Labor Department awards $17.8M for administrative consulting, with 2 bids received

Contract Overview

Contract Amount: $17,815,734 ($17.8M)

Contractor: Decision Information Resources, Inc

Awarding Agency: Department of Labor

Start Date: 2017-06-29

End Date: 2023-04-30

Contract Duration: 2,131 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF TASK ORDER AWARD

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 $17.8 million to DECISION INFORMATION RESOURCES, INC for work described as: IGF::OT::IGF TASK ORDER AWARD Key points: 1. Value for money appears fair given the Time and Materials contract type and duration. 2. Competition was limited, with only two bids received, potentially impacting price discovery. 3. Risk indicators are moderate, with a long contract duration and Time and Materials pricing. 4. Performance context shows a focus on administrative management and general consulting services. 5. Sector positioning is within professional services, supporting government administrative functions.

Value Assessment

Rating: fair

The contract's value of $17.8 million over approximately 5.7 years suggests a moderate annual spend. Benchmarking against similar administrative consulting contracts is challenging without more specific service details. The Time and Materials (T&M) pricing structure can lead to cost overruns if not closely managed, making direct value comparison difficult without detailed labor rates and hours.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under full and open competition, but only two bids were received. This limited competition may suggest fewer contractors were interested or capable of meeting the requirements, potentially leading to less aggressive pricing than a more robust competition might yield. The contracting officer would need to justify that the price was fair and reasonable.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the most competitive pricing possible. A higher number of bids typically drives down costs through increased market pressure.

Public Impact

The Department of Labor benefits from administrative and management consulting services. Services delivered likely include strategic planning, process improvement, and operational support. The geographic impact is primarily within the District of Columbia, where the agency is located. Workforce implications are indirect, supporting the efficiency of the agency's administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty if not managed diligently.
Limited competition (2 bids) may have resulted in a higher price than a more competitive scenario.
Long contract duration (over 5 years) increases the risk of scope creep or evolving needs not being optimally addressed.

Positive Signals

Awarded under full and open competition, indicating an attempt to solicit broad interest.
Contract supports essential administrative functions for the Department of Labor.
Specific task order award suggests a defined need within the agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant part of federal spending, supporting various government functions. Comparable spending benchmarks would depend on the specific nature of the consulting services, but agencies frequently procure such services to improve efficiency and effectiveness.

Small Business Impact

The data indicates this contract was not set aside for small businesses and that small business participation is not explicitly mentioned. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor engages in significant subcontracting with small businesses, which is not detailed here.

Oversight & Accountability

Oversight would typically be managed by the Department of Labor's contracting officers and program managers. Accountability measures are inherent in the contract terms and performance expectations. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Administrative Management and General Management Consulting Services
Professional Services Contracts
Department of Labor Contracts
Time and Materials Contracts

Risk Flags

Limited competition may impact price.
Time and Materials pricing requires diligent oversight to control costs.
Long contract duration increases potential for scope creep or evolving requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $17.8 million to DECISION INFORMATION RESOURCES, INC. IGF::OT::IGF TASK ORDER AWARD

Who is the contractor on this award?

The obligated recipient is DECISION INFORMATION RESOURCES, 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 $17.8 million.

What is the period of performance?

Start: 2017-06-29. End: 2023-04-30.

What specific types of administrative and management consulting services were procured under this contract?

The contract's North American Industry Classification System (NAICS) code is 541611, which covers Administrative Management and General Management Consulting Services. While the specific task order details are not provided, these services typically encompass areas such as strategic planning, organizational analysis, process improvement, human capital management consulting, financial management consulting, and information technology strategy consulting. The Department of Labor likely utilized these services to enhance the efficiency and effectiveness of its internal operations, program delivery, or administrative processes.

How does the $17.8 million award compare to typical spending on similar consulting services by the Department of Labor or other federal agencies?

Comparing the $17.8 million award requires context on the duration and scope. This contract spans approximately 5.7 years (June 2017 to April 2023), equating to an average annual spend of roughly $3.1 million. This figure is within a reasonable range for significant consulting engagements supporting large federal agencies. However, without knowing the specific deliverables and the intensity of services, a precise benchmark is difficult. Agencies like the Department of Labor often engage consulting firms for strategic initiatives, system modernizations, or organizational restructuring, which can involve multi-million dollar contracts over several years.

What are the potential risks associated with a Time and Materials (T&M) contract of this magnitude and duration?

Time and Materials contracts, especially those valued at $17.8 million over nearly six years, carry inherent risks. The primary risk is cost escalation, as the government pays for the labor hours and materials used, rather than a fixed price. If not meticulously managed with strict oversight on labor hours, rates, and material costs, the total expenditure can significantly exceed initial estimates. There's also a risk of inefficiency if contractor personnel are not motivated to complete tasks quickly. For this contract, the Department of Labor would need robust project management and financial tracking to ensure value and control costs throughout its long duration.

Given only two bids were received, what does this suggest about the market for these specific consulting services?

The receipt of only two bids under a full and open competition for this administrative management consulting contract suggests several possibilities. It could indicate a niche market where only a few firms possess the specialized expertise required by the Department of Labor. Alternatively, the contract's requirements or solicitation terms might have inadvertently deterred other potential bidders. It's also possible that the timing coincided with other major federal procurements, drawing contractor resources elsewhere. Regardless, limited competition generally reduces price pressure, potentially leading to higher costs for the government compared to a scenario with multiple competitive offers.

What is the track record of Decision Information Resources, Inc. (DIR) in securing and performing on federal contracts, particularly with the Department of Labor?

Decision Information Resources, Inc. (DIR) has a history of performing federal contracts. While specific performance metrics for this particular $17.8 million task order are not detailed here, DIR's ability to win this contract indicates they met the government's requirements at the time of award. Analyzing DIR's broader contract portfolio, including past performance evaluations and any reported issues on other contracts, would provide a more comprehensive understanding of their track record. Their continued success in securing government work suggests a general capability to meet federal standards, but individual contract performance can vary.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3900 ESSEX LN STE 900, HOUSTON, TX, 77027

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,815,734

Exercised Options: $17,815,734

Current Obligation: $17,815,734

Actual Outlays: $11,235,298

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0427Y

IDV Type: FSS

Timeline