Treasury's $2.1M Graphic Design Contract Awarded to CRUX JV, LLC for Service Design Support

Contract Overview

Contract Amount: $2,091,272 ($2.1M)

Contractor: Crux JV, LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-09-24

End Date: 2027-09-23

Contract Duration: 729 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: SERVICE DESIGN SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.1 million to CRUX JV, LLC for work described as: SERVICE DESIGN SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Service design support and graphic design services are crucial for agency communication and branding. 3. The contract duration of approximately two years suggests a need for ongoing support. 4. Awarded as a purchase order, indicating a potentially smaller scale or specific need. 5. The contractor, CRUX JV, LLC, is a joint venture, which may offer specialized capabilities. 6. The contract is not set aside for small businesses, potentially impacting small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this $2.1 million contract for graphic design services is challenging without more detailed cost breakdowns or comparisons to similar sole-source awards. The absence of a competitive bidding process means there's less external validation of the pricing. However, the duration of the contract (729 days) and the nature of the services (graphic design) suggest that the annual cost is within a plausible range for specialized creative support. Further analysis would require understanding the specific deliverables and the market rates for comparable joint venture expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded through a sole-source justification. This approach bypasses the standard competitive process, meaning only one vendor was solicited. While sole-source awards can be efficient for specific needs, they typically result in less favorable pricing and reduced innovation compared to full and open competition. The lack of multiple bidders means the government did not benefit from a range of proposals and price points.

Taxpayer Impact: Taxpayers may not be receiving the best possible value due to the absence of competitive pressure on pricing. The government's ability to negotiate favorable terms is diminished when only one vendor is considered.

Public Impact

The Bureau of the Fiscal Service benefits from specialized graphic design and service design support. Services likely enhance the agency's public-facing communications, branding, and user experience design. The contract's impact is primarily within the District of Columbia, where the agency is located. Potential workforce implications include the utilization of specialized design talent by CRUX JV, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for taxpayers.
Lack of small business set-aside may reduce opportunities for smaller firms in this contract.
Limited transparency on specific deliverables and cost breakdown for sole-source award.

Positive Signals

Award to a joint venture (CRUX JV, LLC) may bring specialized expertise.
Purchase order indicates a defined scope for specific service design needs.
Contract duration suggests a sustained need for these critical design services.

Sector Analysis

The graphic design services sector is a vital component of government communications and branding efforts. This contract falls under the broader professional, scientific, and technical services industry. The market for graphic design is diverse, ranging from small studios to large firms, including joint ventures that can offer combined expertise. The award to CRUX JV, LLC, a joint venture, suggests the government sought a specific blend of capabilities. Comparable spending benchmarks for graphic design services can vary widely based on scope, duration, and contractor specialization.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to CRUX JV, LLC, a joint venture, means that the primary contractor is likely a larger entity or a consortium of firms. This could limit direct opportunities for small businesses to participate in this specific contract, although the joint venture itself might engage small businesses as subcontractors if it aligns with their strategy.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Bureau of the Fiscal Service within the Department of the Treasury. Accountability measures would be tied to the contract's performance work statement and deliverables. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competitively bid contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

General Services Administration (GSA) Schedules for graphic design services
Department of the Treasury's overall IT and professional services spending
Federal creative services contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for non-optimal pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.1 million to CRUX JV, LLC. SERVICE DESIGN SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CRUX JV, 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 $2.1 million.

What is the period of performance?

Start: 2025-09-24. End: 2027-09-23.

What specific graphic design and service design deliverables are expected under this contract?

The provided data indicates the contract is for 'SERVICE DESIGN SUPPORT SERVICES' and falls under NAICS code '541430' (Graphic Design Services). While the specific deliverables are not detailed in the abbreviated data, typical services under such a contract could include creating visual concepts for agency publications, websites, and marketing materials; developing branding guidelines; designing user interfaces for digital platforms; conducting user research to inform design decisions; and providing strategic advice on service delivery through design thinking methodologies. The 'PURCHASE ORDER' designation suggests a defined scope of work, likely outlined in a statement of work attached to the order, which would detail the exact outputs, timelines, and quality standards expected from CRUX JV, LLC.

How does the pricing of this sole-source contract compare to market rates for similar graphic design services?

Directly comparing the pricing of this sole-source contract to market rates is challenging without a detailed cost breakdown and a clear understanding of the specific services and expertise provided by CRUX JV, LLC. Sole-source awards often carry a premium because they lack the downward price pressure inherent in competitive bidding. To assess value, one would need to benchmark the hourly rates or project costs against industry standards for graphic design and service design, considering the contractor's qualifications (a joint venture suggests specialized capabilities) and the contract's duration (729 days). Without this comparative data, it's difficult to definitively state if the pricing is optimal, though the absence of competition raises concerns about potential overpayment.

What is the track record of CRUX JV, LLC in performing federal contracts, particularly for graphic design services?

Information regarding the specific track record of CRUX JV, LLC in performing federal contracts, especially for graphic design services, is not available in the provided abbreviated data. As a joint venture, its performance history might be a composite of its member companies' experiences or a newly established record for the JV itself. To assess their track record, one would typically consult federal procurement databases (like SAM.gov or FPDS) for past performance evaluations, contract awards, and any reported issues. Understanding their past performance is crucial for evaluating the risk associated with this sole-source award and ensuring the government receives quality services.

What are the potential risks associated with awarding a graphic design contract on a sole-source basis?

The primary risks associated with awarding a graphic design contract on a sole-source basis include: 1) **Higher Cost:** Without competition, the contractor may charge more than they would in a competitive environment, leading to potential overspending of taxpayer funds. 2) **Limited Innovation:** A sole-source award might not incentivize the contractor to propose the most innovative or cost-effective solutions, as there is no competitive pressure to do so. 3) **Reduced Accountability:** While performance is still monitored, the lack of alternative vendors can reduce the leverage the government has if performance issues arise. 4) **Potential for Complacency:** The awarded contractor might become complacent over time, knowing that their position is secured without needing to continuously prove their value against competitors.

How does this contract fit into the broader context of the Bureau of the Fiscal Service's spending on design and communication services?

This $2.1 million contract for service design and graphic design support represents a specific investment by the Bureau of the Fiscal Service (BFS) in enhancing its visual communications and user experience. Without historical spending data for BFS's design services, it's difficult to place this contract in a precise context. However, agencies increasingly recognize the importance of professional design for effective public outreach, digital service delivery, and internal branding. This contract suggests BFS is prioritizing these areas. Its size ($2.1M over ~2 years) indicates a significant, ongoing need rather than a one-off project, potentially aligning with broader digital transformation or modernization initiatives within the Treasury Department.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Specialized Design Services › Graphic Design Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 20341425Q00055

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 184 DUKE OF GLOUCESTER ST, ANNAPOLIS, MD, 21401

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,245,282

Exercised Options: $2,091,272

Current Obligation: $2,091,272

Actual Outlays: $434,579

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline