State Department awards $40.4M administrative support contract to All Native Synergies Company, with a long performance period

Contract Overview

Contract Amount: $40,442,993 ($40.4M)

Contractor: ALL Native Synergies Company

Awarding Agency: Department of State

Start Date: 2020-09-30

End Date: 2026-02-28

Contract Duration: 1,977 days

Daily Burn Rate: $20.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADMINISTRATIVE AND PROFESSIONAL MANAGEMENT SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20037

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $40.4 million to ALL NATIVE SYNERGIES COMPANY for work described as: ADMINISTRATIVE AND PROFESSIONAL MANAGEMENT SUPPORT Key points: 1. Contract value appears reasonable given the extended performance period and the nature of administrative support services. 2. Limited competition raises concerns about potential overpricing and reduced value for taxpayer funds. 3. The contract's duration and fixed-price nature suggest a predictable cost structure, but also limit flexibility. 4. Performance context is administrative management, a critical but often opaque area of government operations. 5. This contract falls within the professional services sector, specifically management consulting. 6. The absence of small business set-aside indicates a focus on larger, potentially specialized, service providers.

Value Assessment

Rating: fair

The contract's total value of $40.4 million over nearly six years suggests an average annual spend of approximately $6.7 million. Benchmarking this against similar administrative support contracts is challenging without more specific service details. However, the fixed-price nature implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the scope is well-defined. The lack of competition, however, prevents a direct comparison to ascertain if the pricing is truly competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to unique capabilities, existing infrastructure, or specific security requirements. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible pricing, potentially resulting in less efficient use of taxpayer funds.

Public Impact

The primary beneficiary is the Department of State, which receives essential administrative and professional management support. Services delivered include general management consulting and administrative support, crucial for the agency's operational efficiency. The geographic impact is concentrated in the District of Columbia, where the Department of State is headquartered. Workforce implications are likely to involve the contractor's personnel supporting government staff, rather than direct government hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for money.
Extended contract duration could lead to scope creep or outdated service models if not managed carefully.
Lack of transparency in the justification for sole-source award.

Positive Signals

Fixed-price contract shifts cost risk to the contractor.
Long performance period allows for continuity of essential services.
Contractor has a defined period to deliver services, potentially leading to specialized expertise development.

Sector Analysis

This contract falls under the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is characterized by a wide range of services supporting government operations, from IT consulting to human resources and strategic planning. The market size for government administrative support services is substantial, with numerous firms competing for contracts. This particular award to All Native Synergies Company represents a portion of the overall federal spending in this category, focusing on the unique needs of the Department of State.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary awardee, All Native Synergies Company, is likely a larger entity or that the nature of the services did not lend itself to a small business set-aside. The impact on the small business ecosystem is neutral to potentially negative if opportunities were missed for smaller firms to participate.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program managers within the Department of State. Accountability measures are typically embedded in the contract's performance work statement, with defined deliverables and quality standards. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Administrative Support Services
Management and Consulting Services
Professional Services Contracts
Department of State Operations Support

Risk Flags

Sole-source award
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $40.4 million to ALL NATIVE SYNERGIES COMPANY. ADMINISTRATIVE AND PROFESSIONAL MANAGEMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is ALL NATIVE SYNERGIES COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $40.4 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-02-28.

What is the specific justification for the sole-source award of this contract to All Native Synergies Company?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a common designation for sole-source procurements. Typically, such awards are justified when only one responsible source is available to meet the agency's needs. This could be due to unique capabilities, proprietary technology, extensive past performance in a highly specialized area, or urgent requirements where competition is not feasible. Without further documentation from the Department of State, the precise reason for deeming All Native Synergies Company the sole source remains unspecified. This lack of transparency in the justification can be a point of concern for ensuring fair and competitive procurement practices.

How does the annual spending on this contract compare to similar administrative support contracts at the Department of State or other agencies?

The contract's total value is $40.4 million over approximately 1977 days (roughly 5.4 years), equating to an average annual expenditure of about $7.5 million ($40.4M / 5.4 years). Benchmarking this against similar contracts requires access to a broader dataset of federal procurement awards for administrative and management consulting services. Factors such as the specific scope of work, geographic location, and the complexity of the agency's needs significantly influence pricing. Given the sole-source nature, a direct comparison to identify potential over or under-pricing is difficult. However, an annual spend in the mid-single-digit millions for comprehensive administrative support at a large federal agency is not uncommon, though the exact value proposition depends heavily on the services rendered and performance outcomes.

What are the key performance indicators (KPIs) or metrics used to evaluate the performance of All Native Synergies Company under this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate All Native Synergies Company's performance. Typically, for administrative and management consulting services contracts, performance is assessed against a Performance Work Statement (PWS) or Statement of Work (SOW). This document outlines the specific tasks, deliverables, and quality standards expected. Common metrics might include timeliness of report submission, accuracy of data provided, responsiveness to requests, adherence to budget (if applicable to specific tasks), and overall client satisfaction surveys from the Department of State personnel they support. The fixed-price nature of the contract implies that meeting these defined performance standards is crucial for the contractor to achieve profitability.

What is the historical spending pattern for administrative support services at the Department of State, and how does this contract fit within that pattern?

The provided data focuses on a single contract award and does not offer historical spending patterns for administrative support services at the Department of State. To analyze this, one would need to examine multi-year spending data for similar contract vehicles (NAICS code 541611) awarded by the Department of State. This would reveal trends in contract values, types of services procured, and the number of competitors typically involved. This specific contract, valued at $40.4 million over approximately 5.4 years, represents a significant, long-term investment in administrative support. Its sole-source nature might indicate a specific, ongoing need that has been consistently met by this contractor, or a shift in procurement strategy away from competitive bidding for certain support functions.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

A sole-source contract of this magnitude ($40.4 million) and duration (over 5 years) carries several potential risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from market forces driving cost efficiency. Secondly, there's a risk of complacency from the contractor, who may face less pressure to innovate or improve service quality once the contract is secured. Thirdly, the extended duration increases the possibility of the contracted services becoming misaligned with evolving agency needs or technological advancements, potentially leading to inefficiencies or the need for costly modifications. Finally, the justification for sole-source awards can sometimes be weak, raising concerns about fairness and the potential for favoritism, which can undermine public trust in government procurement.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ho-Chunk, Inc.

Address: 1 MISSION DR, WINNEBAGO, NE, 68071

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,639,163

Exercised Options: $44,639,163

Current Obligation: $40,442,993

Actual Outlays: $16,260,382

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM20D0109

IDV Type: IDC

Timeline