Labor Department awards $2.78M administrative support contract to QED Enterprises Inc. without competition

Contract Overview

Contract Amount: $2,782,920 ($2.8M)

Contractor: QED Enterprises Inc.

Awarding Agency: Department of Labor

Start Date: 2022-04-01

End Date: 2026-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ADMINISTRATIVE & RESEARCH SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $2.8 million to QED ENTERPRISES INC. for work described as: ADMINISTRATIVE & RESEARCH SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of 1460 days suggests a long-term need for these administrative services. 3. Focus on administrative management and general management consulting indicates a need for operational efficiency. 4. The contract is for labor hours, which can be less predictable in final cost than fixed-price arrangements. 5. Awarded to a single vendor, raising questions about the availability of alternative solutions or better pricing. 6. The contract's value is moderate, but the lack of competition warrants scrutiny.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding. Without comparison to other offers or market rates for similar administrative management services, it's difficult to definitively assess if the pricing represents good value for the taxpayer. The 'labor hours' pricing structure also introduces uncertainty regarding the final expenditure. However, the contract's duration and scope suggest a significant need for these services within the Department of Labor.

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. This indicates that the agency identified a specific need that they believed only QED Enterprises Inc. could fulfill, or that circumstances did not allow for a competitive process. The lack of multiple bidders means there was no opportunity for price negotiation or comparison against other market participants, which is a key aspect of price discovery.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings typically achieved through competitive bidding. This can lead to higher prices than might otherwise be negotiated.

Public Impact

The Office of the Assistant Secretary for Administration and Management within the Department of Labor is the primary beneficiary, receiving administrative and research support. Services delivered include administrative management and general management consulting, aimed at improving operational efficiency. The contract has a geographic impact primarily in the District of Columbia, where the Department of Labor is headquartered. The contract supports the administrative functions of the federal government, indirectly benefiting the workforce by ensuring smoother operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Sole-source award raises concerns about potential vendor lock-in.
Labor hour contract type can lead to cost overruns if not managed closely.

Positive Signals

Contract addresses a specific administrative need within the Department of Labor.
The vendor is contracted for a defined period, providing continuity of services.
The contract is for essential administrative functions supporting agency operations.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a broad category encompassing services that help organizations improve their efficiency and effectiveness. The federal government is a significant consumer of these services, often seeking expertise in areas like human resources, financial management, and operational strategy. Comparable spending benchmarks are difficult to establish without more specific service details and competitive data.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to QED Enterprises Inc., a single entity, does not directly contribute to the small business ecosystem through set-asides or mandated subcontracting. Further analysis would be needed to determine if QED Enterprises Inc. itself is a small business or if there are any indirect benefits.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Labor's Office of the Assistant Secretary for Administration and Management. Accountability measures would be tied to the performance standards outlined in the contract and the delivery of labor hours. Transparency is limited due to the sole-source nature of the award, with fewer public details available compared to competed contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Administrative Support Services
Management and Consulting Services
Department of Labor Contracts
Sole-Source Federal Contracts

Risk Flags

Sole-source award
Lack of competition
Labor hour contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $2.8 million to QED ENTERPRISES INC.. ADMINISTRATIVE & RESEARCH SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is QED ENTERPRISES INC..

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2022-04-01. End: 2026-03-31.

What is the track record of QED Enterprises Inc. with federal contracts, particularly with the Department of Labor?

A review of federal procurement data indicates that QED Enterprises Inc. has received multiple federal contracts, primarily for administrative and management consulting services. While specific details on past performance with the Department of Labor require deeper investigation into contract close-out reports and performance evaluations, the company's consistent receipt of federal awards suggests a level of established capability. However, the sole-source nature of this particular award necessitates careful consideration of whether past performance was a primary driver for the non-competitive selection, or if other factors, such as unique qualifications or urgent needs, were prioritized. Without access to detailed performance reviews for this specific contract and others, a comprehensive assessment of their track record remains incomplete.

How does the pricing structure (labor hours) compare to fixed-price contracts for similar administrative services?

Contracts awarded on a 'labor hours' basis, like this one, allow the government to pay for the actual time spent by contractor personnel. This can be advantageous when the scope of work is uncertain or likely to change. However, it shifts the cost risk to the government, as the final price is not fixed upfront and can fluctuate based on the hours worked. In contrast, fixed-price contracts establish a set price for a defined scope of work, providing cost certainty for the government but placing the risk of cost overruns on the contractor. For administrative services where tasks are well-defined and predictable, fixed-price contracts often offer better value and cost control. The 'labor hours' approach here suggests either a highly variable workload or a less defined scope, which warrants close monitoring to ensure efficiency and prevent cost escalation.

What are the specific risks associated with awarding a contract of this value and duration on a sole-source basis?

The primary risk associated with awarding a $2.78 million contract over four years on a sole-source basis is the potential for inflated costs due to a lack of competition. Without competing offers, the government foregoes the opportunity to leverage market forces to secure the best possible price and value. This can lead to taxpayers paying more than necessary for the services rendered. Additionally, sole-source awards can create vendor dependency, making it difficult to switch providers in the future if performance issues arise or better alternatives become available. There's also a risk that the agency may not be receiving the most innovative solutions available in the market, as the competitive pressure to propose novel approaches is absent.

What is the historical spending pattern for administrative and management consulting services at the Department of Labor?

Analyzing historical spending patterns for administrative and management consulting services at the Department of Labor is crucial for contextualizing this $2.78 million award. While specific aggregate data for this category is not provided, federal procurement databases show that agencies like the Department of Labor frequently engage contractors for such services to support various operational and strategic initiatives. Spending in this area can fluctuate based on agency priorities, budget allocations, and the initiation of new programs or reorganizations. Understanding the typical volume, average contract values, and common award mechanisms (competed vs. sole-source) for these services within the DOL would help determine if this contract represents a typical expenditure or an outlier, and whether the current sole-source award aligns with historical practices or deviates from them.

Are there any indications of urgency or unique capabilities that justified the sole-source award?

The provided data does not explicitly state the justification for the sole-source award to QED Enterprises Inc. Typically, sole-source awards are justified by factors such as urgent and compelling needs, the unavailability of comparable services from other sources, or the unique capabilities of a specific contractor that are essential for the government's requirements. Without further documentation from the Department of Labor, such as a Justification and Approval (J&A) document, it is impossible to definitively ascertain the specific reasons. The duration of the contract (four years) might suggest a planned, rather than an emergency, need, which would typically favor a competitive procurement unless unique qualifications were demonstrably present and documented.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1605C3-22-Q-00009

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 11918 HADDON LANE, WOODBRIDGE, VA, 22192

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

Financial Breakdown

Contract Ceiling: $2,908,761

Exercised Options: $2,908,761

Current Obligation: $2,782,920

Actual Outlays: $2,005,509

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline