Treasury's $41,000 contract with Rhodium Group for market research highlights potential gaps in administrative management consulting services

Contract Overview

Contract Amount: $41,000 ($41.0K)

Contractor: Rhodium Group LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-05-01

End Date: 2026-04-30

Contract Duration: 729 days

Daily Burn Rate: $56/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RHODIUM GROUP - CHINA MARKETS RESEARCH PRODUCT

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10019

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $41,000 to RHODIUM GROUP LLC for work described as: RHODIUM GROUP - CHINA MARKETS RESEARCH PRODUCT Key points: 1. The contract value is relatively small, suggesting a focused scope of work. 2. The sole-source nature of this award warrants scrutiny regarding the necessity of this specific vendor. 3. Limited competition may lead to suboptimal pricing and reduced innovation. 4. The duration of the contract (729 days) indicates a need for ongoing support in this area. 5. The service category (Administrative Management and General Management Consulting Services) is broad and could encompass various analytical needs. 6. The award is a purchase order, typically used for smaller, less complex acquisitions.

Value Assessment

Rating: questionable

The contract value of $41,000 is modest. Without comparable sole-source awards for similar market research products, it's difficult to benchmark value. However, the lack of competition raises concerns about whether the government secured the best possible price and service. The fixed-price nature of the award provides some cost certainty, but the absence of competitive bidding prevents a robust assessment of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Rhodium Group LLC, was solicited. The justification for not competing this requirement is not provided in the data. Sole-source awards can be appropriate when a unique capability or urgent need exists, but they bypass the competitive process designed to ensure fair pricing and broad market access.

Taxpayer Impact: Sole-source awards limit taxpayer exposure to competitive pricing, potentially resulting in higher costs than if multiple vendors had vied for the contract.

Public Impact

The Bureau of the Fiscal Service benefits from specialized market research insights. The services delivered likely support informed decision-making within the Treasury Department. The geographic impact is primarily federal, supporting national-level policy and operations. Workforce implications are minimal, as this is a service contract likely performed by the contractor's existing staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated costs for taxpayers.
Sole-source awards can limit opportunities for other qualified vendors.
Transparency is reduced without a competitive bidding process.

Positive Signals

The contract is for a specific market research product, suggesting a defined need.
The fixed-price contract provides cost predictability for the government.
The award is to a single, presumably specialized, vendor.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is characterized by a wide range of service providers, from large consulting firms to niche research groups. The market size for such services is substantial, driven by government and private sector needs for data analysis, strategic advice, and market intelligence. Benchmarking this specific contract is challenging due to its sole-source nature and modest value, but it represents a small component of overall federal spending on consulting services.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. As a sole-source award to Rhodium Group LLC, it does not directly contribute to the small business contracting ecosystem through set-aside goals. The impact on small businesses is neutral in this instance, as no specific opportunities were created or denied by a competitive process.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of the Fiscal Service's contracting and program management offices. As a purchase order, it is subject to standard procurement regulations and internal controls. Transparency is limited due to the sole-source nature, and specific accountability measures would be detailed in the contract's statement of work. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Acquisition Service (FAS) contracts
Management and Consulting Services
Market Research and Intelligence Services
Department of the Treasury Procurement Data

Risk Flags

Sole-source award without clear justification
Limited transparency in procurement process
Potential for suboptimal pricing due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $41,000 to RHODIUM GROUP LLC. RHODIUM GROUP - CHINA MARKETS RESEARCH PRODUCT

Who is the contractor on this award?

The obligated recipient is RHODIUM GROUP 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 $41,000.

What is the period of performance?

Start: 2024-05-01. End: 2026-04-30.

What is the specific market research product being procured from Rhodium Group, and how does it align with the Bureau of the Fiscal Service's mission?

The provided data does not specify the exact market research product. However, the Bureau of the Fiscal Service's mission involves managing federal finances, including debt management, government accounts, and fiscal policy analysis. Therefore, the research product likely pertains to economic trends, financial markets, or geopolitical factors that could impact fiscal operations or policy. Understanding the specific deliverables would be crucial to assessing the contract's relevance and value. Without this detail, we assume it supports critical decision-making processes within the Bureau.

What is the justification for awarding this contract on a sole-source basis to Rhodium Group LLC?

The data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. Federal procurement regulations typically require competitive bidding unless specific exceptions apply, such as the existence of only one responsible source, urgent and compelling needs, or specific statutory authority. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the precise reason for bypassing competition. This lack of transparency is a concern, as it prevents an independent assessment of whether a competitive process was truly infeasible or if it was simply deemed unnecessary.

How does the $41,000 contract value compare to typical spending on similar market research products by the Department of the Treasury or other federal agencies?

The $41,000 contract value is relatively modest for federal procurement, especially for specialized market research. However, without knowing the specific scope and depth of the research required, direct comparisons are difficult. Larger, more comprehensive market intelligence contracts can range from tens of thousands to millions of dollars. Given this is a sole-source purchase order, it suggests a targeted, perhaps ongoing, need for a specific type of analysis rather than a broad, large-scale research initiative. Further investigation into similar procurements for market research within Treasury or related agencies would be needed for a robust benchmark.

What is Rhodium Group LLC's track record with federal contracts, particularly with the Department of the Treasury?

The provided data only includes details for this specific contract. To assess Rhodium Group LLC's track record, a broader search of federal procurement databases (like SAM.gov or FPDS) would be necessary. This would reveal any prior contracts, their values, performance ratings, and any issues encountered. Without this historical data, it's difficult to evaluate their past performance, reliability, and experience relevant to the services provided under this current award.

What are the potential risks associated with a sole-source award for administrative management and general management consulting services?

The primary risks associated with sole-source awards include potential overpayment due to lack of price competition, limited access to innovative solutions that might be offered by other vendors, and reduced transparency in the procurement process. For consulting services, there's also a risk that the chosen vendor may not be the best fit for the specific needs or that their approach might be suboptimal. Without competition, there's less incentive for the contractor to provide exceptional value or to be highly efficient. The government also misses out on the potential for discovering new capabilities or more cost-effective solutions from a wider market.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SSOFR24057

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5 COLUMBUS CIR, NEW YORK, NY, 10019

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

Financial Breakdown

Contract Ceiling: $41,000

Exercised Options: $41,000

Current Obligation: $41,000

Actual Outlays: $41,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline