Treasury's Bureau of Engraving and Printing awards $5.9M for human capital support to R3 Government Solutions

Contract Overview

Contract Amount: $5,930,950 ($5.9M)

Contractor: R3 Government Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-05-17

End Date: 2026-11-16

Contract Duration: 2,009 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HUMAN CAPITAL STRATEGIC SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20228

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $5.9 million to R3 GOVERNMENT SOLUTIONS, LLC for work described as: HUMAN CAPITAL STRATEGIC SUPPORT Key points: 1. Contract focuses on specialized human resources consulting services, indicating a need for external expertise. 2. The award is a delivery order under a larger contract, suggesting potential for follow-on work. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Competition was open, but with exclusions, warranting a closer look at the bidding process. 5. The duration of the contract extends over five years, implying a long-term need for these services. 6. The contractor, R3 Government Solutions, LLC, is the sole awardee for this specific delivery order.

Value Assessment

Rating: fair

Benchmarking the value of this $5.9 million contract for human capital strategic support is challenging without more detailed service descriptions and performance metrics. The firm fixed-price structure is generally favorable for the government, as it caps costs. However, the absence of specific performance data or comparisons to similar HR consulting contracts makes a definitive value assessment difficult. The contract's duration of over five years suggests a sustained need, but the overall value proposition depends heavily on the quality and impact of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial solicitation was broad, certain sources were excluded before the final award. The number of bidders is not specified, but the exclusion of sources suggests a potentially narrower competitive field than a purely full and open competition. This approach can sometimes be used to leverage existing relationships or specific capabilities, but it may limit price discovery and potentially increase costs for the government.

Taxpayer Impact: The limited competition may mean taxpayers are not benefiting from the lowest possible price that a wider, unrestricted competition might have yielded. It also raises questions about whether all qualified vendors had a fair opportunity to bid.

Public Impact

Federal employees within the Bureau of Engraving and Printing will benefit from improved human capital management and strategic support. Services delivered are expected to enhance HR functions, potentially leading to better workforce planning, talent acquisition, and employee relations. The geographic impact is primarily within the District of Columbia, where the Bureau of Engraving and Printing is located. Workforce implications include potential improvements in employee morale, retention, and overall productivity due to enhanced HR strategies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced innovation.
Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services.
The exclusion of sources in the competition process warrants further investigation into the justification and impact on fairness.

Positive Signals

Firm Fixed Price contract structure shifts cost risk to the contractor, providing budget certainty.
The contract addresses strategic human capital needs, which are critical for organizational efficiency and effectiveness.
A five-year contract duration suggests a stable, long-term commitment to improving HR functions.

Sector Analysis

The human resources consulting services sector is a significant market within the broader professional services industry. Government agencies frequently contract for HR support to manage complex workforces, implement new policies, and improve operational efficiency. This contract fits within the segment of government IT and administrative support services. Comparable spending benchmarks for HR consulting services vary widely based on scope, duration, and contractor expertise, but multi-million dollar contracts for strategic support are common for large federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. Furthermore, 'sb' is also false, suggesting no specific subcontracting goals for small businesses were mandated within this award. This means the primary contractor, R3 Government Solutions, LLC, is not obligated to engage small businesses for subcontracting opportunities related to this specific delivery order, potentially limiting the direct economic benefit to the small business ecosystem from this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Engraving and Printing's contracting and program management officials. As a delivery order under a larger contract, the initial contract vehicle likely underwent a thorough review. Accountability measures would be tied to the performance standards outlined in the contract and the firm fixed-price terms. Transparency is facilitated through contract databases like FPDS, but detailed internal oversight reports or Inspector General involvement would depend on specific performance issues or audits.

Related Government Programs

Federal Human Capital Management
Professional and Management Consulting Services
Government HR Consulting Contracts
Bureau of Engraving and Printing Operations

Risk Flags

Limited competition may impact price discovery.
Performance metrics and value assessment require further detail.
Justification for source exclusion needs review.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.9 million to R3 GOVERNMENT SOLUTIONS, LLC. HUMAN CAPITAL STRATEGIC SUPPORT

Who is the contractor on this award?

The obligated recipient is R3 GOVERNMENT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $5.9 million.

What is the period of performance?

Start: 2021-05-17. End: 2026-11-16.

What is the track record of R3 Government Solutions, LLC in delivering human capital strategic support services to federal agencies?

R3 Government Solutions, LLC has been awarded federal contracts primarily in the areas of program management, administrative support, and consulting services. While specific details on their human capital strategic support performance for this particular contract are not publicly detailed, their contract history indicates experience with government operations. A deeper dive into past performance reviews, client feedback, and the successful completion of similar projects would be necessary to fully assess their track record. The nature of this award as a delivery order suggests they were selected based on prior qualifications or existing contract vehicles, implying a level of established capability.

How does the $5.9 million value of this contract compare to similar HR consulting contracts awarded by federal agencies?

The $5.9 million value for a five-year human capital strategic support contract is within a common range for federal agencies of the Bureau of Engraving and Printing's size and scope. Larger agencies often award contracts in the tens or hundreds of millions for comprehensive HR transformation or support. Smaller, more focused contracts for specific HR functions can be in the hundreds of thousands. This contract appears to be a mid-tier award, suggesting a significant but not enterprise-wide scope of services. Benchmarking requires comparing the specific services, deliverables, and duration against similar procurements.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include the potential for the contractor to underperform, leading to ineffective HR strategies and wasted funds. The 'limited competition' aspect also poses a risk of inflated pricing. Mitigation strategies are embedded in the contract structure: the Firm Fixed Price (FFP) shifts cost overrun risk to the contractor. Performance standards and deliverables, though not detailed here, would be crucial for monitoring. The Bureau of Engraving and Printing's program managers are responsible for oversight, ensuring services meet requirements. The five-year duration allows for progressive evaluation and course correction if needed.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers?

This competition approach aims to balance broad market access with specific needs. By excluding certain sources, the agency might be targeting vendors with unique capabilities or existing relationships, potentially leading to more tailored solutions. However, it inherently limits the pool of bidders compared to unrestricted full and open competition. This reduction in competition can decrease price pressure, potentially leading to higher costs for taxpayers. The effectiveness hinges on whether the exclusions were well-justified and if the remaining bidders still provided sufficient competition to drive a fair market price.

What is the historical spending pattern for human capital strategic support at the Bureau of Engraving and Printing?

Analyzing historical spending patterns for human capital strategic support at the Bureau of Engraving and Printing (BEP) requires access to detailed procurement data beyond this single award. Without that broader dataset, it's difficult to establish a trend. However, the existence of this $5.9 million, five-year contract suggests a sustained and significant investment in HR strategic support. Agencies typically award such contracts when they identify critical needs or are undergoing organizational changes requiring specialized HR expertise. Future analysis could involve examining prior HR consulting contracts awarded by BEP to identify spending levels, types of services procured, and contractor performance over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4201 WILSON BLVD, 3RD FLOOR, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $5,930,950

Exercised Options: $5,930,950

Current Obligation: $5,930,950

Actual Outlays: $3,736,039

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS02Q16DCR0105

IDV Type: IDC

Timeline