Treasury's $33K Puerto Rico hiring event contract awarded to AEG Management PR, LLC

Contract Overview

Contract Amount: $33,073 ($33.1K)

Contractor: AEG Management PR, LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-03-27

End Date: 2024-04-04

Contract Duration: 8 days

Daily Burn Rate: $4.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PUERTO RICO IRS DIRECT HIRING EVENT. POP: 04/01/2024 - 04/04/2024

Place of Performance

Location: GUAYNABO, GUAYNABO County, PUERTO RICO, 00968

Plain-Language Summary

Department of the Treasury obligated $33,072.5 to AEG MANAGEMENT PR, LLC for work described as: PUERTO RICO IRS DIRECT HIRING EVENT. POP: 04/01/2024 - 04/04/2024 Key points: 1. Contract awarded for a short-duration, localized event. 2. Limited scope suggests a focused operational need. 3. No indication of significant financial risk due to small award value. 4. Performance context tied to a specific, time-bound hiring initiative. 5. Sector positioning within administrative and support services. 6. Awarded as a purchase order, indicating a streamlined acquisition process.

Value Assessment

Rating: fair

The contract value of $33,072.50 is relatively small, making direct comparison to larger contracts difficult. The price appears reasonable for a short-term event management service, likely covering venue rental, staffing, and logistical support for a direct hiring event. Without detailed cost breakdowns, a precise value-for-money assessment is challenging, but the cost seems aligned with the limited scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for this approach is not provided, but it suggests that either only one vendor was deemed capable of meeting the specific requirements or the procurement process was expedited due to urgent needs. The lack of competition limits the government's ability to explore alternative solutions or secure potentially lower pricing through a bidding process.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from competitive pricing that could have potentially reduced the cost of the hiring event services.

Public Impact

Benefits the Internal Revenue Service by facilitating a direct hiring event. Services delivered include event management and logistical support for recruitment. Geographic impact is focused on Puerto Rico. Workforce implications include potential new hires for the IRS in Puerto Rico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential savings for taxpayers.
Absence of a detailed justification for the sole-source award raises transparency concerns.

Positive Signals

Contract supports a specific IRS initiative to fill critical positions.
Awarded to a local Puerto Rico-based company, potentially supporting the local economy.
Short duration and defined scope suggest a manageable and focused project.

Sector Analysis

This contract falls within the administrative and support services sector, specifically related to event management and temporary staffing for recruitment. The market for such services is broad, encompassing numerous companies capable of organizing corporate events. The IRS's need for a localized hiring event likely dictated the specific requirements, making this a niche application within the broader sector. Comparable spending benchmarks are difficult to establish due to the unique nature and short duration of the service.

Small Business Impact

The contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no information available regarding subcontracting opportunities for small businesses. The direct award to AEG Management PR, LLC, does not indicate any specific impact on the broader small business ecosystem in this instance.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of the Treasury's internal procurement and financial management controls. As a sole-source award, the justification and approval process would be subject to review. Transparency is limited due to the lack of publicly available details regarding the sole-source justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IRS Recruitment Programs
Federal Hiring Events
Government Event Management Services
Department of the Treasury Procurement

Risk Flags

Sole-source award without clear justification
Limited transparency on vendor selection

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $33,072.5 to AEG MANAGEMENT PR, LLC. PUERTO RICO IRS DIRECT HIRING EVENT. POP: 04/01/2024 - 04/04/2024

Who is the contractor on this award?

The obligated recipient is AEG MANAGEMENT PR, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $33,072.5.

What is the period of performance?

Start: 2024-03-27. End: 2024-04-04.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available to meet the government's needs, or in cases of urgent and compelling circumstances. Without this documentation, it is impossible to fully assess the necessity of bypassing the competitive bidding process. This lack of transparency can raise questions about whether the government explored all available options to secure the best value for taxpayers. Further inquiry with the Department of the Treasury would be required to obtain the official justification.

How does the cost of this hiring event compare to similar IRS recruitment events?

Direct comparison of the $33,072.50 cost for this specific Puerto Rico hiring event to other IRS recruitment events is challenging without more data. The value is relatively small and covers a very short duration (8 days). Factors influencing cost include venue rental, staffing, marketing, and logistical support, which can vary significantly by location and scale. Larger, multi-day, or multi-location events would naturally incur higher costs. To benchmark effectively, one would need to compare costs on a per-day or per-attendee basis for events with similar service requirements and geographic scope. The IRS's historical spending on similar localized, short-term hiring initiatives would provide a more relevant comparison point.

What are the potential risks associated with a sole-source award for event management services?

The primary risk associated with a sole-source award for event management services is the potential for inflated pricing due to the absence of competition. Without bids from multiple vendors, the government may not achieve the most cost-effective solution. Additionally, there's a risk of limited innovation or service quality if the sole provider is not incentivized by market pressures. Transparency can also be a concern, as the justification for bypassing competition needs to be robust. For a relatively small contract like this, the financial risk is mitigated by the low dollar amount, but the principle of fair competition remains important for taxpayer value.

What is the track record of AEG Management PR, LLC in providing government contracting services?

Information regarding the specific track record of AEG Management PR, LLC in providing government contracting services is not detailed in the provided data. As this is a sole-source award for a purchase order, it suggests a pre-existing relationship or a specific capability that the IRS identified. To assess their track record, one would need to consult federal procurement databases (like SAM.gov or FPDS) for previous awards, contract performance history, and any reported issues. Understanding their past performance, particularly with similar event management or administrative support contracts for federal agencies, would provide crucial context for evaluating the appropriateness of this award.

What is the expected impact of this hiring event on IRS staffing levels in Puerto Rico?

The primary impact of this hiring event is expected to be a direct increase in IRS staffing levels within Puerto Rico. By facilitating a 'direct hiring event,' the IRS aims to expedite the recruitment process and fill vacant positions more efficiently. The success of this initiative will be measured by the number of qualified candidates hired and onboarded as a result of the event. While the specific number of positions targeted is not mentioned, the event's purpose is clearly to bolster the IRS workforce in the region, potentially improving service delivery or operational capacity.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Nonresidential Buildings (except Miniwarehouses)

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 CONVENTION BLVD, SAN JUAN, PR, 00907

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

Financial Breakdown

Contract Ceiling: $33,073

Exercised Options: $33,073

Current Obligation: $33,073

Actual Outlays: $33,073

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline