State Department awards $4.46M contract for staffing support, raising questions about competition and value

Contract Overview

Contract Amount: $4,458,647 ($4.5M)

Contractor: Tuvli LLC

Awarding Agency: Department of State

Start Date: 2024-08-15

End Date: 2026-08-14

Contract Duration: 729 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: STAFFING SUPPORT WASHINGTON DC AREA

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 $4.5 million to TUVLI LLC for work described as: STAFFING SUPPORT WASHINGTON DC AREA Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Pricing structure is Time and Materials, which can lead to cost overruns if not managed closely. 3. The contract duration of 729 days (2 years) suggests a need for ongoing support services. 4. The North American Industry Classification System (NAICS) code 541611 indicates a focus on administrative and management consulting. 5. The contract is for staffing support within the Washington D.C. metropolitan area. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: questionable

The Time and Materials pricing model, coupled with a sole-source award, presents a risk to achieving optimal value for money. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The total value of $4.46 million over two years suggests a significant investment in staffing support, and the lack of transparency in pricing mechanisms warrants further scrutiny to ensure taxpayer funds are used efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning TUVLI LLC was the only vendor considered. This approach bypasses the competitive bidding process, which typically allows multiple vendors to propose solutions and prices. While sole-source awards can be justified in specific circumstances, they inherently limit price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost efficiencies that arise from a competitive marketplace, potentially leading to higher overall expenditures for the services rendered.

Public Impact

The Department of State benefits from dedicated staffing support services. Services are delivered within the Washington D.C. metropolitan area, supporting operations in the nation's capital. The contract likely impacts the workforce by providing personnel to fill specific staffing needs within the agency. The primary beneficiaries are the operational units within the Department of State that require administrative and management support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Time and Materials contract type carries inherent risk of cost escalation.
Lack of transparency in pricing benchmarks makes value assessment challenging.
No small business participation noted, potentially missing opportunities for diverse sourcing.

Positive Signals

Contract awarded to a specific vendor, TUVLI LLC, indicating a potentially established relationship or specialized capability.
The contract duration suggests a recognized need for sustained support.
Awarded by the Department of State, a critical federal agency.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, a broad category encompassing a wide range of professional services. The market for such services is competitive, with numerous firms offering expertise in staffing, operational efficiency, and strategic planning. Federal agencies frequently procure these services to augment their internal capabilities. Benchmarking this contract's value is challenging without more specific details on the services provided and the competitive landscape for this particular sole-source award.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in fulfilling this contract are limited unless TUVLI LLC voluntarily engages them. The absence of a small business focus in this award may represent a missed opportunity to foster small business growth and leverage their specialized capabilities within the federal contracting ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of State. As a Time and Materials contract, diligent monitoring of labor hours and rates will be crucial to ensure cost control and prevent overruns. Transparency regarding the specific tasks performed and the justification for the sole-source award would be key elements of effective oversight. Further accountability could be enhanced through regular performance reviews and reporting requirements.

Related Government Programs

Department of State Staffing Contracts
Administrative Management Consulting Services
Federal Staff Augmentation Contracts
Sole-Source Professional Services Awards

Risk Flags

Sole-source award lacks competitive justification.
Time and Materials contract type poses cost overrun risk.
Limited transparency on pricing and value for money.
Potential for inefficient resource allocation due to T&M structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.5 million to TUVLI LLC. STAFFING SUPPORT WASHINGTON DC AREA

Who is the contractor on this award?

The obligated recipient is TUVLI LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2024-08-15. End: 2026-08-14.

What is the specific nature of the 'staffing support' being provided under this contract?

The provided data indicates the contract falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' This suggests the staffing support likely involves personnel who provide expertise in areas such as organizational planning, administrative procedures, management analysis, and potentially human resources functions. It could range from providing administrative assistants and program analysts to specialized consultants who advise on improving departmental operations or managing specific projects. Without further details, the exact roles and responsibilities of the staff are not fully defined, but they are intended to augment the Department of State's existing workforce and capabilities in its Washington D.C. area operations.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from unique capabilities, urgent needs, or situations where only one responsible source can provide the required services. For this Department of State contract, potential reasons could include TUVLI LLC possessing highly specialized skills or knowledge critical to a specific ongoing mission, a pre-existing relationship where TUVLI LLC has demonstrated exceptional performance and continuity is paramount, or perhaps a requirement for specific security clearances or access that only TUVLI LLC can readily provide. The government would need to formally document and justify these circumstances to award a contract without competition, often requiring approval from higher authorities to ensure the exception to full and open competition is warranted.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, allowing flexibility. However, they place a significant burden on the government to monitor contractor effort and costs closely, as the final price is determined by the actual hours worked and materials used. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers less cost certainty for the government and can be more susceptible to cost overruns if not managed diligently. For administrative and management consulting services, FFP contracts are often preferred when the scope is well-defined, as they provide greater cost predictability. The use of T&M here suggests either a highly fluid requirement or a potential lack of detailed scope definition prior to award.

What are the potential risks associated with a $4.46 million Time and Materials contract awarded sole-source?

The primary risks associated with this contract are multifaceted. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated labor rates and inefficient service delivery. Secondly, the Time and Materials (T&M) pricing structure, without stringent oversight, can incentivize contractors to prolong tasks or increase billable hours to maximize revenue, leading to cost overruns beyond the initial $4.46 million estimate. There's also a risk of scope creep if the requirements are not tightly managed. Furthermore, the lack of transparency inherent in sole-source T&M awards makes it difficult for the government and taxpayers to ascertain if fair market value is being received. Effective contract administration and robust performance monitoring are critical to mitigating these risks.

Are there any benchmarks or comparable spending data available for administrative management and general management consulting services at the Department of State?

While specific, publicly available benchmarks for this exact contract are difficult to ascertain without knowing the precise services rendered and the specific skill sets required, general industry data can provide context. The average hourly rates for management consultants can vary widely based on experience, specialization, and geographic location, often ranging from $100 to over $400 per hour. For administrative and general management consulting services, rates might fall within the lower to mid-range of this spectrum. The Department of State, like other large federal agencies, procures these services regularly. Analyzing historical spending patterns for similar NAICS codes (541611) within the Department or across other agencies could offer comparative insights, but the sole-source nature of this award complicates direct benchmarking against competitively bid contracts.

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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2553 DULLES VIEW DR STE 700, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,963,459

Exercised Options: $5,588,479

Current Obligation: $4,458,647

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM19D0141

IDV Type: IDC

Timeline