OPM's PIPS Maintenance contract awarded to LIST INNOVATIVE SOLUTIONS, INC. for over $15.2 million

Contract Overview

Contract Amount: $15,221,010 ($15.2M)

Contractor: List Innovative Solutions, Inc.

Awarding Agency: Office of Personnel Management

Start Date: 2009-11-06

End Date: 2012-05-06

Contract Duration: 912 days

Daily Burn Rate: $16.7K/day

Competition Type: NOT COMPETED

Sector: IT

Official Description: PIPS MAINTENANCE & ENHANCEMENT SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $15.2 million to LIST INNOVATIVE SOLUTIONS, INC. for work described as: PIPS MAINTENANCE & ENHANCEMENT SUPPORT Key points: 1. The contract was awarded on a 'not competed' basis, raising questions about potential cost savings through competition. 2. The duration of the contract was 912 days, indicating a long-term need for these services. 3. The primary service category is Custom Computer Programming Services, suggesting a focus on specialized IT development. 4. The contract was awarded as a Blanket Purchase Agreement (BPA), which can offer flexibility but may also bypass more rigorous competition. 5. The total award amount of over $15.2 million warrants a closer look at the value delivered for taxpayer dollars. 6. The lack of competition suggests potential risks related to vendor lock-in and limited market testing of pricing.

Value Assessment

Rating: fair

Benchmarking the value for this contract is challenging without comparable sole-source or limited-competition awards for similar custom programming services. The total award of over $15.2 million over approximately 2.5 years suggests a significant investment. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value or if taxpayers received the best possible price. Further analysis would require access to the specific deliverables and the contractor's cost structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'not competed' basis, meaning it was not subject to a full and open competition. This typically occurs when a specific vendor is deemed the only source capable of providing the required services, or in situations where urgency or existing relationships dictate a non-competitive award. The lack of multiple bidders means there was no direct price comparison or market pressure to drive down costs.

Taxpayer Impact: Awarding contracts without competition can lead to higher costs for taxpayers as there is no incentive for the vendor to offer the lowest possible price. It also limits opportunities for other businesses to compete for government work.

Public Impact

The primary beneficiary of this contract is the Office of Personnel Management (OPM), which receives maintenance and enhancement support for its PIPS system. The services delivered include custom computer programming, crucial for maintaining and improving the functionality of OPM's personnel information systems. The geographic impact is primarily within the District of Columbia, where OPM is headquartered. The contract supports the IT workforce within LIST INNOVATIVE SOLUTIONS, INC., enabling them to provide specialized programming services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Potential for vendor lock-in due to sole-source award.
Limited transparency into the justification for a non-competitive award.
Difficulty in assessing true market value without competitive bids.

Positive Signals

Ensures continued support and enhancement of critical OPM systems.
Provides specialized IT services to a key government agency.
Contract awarded to a single, presumably capable, vendor.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The market for such services is vast and competitive, with numerous firms capable of providing these solutions. However, government procurement processes, especially for specialized or legacy systems, can sometimes lead to non-competitive awards. Benchmarking comparable IT support contracts for government agencies can provide context, but the unique nature of 'PIPS MAINTENANCE & ENHANCEMENT SUPPORT' makes direct comparisons difficult without more detailed scope information.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. The prime contractor, LIST INNOVATIVE SOLUTIONS, INC., is not explicitly identified as a small business in the provided data. There is no information regarding subcontracting plans for small businesses, suggesting a limited direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Office of Personnel Management's contracting and program management offices. As a 'not competed' award, the justification and documentation supporting the sole-source nature would be subject to internal OPM review and potentially external audits by bodies like the Government Accountability Office (GAO) or the OPM Office of Inspector General (OIG) if specific concerns arise. Transparency is limited due to the non-competitive nature.

Related Government Programs

Federal IT Services Procurement
Custom Software Development Contracts
Government IT Maintenance and Support
Office of Personnel Management IT Spending

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $15.2 million to LIST INNOVATIVE SOLUTIONS, INC.. PIPS MAINTENANCE & ENHANCEMENT SUPPORT

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 $15.2 million.

What is the period of performance?

Start: 2009-11-06. End: 2012-05-06.

What specific enhancements were made to the PIPS system under this contract, and what was the justification for the sole-source award?

The provided data does not detail the specific enhancements made to the PIPS system. The justification for the sole-source award is also not detailed, but typically such awards are made when a specific contractor possesses unique capabilities, proprietary knowledge, or when the existing system architecture necessitates specialized expertise that cannot be readily replicated by other vendors. For a comprehensive answer, one would need to review OPM's contract file, including the Justification for Other Than Full and Open Competition (JOFOC) and any technical documentation outlining the scope of work and deliverables.

How does the per-year cost of this contract compare to similar IT maintenance and enhancement contracts awarded by other federal agencies?

Directly comparing the per-year cost of this $15.2 million contract (approximately $5.2 million per year, given its 912-day duration) to similar contracts is challenging without knowing the specific scope, complexity, and service level agreements (SLAs) involved. Federal IT maintenance and enhancement contracts can vary widely in price based on the criticality of the system, the number of users, the required uptime, and the specific programming services needed. A thorough comparison would require analyzing a basket of comparable contracts, ideally for systems of similar size and function, and adjusting for differences in contract type, duration, and the competitive landscape in which they were awarded. Given this was a sole-source award, its pricing may not be directly comparable to competitively bid contracts.

What is the track record of LIST INNOVATIVE SOLUTIONS, INC. in performing government IT contracts, particularly those involving custom programming?

Information on LIST INNOVATIVE SOLUTIONS, INC.'s track record is not fully detailed in the provided data. However, the award of a $15.2 million contract by the Office of Personnel Management suggests a level of capability and trust. To assess their track record thoroughly, one would need to examine their past performance on other federal contracts, including client feedback, any past performance evaluations (e.g., CPARS reports), and the types of services they have provided. A review of their contract history would reveal the size, duration, and complexity of previous engagements, as well as any instances of contract disputes or performance issues.

What are the potential risks associated with a sole-source award for critical IT systems like PIPS?

The primary risks associated with a sole-source award for critical IT systems like PIPS include higher costs due to the lack of competitive pressure, potential for vendor lock-in where the agency becomes overly reliant on a single provider, and reduced innovation as there is less incentive for the vendor to propose novel or cost-saving solutions. Furthermore, if the sole-source vendor experiences financial difficulties or decides to exit the market, the agency could face significant disruption in maintaining its critical systems. Transparency and accountability can also be diminished without the scrutiny that competition brings.

How has OPM's spending on IT maintenance and enhancement services evolved over time, and does this contract represent a significant shift?

The provided data only pertains to a single contract awarded from 2009 to 2012. To understand OPM's spending evolution, a broader analysis of historical IT maintenance and enhancement contracts awarded by OPM over multiple fiscal years would be necessary. This would involve aggregating spending data across various contract vehicles, agencies, and fiscal periods. Without this broader context, it is impossible to determine if this specific $15.2 million contract represents a significant shift in OPM's IT spending patterns or strategy. Such an analysis would reveal trends in contract types, competition levels, and overall investment in IT infrastructure.

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: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Evaluated Preference: NONE

Contractor Details

Parent Company: Salient Federal Solutions, Inc. (UEI: 962686031)

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

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $15,221,010

Exercised Options: $15,221,010

Current Obligation: $15,221,010

Parent Contract

Parent Award PIID: OPMBPA510600014

IDV Type: BPA

Timeline