Commerce Department's Census Bureau awards $10.6M contract for acquisition support to Seventh Sense, LLC

Contract Overview

Contract Amount: $10,621,959 ($10.6M)

Contractor: Seventh Sense, LLC

Awarding Agency: Department of Commerce

Start Date: 2022-09-26

End Date: 2028-03-01

Contract Duration: 1,983 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ACQUISITION SUPPORT SERVICES

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $10.6 million to SEVENTH SENSE, LLC for work described as: ACQUISITION SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 5.5 years indicates a long-term need for these services. 3. The use of a Time and Materials (T&M) contract type can pose cost control risks if not managed diligently. 4. The award to Seventh Sense, LLC, a relatively small business (indicated by 'st': 'MD'), may represent a significant opportunity for the contractor. 5. The North American Industry Classification System (NAICS) code 541611 points to a focus on administrative and management consulting. 6. The contract's value of over $10 million positions it as a substantial federal procurement.

Value Assessment

Rating: fair

The contract value of $10.6 million over nearly 2000 days (approximately 5.5 years) suggests an average annual spend of around $1.9 million. Benchmarking this against similar acquisition support contracts is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure, while common, can lead to higher costs if not closely monitored for efficiency and necessity of hours billed. The number of bids (7) is moderate, which could indicate some level of competition but not necessarily the most aggressive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all eligible responsible sources were permitted to submit a bid. Seven bids were received, indicating a reasonable level of interest and competition for this acquisition support requirement. While seven bidders suggest a degree of market engagement, it's not exceptionally high, and further analysis would be needed to determine if this level of competition was sufficient to drive the most competitive pricing.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and services, potentially leading to cost savings compared to sole-source or limited competitions.

Public Impact

The U.S. Census Bureau benefits from specialized acquisition support services, enhancing its procurement processes. Federal agencies requiring administrative management and general management consulting services are the primary beneficiaries. The contract supports the operational efficiency of the Census Bureau, which is critical for national data collection and dissemination. The geographic impact is primarily within the agency's operational locations, likely Washington D.C. metro area, but the services support nationwide data initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed effectively.
The duration of the contract (over 5 years) requires sustained oversight to ensure continued value.
Dependence on a single contractor for acquisition support could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract supports a critical government function (Census Bureau operations).
The number of bidders (7) suggests a healthy, though not saturated, competitive environment.

Sector Analysis

The federal acquisition support services sector is a significant market, encompassing a wide range of consulting and administrative functions essential for government operations. This contract falls under management consulting services, a segment that supports agencies in optimizing their processes, strategic planning, and operational efficiency. The market size for federal IT and professional services is in the hundreds of billions annually. This specific contract, valued at $10.6 million, represents a moderate-sized procurement within this broader sector, likely focused on supporting the Census Bureau's specific needs for navigating complex acquisition regulations and procedures.

Small Business Impact

While the contract was awarded under full and open competition, it's important to note that Seventh Sense, LLC, is identified with 'st': 'MD', suggesting it may be a small business. If Seventh Sense, LLC, is indeed a small business, this award represents a significant contract win for them. The contract does not explicitly mention small business set-aside provisions, but the presence of a small business as the awardee in a full and open competition is a positive signal for the small business ecosystem. Further analysis would be needed to determine if subcontracting opportunities for other small businesses are included or encouraged.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Census Bureau's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing the Time and Materials (T&M) aspects to prevent cost overruns. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected, with the Department of Commerce Office of Inspector General likely having oversight.

Related Government Programs

Federal Acquisition Regulation (FAR) Compliance Services
Management and Program Consulting Services
Administrative Support Services
U.S. Census Bureau Operations Support
Government Contract Management

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for sustained oversight due to long contract duration (5.5 years).
Contractor performance risk if Seventh Sense, LLC lacks sufficient experience.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $10.6 million to SEVENTH SENSE, LLC. ACQUISITION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SEVENTH SENSE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $10.6 million.

