State Dept. Awards $2.28M for Environmental Controls, Highlighting Potential for Cost Savings

Contract Overview

Contract Amount: $2,285,212 ($2.3M)

Contractor: THE Prospective Group, Inc.

Awarding Agency: Department of State

Start Date: 2023-09-25

End Date: 2026-09-24

Contract Duration: 1,095 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: METERNET SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $2.3 million to THE PROSPECTIVE GROUP, INC. for work described as: METERNET SERVICES Key points: 1. Contract awarded to The Prospect Group, Inc. for automatic environmental control manufacturing. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 1095 days, ending in September 2026. 4. The award type is a delivery order, indicating it's part of a larger contract vehicle. 5. The contract is classified under the 'VA' (Veterans Affairs) category, though the agency is the Department of State.

Value Assessment

Rating: fair

The contract is Time and Materials, which can lead to cost overruns if not closely managed. Benchmarking against similar environmental control manufacturing contracts is difficult without specific unit cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, which typically fosters competitive pricing. However, the Time and Materials pricing structure requires diligent oversight to ensure fair market value.

Taxpayer Impact: The use of full and open competition is positive for taxpayer value. The final cost will depend on effective management and the actual labor and material hours expended.

Public Impact

Enhances environmental control systems for residential, commercial, and appliance use. Supports the Department of State's infrastructure and operational needs. Potential for improved energy efficiency and comfort through advanced control manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure carries inherent risk of cost escalation.
Lack of specific unit cost data makes direct price benchmarking challenging.
Potential for scope creep if not clearly defined within the delivery order.

Positive Signals

Full and open competition utilized.
Clear contract end date provides a defined project timeline.
Awarded to a single entity, suggesting specialized capabilities.

Sector Analysis

This contract falls within the manufacturing sector, specifically related to environmental controls. Spending benchmarks for such specialized manufacturing can vary widely based on technology and scale. The Department of State's procurement in this area supports its facilities management.

Small Business Impact

The data does not indicate if small businesses were involved in this specific delivery order or the parent contract. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The Time and Materials contract type necessitates robust oversight from the Department of State to monitor labor hours, material costs, and ensure the work performed aligns with the contract's objectives and fair pricing.

Related Government Programs

Automatic Environmental Control Manufacturing for Residential, Commercial, and Appliance Use
Department of State Contracting
Department of State Programs

Risk Flags

Time and Materials pricing
Lack of unit cost data
Potential for scope creep
Unclear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.3 million to THE PROSPECTIVE GROUP, INC.. METERNET SERVICES

Who is the contractor on this award?

The obligated recipient is THE PROSPECTIVE GROUP, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-09-24.

What is the estimated total cost if the contract were fixed-price, and how does the current T&M estimate compare?

Without a fixed-price baseline, a direct comparison is impossible. However, Time and Materials contracts inherently carry a higher risk of exceeding initial estimates compared to fixed-price agreements. The Department of State must actively manage hours and material costs to prevent significant overruns and ensure value for taxpayer money.

How does the awarded price per unit compare to industry benchmarks for similar environmental control systems?

The provided data lacks specific unit cost breakdowns, making direct benchmarking difficult. The total award of $2.28 million over three years for 'Automatic Environmental Control Manufacturing' is broad. A detailed analysis of the specific components and labor involved would be required to assess if the pricing is competitive against similar industry contracts.

What specific performance metrics or KPIs are in place to measure the effectiveness of the manufactured environmental control systems?

The provided data does not specify performance metrics or Key Performance Indicators (KPIs) for the manufactured systems. Effective oversight would require the Department of State to establish clear performance standards related to efficiency, reliability, and integration capabilities to ensure the delivered products meet operational needs.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Automatic Environmental Control Manufacturing for Residential, Commercial, and Appliance Use

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8280 WILLOW OAKS CORPORATE DR STE 600, FAIRFAX, VA, 22031

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,377,534

Exercised Options: $2,377,534

Current Obligation: $2,285,212

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM22D0100

IDV Type: IDC

Timeline