GSA Schedule Task Order for DIR Inc. awarded $22.6M for management consulting services to Dept. of Labor

Contract Overview

Contract Amount: $22,598,804 ($22.6M)

Contractor: Decision Information Resources, Inc

Awarding Agency: Department of Labor

Start Date: 2018-09-19

End Date: 2023-11-18

Contract Duration: 1,886 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THIS IS A GSA SCHEDULE TASK ORDER AWARD FOR THE DRE PROCUREMENT

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 $22.6 million to DECISION INFORMATION RESOURCES, INC for work described as: THIS IS A GSA SCHEDULE TASK ORDER AWARD FOR THE DRE PROCUREMENT Key points: 1. Contract awarded under GSA Schedule for administrative management and general management consulting services. 2. The contract spans nearly five years, indicating a long-term need for these services. 3. Awarded via full and open competition, suggesting a competitive bidding process. 4. The contract type is Time and Materials, which can pose cost control risks if not managed carefully. 5. The contractor, Decision Information Resources, Inc., has secured a significant award for its services. 6. The geographic location of performance is Washington D.C.

Value Assessment

Rating: fair

The contract value of $22.6 million over approximately five years for administrative management and general management consulting services appears to be within a reasonable range for federal contracts of this nature. Benchmarking against similar GSA Schedule task orders for management consulting services would provide a clearer picture of value for money. The Time and Materials pricing structure, while common, necessitates close monitoring to ensure costs do not escalate beyond initial estimates and that the services provided align with the expected outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific task order. While competition is present, a higher number of bidders typically leads to more aggressive pricing and a broader range of innovative solutions. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down prices and improve service quality. The presence of at least two bidders suggests that taxpayer dollars are being spent in a market where multiple companies vied for the contract.

Public Impact

The Department of Labor benefits from administrative management and general management consulting services to support its operations. These services likely contribute to the efficiency and effectiveness of the Office of the Assistant Secretary for Administration and Management. The primary geographic impact is within the District of Columbia, where the Department of Labor is headquartered. The contract supports the workforce within the consulting services sector, specifically those employed by Decision Information Resources, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Limited competition (2 bidders) may not have resulted in the most cost-effective pricing.
The long duration of the contract (nearly 5 years) requires ongoing performance evaluation to ensure continued value.

Positive Signals

Awarded under GSA Schedule, which typically involves pre-vetted contractors.
Full and open competition was utilized, indicating an effort to ensure a fair process.
The contract is for essential administrative and management consulting services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under Administrative Management and General Management Consulting Services (NAICS 541611). This sector is a significant component of federal contracting, with agencies relying on external expertise for a wide range of operational and strategic support. Spending in this category is often driven by the need for specialized knowledge, project management, and efficiency improvements. Comparable spending benchmarks would involve analyzing other task orders for similar consulting services awarded by various federal agencies through GSA Schedules or other procurement vehicles.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, the prime contractor, Decision Information Resources, Inc., may engage small businesses as subcontractors, which would be detailed in their subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this GSA Schedule task order would primarily be managed by the Department of Labor's contracting officers and program managers. The General Services Administration (GSA) oversees the GSA Schedules program itself, ensuring fair pricing and contract compliance. Transparency is facilitated through contract award databases like FPDS. The Inspector General for the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

GSA Federal Supply Schedule
Management and Consulting Services
Department of Labor Contracts
Administrative Support Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition may not yield optimal pricing.
Need for robust government oversight to manage performance and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $22.6 million to DECISION INFORMATION RESOURCES, INC. THIS IS A GSA SCHEDULE TASK ORDER AWARD FOR THE DRE PROCUREMENT

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 $22.6 million.

What is the period of performance?

Start: 2018-09-19. End: 2023-11-18.

What is the track record of Decision Information Resources, Inc. with federal contracts, particularly within the Department of Labor?

Decision Information Resources, Inc. (DIR Inc.) has a history of federal contract awards. While this specific award represents a significant value, a comprehensive review of their past performance would involve examining their contract history across various agencies and contract types. Analyzing their performance on previous Department of Labor contracts, if any, would be crucial to understanding their reliability and effectiveness in delivering administrative and management consulting services. Data from contract databases can reveal their success rate, any past performance issues, and their experience with similar service requirements. A deeper dive would also assess their financial stability and capacity to handle large-scale contracts.

How does the awarded amount compare to similar management consulting contracts within the federal government?

The $22.6 million award for administrative management and general management consulting services over approximately five years is substantial. To benchmark its value, one would compare it to other task orders issued under GSA Schedules or other contract vehicles for similar services. Factors such as the specific scope of work, the level of expertise required, the number of labor hours, and the prevailing market rates for consultants in the Washington D.C. area would influence comparisons. Contracts with a higher number of bidders or those using fixed-price structures might offer different value propositions. Without access to a detailed breakdown of the services rendered and the specific labor categories and rates, a precise value-for-money assessment is challenging, but the amount is consistent with significant federal consulting engagements.

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

The primary risk associated with a Time and Materials (T&M) contract of this magnitude is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. If not managed diligently with robust oversight, including detailed tracking of hours, verification of work performed, and strict controls on material costs, the total expenditure can exceed initial estimates. This necessitates strong project management from the government side to ensure efficiency, prevent scope creep without corresponding adjustments, and confirm that the contractor's efforts are directly contributing to the contract's objectives. The risk is that the government may end up paying more than the value received if performance is not closely monitored.

How effective is the competition level (2 bidders) in ensuring competitive pricing for this contract?

A competition level with only two bidders suggests a moderate rather than robust competitive environment. While it is better than a sole-source award, having only two offers may limit the downward pressure on pricing that typically occurs when multiple companies vie for a contract. The government may not have received the most advantageous pricing possible compared to a scenario with, for example, five or more bidders. The effectiveness also depends on the quality and competitiveness of the proposals submitted by these two bidders. If both were highly qualified and priced aggressively within their capabilities, the outcome could still be favorable, but the inherent risk is that the government might not have fully benefited from a wider range of competitive offers.

What are the historical spending patterns for administrative management and general management consulting services at the Department of Labor?

Analyzing historical spending patterns for administrative management and general management consulting services at the Department of Labor would provide context for this $22.6 million award. This involves examining previous contract awards within the same or similar categories (NAICS 541611) over several fiscal years. Key metrics to review include the total amount spent annually on these services, the number and types of contracts awarded (e.g., GSA Schedule, IDIQ, sole-source), the primary contractors receiving awards, and the average contract values. Understanding these patterns can reveal trends in agency reliance on external consulting, identify periods of increased or decreased spending, and highlight any shifts in procurement strategies or contractor preferences.

What is the significance of this contract being awarded under a GSA Schedule?

Awarding this contract under a GSA Schedule (specifically, a GSA Schedule task order) signifies that the contractor, Decision Information Resources, Inc., has already been vetted and approved by the General Services Administration to offer these services. GSA Schedules are pre-competed, indefinite-delivery/indefinite-quantity (IDIQ) contracts that allow federal agencies to procure goods and services more efficiently. This procurement method typically reduces the time and administrative burden associated with awarding contracts, as much of the initial competition and negotiation has already occurred at the schedule level. It also generally ensures fair and reasonable pricing, as GSA negotiates the underlying contract terms and pricing.

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: $22,598,804

Exercised Options: $22,598,804

Current Obligation: $22,598,804

Actual Outlays: $15,231,890

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F0427Y

IDV Type: FSS

Timeline