Agriculture awards $8.15M BPA Call Order to KnowledgeBank for HR management support

Contract Overview

Contract Amount: $8,152,915 ($8.2M)

Contractor: Knowledgebank, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2022-08-30

End Date: 2026-09-19

Contract Duration: 1,481 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FAS HUMAN CAPITAL MANAGEMENT SUPPORT BPA CALL ORDER AWARD/FIRM-FIXED-PRICE (HRMSS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $8.2 million to KNOWLEDGEBANK, INC. for work described as: FAS HUMAN CAPITAL MANAGEMENT SUPPORT BPA CALL ORDER AWARD/FIRM-FIXED-PRICE (HRMSS) Key points: 1. Contract awarded under a Blanket Purchase Agreement (BPA) Call Order. 2. Firm-Fixed-Price contract type suggests defined scope and cost certainty. 3. Competition was full and open, indicating broad market access. 4. Contract duration extends over three years, suggesting ongoing support needs. 5. Services fall under Administrative Management and General Management Consulting. 6. The award is to a single contractor, KnowledgeBank, Inc.

Value Assessment

Rating: fair

The contract value of $8.15 million over approximately four years represents a significant investment in human capital management support. Benchmarking this against similar HR consulting contracts is challenging without more specific service details. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the scope is well-defined. Further analysis would require comparing the specific deliverables and hourly rates (if applicable) to industry standards for management consulting services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a BPA Call Order, which itself was likely established through a competitive process. The 'full and open competition' designation for this specific call order indicates that all responsible sources were permitted to submit an offer. The number of bidders for this specific call order is not provided, but the open competition suggests a healthy market for these services. This approach generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for receiving the best value by allowing a wide range of qualified vendors to compete, driving down costs through market forces.

Public Impact

Federal employees within the Department of Agriculture will benefit from improved human capital management processes. Services delivered are expected to enhance administrative and general management consulting functions related to HR. The contract's geographic impact is centered in the District of Columbia, where the Office of the Chief Financial Officer is located. Workforce implications include potential support for HR specialists and consultants within the agency, and employment for KnowledgeBank, Inc. staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or deliverables makes it difficult to assess the true value and impact of the services.
The duration of the contract (nearly 4 years) could lead to vendor lock-in if not managed carefully.
Reliance on a single BPA call order awardee for a significant function warrants monitoring for potential service degradation or price increases in future renewals.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Awarding under an existing BPA Call Order can streamline the procurement process and potentially reduce administrative burden.
Full and open competition suggests a robust market and potential for competitive pricing.

Sector Analysis

The Administrative Management and General Management Consulting Services sector (NAICS 541611) is a broad category encompassing a wide range of advisory and assistance services. Federal agencies frequently contract for these services to improve operational efficiency, strategic planning, and human capital management. The market size for federal IT and management consulting is substantial, with agencies consistently seeking expertise to modernize operations and comply with regulations. This contract fits within the broader trend of agencies outsourcing specialized HR functions to external consultants.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside for this particular award. However, the prime contractor, KnowledgeBank, Inc., may choose to engage small businesses as subcontractors to fulfill certain aspects of the contract, which would contribute to the broader small business ecosystem. Analysis of KnowledgeBank's historical subcontracting practices would be necessary to determine their typical engagement with small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Office of the Chief Financial Officer, the contracting activity. As a BPA Call Order award, the underlying BPA likely has established oversight mechanisms. The firm-fixed-price nature of the award places the onus on the contractor to meet defined requirements. Transparency is facilitated by the public nature of contract awards, but detailed performance reports and specific oversight activities are typically internal to the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

HR Management Support Services
Management and Consulting Services
Administrative Support Contracts
BPA Call Orders
Federal Human Capital Management

Risk Flags

Potential for scope creep due to complexity of HR functions.
Risk of contractor prioritizing profit over service quality in fixed-price contract.
Need for robust performance monitoring to ensure value for money.
Dependency on a single BPA call order awardee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $8.2 million to KNOWLEDGEBANK, INC.. FAS HUMAN CAPITAL MANAGEMENT SUPPORT BPA CALL ORDER AWARD/FIRM-FIXED-PRICE (HRMSS)

Who is the contractor on this award?

The obligated recipient is KNOWLEDGEBANK, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $8.2 million.

What is the period of performance?

Start: 2022-08-30. End: 2026-09-19.

What is KnowledgeBank, Inc.'s track record with federal HR management consulting contracts?

KnowledgeBank, Inc. has a history of performing federal contracts, including those related to administrative and management consulting services. To assess their specific track record in HR management, a deeper dive into their past performance on similar contracts awarded by the Department of Agriculture or other agencies would be necessary. This would involve reviewing contract databases for awards, contract values, performance evaluations (if publicly available), and any past performance issues or commendations. Understanding their experience with firm-fixed-price contracts and BPA Call Orders would also be relevant. Without specific past performance data for HR-focused engagements, it's difficult to definitively gauge their expertise in this specialized area beyond their general consulting capabilities.

How does the $8.15 million contract value compare to similar HR management support contracts within the federal government?

The $8.15 million contract value for HR management support over approximately four years is a moderate-sized award within the federal contracting landscape. To provide a precise comparison, one would need to benchmark against contracts with similar scopes of work, service levels, and agency types. For instance, contracts for comprehensive HR system implementation or large-scale workforce transformation initiatives can run into tens or hundreds of millions of dollars. Conversely, smaller, more focused consulting engagements might be in the hundreds of thousands. This contract appears to fall into a category of ongoing, specialized support rather than a massive overhaul. Benchmarking would ideally involve analyzing the average cost per federal employee supported or the average cost per HR function managed under similar contracts.

What are the primary risks associated with this firm-fixed-price BPA Call Order for HR management support?

The primary risks associated with this firm-fixed-price BPA Call Order for HR management support include scope creep if the requirements are not meticulously defined and managed, leading to potential disputes or the need for contract modifications. Another risk is that the fixed price might incentivize the contractor to cut corners on quality or service delivery to maximize profit, especially if performance metrics are weak. Given it's a BPA Call Order, there's also a risk of vendor lock-in if the services become deeply integrated into agency operations and switching providers becomes difficult or costly. Finally, if the initial pricing was based on inaccurate assumptions about the effort required, the government might end up overpaying for the services rendered, despite the fixed-price nature.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this HR management support contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. For this HR management support contract, it means that a wide pool of potential vendors could bid, increasing the likelihood that the Department of Agriculture receives competitive pricing and high-quality services. The effectiveness hinges on the clarity of the solicitation requirements and the evaluation criteria used. If the solicitation is well-defined and the evaluation process fairly assesses both price and technical merit, full and open competition significantly increases the probability of achieving optimal value for the taxpayer.

What are the historical spending patterns for HR management support services at the Department of Agriculture?

Analyzing historical spending patterns for HR management support services at the Department of Agriculture (USDA) would provide crucial context for this $8.15 million BPA Call Order. This involves examining previous contract awards for similar services, identifying the primary contractors, the duration and value of those contracts, and the types of HR functions supported. Understanding whether USDA has consistently relied on external contractors for HR support, or if this represents a shift in strategy, is important. Furthermore, comparing spending trends over the past 5-10 years can reveal patterns of increasing or decreasing investment in outsourced HR functions. This analysis helps determine if the current award is in line with historical expenditures or represents a significant deviation, potentially indicating new initiatives or changing needs.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 203 HARRISON ST SE, LEESBURG, VA, 20175

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,152,915

Exercised Options: $8,152,915

Current Obligation: $8,152,915

Actual Outlays: $6,507,003

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12318721A0009

IDV Type: BPA

Timeline