timeline