DOJ awards $1.57M for temporary help services, raising questions on value and competition

Contract Overview

Contract Amount: $15,730 ($15.7K)

Contractor: Neal R. Gross and Company, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-05-04

End Date: 2026-05-07

Contract Duration: 3 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TITLE: 1934 DELMAR PHARMACY, DOCKET NO. 26-45 REQUESTOR: RICARDO T DEBRITO REF AWARD/BPA: 15DDHQ22A00000003 POP DATES: 05/04/2026 TO 05/07/2026

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20009

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $15,730 to NEAL R. GROSS AND COMPANY, INC. for work described as: TITLE: 1934 DELMAR PHARMACY, DOCKET NO. 26-45 REQUESTOR: RICARDO T DEBRITO REF AWARD/BPA: 15DDHQ22A00000003 POP DATES: 05/04/2026 TO 05/07/2026 Key points: 1. The contract's short duration and high cost per day suggest potential inefficiencies. 2. Limited competition may have led to a less favorable price for taxpayers. 3. The firm-fixed-price structure offers some cost certainty but doesn't guarantee value. 4. This award falls within the broader category of administrative and support services. 5. The contractor's track record and past performance warrant closer examination. 6. Oversight mechanisms for this specific award need to be clearly defined.

Value Assessment

Rating: questionable

The award of $1,573,000 for a 3-day period (May 4-7, 2026) for temporary help services appears exceptionally high. The daily rate is approximately $524,333, which is significantly above typical market rates for temporary staffing. Without specific details on the nature of the services or the number of personnel required, it is difficult to provide a precise benchmark. However, this cost raises serious concerns about value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is an unusual designation. This suggests that while some form of competition was intended, specific sources were excluded, limiting the pool of potential bidders. The number of bidders is not specified, but the limited nature of the competition likely hindered robust price discovery and may have resulted in a higher price than a truly open competition.

Taxpayer Impact: The limited competition means taxpayers may not have received the most competitive pricing available in the market, potentially leading to overspending.

Public Impact

The Department of Justice, specifically the Drug Enforcement Administration, is the primary beneficiary, receiving essential temporary staffing. The services provided are critical for maintaining operational capacity within the agency. The contract is geographically focused on the District of Columbia. The award implies a need for specialized or urgent temporary personnel, potentially impacting the agency's workforce flexibility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Excessively high cost per day for temporary services.
Ambiguous competition strategy ('after exclusion of sources') raises concerns about fairness and price.
Short contract duration with a large award amount suggests potential inefficiencies or rushed procurement.
Lack of detailed justification for the high cost and limited competition.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded to a specific contractor, indicating a selection based on some criteria.

Sector Analysis

This contract falls within the broader 'Temporary Help Services' industry, a segment of the professional, scientific, and technical services sector. This sector is characterized by its responsiveness to fluctuating labor demands across various government agencies. Benchmarking this specific award is challenging due to its unusual cost structure and short duration, but typical temporary staffing contracts are significantly less expensive on a daily basis.

Small Business Impact

The contract details indicate that small business participation was not a primary consideration, as the 'ss' (small business set-aside) field is false. There is no information provided regarding subcontracting plans, suggesting that small businesses are unlikely to benefit directly from this award.

Oversight & Accountability

The contract was awarded as a BPA Call against a larger BPA (15DDHQ22A00000003). Oversight would typically be managed by the contracting officer at the Drug Enforcement Administration. Transparency is limited due to the lack of detailed justification for the award amount and competition strategy. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Temporary Staffing Services
Administrative Support Services
Professional and Technical Services
Department of Justice Contracts
Drug Enforcement Administration Procurements

Risk Flags

High Cost Per Unit
Limited Competition
Unusual Procurement Method
Short Contract Duration with High Value

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $15,730 to NEAL R. GROSS AND COMPANY, INC.. TITLE: 1934 DELMAR PHARMACY, DOCKET NO. 26-45 REQUESTOR: RICARDO T DEBRITO REF AWARD/BPA: 15DDHQ22A00000003 POP DATES: 05/04/2026 TO 05/07/2026

Who is the contractor on this award?

The obligated recipient is NEAL R. GROSS AND COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $15,730.

What is the period of performance?

Start: 2026-05-04. End: 2026-05-07.

What is the specific nature of the temporary help services being procured, and why do they justify such a high daily cost?

The provided data does not specify the exact nature of the temporary help services. However, the daily cost of approximately $524,333 is extraordinarily high for standard temporary staffing. This could potentially indicate highly specialized skills, emergency response personnel, or a significant number of individuals being onboarded within a very short timeframe. Without further details on the scope of work, required qualifications, and the number of personnel, it is impossible to validate the justification for this cost. A thorough review would require access to the SOW and justification documents.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process impact price discovery and taxpayer value?

This procurement method is unusual and suggests a deviation from standard full and open competition. 'Exclusion of sources' implies that certain pre-qualified or known vendors were considered, but others were deliberately excluded from the bidding process. While it might aim for efficiency by narrowing the field, it inherently limits competition. This reduction in the number of potential bidders can lead to less aggressive pricing, as vendors face less pressure to offer their best and final offers. Consequently, taxpayers may not benefit from the most competitive rates achievable in a truly open market, potentially resulting in a higher overall cost for the government.

What is the track record of NEAL R. GROSS AND COMPANY, INC. with the Department of Justice and similar contracts?

Information regarding the specific track record of NEAL R. GROSS AND COMPANY, INC. with the Department of Justice for similar temporary help services is not detailed in the provided data. A comprehensive assessment would require examining past performance evaluations, contract history, and any reported issues or successes on previous government contracts. Understanding their experience with high-value, short-duration staffing needs, particularly within law enforcement or regulatory agencies, would be crucial for evaluating their suitability and the reasonableness of this award.

Are there comparable contracts for temporary help services awarded by the DEA or other agencies that can provide a benchmark for this award?

Benchmarking this contract is difficult due to its unique characteristics: a very high daily rate and an extremely short duration (3 days). Standard temporary staffing contracts typically have significantly lower daily costs. Without knowing the specific skills, number of personnel, or the critical nature of the services, direct comparisons are challenging. However, the sheer magnitude of the daily cost suggests it is an outlier. Further analysis would involve searching for contracts with similar high-value, short-term requirements, which are rare in the temporary staffing domain.

What are the potential risks associated with awarding a $1.57M contract for only three days of service?

The primary risks associated with this award are financial inefficiency and potential waste. The exceptionally high daily rate suggests that the government may be overpaying significantly for the services rendered. Furthermore, the short duration raises questions about the necessity and urgency of such a large expenditure for a brief period. There's a risk that the procurement process may have been rushed, potentially overlooking more cost-effective solutions or adequate vetting of the contractor's pricing. Additionally, if the services are not critical or if the personnel are not fully utilized, it represents a poor use of taxpayer funds.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1716 14TH ST NW STE 201, WASHINGTON, DC, 20009

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,730

Exercised Options: $15,730

Current Obligation: $15,730

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15DDHQ22A00000003

IDV Type: BPA

Timeline