State Dept. Awards $32.3M for Management Consulting, Highlighting Administrative Support Needs

Contract Overview

Contract Amount: $32,340,232 ($32.3M)

Contractor: PBG Consulting, LLC

Awarding Agency: Department of State

Start Date: 2020-04-02

End Date: 2025-09-01

Contract Duration: 1,978 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PORTFOLIO AND FINANCIAL MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20052

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $32.3 million to PBG CONSULTING, LLC for work described as: PORTFOLIO AND FINANCIAL MANAGEMENT SUPPORT SERVICES Key points: 1. Significant contract value indicates substantial demand for administrative management and general management consulting services. 2. PBG Consulting, LLC secured this award, suggesting a competitive landscape for specialized consulting firms. 3. The contract's duration and value present a moderate financial risk if performance is suboptimal. 4. Spending in the administrative management consulting sector is often tied to government efficiency initiatives.

Value Assessment

Rating: good

The $32.3 million award over approximately 5 years appears reasonable for comprehensive administrative management and general management consulting services. Benchmarking against similar large-scale government contracts for consulting would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors had the opportunity to bid.

Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing the value of taxpayer funds allocated to these essential administrative support services.

Public Impact

Ensures continued operational efficiency within the Department of State through expert administrative guidance. Supports critical management functions, potentially impacting diplomatic operations and foreign policy implementation. Provides specialized expertise that may not be readily available in-house, enhancing service delivery. The long-term nature of the contract suggests a sustained need for these consulting services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration may exceed actual need, leading to potential cost inefficiencies.
Reliance on external consultants could impact institutional knowledge retention.
Performance metrics and oversight are crucial to ensure value for money.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Long-term contract provides stability for essential services.
PBG Consulting, LLC's expertise is likely tailored to specific departmental needs.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) are crucial for government agencies seeking to optimize operations, improve efficiency, and manage complex projects. Spending in this sector is often driven by the need for specialized expertise and strategic guidance.

Small Business Impact

This contract was not awarded to a small business, indicating that the primary awardee is a larger entity. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Robust oversight mechanisms, including performance reviews and regular reporting, are essential to ensure accountability and the effective use of funds.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of State Contracting
Department of State Programs

Risk Flags

Long contract duration could lead to scope creep or outdated service relevance.
Potential for over-reliance on external consultants impacting internal capacity.
Performance monitoring is critical to ensure value for money.
Lack of small business participation in the prime contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $32.3 million to PBG CONSULTING, LLC. PORTFOLIO AND FINANCIAL MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PBG CONSULTING, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $32.3 million.

What is the period of performance?

Start: 2020-04-02. End: 2025-09-01.

What specific administrative and management challenges does this contract aim to address for the Department of State?

This contract likely addresses a range of challenges including optimizing internal processes, enhancing financial management, improving program execution, and providing strategic advice on organizational effectiveness. The specific focus would depend on the Statement of Work, but generally, these services aim to ensure the Department operates efficiently and effectively in achieving its foreign policy and diplomatic objectives.

How does the firm fixed-price contract type mitigate risks associated with cost overruns for the government?

A firm fixed-price (FFP) contract establishes a ceiling price that the contractor must adhere to, regardless of their actual costs. This shifts the cost risk to the contractor, incentivizing them to manage their expenses efficiently. For the government, it provides budget certainty and protects against unexpected cost increases, making it a preferred contract type for well-defined scopes of work.

What are the key performance indicators (KPIs) used to measure the effectiveness of PBG Consulting, LLC's services under this contract?

While specific KPIs are not detailed here, typical metrics for such contracts could include improvements in process efficiency (e.g., reduced processing times), cost savings achieved, successful project completion rates, client satisfaction scores from internal stakeholders, and adherence to project timelines and budgets. The Department of State would define and monitor these KPIs to ensure the contractor delivers expected value.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM19Q0156

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7925 JONES BRANCH DR STE 2125, MC LEAN, VA, 22102

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $32,370,232

Exercised Options: $32,350,232

Current Obligation: $32,340,232

Actual Outlays: $12,126,170

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F287GA

IDV Type: FSS

Timeline