What is the period of performance?

Start: 2022-09-26. End: 2028-03-01.

What is the track record of Seventh Sense, LLC in performing similar federal acquisition support contracts?

Information regarding Seventh Sense, LLC's specific track record on federal acquisition support contracts is not detailed in the provided data. As a recipient of this $10.6 million contract, their past performance would have been evaluated by the U.S. Census Bureau during the procurement process. To assess their track record thoroughly, one would need to examine their contract history, including past performance reviews, any reported issues or successes on previous government contracts, and their experience with Time and Materials (T&M) pricing structures. A deeper dive into federal procurement databases and past performance information repositories would be necessary to provide a comprehensive answer on their capabilities and reliability in this domain.

How does the $10.6 million contract value compare to typical spending on acquisition support services by the Census Bureau or similar agencies?

The $10.6 million contract value for acquisition support services over approximately 5.5 years represents an average annual expenditure of roughly $1.9 million. Comparing this to typical spending requires context on the Census Bureau's overall acquisition budget and the scale of its operations. Agencies like the Census Bureau often manage complex, large-scale procurements, necessitating significant support. Without specific historical data for the Census Bureau's acquisition support spending or benchmarks from comparable agencies (e.g., other large statistical or data-gathering bodies), it's difficult to definitively state if this amount is high, low, or average. However, for a specialized function like acquisition support, this value suggests a substantial and ongoing requirement.

What are the primary risks associated with the Time and Materials (T&M) contract type used for this acquisition support?

The primary risk associated with a Time and Materials (T&M) contract type is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred, plus a fixed fee or fixed hourly rate. If the contractor's efficiency is low, or if the scope of work expands without adequate controls, the total cost can escalate significantly beyond initial estimates. For the government, this necessitates robust oversight to ensure that all hours billed are necessary, reasonable, and allocable to the contract, and that materials are procured at fair and reasonable prices. Effective management and monitoring are crucial to mitigate these cost risks.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this $10.6 million 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 where vendors are incentivized to offer their best pricing, innovative solutions, and high-quality services to win the contract. The fact that seven bids were received suggests a reasonable level of competition, which should help drive down prices and improve service quality. However, the ultimate value for money also depends on the clarity of the solicitation, the evaluation criteria used, and the government's ability to effectively manage the contract post-award, particularly given the T&M pricing structure.

What are the implications of awarding this contract to Seventh Sense, LLC, potentially a small business, for the broader federal acquisition support market?

Awarding a contract of this magnitude ($10.6 million) to Seventh Sense, LLC, especially if it is a small business, can have significant positive implications. It provides a substantial revenue stream and growth opportunity for the contractor, potentially enabling them to expand their capabilities, workforce, and market reach. For the broader federal acquisition support market, it demonstrates that small businesses can successfully compete and win large, complex contracts against larger incumbents, fostering a more diverse supplier base. This can encourage other small businesses to pursue similar opportunities and signal to the government the viability of small businesses in providing critical services. It also aligns with federal goals to promote small business participation in government contracting.

What historical spending patterns exist for acquisition support services at the U.S. Census Bureau?

Historical spending patterns for acquisition support services at the U.S. Census Bureau are not provided in the current data. To understand these patterns, one would need to analyze historical contract awards data for the Census Bureau, specifically looking for contracts related to acquisition support, administrative management, and general management consulting services (NAICS 541611). This analysis would reveal trends in contract values, durations, types of services procured, and the contractors frequently utilized. Understanding these historical patterns is crucial for assessing whether the current $10.6 million award represents an increase, decrease, or continuation of previous spending levels and for identifying any shifts in procurement strategies or service needs over time.

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

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 14626 CROSSFIELD WAY, WOODBRIDGE, VA, 22191

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,759,227

Exercised Options: $10,621,959

Current Obligation: $10,621,959

Actual Outlays: $2,631,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F102GA

IDV Type: FSS

Timeline