DOL Awards $5.4M Sole Source Contract for Academic Support Services to CALCO

Contract Overview

Contract Amount: $5,409,594 ($5.4M)

Contractor: Calco Enterprises, LLC

Awarding Agency: Department of Labor

Start Date: 2023-09-18

End Date: 2026-03-24

Contract Duration: 918 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ACADEMIC SUPPORT SERVICES - SOLE SOURCE CALCO

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 $5.4 million to CALCO ENTERPRISES, LLC for work described as: ACADEMIC SUPPORT SERVICES - SOLE SOURCE CALCO Key points: 1. Contract awarded to CALCO ENTERPRISES, LLC for academic support. 2. The contract is a sole source award, raising questions about competition. 3. The value of $5.4 million over approximately 3 years requires scrutiny. 4. The service category is 'Other Accounting Services'.

Value Assessment

Rating: questionable

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. Benchmarking against similar academic support services contracts is difficult without more detailed service descriptions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning it was not competed. This limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had competed.

Taxpayer Impact: The lack of competition for a $5.4 million contract suggests potential for overpayment and reduced value for taxpayer funds.

Public Impact

Taxpayers may be paying more than necessary due to the sole-source nature of the award. The Department of Labor is procuring academic support services, the specific nature of which is not detailed. The contract duration of approximately 3 years suggests a need for ongoing services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Time and Materials contract type can lead to cost uncertainty.
Lack of detailed service description hinders value assessment.

Positive Signals

Contract supports academic services, potentially enhancing workforce development.
Established vendor may provide continuity of service.

Sector Analysis

The 'Other Accounting Services' NAICS code (541219) is broad. Academic support services can encompass a wide range of activities. Benchmarking spending in this specific sub-sector is challenging without further clarification.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, nor is there any mention of subcontracting opportunities for small businesses.

Oversight & Accountability

The sole-source justification and the management of the Time and Materials contract will be key areas for oversight to ensure fair pricing and effective service delivery.

Related Government Programs

Other Accounting Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Sole-source award
Time and Materials contract type
Lack of competition
Potential for overpayment
Limited transparency on services

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $5.4 million to CALCO ENTERPRISES, LLC. ACADEMIC SUPPORT SERVICES - SOLE SOURCE CALCO

Who is the contractor on this award?

The obligated recipient is CALCO ENTERPRISES, LLC.

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 $5.4 million.

What is the period of performance?

Start: 2023-09-18. End: 2026-03-24.

What specific academic support services are being procured, and how do they align with the Department of Labor's mission?

The provided data lacks specifics on the academic support services. These could range from training program development and delivery to research and analysis related to educational initiatives. Understanding the precise nature of these services is crucial to assess their alignment with the Department of Labor's mission, which typically involves workforce development, job training, and worker protection. Without this detail, the value proposition remains unclear.

What is the justification for awarding this contract sole-source, and were alternative competitive approaches considered?

The justification for a sole-source award is critical for ensuring fair and open competition. Agencies must demonstrate that only one responsible source can provide the required services. Without this justification, it's impossible to assess if the government received the best possible value. The lack of competition inherently raises concerns about potential overpricing and missed opportunities for innovation from a broader market.

How will the Time and Materials contract be managed to ensure cost control and prevent scope creep?

Time and Materials (T&M) contracts, while flexible, carry inherent risks of cost escalation if not rigorously managed. Effective oversight requires detailed tracking of labor hours and material costs, clear definition of tasks, and proactive measures to prevent scope creep. The agency must have robust internal controls and regular performance reviews to ensure that the contractor's efforts are efficient and directly contribute to the contract's objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1605C2-23-Q-00089

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1 RESEARCH CT STE 450, ROCKVILLE, MD, 20850

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,879,774

Exercised Options: $5,879,774

Current Obligation: $5,409,594

Actual Outlays: $4,692,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline