Interior Department's $16.6M consulting contract awarded to TOUCHSTONE CONSULTING GROUP, INC. for management services

Contract Overview

Contract Amount: $16,588,602 ($16.6M)

Contractor: Touchstone Consulting Group, Inc.

Awarding Agency: Department of the Interior

Start Date: 2003-03-15

End Date: 2005-09-30

Contract Duration: 930 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $16.6 million to TOUCHSTONE CONSULTING GROUP, INC. for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract utilized a Time and Materials pricing structure, which can pose cost control challenges. 3. Awarded as a Blanket Purchase Agreement (BPA), indicating a flexible, pre-negotiated framework. 4. The duration of the contract was 930 days, spanning over two years. 5. The contractor, TOUCHSTONE CONSULTING GROUP, INC., has experience in management consulting services. 6. The contract was awarded to a single vendor, TOUCHSTONE CONSULTING GROUP, INC.

Value Assessment

Rating: fair

The total award amount of $16.6 million for management consulting services over approximately 2.5 years appears within a reasonable range for similar government contracts. However, the Time and Materials (T&M) pricing structure warrants scrutiny, as it can lead to cost overruns if not carefully managed and monitored. Without specific performance metrics or deliverables, a precise value-for-money assessment is challenging. Benchmarking against other T&M contracts for similar consulting services would be necessary for a more definitive evaluation.

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 a bid. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This approach is generally favored to ensure fair pricing and access to the best available services.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging a wider pool of potential contractors to offer their best value propositions.

Public Impact

The primary beneficiary is the Department of the Interior, which receives management consulting services. These services likely support various departmental operations, strategic planning, or administrative functions. The contract's geographic impact is centered in the District of Columbia, where the contractor is located. The contract supports the professional workforce within the management consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to unpredictable costs if not closely managed.
Lack of specific performance metrics makes it difficult to assess the full value delivered.
The contract duration of over two years requires ongoing oversight to ensure continued relevance and effectiveness.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
The contractor, TOUCHSTONE CONSULTING GROUP, INC., is an established entity in management consulting.
The contract is a BPA, which can offer efficiency for recurring needs.

Sector Analysis

Management consulting services are a significant part of the professional services sector within the federal government. Agencies frequently contract for these services to support strategic initiatives, operational improvements, and specialized expertise. The market for these services is competitive, with numerous firms vying for government contracts. Benchmarking this contract's value would involve comparing its total value and duration against other similar consulting engagements within the federal IT, administrative, or program management domains.

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 for small businesses stemming from a small business set-aside. The award to a presumably larger entity means that opportunities for small business participation would likely depend on the prime contractor's own subcontracting plans, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers. As a Blanket Purchase Agreement (BPA), there may be specific call-order procedures and reporting requirements. Transparency would be enhanced through public contract databases, but detailed performance reviews and Inspector General involvement would depend on specific agency policies and any identified issues.

Related Government Programs

Management Consulting Services
Professional Services Contracts
Department of the Interior Contracts
Blanket Purchase Agreements

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of detailed information on specific services rendered and performance metrics.
Need for robust oversight to manage contractor performance and costs over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $16.6 million to TOUCHSTONE CONSULTING GROUP, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TOUCHSTONE CONSULTING GROUP, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2003-03-15. End: 2005-09-30.

What specific management consulting services were provided under this contract?

The provided data indicates the contract was for 'Other Management Consulting Services' (na: 541618). However, the specific nature of these services is not detailed. Typically, such contracts can encompass a wide range of support, including strategic planning, organizational analysis, process improvement, program management support, policy development, and administrative efficiency studies. Without access to the contract's statement of work or task orders, the precise deliverables and objectives remain unspecified. Further investigation into the Department of the Interior's specific needs during the 2003-2005 period would be required to understand the exact scope of work performed by TOUCHSTONE CONSULTING GROUP, INC.

How does the $16.6 million award compare to other similar management consulting contracts awarded by the Department of the Interior?

Comparing the $16.6 million award requires context regarding the contract's duration and scope. This contract spanned approximately 2.5 years (930 days). For management consulting services, this award amount is substantial but not extraordinary, especially for comprehensive support across a large agency like the Department of the Interior. To provide a precise comparison, one would need to analyze other Interior Department contracts for similar services awarded within the same timeframe, considering factors like the number of bidders, pricing structures (e.g., T&M vs. fixed-price), and the specific services rendered. A preliminary assessment suggests it falls within a typical range for significant consulting engagements, but detailed benchmarking against comparable contracts is necessary for a definitive conclusion on value.

What are the potential risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk with a Time and Materials (T&M) pricing structure is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred, plus a predetermined fixed fee or hourly rate. If not rigorously managed and monitored, this can lead to the government paying more than anticipated, especially if project scopes creep or inefficiencies arise. Key risks include: uncontrolled labor hours, inflated hourly rates, and the contractor having less incentive to complete tasks efficiently. Effective oversight, detailed timesheet reviews, and clear ceiling limitations are crucial to mitigate these risks.

What was the track record of TOUCHSTONE CONSULTING GROUP, INC. prior to this contract award?

Information regarding TOUCHSTONE CONSULTING GROUP, INC.'s specific track record prior to this $16.6 million Department of the Interior contract is not detailed in the provided data. Generally, for a contract of this magnitude awarded under full and open competition, the agency would have evaluated the contractor's past performance, technical capabilities, and financial responsibility. To ascertain their track record, one would typically review their contract history with the federal government, including past performance evaluations, any debriefings from previous solicitations, and their overall reputation within the industry. Without access to these records, it's presumed the agency conducted due diligence.

How does the use of a Blanket Purchase Agreement (BPA) impact the administration and cost-effectiveness of this contract?

A Blanket Purchase Agreement (BPA) is a simplified acquisition method that allows federal agencies to fill anticipated repetitive needs for supplies or services. Using a BPA for this $16.6 million contract likely streamlined the procurement process compared to issuing individual contracts for each need. It establishes pre-negotiated terms, conditions, and pricing, allowing the Department of the Interior to issue "orders" against the BPA as needed. This can lead to cost savings through volume purchasing and reduced administrative burden. However, the cost-effectiveness hinges on the initial negotiation of favorable rates and the diligent management of individual orders to ensure they align with the BPA's terms and represent good value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: SRA International, Inc. (UEI: 606261683)

Address: 1920 N ST NW STE 600, WASHINGTON, DC, 98

Business Categories: Category Business, Small Business

Parent Contract

Parent Award PIID: NBCHA030003

IDV Type: BPA

Timeline