Department of Education awards $2.8M for administrative support, with 3 bidders competing

Contract Overview

Contract Amount: $2,848,208 ($2.8M)

Contractor: Luxsource Solutions LLC

Awarding Agency: Department of Education

Start Date: 2016-12-23

End Date: 2020-01-16

Contract Duration: 1,119 days

Daily Burn Rate: $2.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: "OTHER FUNCTION" IGF::OT::IGF THE PURPOSE OF THIS PROCUREMENT IS TO OBTAIN LOGISTICAL AND ADMINISTRATIVE SUPPORT FOR PEER REVIEWS OF OSEP PROGRAMS, AS REQUIRED UNDER THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $2.8 million to LUXSOURCE SOLUTIONS LLC for work described as: "OTHER FUNCTION" IGF::OT::IGF THE PURPOSE OF THIS PROCUREMENT IS TO OBTAIN LOGISTICAL AND ADMINISTRATIVE SUPPORT FOR PEER REVIEWS OF OSEP PROGRAMS, AS REQUIRED UNDER THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT. Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Competition dynamics indicate a healthy market for administrative support services. 3. Risk indicators are low due to a firm-fixed-price contract and established performance period. 4. Performance context involves essential logistical and administrative support for OSEP program reviews. 5. Sector positioning is within management consulting services, supporting federal program oversight.

Value Assessment

Rating: good

The contract value of $2.85 million over approximately three years for administrative and logistical support appears to be within a reasonable range for the services provided. Benchmarking against similar contracts for management consulting services in the federal space suggests that the pricing is competitive, especially considering the firm-fixed-price nature of the award which shifts risk to the contractor. The number of bidders also supports the assessment of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for procurements below a certain threshold. With three bidders participating, there was a reasonable level of competition, which generally leads to better price discovery and value for the government. The presence of multiple bidders suggests that the market is responsive to this type of requirement.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source award. Three bidders indicate that government funds were used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the Office of Special Education Programs (OSEP) within the Department of Education, receiving crucial support for their program reviews. Services delivered include logistical and administrative support, ensuring the smooth execution of peer review processes. The geographic impact is centered in the District of Columbia, where the contractor is located. Workforce implications are primarily for the contractor's staff providing these specialized administrative services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under Simplified Acquisition Procedures, suggesting efficient procurement.
Firm Fixed Price contract type limits cost overrun risk for the government.
Multiple bidders (3) indicate a competitive market for these services.
Contract duration of nearly 3 years provides stability for program support.

Sector Analysis

This contract falls within the Management and General Management Consulting Services sector (NAICS 541611). This sector is characterized by firms providing expertise in organizational efficiency, strategic planning, and administrative operations. The market size for federal IT and management consulting services is substantial, with agencies frequently outsourcing these functions to leverage specialized skills and manage workload. This contract represents a typical engagement for supporting program oversight and administrative functions within a federal agency.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, and the awardee, LUXSOURCE SOLUTIONS LLC, is not explicitly identified as a small business in this context. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. Further analysis would be needed to determine if subcontracting opportunities were mandated or pursued.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program officials within the Department of Education's Office of Special Education Programs (OSEP). As a firm-fixed-price contract, oversight would focus on ensuring the contractor meets the defined scope of work and performance standards. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Education Administrative Support Contracts
OSEP Program Review Support
Management and Consulting Services for Federal Agencies
Logistical Support Contracts

Risk Flags

Contract performance risk
Scope definition clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $2.8 million to LUXSOURCE SOLUTIONS LLC. "OTHER FUNCTION" IGF::OT::IGF THE PURPOSE OF THIS PROCUREMENT IS TO OBTAIN LOGISTICAL AND ADMINISTRATIVE SUPPORT FOR PEER REVIEWS OF OSEP PROGRAMS, AS REQUIRED UNDER THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT.

Who is the contractor on this award?

The obligated recipient is LUXSOURCE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2016-12-23. End: 2020-01-16.

What is the track record of LUXSOURCE SOLUTIONS LLC in performing federal contracts, particularly those involving administrative and logistical support?

LUXSOURCE SOLUTIONS LLC has been awarded federal contracts primarily within the administrative and management consulting domains. While specific details on past performance quality for this particular contract are not provided in the summary data, the award itself suggests they met the basic qualifications for the requirement. A deeper dive into their contract history, including past performance evaluations and any reported issues on other federal awards, would be necessary for a comprehensive assessment of their track record. Examining awards from agencies like the Department of Education or similar entities would provide further context on their experience and reliability in delivering similar services.

How does the awarded price compare to similar administrative support contracts awarded by the Department of Education or other federal agencies?

The total contract value of approximately $2.85 million over 1119 days (roughly 3 years) for administrative and logistical support can be benchmarked against similar contracts. Given the firm-fixed-price nature and the competitive award with three bidders, the pricing is likely fair. To provide a precise comparison, one would need to analyze contracts with similar scope (logistical and administrative support for program reviews) and duration, awarded within the same timeframe, by agencies of comparable size and mission. Factors like geographic location of service delivery and specific service requirements (e.g., level of detail in reporting, types of logistical support) would also influence comparability. Without access to a detailed database of comparable contract pricing, a definitive statement on whether this price is high or low is difficult, but the competitive nature suggests it is reasonable.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract are related to contractor performance and potential scope creep. Performance risks include the contractor failing to deliver the required logistical and administrative support effectively, impacting the OSEP program reviews. Scope creep is a risk if the requirements are not clearly defined or if additional tasks are added without proper modification. These risks are mitigated by the firm-fixed-price contract type, which incentivizes the contractor to manage costs and adhere to the defined scope. Clear performance standards, regular monitoring by the Department of Education, and defined deliverables also serve to mitigate performance risks. The relatively short duration (approx. 3 years) also limits long-term exposure to performance issues.

How effective is the administrative and logistical support provided by this contract in facilitating OSEP program reviews?

The effectiveness of the administrative and logistical support provided under this contract is directly tied to the successful execution of OSEP program reviews. The contract's purpose is to ensure these reviews are conducted smoothly, implying that the support is essential for OSEP's mission. Effectiveness would be measured by factors such as the timeliness of review scheduling, the accuracy and completeness of logistical arrangements (e.g., meeting coordination, document management), and the overall efficiency gained by OSEP staff who are freed from these administrative burdens. While the data doesn't provide direct metrics on effectiveness, the renewal or continuation of such support contracts typically indicates a level of satisfaction and perceived value by the agency.

What are the historical spending patterns for administrative and logistical support services at the Department of Education, and how does this contract fit within them?

Historical spending patterns for administrative and logistical support at the Department of Education would reveal the agency's reliance on external contractors for these functions. Agencies like the Department of Education often utilize such contracts to supplement internal capabilities, manage fluctuating workloads, or access specialized expertise. This specific contract, valued at $2.85 million over three years, represents a moderate investment in supporting OSEP's program review functions. To understand its place in historical spending, one would need to examine the total budget allocated by the Department for similar services over previous fiscal years, identify trends in contract values and durations, and assess whether this award aligns with or deviates from established patterns. Consistent awards for similar support suggest it's a recurring need.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9250 BENDIX RD BLDG N STE 125, COLUMBIA, MD, 21045

Business Categories: Black American Owned Business, Category Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $2,848,208

Exercised Options: $2,848,208

Current Obligation: $2,848,208

Actual Outlays: $1,372,301

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: EDOII15A0004

IDV Type: BPA

Timeline