Treasury's IRS awards $19,890 on-boarding event services to AEG Management PR, LLC

Contract Overview

Contract Amount: $19,890 ($19.9K)

Contractor: AEG Management PR, LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-09-23

End Date: 2024-10-01

Contract Duration: 8 days

Daily Burn Rate: $2.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ON-BOARDING EVENT

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00901

Plain-Language Summary

Department of the Treasury obligated $19,889.5 to AEG MANAGEMENT PR, LLC for work described as: ON-BOARDING EVENT Key points: 1. Value for money appears reasonable given the short duration and specific service. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are low due to the small contract value and short performance period. 4. Performance context is for an on-boarding event, a common administrative function. 5. Sector positioning is within administrative support services for government agencies.

Value Assessment

Rating: good

The contract value of $19,890 for an 8-day on-boarding event is modest. Benchmarking against similar event services is difficult without more specific details on the scope of services provided. However, the fixed-price nature of the purchase order suggests a defined cost expectation. The award to AEG Management PR, LLC, appears to be a standard procurement for event support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating it was likely solicited through publicly available sources or a broad agency announcement. While the exact number of bidders is not specified, the use of SAP suggests a competitive process was intended, aiming to achieve fair market prices for the services rendered. This method is typically used for procurements below certain dollar thresholds.

Taxpayer Impact: A competed award under SAP generally benefits taxpayers by fostering competition, which can lead to more favorable pricing and better service quality compared to sole-source or limited competition awards.

Public Impact

Federal employees attending the on-boarding event will benefit from organized logistical support. The services delivered include the provision of an on-boarding event, likely covering venue, catering, and potentially materials. The geographic impact is localized to Puerto Rico, where the event is presumably taking place. Workforce implications are minimal, primarily affecting the administrative staff coordinating the event and the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under a competed process, indicating potential for fair pricing.
Fixed-price contract type limits cost overrun risk for the government.
Short duration and low value reduce overall program risk.

Sector Analysis

The contract falls within the administrative and support services sector, specifically event management. This sector is characterized by a wide range of providers, from small specialized firms to large corporations. Government spending in this area supports essential operational functions, including employee training and onboarding. Comparable spending benchmarks for similar short-term events vary widely based on location, scale, and specific requirements.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to AEG Management PR, LLC, does not automatically imply it is a small business, though further investigation would be needed. The impact on the small business ecosystem is likely negligible given the contract's size and scope.

Oversight & Accountability

Oversight for this purchase order would typically reside with the contracting officer and the program office within the IRS. Accountability measures are inherent in the fixed-price contract terms. Transparency is facilitated by the government's procurement data systems, which record such awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Government Event Planning Services
Federal Employee On-boarding Programs
Administrative Support Contracts
IRS Operational Support

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $19,889.5 to AEG MANAGEMENT PR, LLC. ON-BOARDING EVENT

Who is the contractor on this award?

The obligated recipient is AEG MANAGEMENT PR, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $19,889.5.

What is the period of performance?

Start: 2024-09-23. End: 2024-10-01.

What specific services were included in the "ON-BOARDING EVENT" for $19,890?

The provided data indicates the service category is 'Hotels (except Casino Hotels) and Motels' (NAICS 721110) and the description is 'ON-BOARDING EVENT'. This suggests the contract likely covered venue rental, accommodation, catering, and potentially audiovisual equipment or other logistical support necessary for an event aimed at integrating new employees into the IRS. Without a detailed statement of work, the precise deliverables remain unspecified, but the NAICS code points towards hospitality and lodging services being a core component.

How does the cost of this on-boarding event compare to similar events for federal agencies?

Direct comparison of the $19,890 cost is challenging without knowing the exact number of attendees, the duration beyond the 8-day service period, the specific location's cost of living, and the level of services provided (e.g., meals, accommodation, training materials, speakers). However, for a short-term, localized event, this figure appears within a reasonable range for government procurements. Larger, multi-day, or geographically dispersed events would naturally incur significantly higher costs. The use of Simplified Acquisition Procedures (SAP) suggests the agency aimed for cost-effectiveness within regulatory limits for smaller procurements.

What is AEG Management PR, LLC's track record with federal contracts?

Based on the provided data, this is a single purchase order awarded to AEG Management PR, LLC. Further research into federal procurement databases (like SAM.gov or FPDS) would be necessary to ascertain the company's complete contract history, including past performance, previous awards, and any potential issues or commendations. Without this broader context, assessing their track record is limited to this specific transaction.

What are the potential risks associated with this contract?

Given the contract's low value ($19,890), short duration (8 days), and fixed-price nature, the inherent risks are minimal. Potential risks could include the contractor failing to deliver the event services as specified, leading to delays in employee onboarding or requiring the agency to procure replacement services. However, the small scale of the award mitigates the financial impact of such failures. The primary risk is operational: ensuring the event meets its objectives for the new employees.

What does the 'competed under SAP' designation imply for the IRS and taxpayers?

The designation 'competed under SAP' (Simplified Acquisition Procedures) implies that the IRS followed a streamlined, competitive procurement process for an award valued below the statutory threshold for full and open competition (typically $250,000). This means multiple vendors likely had an opportunity to bid, fostering price discovery and potentially securing a better value for taxpayers than a sole-source award. It indicates the IRS utilized an efficient method for acquiring necessary goods or services without the extensive administrative burden of larger-scale procurements.

What is the significance of the NAICS code 721110 (Hotels (except Casino Hotels) and Motels) for this contract?

The NAICS code 721110 signifies that the primary business activity of the contractor, or the service being procured, relates to providing lodging and/or short-term accommodation. For an 'ON-BOARDING EVENT', this code suggests that the contract likely involves securing hotel facilities for the event, potentially including meeting rooms, overnight stays for attendees if necessary, and associated services like catering or audiovisual support typically offered by hotels. It helps categorize the type of service provider and the nature of the transaction within the broader economy.

Industry Classification

NAICS: Accommodation and Food Services › Traveler Accommodation › Hotels (except Casino Hotels) and Motels

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 CONVENTION BLVD, SAN JUAN, PR, 00907

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,890

Exercised Options: $19,890

Current Obligation: $19,890

Actual Outlays: $19,890

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline