Commerce Department awards $3.99M for HR support, with 2,378 days remaining on contract

Contract Overview

Contract Amount: $3,990,070 ($4.0M)

Contractor: Your Recruiting Company, Inc.

Awarding Agency: Department of Commerce

Start Date: 2022-06-16

End Date: 2027-01-19

Contract Duration: 1,678 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: HIRING, RECRUITING, AND CLASSIFICATION SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $4.0 million to YOUR RECRUITING COMPANY, INC. for work described as: HIRING, RECRUITING, AND CLASSIFICATION SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The North American Industry Classification System (NAICS) code 541611 indicates services related to administrative management and general management consulting. 4. The contract has a significant duration of 1,678 days, implying a long-term need for these services. 5. The awardee, YOUR RECRUITING COMPANY, INC., is a single entity, highlighting the specific provider for this service. 6. The contract is managed under a Blanket Purchase Agreement (BPA) Call, indicating it's part of a larger, pre-negotiated agreement.

Value Assessment

Rating: fair

The total award amount is $3.99 million. Without specific benchmarks for 'Hiring, Recruiting, and Classification Support' services under a Time and Materials contract, a precise value-for-money assessment is challenging. However, the duration of the contract (over 4.5 years) suggests a substantial ongoing need. The Time and Materials pricing structure necessitates careful monitoring to ensure costs remain reasonable and do not escalate beyond expected levels.

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 number of bidders is not specified, but the competitive nature of the award process is a positive sign for price discovery and potentially achieving a fair market price.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging a wider range of providers to compete, which can lead to more competitive pricing and better service offerings.

Public Impact

The primary beneficiaries are the Department of Commerce's various offices, which will receive support in their hiring, recruiting, and classification processes. The services delivered will streamline HR functions, potentially improving the efficiency and effectiveness of federal workforce management. The contract is geographically focused on the District of Columbia, where the Department of Commerce is headquartered. Workforce implications include the potential for the contractor to utilize its own staff to fulfill these HR support functions, impacting the federal workforce indirectly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed and monitored.
Lack of specific performance metrics or outcome-based evaluations in the provided data makes it difficult to assess the true effectiveness of the services.
The long contract duration could lead to vendor lock-in or reduced incentive for innovation if not actively managed.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contract supports essential administrative functions (HR), indicating a clear and ongoing government need.
The award is made to a specific company, YOUR RECRUITING COMPANY, INC., providing a clear point of accountability for service delivery.

Sector Analysis

The federal sector for administrative and management consulting services is substantial, encompassing a wide range of support functions for government agencies. This contract falls under the broader category of professional services, where agencies often outsource specialized functions like human resources to improve efficiency and access expertise. Benchmarks for similar HR support contracts can vary significantly based on scope, duration, and the specific services required.

Small Business Impact

The provided 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 impacts on the small business ecosystem stemming from a small business set-aside. The primary contractor, YOUR RECRUITING COMPANY, INC., is likely a small or large business depending on its own revenue and employee count, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Commerce responsible for HR functions. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS.gov, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Human Resources Management
Administrative Management and General Management Consulting Services
Department of Commerce Procurement
Time and Materials Contracts
Blanket Purchase Agreements

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of specific performance metrics in summary data hinders effectiveness assessment.
Long contract duration may reduce flexibility or incentivize innovation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $4.0 million to YOUR RECRUITING COMPANY, INC.. HIRING, RECRUITING, AND CLASSIFICATION SUPPORT

Who is the contractor on this award?

The obligated recipient is YOUR RECRUITING COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2022-06-16. End: 2027-01-19.

What is the historical spending pattern for YOUR RECRUITING COMPANY, INC. with the federal government?

To assess the contractor's track record, historical federal spending data for YOUR RECRUITING COMPANY, INC. would need to be analyzed. This would involve querying federal procurement databases to identify all previous contracts awarded to this entity, their values, durations, agencies involved, and performance ratings if available. A pattern of successful contract completions and positive performance reviews would indicate reliability, while a history of contract disputes, terminations, or poor performance would raise concerns. Without this specific historical data, it's difficult to definitively assess the contractor's past performance and reliability for this current award.

How does the estimated value of this contract compare to similar HR support contracts within the federal government?

Comparing the $3.99 million award value for 'Hiring, Recruiting, and Classification Support' requires benchmarking against similar contracts. This involves identifying other federal awards for comparable HR services, considering factors like contract type (Time and Materials), duration (over 4.5 years), and the specific scope of work. If similar contracts for comparable services are significantly lower in value or duration, it might suggest this award is on the higher end. Conversely, if other large, long-term HR support contracts are in a similar range, it could indicate that this award is within the expected market parameters for such services.

What are the primary risks associated with a Time and Materials (T&M) contract for HR support services?

The primary risk with a Time and Materials contract for HR support is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not well-defined, or if project management is weak, the contractor may incur more hours or use more resources than initially anticipated, leading to costs exceeding initial estimates. This necessitates robust oversight from the government to monitor labor hours, material costs, and ensure efficient service delivery to mitigate overspending.

How effective is the 'full and open competition' process in ensuring optimal value for taxpayer dollars in this specific contract?

The 'full and open competition' process is designed to maximize value by encouraging a broad range of potential contractors to bid, thereby fostering price competition and innovation. For this HR support contract, its effectiveness hinges on the number of bids received and the quality of proposals submitted. If multiple qualified bidders participated, it likely drove down prices and improved service offerings. However, the actual value realized depends on the government's ability to effectively manage the contract post-award, monitor performance, and control costs, especially given the T&M pricing structure. Without knowing the number of bidders or their proposed terms, the precise value derived solely from the competition process is difficult to quantify.

What is the typical duration for federal contracts providing administrative and management consulting services?

Federal contracts for administrative and management consulting services, including HR support, can vary significantly in duration. Many are awarded for one base year with multiple option periods, allowing the government flexibility. However, long-term needs can result in contracts with base periods and options extending for several years, sometimes up to five years or more, especially if they are part of larger IDIQ (Indefinite Delivery/Indefinite Quantity) vehicles or BPA calls. The 1,678-day duration (approximately 4.6 years) for this specific contract is substantial but not uncommon for services deemed essential and requiring continuity, such as ongoing HR support.

Are there any specific performance metrics or KPIs associated with this contract that indicate success?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, contracts of this nature would outline measurable objectives related to recruitment timelines, candidate quality, classification accuracy, or client satisfaction. The absence of this information in the summary data makes it impossible to assess the contractor's performance against defined success criteria. Effective contract management would require the Department of Commerce to establish and monitor such metrics to ensure the services are meeting the agency's needs and delivering value.

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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3975 FAIR RIDGE DR SUITE 300S, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,990,070

Exercised Options: $3,990,070

Current Obligation: $3,990,070

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,427,521

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1331L520A13ES0009

IDV Type: BPA

Timeline