State Dept. Awards $25.3M IT Services Contract to The Prospect Group, Inc

Contract Overview

Contract Amount: $25,304,279 ($25.3M)

Contractor: THE Prospective Group, Inc.

Awarding Agency: Department of State

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $34.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT SERVICES AND SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20241

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $25.3 million to THE PROSPECTIVE GROUP, INC. for work described as: IT SERVICES AND SUPPORT Key points: 1. Contract value of $25.3 million for IT services. 2. Awarded under full and open competition. 3. Potential risk associated with Time and Materials pricing. 4. Focus on administrative management and general management consulting.

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not closely managed. Benchmarking against similar IT services contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Time and Materials pricing structure may limit the effectiveness of initial price competition.

Taxpayer Impact: Taxpayer funds are being used for IT services. The effectiveness of competition and oversight will determine the ultimate value for money.

Public Impact

Ensures continued IT support for the Department of State. Potential for cost increases due to Time and Materials pricing. Supports administrative and management consulting functions within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Lack of specific performance metrics

Positive Signals

Full and open competition
Experienced contractor

Sector Analysis

This contract falls within the IT services sector, specifically focusing on administrative and management consulting. Spending benchmarks for similar IT support contracts vary widely based on scope and duration.

Small Business Impact

The contract was not awarded to a small business. There is no indication of small business subcontracting goals in the provided data.

Oversight & Accountability

Oversight will be crucial, particularly given the Time and Materials pricing. The Department of State will need to actively monitor performance and expenditures to ensure accountability.

Related Government Programs

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

Risk Flags

Time and Materials pricing
Potential for cost overruns
Limited visibility into specific performance metrics
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $25.3 million to THE PROSPECTIVE GROUP, INC.. IT SERVICES AND SUPPORT

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 $25.3 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is the estimated total cost if the contract is fully utilized?

The provided data shows an award amount of $25,304,279. However, as this is a Time and Materials contract, the final cost could be higher or lower depending on the actual hours worked and resources utilized by The Prospect Group, Inc. during the contract period.

What are the specific risks associated with the Time and Materials pricing structure for this contract?

The primary risk of Time and Materials (T&M) contracts is the potential for cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor. This can lead to budget uncertainty and potentially higher overall costs compared to fixed-price contracts if not managed diligently.

How does this contract contribute to the Department of State's overall IT effectiveness?

This contract is intended to provide essential IT services and support, likely encompassing administrative and management consulting functions. Its contribution to effectiveness depends on the contractor's ability to deliver reliable services, improve operational efficiency, and support the agency's mission objectives within the defined scope.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3141 FAIRVIEW PARK DR STE R40, FALLS CHURCH, VA, 22042

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $61,261,584

Exercised Options: $25,304,279

Current Obligation: $25,304,279

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F012AA

IDV Type: FSS

Timeline