DOL awards $2.66M sole-source contract to Twotech International for SCSEP technical assistance

Contract Overview

Contract Amount: $2,658,953 ($2.7M)

Contractor: Twotech Inc

Awarding Agency: Department of Labor

Start Date: 2023-06-16

End Date: 2026-04-15

Contract Duration: 1,034 days

Daily Burn Rate: $2.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SOLE SOURCE CONTRACT TO 8A FIRM FOR SCSEP TECHNICAL ASSISTANCE: TWOTECH INTERNATIONAL, 10000 FALLS RD STE 206, POTOMAC, MD 20854-4103, 703-625-7887, TENGW@TWOTECHINTL.COM, WWW.TWOTECHINTL.COM, POC - WENXIA TENG

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 $2.7 million to TWOTECH INC for work described as: SOLE SOURCE CONTRACT TO 8A FIRM FOR SCSEP TECHNICAL ASSISTANCE: TWOTECH INTERNATIONAL, 10000 FALLS RD STE 206, POTOMAC, MD 20854-4103, 703-625-7887, TENGW@TWOTECHINTL.COM, WWW.TWOTECHINTL.COM, POC - WENXIA TENG Key points: 1. Contract awarded to Twotech International for administrative management consulting. 2. Sole-source award indicates limited competition. 3. Potential risk associated with single-bidder scenarios. 4. Spending falls within the IT/Consulting sector.

Value Assessment

Rating: fair

The contract value of $2.66M for 1034 days appears reasonable for specialized technical assistance. Benchmarking against similar administrative management consulting contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, meaning competition was not sought. This limits price discovery and may not ensure the best value for taxpayers.

Taxpayer Impact: The lack of competition raises concerns about whether the government secured the most cost-effective solution for this technical assistance.

Public Impact

Taxpayers may not have received the best possible price due to the sole-source nature of the award. The Department of Labor relies on this technical assistance for its SCSEP program. The contract duration of nearly three years suggests a significant need for ongoing support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of clear justification for sole-source award.
Potential for overpayment without competitive bidding.

Positive Signals

Contract supports a specific government program (SCSEP).
Awarded to a firm with specialized expertise.

Sector Analysis

The contract falls under Administrative Management and General Management Consulting Services (NAICS 541611), a common area for government outsourcing. Spending benchmarks for this sector vary widely based on scope and duration.

Small Business Impact

The contract was awarded to Twotech International, but it is not indicated if they are a small business or specifically an 8(a) firm as suggested by the data source's description. Further clarification is needed on the small business status.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure the contractor delivers on scope and that costs remain reasonable throughout the contract period. The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this award.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing without competitive bidding.
Lack of transparency regarding the justification for sole-source.
Need to verify small business status and potential benefits.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $2.7 million to TWOTECH INC. SOLE SOURCE CONTRACT TO 8A FIRM FOR SCSEP TECHNICAL ASSISTANCE: TWOTECH INTERNATIONAL, 10000 FALLS RD STE 206, POTOMAC, MD 20854-4103, 703-625-7887, TENGW@TWOTECHINTL.COM, WWW.TWOTECHINTL.COM, POC - WENXIA TENG

Who is the contractor on this award?

The obligated recipient is TWOTECH 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 $2.7 million.

What is the period of performance?

Start: 2023-06-16. End: 2026-04-15.

What is the specific technical assistance provided under this contract, and why was it deemed suitable only for a sole-source award?

The contract is for technical assistance related to the Senior Community Service Employment Program (SCSEP). A sole-source award typically implies that only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. A detailed justification should be on file.

How does the per-unit cost or hourly rate compare to industry standards for similar consulting services, given the sole-source nature?

Without specific hourly rates or detailed task breakdowns, a direct per-unit cost comparison is challenging. However, sole-source contracts inherently lack the competitive pressure that drives down prices. The government should have conducted a price analysis to ensure the negotiated price was fair and reasonable, but this is less robust than a competitive process.

What mechanisms are in place to ensure the effectiveness and value for money of this sole-source technical assistance over its nearly three-year duration?

Effectiveness is typically ensured through performance metrics, deliverables, and regular progress reviews outlined in the contract. Value for money in a sole-source context relies heavily on the initial price negotiation and ongoing monitoring of contractor performance against the agreed-upon scope and budget. The Department of Labor should have a robust contract management plan.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1605C3-23-R-00009

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10000 FALLS RD STE 206, POTOMAC, MD, 20854

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,058,953

Exercised Options: $4,058,953

Current Obligation: $2,658,953

Actual Outlays: $3,715,204

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline