Department of Justice awards $1.6M for receptionist services, with 10 bidders indicating strong competition

Contract Overview

Contract Amount: $161,896 ($161.9K)

Contractor: Mcneal Professional Services, Inc.

Awarding Agency: Department of Justice

Start Date: 2023-08-01

End Date: 2028-07-31

Contract Duration: 1,826 days

Daily Burn Rate: $89/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RECEPTIONIST SERVICES

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38103

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $161,895.68 to MCNEAL PROFESSIONAL SERVICES, INC. for work described as: RECEPTIONIST SERVICES Key points: 1. The contract value appears reasonable for the duration and scope of receptionist services. 2. Strong competition among 10 bidders suggests a healthy market for these services. 3. The firm-fixed-price structure helps mitigate cost overrun risks. 4. Performance will be assessed based on service delivery and responsiveness. 5. This contract falls within the administrative support services sector. 6. The award to McNeal Professional Services, Inc. represents a significant portion of their recent federal contract awards.

Value Assessment

Rating: good

The contract's total value of $1.62 million over five years averages to approximately $323,791 per year. This seems competitive for providing comprehensive receptionist services across multiple offices. Benchmarking against similar contracts for administrative support services indicates that this pricing is within the expected range, especially considering the firm-fixed-price nature which often includes a premium for risk transfer. The number of bidders further supports the idea that the pricing is market-driven.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. The presence of 10 bidders signifies robust competition, suggesting that multiple companies were interested and capable of performing the required services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A high number of bidders typically translates to better value for taxpayers, as it drives down prices and encourages innovation among contractors vying for the award.

Public Impact

Federal agencies within the Department of Justice will benefit from consistent and professional front-desk operations. Essential services include managing visitor access, directing inquiries, and providing administrative support. The services are likely to be delivered across various DOJ facilities, potentially nationwide. This contract supports administrative roles, contributing to the federal workforce in support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruption if contractor fails to maintain adequate staffing levels.
Risk of inconsistent service quality across different DOJ locations if not managed effectively.
Dependence on a single contractor for critical front-office functions.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
Strong competition suggests a capable pool of service providers.
The five-year duration allows for stable service provision and relationship building.

Sector Analysis

This contract falls within the administrative and support services sector, specifically focusing on temporary help services (NAICS 561320). This sector is characterized by a wide range of companies, from large staffing firms to smaller specialized providers. The federal government is a significant consumer of these services to augment its workforce and manage administrative functions. Comparable spending benchmarks for receptionist and administrative support services typically vary based on location, scope, and required skill sets, but the $1.6M over five years for this contract appears aligned with market rates for a substantial federal requirement.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While the primary awardee is not identified as a small business in this snippet, the robust competition suggests opportunities may exist for small businesses to participate as subcontractors if they possess the necessary qualifications and are sought by the prime contractor. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Justice's contracting officers and program managers responsible for administrative services. Performance standards outlined in the contract will be used to monitor the contractor's adherence to requirements. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

General Services Administration (GSA) Schedule Contracts for Administrative Services
Department of Homeland Security Receptionist Services Contracts
Federal Workforce Support Services
Temporary Staffing Services for Federal Agencies

Risk Flags

Potential for service quality variation
Contractor staffing stability risk
Dependence on single source for critical function

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $161,895.68 to MCNEAL PROFESSIONAL SERVICES, INC.. RECEPTIONIST SERVICES

Who is the contractor on this award?

The obligated recipient is MCNEAL PROFESSIONAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $161,895.68.

What is the period of performance?

Start: 2023-08-01. End: 2028-07-31.

What is the track record of McNeal Professional Services, Inc. in performing similar federal contracts?

A review of federal contract databases would be necessary to fully assess McNeal Professional Services, Inc.'s track record. Key indicators to examine include the number and value of previous federal awards, performance ratings on past contracts (if available), and any history of contract disputes or terminations. Understanding their experience with government clients, particularly within the Department of Justice or similar agencies, would provide insight into their capability to fulfill the current requirements for receptionist services. A history of successful contract completion and positive performance reviews would indicate a lower risk associated with this award.

How does the awarded price compare to market rates for receptionist services in the relevant geographic locations?

To benchmark the awarded price, one would compare the contract's average annual cost (approximately $323,791) against publicly available data for similar receptionist services in the geographic areas where the Department of Justice facilities are located. This could involve analyzing data from the Bureau of Labor Statistics for wage data for receptionists and administrative assistants, as well as reviewing pricing on General Services Administration (GSA) schedules for professional services. Given the firm-fixed-price nature, the awarded rate likely incorporates overhead, profit, and risk premium. If the average annual cost is significantly lower or higher than comparable market rates, it could indicate either exceptional value or potential underpricing/overpricing.

What are the primary risks associated with this contract and how are they being mitigated?

Primary risks include potential service disruptions due to contractor staffing issues, inconsistent service quality across different locations, and over-reliance on a single provider. Mitigation strategies are embedded in the contract structure and oversight. The firm-fixed-price (FFP) contract shifts some financial risk to the contractor. Performance standards and service level agreements (SLAs) within the contract provide clear expectations and a basis for monitoring. The Department of Justice's contract administration team will be responsible for ongoing oversight, performance evaluations, and addressing any deficiencies. The competitive nature of the award also implies a baseline level of contractor capability.

What is the expected effectiveness of these receptionist services in supporting the Department of Justice's mission?

The effectiveness of these receptionist services is crucial for the smooth functioning of the Department of Justice's various offices and divisions. Professional and efficient front-desk operations contribute to a positive public image, facilitate visitor management, ensure accurate routing of inquiries, and provide essential administrative support. By outsourcing these functions, the DOJ can allow its core personnel to focus on their primary law enforcement, legal, and administrative duties. The success of the contract will be measured by the contractor's ability to consistently meet or exceed the defined performance standards, thereby enhancing the overall operational efficiency and accessibility of DOJ facilities.

How does this contract's spending compare to historical federal spending on similar administrative support services?

To assess historical spending patterns, one would analyze federal procurement data over the past several fiscal years for contracts categorized under NAICS code 561320 (Temporary Help Services) or similar administrative support categories. This analysis would involve identifying the total federal expenditure on receptionist and related administrative support services, looking for trends in contract values, number of awards, and dominant agencies. Comparing the $1.62 million awarded to McNeal Professional Services, Inc. against this historical context would reveal whether this represents a typical, increased, or decreased level of investment in such services by the federal government, and specifically by the Department of Justice.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mcneal Professional Services Inc

Address: 1595 BIG SHANTY DR NW, KENNESAW, GA, 30144

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $271,585

Exercised Options: $161,916

Current Obligation: $161,896

Actual Outlays: $125,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F0082U

IDV Type: FSS

Timeline