DHS OIG awards $7M contract for mission support services to Madison Associates Inc

Contract Overview

Contract Amount: $7,012,095 ($7.0M)

Contractor: Madison Associates Inc

Awarding Agency: Department of Homeland Security

Start Date: 2022-06-02

End Date: 2025-06-30

Contract Duration: 1,124 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: MISSION SUPPORT SERVICES FOR DHS OIG OFFICE OF INVESTIGATIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.0 million to MADISON ASSOCIATES INC for work described as: MISSION SUPPORT SERVICES FOR DHS OIG OFFICE OF INVESTIGATIONS Key points: 1. Contract provides essential mission support for DHS OIG investigations. 2. Madison Associates Inc. is the sole awardee for this BPA call. 3. The contract duration extends through June 2025. 4. Services are categorized under 'Investment Banking and Securities Dealing' (NAICS 523110). 5. The contract was awarded using full and open competition. 6. The contract type is Labor Hours, indicating flexible service delivery. 7. The contract is valued at approximately $7 million over its period of performance.

Value Assessment

Rating: fair

The contract value of $7 million for mission support services for the DHS OIG appears to be within a reasonable range for specialized analytical and investigative support. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for investigative support services within federal agencies would provide a clearer picture of whether the pricing reflects competitive market rates for the expertise required. The Labor Hours contract type suggests that costs will be driven by the hours worked by personnel, making detailed oversight of labor rates and efficiency crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows two bids were received. While two bidders suggest some level of competition, it is a relatively low number for a federal contract of this nature. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The limited number of bids may suggest a niche service area or a limited pool of qualified contractors.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to ensure the government receives the best value by considering all available qualified contractors, thereby fostering a competitive environment that can drive down costs.

Public Impact

The primary beneficiaries are the Department of Homeland Security's Office of the Inspector General (DHS OIG), enabling them to conduct investigations and oversight effectively. The services delivered will support the operational needs of the OIG, contributing to accountability within DHS. The geographic impact is primarily within the District of Columbia, where the DHS OIG is located. The contract may have implications for a specialized workforce in areas related to investigative support and financial analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bids received could potentially lead to higher costs than if more contractors had participated.
The 'Investment Banking and Securities Dealing' NAICS code might be an unusual classification for mission support services, requiring clarification on the specific nature of the work performed.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's past performance and potential risks.

Positive Signals

Awarded through full and open competition, which generally promotes fairness and best value.
The contract duration extends over multiple years, suggesting a need for sustained support and potential for building a stable working relationship.
The contract is for mission-critical support to the DHS OIG, indicating its importance in ensuring governmental accountability.

Sector Analysis

The contract falls under the professional, scientific, and technical services sector, specifically related to investigative and analytical support. The NAICS code 523110, 'Investment Banking and Securities Dealing,' is somewhat atypical for general mission support and suggests a focus on financial investigations or analysis within the OIG's purview. Federal spending in this category, particularly for oversight and investigative functions, is substantial, driven by the need for accountability and integrity across government operations. Comparable spending benchmarks would typically involve contracts for forensic accounting, investigative consulting, and specialized research services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Madison Associates Inc., is likely a larger entity capable of handling this scope of work independently or through its own resources.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Homeland Security's Office of the Inspector General (DHS OIG) itself, given that the services are procured for their own operations. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. The Inspector General's office would likely have jurisdiction over any audits or investigations related to the performance of this contract.

Related Government Programs

DHS OIG Investigative Services
Federal Law Enforcement Support Contracts
Government Accountability and Oversight Services
Professional and Technical Services for Federal Agencies

Risk Flags

Limited competition (2 bids)
Unusual NAICS code for service type
Potential for cost overruns with Labor Hours contract type if not closely monitored

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.0 million to MADISON ASSOCIATES INC. MISSION SUPPORT SERVICES FOR DHS OIG OFFICE OF INVESTIGATIONS

Who is the contractor on this award?

The obligated recipient is MADISON ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of the Inspector General).

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2022-06-02. End: 2025-06-30.

What is the specific nature of the 'mission support services' being provided under this contract, given the NAICS code?

The NAICS code 523110, 'Investment Banking and Securities Dealing,' is unusual for general mission support. It suggests that the services procured by the DHS OIG likely involve specialized financial analysis, forensic accounting, investigation into financial crimes, or advisory services related to securities and investment activities. These services are critical for the OIG's mandate to detect and prevent waste, fraud, and abuse within the Department of Homeland Security, particularly in areas involving financial transactions, grants, contracts, or potential misconduct related to financial dealings. The 'Labor Hours' contract type further implies that the work involves skilled personnel performing analytical and investigative tasks rather than delivering a specific product.

How does the value of this contract compare to similar mission support contracts for OIG offices?

Comparing the $7 million value of this contract to similar mission support contracts for other Inspector General offices requires access to a broader dataset of federal procurements. However, for specialized investigative and analytical support, this value is not uncommon, especially for contracts spanning multiple years and requiring expert personnel. OIGs often require unique skill sets in areas like forensic accounting, cybersecurity investigations, and program audits, which can command higher price points. The key determinant of value would be the scope of work, the level of expertise required, and the duration of the contract. Without specific deliverables and labor rates, a precise benchmark is difficult, but the amount suggests a significant and ongoing need for specialized support.

What are the potential risks associated with a contract awarded to only one bidder under full and open competition?

While awarded under full and open competition, having only two bids received, with one awardee, presents potential risks. The primary risk is reduced price competition, which could mean the government paid more than it would have if more bidders had participated. There's also a risk that the limited pool of bidders might indicate a lack of qualified contractors in the market for these specific services, potentially leading to a reliance on a single provider for future needs. Furthermore, if the awarded contractor underperforms, the government may have limited alternative options in the short term, increasing the risk of service disruption or continued suboptimal performance. The government should closely monitor performance and costs to mitigate these risks.

What is Madison Associates Inc.'s track record with federal contracts, particularly with DHS or OIG entities?

Information regarding Madison Associates Inc.'s specific track record with federal contracts, especially with the Department of Homeland Security (DHS) or its Office of the Inspector General (OIG), is not detailed in the provided data. A comprehensive assessment would require reviewing their contract history, including past performance evaluations, any awards or penalties, and the types of services they have previously provided to government agencies. Understanding their experience with similar mission support or investigative services would be crucial for evaluating their capability and reliability in fulfilling this current contract effectively. Further research into federal procurement databases would be necessary to ascertain their performance history.

What are the implications of the 'Labor Hours' contract type for cost control and oversight?

The 'Labor Hours' (LH) contract type means the government pays the contractor for the direct labor hours expended at specified fixed hourly rates. This type of contract is often used when the scope of work cannot be precisely defined at the time of award or when flexibility is needed. For cost control, it places a significant emphasis on monitoring the number of hours worked and ensuring that the labor rates are fair and reasonable. Effective oversight requires diligent tracking of employee time, verification of work performed, and comparison against established benchmarks. Without robust oversight, there is a risk of cost overruns if hours are excessive or labor rates are inflated. The government must ensure that the contractor's personnel are efficient and that the work is necessary.

Industry Classification

NAICS: Finance and Insurance › Securities and Commodity Contracts Intermediation and Brokerage › Investment Banking and Securities Dealing

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

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12471 DILLINGHAM SQ, WOODBRIDGE, VA, 22192

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,172,498

Exercised Options: $7,172,498

Current Obligation: $7,012,095

Actual Outlays: $6,653,664

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70VT1522A00004

IDV Type: BPA

Timeline