State Department awards $5.7M labor support contract to CORTEK, INC. for 2-year duration

Contract Overview

Contract Amount: $5,723,962 ($5.7M)

Contractor: Cortek, Inc.

Awarding Agency: Department of State

Start Date: 2024-06-01

End Date: 2026-05-31

Contract Duration: 729 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ISN LABOR SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $5.7 million to CORTEK, INC. for work described as: ISN LABOR SUPPORT Key points: 1. Contract value appears reasonable for the scope of labor support services. 2. Full and open competition suggests a competitive bidding process. 3. No immediate risk indicators are apparent from the provided data. 4. Contract performance will be key to assessing overall value. 5. This contract falls within the professional services sector. 6. The award is a delivery order, indicating it's part of a larger contract vehicle.

Value Assessment

Rating: good

The contract value of approximately $5.7 million over two years for labor support services seems within a reasonable range for federal contracts of this nature. Without specific benchmarks for 'ISN LABOR SUPPORT' or comparable contracts, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government. Further analysis would require comparing this to similar labor support contracts awarded by the State Department or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data shows 6 bids were received, suggesting a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and can lead to more advantageous pricing for the government.

Taxpayer Impact: A competitive bidding process like this typically benefits taxpayers by driving down costs through market forces, ensuring the government receives fair market value for the services procured.

Public Impact

The Department of State is the primary beneficiary, receiving essential labor support services. Services delivered likely include administrative, technical, or specialized personnel to support the agency's operations. The contract's geographic impact is focused on Washington D.C., where the State Department is headquartered. Workforce implications include the creation or maintenance of jobs for individuals employed by CORTEK, INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating broad market participation.
Firm-fixed-price contract type shifts cost risk to the contractor.
Contract duration of 2 years allows for stable service provision.
Awarded to CORTEK, INC., a known entity in government contracting.

Sector Analysis

This contract falls under the professional, scientific, and technical services sector, specifically within the 'All Other Miscellaneous Schools and Instruction' NAICS code (611699), which is unusual for a labor support contract and may indicate a specialized training or instructional component. The federal government spends billions annually on professional services, with labor support being a common requirement across many agencies. Benchmarking this contract's value against similar labor support or specialized training contracts would provide further insight into its cost-effectiveness.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by small business set-aside requirements. However, CORTEK, INC. may still engage small businesses as subcontractors, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of State's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of State Professional Services Contracts
Federal Labor Support Services
Government-wide Acquisition Contracts (GWACs) for Services
Professional and Management Support Services

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $5.7 million to CORTEK, INC.. ISN LABOR SUPPORT

Who is the contractor on this award?

The obligated recipient is CORTEK, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.7 million.

What is the period of performance?

Start: 2024-06-01. End: 2026-05-31.

What is the specific nature of the 'ISN LABOR SUPPORT' services being procured under this contract?

The provided data lists the NAICS code as 611699, 'All Other Miscellaneous Schools and Instruction.' This suggests the labor support may involve training, educational services, or instructional staff rather than general administrative or operational support. However, the contract title 'ISN LABOR SUPPORT' is broad. Clarification from the Statement of Work (SOW) or contract award details would be necessary to understand the precise services, such as whether it involves providing instructors, curriculum development, or specialized training personnel for specific ISN (Information Systems Network or similar) related functions within the Department of State.

How does the $5.7 million contract value compare to similar labor support contracts awarded by the Department of State?

Direct comparison is difficult without access to a comprehensive database of similar contracts and their specific scopes of work. However, a $5.7 million contract over two years, averaging $2.85 million annually, is a moderate-sized award for specialized labor support or training services. The Department of State procures a wide range of services, and the value would need to be benchmarked against contracts with similar NAICS codes and service descriptions. The firm-fixed-price nature and full and open competition suggest the government sought competitive pricing, but a detailed cost-benefit analysis against comparable contracts is needed for a definitive value assessment.

What are the key performance indicators (KPIs) or metrics used to evaluate CORTEK, INC.'s performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics for this contract. Typically, for labor support or training contracts, KPIs would be defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These might include metrics related to instructor qualifications, training completion rates, participant satisfaction, adherence to schedules, and the quality of instructional materials or support provided. The government's contracting officer and program manager would monitor these KPIs to ensure CORTEK, INC. meets its contractual obligations and delivers the expected value.

What is CORTEK, INC.'s track record with the Department of State and other federal agencies for similar services?

CORTEK, INC. has a history of federal contracting, as indicated by this award. To assess their track record, one would need to examine past performance evaluations and contract history databases. This would involve looking at previous contracts awarded to CORTEK, INC. by the Department of State or other agencies for labor support, training, or related professional services. Key aspects to review would include on-time delivery, quality of service, adherence to budget (if applicable), and any past performance issues or commendations. A positive track record would increase confidence in their ability to successfully execute this current contract.

What is the potential impact of the unusual NAICS code (611699) on the contract's overall risk profile?

The assignment of NAICS code 611699 ('All Other Miscellaneous Schools and Instruction') to a contract titled 'ISN LABOR SUPPORT' introduces a potential mismatch or ambiguity that could increase the risk profile. If the primary need is for general labor support, this NAICS code might not accurately reflect the service, potentially leading to misinterpretation of requirements or pricing benchmarks. Conversely, if the services genuinely involve specialized instruction or educational components related to Information Systems Networks (ISN), then the NAICS code is appropriate. The risk lies in ensuring the scope of work aligns precisely with the chosen code and that CORTEK, INC. possesses the requisite expertise for instructional delivery, not just general labor provision.

Industry Classification

NAICS: Educational Services › Other Schools and Instruction › All Other Miscellaneous Schools and Instruction

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM24R0027

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 PARK ST N, SAINT PETERSBURG, FL, 33710

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,342,836

Exercised Options: $5,946,441

Current Obligation: $5,723,962

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM24D0043

IDV Type: IDC

Timeline