Labor awards $3.18M task order for administrative management consulting to Wheelhouse Group LLC

Contract Overview

Contract Amount: $3,175,259 ($3.2M)

Contractor: Wheelhouse Group LLC

Awarding Agency: Department of Labor

Start Date: 2022-07-21

End Date: 2025-01-22

Contract Duration: 916 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PEAT/FUTUREWORKS TASK ORDER

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 $3.2 million to WHEELHOUSE GROUP LLC for work described as: PEAT/FUTUREWORKS TASK ORDER Key points: 1. The contract value represents a moderate investment for administrative management consulting services. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The contract duration of over two years allows for sustained support. 5. The services fall under a broad category of management consulting, common across federal agencies. 6. The award is a single delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $3.18 million for administrative management consulting services over approximately two years appears reasonable. Benchmarking against similar contracts for management consulting services indicates that this award falls within a typical range for the scope and duration. The firm-fixed-price structure suggests that the contractor has committed to a specific price, which is generally favorable for the government in terms of cost certainty. However, without detailed service breakdowns, a precise value-for-money assessment is limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competitive process. This approach is designed to foster price discovery and ensure that the government receives competitive pricing by allowing multiple qualified vendors to vie for the work.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of contractors to participate, potentially leading to better value.

Public Impact

The Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM) is the primary beneficiary, receiving support for administrative functions. The services delivered will likely enhance the efficiency and effectiveness of administrative operations within OASAM. The contract is geographically focused on the District of Columbia, where the agency is located. The contract supports the federal workforce by providing specialized consulting expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'administrative management' is not tightly controlled.
Reliance on a single task order may limit long-term strategic planning for the agency's administrative functions.
The effectiveness of the consulting services is dependent on the contractor's ability to understand and adapt to the agency's specific needs.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a potentially competitive pricing environment.
The contract duration allows for sustained support and integration of recommendations.
The contractor, Wheelhouse Group LLC, is awarded a task order, implying they are an established entity on a contract vehicle.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a significant sector within federal procurement, encompassing a wide range of advisory and assistance services. Agencies utilize these services to improve organizational efficiency, strategic planning, and operational effectiveness. Spending in this category is widespread across civilian and defense agencies, with typical contract values varying widely based on scope and duration. This specific task order fits within the broader trend of agencies seeking external expertise to optimize their administrative functions.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors for this specific task order. However, the prime contractor, Wheelhouse Group LLC, may engage small businesses as subcontractors, depending on the subcontracting plan requirements and the nature of the services. The impact on the broader small business ecosystem would be indirect, primarily through potential subcontracting opportunities.

Oversight & Accountability

Oversight for this task order would primarily reside with the Department of Labor's contracting officers and program managers within the Office of the Assistant Secretary for Administration and Management. As a firm-fixed-price contract, oversight would focus on ensuring deliverables meet the specified requirements and performance standards. Transparency is facilitated through contract award databases. While no specific Inspector General jurisdiction is mentioned for this task order, the Department of Labor's Office of Inspector General generally oversees agency spending and operations.

Related Government Programs

Administrative Management Consulting Services
Management and Financial Consulting, Acquisition and Commercialization Support Services
Professional Services Schedule (PSS)
Management Consulting Services

Risk Flags

Contract duration exceeds typical short-term consulting engagements.
Scope of 'administrative management' could be broad, requiring careful definition.
Performance metrics not detailed in award summary.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $3.2 million to WHEELHOUSE GROUP LLC. PEAT/FUTUREWORKS TASK ORDER

Who is the contractor on this award?

The obligated recipient is WHEELHOUSE GROUP 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 $3.2 million.

What is the period of performance?

Start: 2022-07-21. End: 2025-01-22.

What is the track record of Wheelhouse Group LLC in performing similar administrative management consulting services for the federal government?

Wheelhouse Group LLC has a history of performing federal contracts, including those related to management and administrative consulting. Analyzing their past performance on similar task orders and contracts, particularly those with agencies like the Department of Labor or other cabinet-level departments, would provide insight into their capabilities. Key indicators include on-time delivery, adherence to budget (where applicable), client satisfaction feedback, and the successful implementation of recommendations. A review of their contract history on federal procurement databases can reveal the types and scale of projects they have undertaken, helping to assess their suitability for this specific task order.

How does the awarded value of $3.18 million compare to the average cost of similar administrative management consulting task orders?

The awarded value of $3.18 million for approximately 916 days (roughly 2.5 years) of administrative management consulting services needs to be benchmarked against comparable federal contracts. Factors such as the specific services required, the level of expertise needed, the number of personnel involved, and the complexity of the agency's administrative structure influence costs. Without a detailed breakdown of the services and labor categories, a precise comparison is difficult. However, general benchmarks for management consulting services suggest that this value is within a moderate range for a task order of this duration, especially considering it was awarded under full and open competition, which typically drives pricing.

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

The primary risks associated with this contract include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost overruns or delays. Another risk is the contractor's ability to deliver effective solutions that align with the Department of Labor's specific needs and culture. Mitigation strategies include the firm-fixed-price contract type, which places cost risk on the contractor, and the clear definition of deliverables and performance standards. Robust oversight by the contracting officer and program managers is crucial to monitor progress, manage changes, and ensure the quality of services provided. The full and open competition also mitigates risk by selecting a contractor based on demonstrated capability and competitive pricing.

How effective is the firm-fixed-price contract type in ensuring value for money for this administrative consulting service?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money for services where the scope of work can be clearly defined, such as administrative management consulting. Under an FFP contract, the contractor assumes the risk of cost overruns, incentivizing them to manage their resources efficiently and deliver the agreed-upon services within the set price. This provides the government with cost certainty. For the Department of Labor, this means they know the total cost upfront, allowing for better budget planning. The effectiveness hinges on the accuracy of the initial scope definition; if the scope is poorly defined, it can lead to disputes or the contractor cutting corners. However, for well-defined consulting tasks, FFP promotes efficiency and cost control, aligning the contractor's profit motive with the government's goal of obtaining services at a competitive price.

What is the historical spending pattern for administrative management consulting services by the Department of Labor's OASAM?

Analyzing historical spending patterns for administrative management consulting services by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM) would reveal trends in their reliance on external expertise. This includes the frequency of such awards, the average value of task orders, the types of services most frequently procured, and the contractors most often utilized. Understanding these patterns can indicate whether OASAM is increasing, decreasing, or maintaining its investment in these services. It can also highlight whether spending is concentrated under specific contract vehicles or spread across various sources. Such analysis helps in assessing the consistency of OASAM's strategy for administrative support and identifying potential areas for cost savings or efficiency improvements in future procurements.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605C5-22-Q-00016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wheelhouse Group Inc

Address: 800 N GLEBE RD STE 500, ARLINGTON, VA, 22203

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,175,259

Exercised Options: $3,175,259

Current Obligation: $3,175,259

Actual Outlays: $3,158,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F211AA

IDV Type: FSS

Timeline