DOJ's FBI awards $10.7M HRD Recruiting Services contract to The Hatcher Group Inc. on a non-competed basis

Contract Overview

Contract Amount: $10,714,942 ($10.7M)

Contractor: THE Hatcher Group Inc

Awarding Agency: Department of Justice

Start Date: 2025-09-12

End Date: 2026-09-11

Contract Duration: 364 days

Daily Burn Rate: $29.4K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: HRD RECRUITING SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $10.7 million to THE HATCHER GROUP INC for work described as: HRD RECRUITING SERVICES Key points: 1. The contract's value of $10.7 million for recruiting services warrants scrutiny regarding cost-effectiveness. 2. A sole-source award limits competitive pressure, potentially impacting pricing and innovation. 3. The 'Marketing Consulting Services' NAICS code suggests a focus on recruitment strategy and outreach. 4. The contract duration of one year with a potential for extension needs to be monitored for sustained value. 5. The FBI's reliance on a single vendor for these critical services indicates potential single-source risk. 6. The award type 'NOT COMPETED UNDER SAP' requires further investigation into the justification for non-competition.

Value Assessment

Rating: questionable

The contract value of $10.7 million for HRD Recruiting Services appears substantial for a one-year term. Without comparable contract data or a detailed breakdown of services, it is difficult to benchmark the value for money. The 'Marketing Consulting Services' NAICS code suggests a broad scope, and the pricing structure (Time and Materials) can lead to cost overruns if not managed tightly. Further analysis would be needed to compare this to industry standards for similar recruiting efforts.

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. The justification for this approach is not provided in the data. Typically, sole-source awards occur when only one vendor can meet the government's needs, often due to unique capabilities, urgent requirements, or specific circumstances. The lack of competition means potential savings and broader vendor engagement were forgone.

Taxpayer Impact: Taxpayers may not be receiving the best possible price or service due to the absence of a competitive bidding process. This can also limit opportunities for new or smaller businesses to enter the federal contracting space.

Public Impact

The primary beneficiary is the Federal Bureau of Investigation (FBI), which will receive enhanced human resources and recruiting support. Services delivered are expected to improve the FBI's ability to attract and hire qualified personnel. The geographic impact is likely focused on areas where the FBI has recruitment needs, potentially nationwide. Workforce implications include supporting the FBI's efforts to meet its staffing goals and maintain a skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially leads to higher costs.
Time and Materials contract type carries inherent risk of cost escalation without strict oversight.
Lack of competition may stifle innovation and limit the pool of potential service providers.
The broad NAICS code 'Marketing Consulting Services' could encompass a wide range of activities, making scope creep a concern.

Positive Signals

The Hatcher Group Inc. is being awarded a significant contract, suggesting a level of trust or established relationship.
The contract aims to support critical HR and recruiting functions for a key federal agency.
The award is for a defined period, allowing for reassessment of needs and vendor performance.

Sector Analysis

The federal HR and recruiting services market is a segment within the broader professional services industry. Agencies often procure these services to augment internal capabilities, particularly for specialized roles or high-volume recruitment needs. While specific market size data for federal HR recruiting services is not readily available, the overall federal consulting market is substantial. This contract fits within the government's ongoing efforts to modernize and professionalize its workforce acquisition processes.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. The data indicates the awardee is 'THE HATCHER GROUP INC'. There is no information provided regarding subcontracting plans for small businesses. This sole-source award may limit opportunities for small businesses that could otherwise compete for or subcontract on such a requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting and program management officials, specifically within the FBI. As a sole-source award, the justification and performance metrics will be critical areas for review. Transparency regarding the specific services rendered and the outcomes achieved will be important for accountability. There is no explicit mention of an Inspector General's involvement in this specific award data, but the DOJ IG typically oversees agency spending.

Related Government Programs

Federal Human Resources Support Services
Professional and Management Consulting Services
Recruitment Process Outsourcing (RPO)
Marketing and Public Relations Services

Risk Flags

Sole Source Award
Time and Materials Contract Type
Lack of Competition
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $10.7 million to THE HATCHER GROUP INC. HRD RECRUITING SERVICES

Who is the contractor on this award?

The obligated recipient is THE HATCHER GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $10.7 million.

What is the period of performance?

Start: 2025-09-12. End: 2026-09-11.

What is the specific justification for awarding this HRD Recruiting Services contract on a sole-source basis to The Hatcher Group Inc.?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and awarded on a sole-source basis. The specific justification for this non-competitive award is not detailed in the data. Typically, sole-source procurements are justified under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source is available or capable of providing the required services, or in cases of urgent and compelling need. Without further documentation from the agency, the precise rationale remains unknown. This lack of competition means that the government did not explore other potential vendors, which could impact pricing and service innovation.

How does the $10.7 million contract value compare to typical federal spending on HR recruiting services?

Benchmarking the $10.7 million contract value for HRD Recruiting Services is challenging without more specific details on the scope of work and the duration of the services. Federal spending on HR and recruiting can vary widely based on agency size, mission, and specific needs. For instance, large agencies with high turnover or specialized hiring requirements might spend millions annually. However, for a one-year contract (base period), $10.7 million is a significant investment. Comparable contracts for similar services, especially those competed, would provide a better benchmark. The 'Marketing Consulting Services' NAICS code suggests a focus on strategy and outreach, which can be resource-intensive.

What are the potential risks associated with a Time and Materials (T&M) contract for recruiting services?

Time and Materials (T&M) contracts, like the one awarded to The Hatcher Group Inc., carry inherent risks, primarily related to cost control. In a T&M arrangement, the government pays the contractor for the direct labor hours at specified hourly rates and for the actual cost of materials. This structure can lead to cost overruns if the scope of work is not well-defined or if contractor effort is not closely monitored. For recruiting services, this could mean paying for extensive hours spent on sourcing, screening, and interviewing without a guaranteed outcome. Effective oversight, clear task definitions, and robust performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

What is the expected impact of this contract on the FBI's ability to recruit and retain talent?

This contract is intended to bolster the FBI's human resources and recruiting capabilities, aiming to improve their ability to attract and hire qualified candidates. By engaging The Hatcher Group Inc., the FBI likely seeks to leverage external expertise in areas such as candidate sourcing, employer branding, outreach strategies, and potentially streamlining the application and onboarding processes. The success of this contract in impacting recruitment and retention will depend on the effectiveness of the services provided, the alignment of the contractor's strategy with the FBI's specific needs and culture, and the overall efficiency of the federal hiring environment.

Are there any performance metrics or deliverables associated with this contract that are publicly available?

The provided data does not include specific performance metrics, deliverables, or key performance indicators (KPIs) associated with this contract. For a contract of this nature and value, especially one awarded on a sole-source basis, it is expected that the FBI would have established clear objectives and measurable outcomes. These might include targets for time-to-fill positions, quality of hires, diversity in applicant pools, or cost-per-hire. The absence of this information in the summary data suggests that such details might be found in the full contract document or associated performance work statement, which are not accessible here.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Marketing Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7600 WISCONSIN AVE STE 1000, BETHESDA, MD, 20814

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $12,314,942

Exercised Options: $12,314,942

Current Obligation: $10,714,942

Actual Outlays: $2,605,239

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15F06721A0003323

IDV Type: BPA

Timeline