Commerce Department awards $2.1M contract for staff support services to Solution One Industries, Inc

Contract Overview

Contract Amount: $2,095,161 ($2.1M)

Contractor: Solution ONE Industries, Inc.

Awarding Agency: Department of Commerce

Start Date: 2023-01-31

End Date: 2026-08-05

Contract Duration: 1,282 days

Daily Burn Rate: $1.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STAFF SUPPORT SERVICES

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 $2.1 million to SOLUTION ONE INDUSTRIES, INC. for work described as: STAFF SUPPORT SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of 1282 days suggests a long-term need for these administrative support services. 3. Awarded to a single vendor, raising questions about the extent of competition and potential price optimization. 4. The North American Industry Classification System (NAICS) code 541611 points to a focus on management consulting services. 5. Services are to be delivered in Washington D.C., indicating a localized impact. 6. The contract is not set aside for small businesses, suggesting larger firms may be the primary recipients.

Value Assessment

Rating: fair

The contract value of $2.1 million for staff support services over approximately 3.5 years appears moderate. Without specific details on the scope of services or deliverables, a direct comparison to similar contracts is challenging. However, the firm-fixed-price structure suggests an attempt to control costs. Benchmarking the per-hour or per-deliverable cost against industry standards would be necessary to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service, or in specific emergency situations. The lack of competition means the government did not benefit from a bidding process that could have driven down prices through market forces.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to secure government contracts and may result in higher costs for taxpayers compared to a competitively bid contract.

Public Impact

The Office of the Secretary within the Department of Commerce is the primary beneficiary of these staff support services. The services are expected to enhance administrative management and general management consulting capabilities within the agency. The contract's geographic impact is concentrated in Washington D.C., where the Department of Commerce is headquartered. The contract may support a workforce involved in administrative and management functions, potentially impacting internal agency operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Scope of work is not detailed, making it difficult to assess performance metrics.
Sole-source award raises concerns about vendor lock-in and future competition.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Long contract duration suggests a stable, ongoing need for services.
Award to a single entity may indicate specialized expertise required.

Sector Analysis

The administrative management and general management consulting services sector is a significant component of government contracting. Agencies frequently procure these services to improve operational efficiency, strategic planning, and overall management. The market for these services is diverse, ranging from large consulting firms to specialized small businesses. This contract, valued at $2.1 million, falls within a moderate spending range for such services within a federal agency.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of specific subcontracting requirements for small businesses. This suggests that the primary contractor, Solution One Industries, Inc., is likely not a small business, and the contract's benefits may not directly flow to the small business ecosystem through set-aside provisions. Further analysis would be needed to determine if subcontracting opportunities exist outside of formal set-asides.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's contracting officers and program managers responsible for the Office of the Secretary. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency regarding the justification for the sole-source award and the specific performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Administrative Support Services
Management Consulting Services
Professional Services Contracts
Department of Commerce Contracts

Risk Flags

Sole-source award limits competition.
Lack of detailed scope of work makes performance assessment difficult.
Potential for higher costs due to lack of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $2.1 million to SOLUTION ONE INDUSTRIES, INC.. STAFF SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SOLUTION ONE INDUSTRIES, 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 $2.1 million.

What is the period of performance?

Start: 2023-01-31. End: 2026-08-05.

What is the specific nature of the 'staff support services' being procured under this contract?

The contract falls under NAICS code 541611, which pertains to Administrative Management and General Management Consulting Services. This suggests the services are likely related to improving the efficiency and effectiveness of administrative operations within the Office of the Secretary. Examples could include strategic planning, organizational analysis, process improvement, policy development support, or general management advisory services. Without a detailed statement of work, the precise deliverables remain unspecified, but the classification points towards professional services aimed at enhancing organizational performance rather than routine administrative tasks.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source is available, or in cases of urgent and compelling need. For this contract, the justification would likely stem from Solution One Industries, Inc. possessing unique qualifications, proprietary knowledge, or a specific capability that cannot be replicated by other vendors. A detailed justification document should exist within the Department of Commerce's procurement records explaining why full and open competition was not feasible or advantageous for these particular staff support services.

How does the $2.1 million contract value compare to typical spending on similar services by the Department of Commerce?

The $2.1 million contract value for staff support services over approximately 3.5 years is a moderate expenditure. To provide a precise comparison, one would need to analyze historical spending data for similar NAICS codes (541611) within the Department of Commerce and across comparable federal agencies. Factors such as the specific scope of services, duration, and the level of expertise required significantly influence contract values. Without this comparative data, it's difficult to definitively state whether this represents high, low, or average spending. However, it is not an exceptionally large contract in the context of federal professional services procurement.

What are the potential risks associated with a sole-source award for these services?

The primary risk associated with a sole-source award is the potential for reduced price competition, which could lead to the government paying a higher price than if the contract had been competed. There's also a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting flexibility and innovation in the future. Furthermore, without the vetting process of a competitive bid, there's a slightly elevated risk regarding the contractor's long-term performance or capacity, although due diligence is still expected. Transparency in the justification for the sole-source award is crucial to mitigate concerns about fairness and value.

What performance metrics or oversight mechanisms are likely in place for this contract?

Given the firm-fixed-price nature, performance is likely tied to the successful delivery of defined services or completion of specific tasks outlined in the contract's statement of work. Oversight would typically involve a Contracting Officer's Representative (COR) responsible for monitoring performance, ensuring compliance with contract terms, and approving invoices. While specific metrics aren't provided, common oversight mechanisms include regular progress reports, performance reviews, and adherence to delivery schedules. The Department of Commerce's internal policies and the Federal Acquisition Regulation (FAR) would dictate the minimum oversight requirements.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 412 N GRAY ST, KILLEEN, TX, 76541

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Joint Venture Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,707,696

Exercised Options: $2,413,709

Current Obligation: $2,095,161

Actual Outlays: $1,805,566

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline