Treasury awards $400K for procurement support, highlighting need for specialized expertise

Contract Overview

Contract Amount: $400,000 ($400.0K)

Contractor: Steel Point Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PROCUREMENT SUPPORT SERVICES

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $400,000 to STEEL POINT SOLUTIONS, LLC for work described as: PROCUREMENT SUPPORT SERVICES Key points: 1. Contract value appears modest, suggesting a focused scope of services. 2. Competition level indicates a potentially efficient market for these services. 3. Limited duration may mitigate long-term cost risks. 4. Performance location in Maryland could signal regional expertise focus. 5. The contract's purpose aligns with essential government administrative functions.

Value Assessment

Rating: good

The contract value of $400,000 for a 364-day period is relatively small, making direct comparison to larger, multi-year contracts difficult. However, the pricing structure based on labor hours will require careful monitoring to ensure value. Without specific benchmarks for 'procurement support services' of this nature, it's challenging to definitively assess cost-effectiveness, but the competitive award suggests a reasonable market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, specific exclusions were applied, potentially limiting the pool of eligible bidders. The number of bidders is not specified, but the limited nature of the competition could impact price discovery and potentially lead to higher costs compared to truly full and open competition.

Taxpayer Impact: Taxpayers benefit from a competitive process, even if limited, which should drive a more reasonable price than a sole-source award. However, the exclusions warrant scrutiny to ensure they were justified and did not unduly restrict competition.

Public Impact

Government agencies requiring specialized procurement assistance will benefit from the services rendered. The contract supports the Bureau of the Fiscal Service in its administrative and operational functions. Services are delivered within Maryland, potentially impacting the local economy through contractor employment. The contract ensures continuity in essential government procurement processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusions.
Labor hour pricing requires diligent oversight to prevent cost overruns.
Scope creep could increase the overall cost beyond the initial $400,000.

Positive Signals

Awarded to a single contractor, suggesting a clear selection process.
Defined period of performance limits long-term financial commitment.
Focus on procurement support aligns with critical government functions.

Sector Analysis

Procurement support services are a critical component of government operations, enabling agencies to acquire goods and services efficiently. The market for these services is diverse, ranging from small specialized firms to large consulting groups. This contract, valued at $400,000, falls into the smaller end of the spectrum, likely addressing a specific need within the Bureau of the Fiscal Service rather than a broad, agency-wide requirement. Comparable spending benchmarks are difficult to establish without more detail on the specific services required.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. The award to Steel Point Solutions, LLC, a single entity, does not provide immediate insight into their small business utilization practices.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of the Fiscal Service within the Department of the Treasury. Standard contract management procedures, including performance monitoring and payment verification, would be in place. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Procurement Services
Administrative Support Services
Professional Services Contracts
Government Contracting Support

Risk Flags

Potential NAICS code misclassification.
Limited competition due to source exclusions.
Labor hour pricing requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $400,000 to STEEL POINT SOLUTIONS, LLC. PROCUREMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is STEEL POINT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $400,000.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What specific procurement support services are being provided under this contract?

The provided data indicates the contract is for 'PROCUREMENT SUPPORT SERVICES' but does not detail the specific tasks. These services could range from assisting with the development of solicitations, evaluating bids, managing contract closeouts, providing market research, or offering strategic advice on procurement processes. The classification code NAICS 336611 (Ship Building and Repairing) appears to be a misclassification or an error in the data provided, as 'PROCUREMENT SUPPORT SERVICES' typically falls under professional, scientific, and technical services (e.g., NAICS 541611 - Administrative Management and General Management Consulting Services, or NAICS 541990 - All Other Professional, Scientific, and Technical Services). Clarification on the exact nature of the services and the correct NAICS code is essential for a thorough analysis.

How does the $400,000 contract value compare to similar procurement support contracts within the Department of the Treasury?

Comparing the $400,000 value requires access to a broader dataset of Treasury contracts for procurement support. Generally, procurement support can range from small, task-specific awards like this one to multi-million dollar engagements for large-scale program management. This $400,000 award suggests a focused need, perhaps for a specific project phase or a specialized area of expertise, rather than a comprehensive, long-term support requirement. Without more granular data on the scope and duration of comparable contracts, it's difficult to establish a precise benchmark, but the value appears modest for a federal contract.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

This award type presents a nuanced risk profile. While it aims for competition, the 'exclusion of sources' implies that certain potential bidders were deliberately not considered. The primary risk is that these exclusions, if not fully justified, could limit the range of innovative solutions or competitive pricing available to the government. It could also signal a pre-existing relationship or specific capability requirement that narrows the field. Taxpayers could face higher costs if the excluded sources offered more competitive terms. Thorough documentation justifying the exclusions is critical to mitigate this risk and ensure fair market access.

What is the track record of Steel Point Solutions, LLC in performing federal contracts, particularly for procurement support?

Information on Steel Point Solutions, LLC's track record is not provided in the data snippet. A comprehensive analysis would require examining their past performance on federal contracts, including contract values, agencies served, services rendered, and past performance reviews. Understanding their experience specifically with procurement support services, their ability to meet deadlines, manage budgets, and deliver quality outcomes is crucial for assessing the reliability and value of this current award. A review of contract databases like SAM.gov or FPDS would be necessary to gather this information.

What is the significance of the contract duration of 364 days?

A contract duration of 364 days is notable as it is just under one full year. This duration often suggests a need for services that are either project-based, seasonal, or intended to bridge a gap until a more permanent solution is established. For taxpayers, a shorter duration can be advantageous as it limits long-term financial commitments and allows for re-evaluation of needs and market conditions upon expiration. It also provides flexibility for the agency to adjust the scope or contractor if performance is not meeting expectations.

How does the PSC code (if applicable) or NAICS code relate to the services being procured?

The provided data lists NAICS code 336611 ('Ship Building and Repairing') and an empty PSC field. This presents a significant discrepancy, as 'PROCUREMENT SUPPORT SERVICES' are not typically associated with shipbuilding. Procurement support generally falls under professional, scientific, and technical services (e.g., NAICS 541xxx series). This mismatch suggests a potential data entry error or misclassification. If the NAICS code is indeed 336611, the contract's purpose would be entirely different, related to naval or maritime construction. If the service is truly procurement support, the NAICS code needs correction for accurate analysis and comparison.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

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

Solicitation ID: 20341425Q00058

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 11720 BELTSVILLE DR STE 1001, CALVERTON, MD, 20705

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $1,274,857

Exercised Options: $400,000

Current Obligation: $400,000

Actual Outlays: $37,952

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRCA25DW082

IDV Type: IDC

Timeline