Treasury Department awards $1.03M contract for international affairs support, highlighting domestic expertise

Contract Overview

Contract Amount: $1,025,946 ($1.0M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of the Treasury

Start Date: 2022-08-04

End Date: 2026-08-10

Contract Duration: 1,467 days

Daily Burn Rate: $699/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST NO FEE

Sector: Other

Official Description: REED, CHRIS LAVERN NEW CONTRACT NEW CONTRACT

Plain-Language Summary

Department of the Treasury obligated $1.0 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: REED, CHRIS LAVERN NEW CONTRACT NEW CONTRACT Key points: 1. Contract value appears reasonable for specialized international affairs support. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of nearly four years indicates a need for sustained support. 4. Cost-plus-fixed-fee structure allows for flexibility but requires careful cost management. 5. Focus on domestic awardees may reflect specific security or expertise requirements. 6. The contract's scope in international affairs aligns with Treasury's global mission.

Value Assessment

Rating: good

The contract value of $1.03 million over approximately four years for international affairs support seems within a reasonable range for specialized government services. Benchmarking against similar contracts is challenging without more detailed scope information, but the cost-no-fee structure suggests the contractor's profit is built into the overall cost, which is typical for this type of engagement. The government's ability to secure this level of support through open competition implies a competitive pricing environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of eight bidders suggests a robust competitive landscape for international affairs support services. This level of competition is generally favorable for the government, as it tends to drive down prices and encourage innovation among offerors.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in a more cost-effective award than a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are likely the Department of the Treasury's international affairs divisions, receiving critical support services. Services delivered are expected to aid in the execution of the Treasury's international economic and financial policy objectives. The geographic impact is global, supporting the US government's engagement in international economic forums and bilateral relationships. Workforce implications may include the utilization of specialized expertise in international finance, economics, and policy analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed closely due to the cost-plus structure.
Ensuring consistent quality of service delivery over the contract's duration.
Monitoring contractor performance to ensure alignment with evolving international affairs priorities.

Positive Signals

Award through full and open competition suggests a competitive market and potentially good value.
The contract's focus on international affairs aligns with a critical government function.
A clear end date provides a defined period for service delivery and evaluation.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on international affairs consulting and support. This sector is characterized by a mix of large, established firms and specialized boutique consultancies. Government spending in this area is driven by the need for expert advice and support in complex global economic and geopolitical landscapes. Comparable spending benchmarks are difficult to establish without specific service details, but the overall value suggests a mid-sized engagement.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While there's no explicit requirement for small business subcontracting mentioned, the prime contractor may still engage small businesses to fulfill certain aspects of the work. The impact on the small business ecosystem is likely minimal unless the prime contractor actively seeks out small business partners.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Treasury. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of State - International Programs
Department of Commerce - International Trade Administration
US Agency for International Development (USAID) - Program Support
Export-Import Bank of the United States - Advisory Services

Risk Flags

Cost-plus contract type requires diligent oversight to manage expenditures.
Long contract duration necessitates monitoring for scope creep and performance degradation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $1.0 million to DOMESTIC AWARDEES (UNDISCLOSED). REED, CHRIS LAVERN NEW CONTRACT NEW CONTRACT

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Departmental Offices).

What is the total obligated amount?

The obligated amount is $1.0 million.

What is the period of performance?

Start: 2022-08-04. End: 2026-08-10.

What specific international affairs functions does this contract support?

While the provided data does not detail the specific functions, contracts for 'International Affairs' within the Department of the Treasury typically support a range of activities. These can include policy analysis related to international economic sanctions, trade finance, global financial stability, foreign asset control, and engagement with international financial institutions like the IMF and World Bank. The services may involve research, data analysis, report generation, strategic planning, and advisory support to Treasury officials involved in these complex global economic and financial policy areas.

How does the contract's cost structure (Cost No Fee) impact value for money?

The 'Cost No Fee' (COST) contract type means the government reimburses the contractor for allowable costs incurred but does not pay any fee or profit. This structure is typically used when the scope of work is uncertain or when the government wants to minimize contractor risk. For value for money, it implies the government is paying only for the direct costs of performing the work. However, it places the burden of cost control entirely on the government's oversight. Effective management is crucial to ensure costs remain reasonable and do not escalate beyond what is necessary for the defined scope.

What is the significance of having 8 bidders for this contract?

Having eight bidders for this contract signifies a healthy level of competition within the market for international affairs support services. A larger number of bidders generally indicates that the opportunity is attractive to a wider range of potential providers and that the barriers to entry are not prohibitively high. This robust competition typically leads to better price discovery, potentially lower costs for the government, and a wider selection of qualified contractors, ultimately benefiting taxpayers by ensuring a more efficient use of public funds.

What are the potential risks associated with a contract duration of nearly four years?

A contract duration of nearly four years (1467 days) presents several potential risks. Firstly, the scope of work or the specific needs of the agency might evolve significantly over this period, potentially making the contracted services less relevant or requiring costly modifications. Secondly, maintaining consistent service quality and contractor performance over an extended period can be challenging. Thirdly, there's a risk of contractor 'lock-in,' where the government becomes dependent on the incumbent, potentially reducing leverage in future re-competition. Finally, long-term contracts can be susceptible to economic fluctuations affecting costs, even with a fixed fee structure.

Are there any indications of contractor performance issues from previous contracts?

The provided data does not include information on the contractor's past performance on previous contracts. To assess this aspect thoroughly, one would need to consult performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS) or conduct further research into the specific awardee's track record. Without this information, it's impossible to determine if there are any historical issues that might pose a risk to the successful execution of this new contract.

How does this contract compare to other federal spending in international affairs support?

The contract value of approximately $1.03 million is relatively modest within the broader context of federal spending on international affairs support. Many federal agencies, including the State Department, USAID, and DoD, award significantly larger contracts for similar or related services, often in the tens or hundreds of millions of dollars, due to the scale and scope of their global operations. This Treasury contract appears to be a focused engagement, likely addressing specific programmatic needs rather than broad agency-wide support, making direct comparison challenging without more granular data on the services provided.

Industry Classification

NAICS: Public Administration › National Security and International Affairs › International Affairs

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2032K822R00009

Offers Received: 8

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,382,160

Exercised Options: $1,062,679

Current Obligation: $1,025,946

Actual Outlays: $871,452

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline