Interior Department awards $2.19M OAS Support Services contract to SOLIEL LLC for 5 years

Contract Overview

Contract Amount: $2,193,009 ($2.2M)

Contractor: Soliel LLC

Awarding Agency: Department of the Interior

Start Date: 2023-04-01

End Date: 2028-03-31

Contract Duration: 1,826 days

Daily Burn Rate: $1.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OAS SUPPORT SERVICES

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $2.2 million to SOLIEL LLC for work described as: OAS SUPPORT SERVICES Key points: 1. Contract value appears reasonable for a 5-year support services agreement. 2. Limited competition may have impacted price discovery and potentially increased costs. 3. Contract duration of 5 years presents moderate long-term financial commitment. 4. Performance is benchmarked against similar business support services contracts. 5. SOLIEL LLC is positioned as a provider of business support services within the federal sector. 6. Fixed-price contract type offers cost certainty but limits flexibility for scope changes.

Value Assessment

Rating: fair

The contract value of $2.19 million over five years for business support services averages approximately $438,600 annually. Benchmarking against similar contracts for 'All Other Business Support Services' (NAICS 561499) is challenging without more specific service details. However, this annual value is within a typical range for support services provided to federal agencies. The firm fixed-price structure suggests an expectation of stable costs, but a detailed cost breakdown or comparison to market rates for specific services would be needed for a more precise value assessment.

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 can provide the required services, often due to unique capabilities, existing infrastructure, or specific security requirements. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or fostered innovation through multiple proposals. The justification for this sole-source award would need to be reviewed to understand the specific reasons.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through competitive bidding, potentially leading to higher costs for taxpayers.

Public Impact

The Department of the Interior benefits from essential business support services to maintain operational efficiency. Services provided likely include administrative, logistical, or other business-related functions critical to agency operations. The geographic impact is primarily within Virginia, where the contractor is located, but the services support federal operations nationwide. Workforce implications are direct for SOLIEL LLC, which will provide the personnel to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and missed opportunities for cost savings.
Sole-source awards can limit the government's access to innovative solutions from a broader market.
The firm fixed-price nature may not adequately account for unforeseen service needs or scope creep without formal modifications.

Positive Signals

Contract provides a stable, long-term service provider for critical support functions.
Firm fixed-price contract offers budget predictability for the agency.
Contract duration allows for continuity of services and reduced transition costs.

Sector Analysis

The federal sector for business support services is diverse, encompassing a wide range of administrative, operational, and specialized functions. NAICS code 561499, 'All Other Business Support Services,' is broad and can include activities like document preparation, telemarketing, and collection agencies. Spending in this category is significant across government, supporting various agency missions. This contract fits within the broader landscape of federal outsourcing for non-core functions, where agencies seek specialized expertise or capacity to augment their internal resources. Comparable spending benchmarks are difficult without knowing the precise services rendered.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). As a sole-source award, it bypasses the typical competitive processes where small businesses might have opportunities to bid. There is no explicit information regarding subcontracting plans for small businesses. This means the primary contract value flows to SOLIEL LLC, and the impact on the broader small business ecosystem for these specific services is likely minimal unless SOLIEL LLC voluntarily engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to service delivery. Transparency is limited due to the sole-source nature and the lack of publicly available detailed justifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule (FSS) contracts
Other agency-specific support service contracts
Professional Services Schedule (PSS) contracts

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on specific services rendered.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.2 million to SOLIEL LLC. OAS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SOLIEL LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2023-04-01. End: 2028-03-31.

What specific services are included under 'OAS SUPPORT SERVICES' for the Department of the Interior?

The provided data abbreviates the contract as 'OAS SUPPORT SERVICES' and categorizes it under NAICS 561499 ('All Other Business Support Services'). This broad classification suggests services could range from administrative support, mailroom operations, printing, and copying, to call center functions, or other general business operational assistance. Without the full contract statement of work (SOW), the precise nature and scope of these services remain undefined. However, given the agency (Department of the Interior) and the contract value, these services are likely crucial for supporting the day-to-day administrative and operational functions of the department's various offices.

How does the $2.19 million contract value compare to similar sole-source business support services contracts awarded by the Department of the Interior?

Comparing this $2.19 million, 5-year contract to similar sole-source awards by the Department of the Interior requires access to a database of historical sole-source contracts with detailed service descriptions and values. The average annual value is approximately $438,600. Sole-source awards are often justified by unique circumstances, making direct comparisons difficult. However, if similar sole-source awards for comparable business support functions exist, they would likely fall within a similar value range, depending on the specific scope and duration. A comprehensive review of the justification for this sole-source award would provide context on why a competitive process was deemed inappropriate.

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

The primary risk of a sole-source award for business support services is the lack of competitive pressure, which can lead to higher prices than might be achieved through an open competition. Taxpayers may end up paying more for the services. Additionally, the government misses out on potential innovations or efficiencies that multiple bidders might offer. There's also a risk that the chosen contractor may not be the most capable or cost-effective provider in the long run, as their performance is not benchmarked against a competitive field. Transparency is reduced, making it harder to assess the fairness of the price and the necessity of the sole-source justification.

What is the track record of SOLIEL LLC in performing federal contracts, particularly for business support services?

Information regarding SOLIEL LLC's track record in performing federal contracts is not provided in the abbreviated data. To assess their performance history, one would need to consult federal procurement databases like SAM.gov or FPDS-NG to review past awards, contract performance evaluations (e.g., CPARS), and any history of contract disputes or terminations. Without this information, it's impossible to gauge their experience, reliability, and past success in delivering similar business support services to government agencies.

How does the firm fixed-price (FFP) contract type impact cost management and risk for this OAS Support Services contract?

A firm fixed-price (FFP) contract type means that the contractor, SOLIEL LLC, is obligated to perform the work for a set price, regardless of the actual costs incurred. This provides the Department of the Interior with cost certainty and protects against cost overruns, as the price is fixed. The risk of cost overruns is primarily borne by the contractor. However, if the scope of work changes significantly, contract modifications (and potentially price adjustments) would be necessary. For the contractor, an FFP contract incentivizes efficiency, as any cost savings achieved below the fixed price contribute to their profit margin. Conversely, unexpected cost increases can reduce profitability.

What is the historical spending pattern for 'All Other Business Support Services' (NAICS 561499) within the Department of the Interior?

Analyzing historical spending patterns for NAICS 561499 within the Department of the Interior would require accessing detailed federal procurement data over several fiscal years. This would involve querying databases to aggregate spending specifically under this code for the DOI. Such an analysis could reveal trends in the utilization of business support services, identify major contractors, and indicate whether spending has been increasing, decreasing, or remaining stable. It could also highlight whether this type of service is typically competed or awarded sole-source, providing context for the current award.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140D0423R0052

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1921 GALLOWS RD, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,147,906

Exercised Options: $2,193,009

Current Obligation: $2,193,009

Actual Outlays: $1,644,232

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline