FMC Awards $21.4M HR Consulting Contract to Economic Systems Inc. via Full and Open Competition
Contract Overview
Contract Amount: $21,433 ($21.4K)
Contractor: Economic Systems Inc
Awarding Agency: Federal Maritime Commission
Start Date: 2024-05-13
End Date: 2027-03-31
Contract Duration: 1,052 days
Daily Burn Rate: $20/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FED HR NAVIGATOR
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20573
Plain-Language Summary
Federal Maritime Commission obligated $21,432.81 to ECONOMIC SYSTEMS INC for work described as: FED HR NAVIGATOR Key points: 1. Contract value of $21.4 million over approximately 3 years. 2. Awarded to Economic Systems Inc. for Human Resources Consulting Services. 3. Procured through full and open competition, suggesting market availability. 4. Firm Fixed Price contract type aims to control costs. 5. No small business set-aside, indicating potential for larger prime contractors.
Value Assessment
Rating: good
The contract value of $21.4 million over 1052 days (approx. 3 years) suggests a significant investment in HR consulting. Benchmarking against similar large-scale HR consulting contracts would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically fosters competitive pricing and allows the government to select the best value. The firm fixed price structure further supports cost control.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it encourages multiple bidders, potentially leading to lower prices and better service quality.
Public Impact
Federal Maritime Commission (FMC) will receive HR consulting services. Economic Systems Inc. will provide these services through a delivery order. The contract duration spans from May 2024 to March 2027. Services are categorized under Human Resources Consulting Services (NAICS 541612).
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation noted.
- Potential for vendor lock-in if services are highly specialized.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type.
- Clear contract duration and delivery order structure.
Sector Analysis
This contract falls under professional services, specifically HR consulting. Spending in this sector can vary widely based on agency needs, but significant contracts like this often indicate a need for specialized expertise or large-scale support.
Small Business Impact
The data indicates no small business set-aside for this contract. This suggests that the requirement was either not suitable for small businesses or that larger prime contractors were deemed more appropriate for the scope of work.
Oversight & Accountability
The contract is a delivery order under a larger contract vehicle, implying some level of pre-competition or established framework. Oversight will focus on the performance of Economic Systems Inc. and adherence to the firm fixed price terms.
Related Government Programs
- Human Resources Consulting Services
- Federal Maritime Commission Contracting
- Federal Maritime Commission Programs
Risk Flags
- No small business participation.
- Potential for scope creep if not managed tightly.
- Reliance on a single contractor for critical HR functions.
- Long contract duration could lead to outdated solutions if not actively managed.
Tags
human-resources-consulting-services, federal-maritime-commission, dc, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Federal Maritime Commission awarded $21,432.81 to ECONOMIC SYSTEMS INC. FED HR NAVIGATOR
Who is the contractor on this award?
The obligated recipient is ECONOMIC SYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Federal Maritime Commission (Federal Maritime Commission).
What is the total obligated amount?
The obligated amount is $21,432.81.
What is the period of performance?
Start: 2024-05-13. End: 2027-03-31.
What specific HR challenges is the FMC addressing with this significant investment?
The specific HR challenges are not detailed in the provided data. However, a $21.4 million contract for HR consulting typically addresses broad areas such as workforce planning, talent management, organizational development, compensation and benefits analysis, or HR system implementation. The FMC likely requires expert support to modernize its HR functions, improve employee engagement, or comply with evolving regulations.
How does the firm fixed price structure mitigate risks for the government?
A firm fixed price (FFP) contract shifts the majority of the cost risk to the contractor, Economic Systems Inc. The FMC pays a set price regardless of the contractor's actual costs incurred. This structure incentivizes the contractor to manage its expenses efficiently and complete the work within the agreed budget, providing cost certainty for the government and minimizing the risk of cost overruns.
What is the potential impact on government effectiveness if the HR consulting services are not successfully delivered?
Failure to successfully deliver HR consulting services could significantly hinder the FMC's operational effectiveness. This might manifest as decreased employee morale, difficulties in recruitment and retention, inefficient HR processes, non-compliance with labor laws, and a general inability to support the agency's strategic goals. The substantial investment underscores the perceived importance of these services to the FMC's functioning.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8521 LEESBURG PIKE STE 450, VIENNA, VA, 22182
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,005
Exercised Options: $21,433
Current Obligation: $21,433
Actual Outlays: $10,027
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS02F0092T
IDV Type: FSS
Timeline
Start Date: 2024-05-13
Current End Date: 2027-03-31
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2026-04-01
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