DHS awards $29.25M for HR consulting, with KnowledgeBank Inc. securing a significant portion

Contract Overview

Contract Amount: $29,253,421 ($29.3M)

Contractor: Knowledgebank, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-06-12

End Date: 2026-12-11

Contract Duration: 1,278 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CONSOLIDATED HIRING, OPERATIONS AND PERSONNEL SUPPORT (CHOPS II)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.3 million to KNOWLEDGEBANK, INC. for work described as: CONSOLIDATED HIRING, OPERATIONS AND PERSONNEL SUPPORT (CHOPS II) Key points: 1. Value for money appears fair given the scope of human resources consulting services. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are moderate, typical for large-scale HR support contracts. 4. Performance context suggests a need for specialized HR expertise within DHS. 5. Sector positioning places this contract within the broader government IT and professional services landscape.

Value Assessment

Rating: fair

The contract's value of $29.25 million for HR consulting services over its period of performance is substantial. Benchmarking against similar large-scale HR support contracts within federal agencies suggests this pricing is within a reasonable range, though detailed cost breakdowns would be needed for a precise value-for-money assessment. The use of labor hours indicates a flexible approach to service delivery, which can be cost-effective if managed efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition after exclusion of sources' procedure, indicating a robust competitive process. While the exact number of bidders is not specified, this approach generally aims to maximize competition and ensure fair pricing. The exclusion of sources might be due to specific technical requirements or prior performance, but the 'full and open' aspect suggests multiple entities were considered.

Taxpayer Impact: A fully competed contract generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

Benefits federal employees by ensuring efficient and effective human resources operations within the Department of Homeland Security. Delivers critical HR consulting services, including hiring, operations, and personnel support. Geographic impact is primarily national, supporting DHS operations across various locations. Workforce implications include support for the DHS HR personnel and potentially improved employee services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term HR consulting engagements.
Reliance on a single contractor for critical HR functions could pose a risk if performance falters.
Ensuring consistent service quality across all DHS components may be challenging.

Positive Signals

The 'CHOPS II' designation suggests a follow-on or established program, implying prior successful performance.
Full and open competition indicates a healthy market response and potential for high-quality service providers.
The contract duration allows for sustained support and development of specialized HR capabilities.

Sector Analysis

This contract falls within the professional services sector, specifically HR consulting. The government's spending on HR services is substantial, driven by the need to manage large workforces, ensure compliance, and attract talent. Comparable spending benchmarks in this area are difficult to pinpoint without more specific service details, but agencies frequently contract for recruitment, classification, compensation, and employee relations support.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests the primary award was likely made to a large business. However, the prime contractor, KnowledgeBank, Inc., may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem. Further analysis of subcontracting plans would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Homeland Security's Office of Procurement Operations, with specific program managers overseeing performance. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract databases like FPDS, though detailed internal performance reviews are generally not public.

Related Government Programs

Human Resources Management Services
Professional and Management Consulting Services
Department of Homeland Security Contracts
Federal Workforce Support Programs

Risk Flags

Potential for vendor lock-in if not managed carefully.
Ensuring data security and privacy of sensitive HR information.
Measuring the true impact and ROI of HR consulting services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.3 million to KNOWLEDGEBANK, INC.. CONSOLIDATED HIRING, OPERATIONS AND PERSONNEL SUPPORT (CHOPS II)

Who is the contractor on this award?

The obligated recipient is KNOWLEDGEBANK, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2023-06-12. End: 2026-12-11.

What is the track record of KnowledgeBank, Inc. with federal HR consulting contracts?

KnowledgeBank, Inc. has a history of performing federal contracts, including those related to human resources and professional services. Their involvement in the 'CHOPS II' program suggests a continued relationship or successful prior performance with the Department of Homeland Security. Analyzing their past performance on similar contracts, including client feedback, on-time delivery rates, and adherence to budget, would provide a clearer picture of their capabilities and reliability. Specific details on their past performance metrics are often found in contract award histories and performance evaluations, which may be accessible through federal procurement data systems.

How does the pricing of this contract compare to similar HR consulting services procured by other federal agencies?

Directly comparing the pricing of this $29.25 million contract without detailed service breakdowns and labor rates is challenging. However, the use of 'labor hours' as the contract type suggests that costs are tied to the time spent by personnel. Benchmarking would involve comparing the average hourly rates for similar HR consulting roles (e.g., HR specialists, consultants, analysts) across different agencies. Factors like the complexity of the tasks, the required experience levels, and geographic location of service delivery can significantly influence these rates. Generally, large-scale, multi-year HR support contracts for major agencies represent a significant investment, and pricing is expected to be competitive due to the procurement process.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this HR consulting contract include potential performance issues, contractor non-compliance, cost overruns, and challenges in adapting to evolving DHS needs. Mitigation strategies typically involve robust contract oversight, clearly defined performance metrics and Service Level Agreements (SLAs), regular performance reviews, and contingency planning. The 'full and open competition' process itself helps mitigate risks by selecting a contractor with a proven track record and competitive pricing. Furthermore, the contract's structure, likely including phased delivery and payment milestones, allows for ongoing assessment and adjustment, ensuring that DHS receives value and that risks are managed proactively throughout the performance period.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' method aims to balance broad market participation with specific requirements. By initially excluding certain sources, the government ensures that the pool of potential bidders meets essential criteria, potentially reducing the number of non-qualified proposals and streamlining the evaluation process. The 'full and open' aspect thereafter encourages widespread bidding among the remaining qualified entities. This approach can lead to competitive pricing and innovative solutions, ultimately benefiting taxpayers by fostering a market-driven selection of the best value. However, the effectiveness hinges on the justification for excluding sources and the rigor of the subsequent open competition.

What is the historical spending trend for HR consulting services within the Department of Homeland Security?

Analyzing historical spending trends for HR consulting services within DHS would require access to detailed procurement data over several fiscal years. Generally, large federal agencies like DHS consistently allocate significant funds towards HR functions due to their large employee base and complex operational needs. Spending in this area can fluctuate based on specific initiatives, workforce changes, and the need for specialized expertise in areas such as recruitment, retention, policy development, and employee relations. The 'CHOPS II' contract suggests a recurring need for these services, indicating a sustained level of investment in HR support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services

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: 70RCSA22Q00000037

Offers Received: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 203 HARRISON ST SE, LEESBURG, VA, 20175

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,427,234

Exercised Options: $44,177,234

Current Obligation: $29,253,421

Actual Outlays: $22,148,205

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $10,796,339

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS02Q16DCR0095

IDV Type: IDC

Timeline