DHS awards $52.8M for TSA program management support, with a 5-year duration

Contract Overview

Contract Amount: $52,834,389 ($52.8M)

Contractor: Reli Group Inc

Awarding Agency: Department of Homeland Security

Start Date: 2020-06-17

End Date: 2025-06-16

Contract Duration: 1,825 days

Daily Burn Rate: $28.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BPA CALL IN SUPPORT OF ENROLLMENT SERVICES AND VETTING PROGRAMS PROGRAM MANAGEMENT SUPPORT SERVICES. THE CONTRACTOR WILL SUPPORT TSA THROUGH STRATEGIC CONSULTING, SCIENTIFIC, AND TECHNICAL SUPPORT FOR PROGRAMS, PROJECTS, INITIATIVES OR FUNCTIONS.

Place of Performance

Location: ANNAPOLIS JUNCTION, HOWARD County, MARYLAND, 20701

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $52.8 million to RELI GROUP INC for work described as: BPA CALL IN SUPPORT OF ENROLLMENT SERVICES AND VETTING PROGRAMS PROGRAM MANAGEMENT SUPPORT SERVICES. THE CONTRACTOR WILL SUPPORT TSA THROUGH STRATEGIC CONSULTING, SCIENTIFIC, AND TECHNICAL SUPPORT FOR PROGRAMS, PROJECTS, INITIATIVES OR FUNCTIONS. Key points: 1. Contract provides strategic consulting and technical support for TSA programs. 2. The contract is a firm-fixed-price BPA call, indicating predictable costs. 3. Awarded through full and open competition, suggesting a competitive bidding process. 4. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 5. The contract duration is 1825 days, spanning five years. 6. The contractor, RELI GROUP INC, is based in Maryland. 7. This award represents a significant investment in TSA's program management capabilities.

Value Assessment

Rating: good

The contract value of $52.8 million over five years averages to approximately $10.56 million annually. Benchmarking this against similar management consulting contracts for federal agencies of this size and scope is challenging without more specific data on the services provided. However, the firm-fixed-price structure suggests that the government has negotiated a set price for the services, which can be advantageous for budget predictability. The total award amount appears reasonable for comprehensive program management support over a five-year period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. This typically leads to a more robust selection of qualified contractors and can foster competitive pricing. The specific number of bidders is not provided, but the open competition suggests that multiple firms likely vied for this opportunity, which is generally a positive sign for price discovery and value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a competitive bidding process, ensuring the government receives the best possible value for its investment.

Public Impact

The Transportation Security Administration (TSA) benefits from enhanced program management and strategic consulting. Services delivered include scientific and technical support for various TSA programs and initiatives. The geographic impact is primarily within the TSA's operational areas, likely nationwide. Workforce implications include the potential for specialized consulting roles and project management positions. Improved program execution and efficiency within the TSA are anticipated outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess contractor performance.
The total contract value is substantial, requiring diligent oversight to ensure funds are used effectively.
Dependence on a single contractor for critical program management support could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive and fair process.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, RELI GROUP INC, has secured a significant contract, suggesting a level of established capability.
The contract duration of five years allows for long-term program support and stability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for federal management consulting is competitive, with numerous firms offering specialized expertise. The value of this contract, approximately $10.56 million annually, is moderate within the context of large federal IT and support service contracts, but substantial for a single program management support BPA call.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, RELI GROUP INC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA). Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be less public. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

TSA Security Technology
DHS Program Management Support
Federal Management Consulting Services
Transportation Security Programs

Risk Flags

Potential for scope creep
Contractor performance variability
Data security and privacy risks
Over-reliance on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $52.8 million to RELI GROUP INC. BPA CALL IN SUPPORT OF ENROLLMENT SERVICES AND VETTING PROGRAMS PROGRAM MANAGEMENT SUPPORT SERVICES. THE CONTRACTOR WILL SUPPORT TSA THROUGH STRATEGIC CONSULTING, SCIENTIFIC, AND TECHNICAL SUPPORT FOR PROGRAMS, PROJECTS, INITIATIVES OR FUNCTIONS.

Who is the contractor on this award?

The obligated recipient is RELI GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $52.8 million.

What is the period of performance?

Start: 2020-06-17. End: 2025-06-16.

What is the track record of RELI GROUP INC in performing similar federal contracts?

Assessing the track record of RELI GROUP INC requires a deeper dive into federal procurement databases like SAM.gov or FPDS. Generally, securing a $52.8 million, five-year contract with the Department of Homeland Security indicates a certain level of established capability and past performance that met the agency's rigorous evaluation criteria. However, specific details regarding past performance ratings, past contract values, and the types of services previously rendered would be necessary for a comprehensive evaluation. Agencies typically consider past performance as a key factor in award decisions, so this award suggests a positive history, but further investigation into specific contract performance reviews and client feedback would provide a more complete picture of their reliability and expertise in delivering similar services.

How does the annual value of this contract compare to other federal management consulting awards?

The annual value of this contract, averaging approximately $10.56 million ($52.8M / 5 years), places it in the mid-to-large tier for federal management consulting services. Many federal agencies procure management and strategic consulting support, with contract values ranging from hundreds of thousands to tens of millions of dollars annually. Contracts supporting large, complex organizations like the TSA, which have significant national security and operational responsibilities, often command higher values due to the scope and criticality of the services required. While not the largest federal consulting contract, it represents a substantial investment, comparable to other significant support service agreements for major federal programs. Benchmarking against specific agencies or program types would provide more granular comparisons.

What are the primary risks associated with this contract for the TSA?

The primary risks associated with this contract for the TSA include potential over-reliance on the contractor for critical program management functions, which could lead to knowledge gaps if the contractor's performance falters or the contract is not renewed. There's also a risk of scope creep, where the services requested expand beyond the original intent, potentially increasing costs or diverting resources if not managed carefully. Ensuring the contractor maintains the highest levels of security and data privacy, given the sensitive nature of TSA operations, is another critical risk area. Finally, the risk of contractor performance not meeting expectations, despite the competitive award, always exists, necessitating robust oversight and performance management from the TSA.

How effective is the firm-fixed-price (FFP) contract type in managing costs for this type of service?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and unlikely to change significantly. For management consulting and program support services, FFP provides cost certainty for the government, as the contractor assumes the risk of cost overruns. This structure incentivizes the contractor to perform efficiently to maximize profit. However, if the requirements evolve substantially, an FFP contract can become inflexible, potentially leading to change orders or disputes if not managed proactively. For services like strategic consulting, where innovation and adaptation might be needed, careful definition of deliverables and performance metrics is crucial to ensure the FFP structure supports, rather than hinders, effective service delivery.

What is the historical spending trend for TSA program management support services?

Analyzing historical spending trends for TSA program management support services would require access to detailed historical contract data beyond this single award. However, it's reasonable to infer that as the TSA evolves and faces new security challenges, its need for strategic consulting and program management support likely remains consistent or increases. Federal agencies often rely on external expertise for specialized functions, and the duration of this contract (five years) suggests a recognized, ongoing need. Without specific historical data, it's difficult to pinpoint trends, but the consistent procurement of such services indicates a stable demand within the agency for enhancing its operational capabilities and program execution.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5520 RESEARCH PARK DR, CATONSVILLE, MD, 21228

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,320,267

Exercised Options: $53,734,389

Current Obligation: $52,834,389

Actual Outlays: $34,154,792

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70T05019A9NMED049

IDV Type: BPA

Timeline