SBA's $80M EIDL loan recommendation contract awarded to RER Solutions, Inc. for administrative management consulting

Contract Overview

Contract Amount: $80,000,000 ($80.0M)

Contractor: RER Solutions, Inc.

Awarding Agency: Small Business Administration

Start Date: 2021-10-01

End Date: 2022-06-30

Contract Duration: 272 days

Daily Burn Rate: $294.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EIDL SBA-ODA DATA ANALYSIS AND LOAN RECOMMENDATION SERVICES FOR COVID-19

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Small Business Administration obligated $80.0 million to RER SOLUTIONS, INC. for work described as: EIDL SBA-ODA DATA ANALYSIS AND LOAN RECOMMENDATION SERVICES FOR COVID-19 Key points: 1. Contract focuses on critical administrative management and general management consulting services. 2. Awarded under full and open competition after exclusion of sources, indicating a deliberate selection process. 3. The contract duration of 272 days suggests a focused, short-term project. 4. Firm Fixed Price contract type aims to control costs and provide predictability. 5. The contract value of $80 million represents a significant investment in consulting services. 6. Virginia is the state where the contractor is located, potentially indicating a regional focus or benefit.

Value Assessment

Rating: fair

The contract value of $80 million for a 272-day period is substantial. Without specific deliverables or performance metrics, it's difficult to benchmark the value for money. The firm fixed-price structure suggests an attempt to control costs, but the overall efficiency and effectiveness of the services rendered will be key to assessing true value. Comparison to similar large-scale administrative consulting contracts would be necessary for a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was intended to be open, specific sources may have been excluded for defined reasons, potentially limiting the breadth of competition. The number of bidders is not specified, making it hard to gauge the intensity of the competition and its impact on price discovery.

Taxpayer Impact: The limited competition, even if justified, may mean taxpayers did not benefit from the lowest possible price achievable through broader market engagement.

Public Impact

Small businesses seeking COVID-19 EIDL loans benefit from the administrative and recommendation services provided. The Small Business Administration (SBA) receives support in managing and processing loan applications. The contract supports the federal government's economic relief efforts during the COVID-19 pandemic. Workforce implications include the potential for RER Solutions, Inc. to employ consultants for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
Lack of detailed performance metrics makes value assessment challenging.
The significant contract value warrants close scrutiny of deliverables and outcomes.

Positive Signals

Firm Fixed Price contract type helps manage cost overruns.
Awarded by the Small Business Administration, suggesting alignment with agency mission.
Contract supports critical COVID-19 relief efforts for small businesses.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector. This sector is crucial for government operations, providing expertise in process improvement, strategic planning, and operational efficiency. The market for such services is competitive, with many firms offering specialized expertise. The $80 million value positions this as a significant engagement within the federal consulting landscape, likely supporting a large-scale program like the EIDL initiative.

Small Business Impact

While the contract itself is not a small business set-aside, it is awarded by the Small Business Administration, an agency dedicated to supporting small businesses. The nature of the services provided directly impacts small businesses seeking economic relief. There is no explicit information on subcontracting plans for small businesses within this data, which could be an area for further investigation regarding broader small business ecosystem impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the Small Business Administration's contracting officers and program managers. As a significant federal contract, it is subject to standard federal procurement regulations and oversight. Transparency would depend on the SBA's reporting practices regarding the EIDL program and the specific services rendered by RER Solutions, Inc. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

COVID-19 Economic Injury Disaster Loans (EIDL)
Small Business Administration (SBA) Operations
Federal Management Consulting Services
Disaster Relief Programs

Risk Flags

Limited competition may impact price.
Lack of detailed performance metrics.
Significant contract value requires robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $80.0 million to RER SOLUTIONS, INC.. EIDL SBA-ODA DATA ANALYSIS AND LOAN RECOMMENDATION SERVICES FOR COVID-19

Who is the contractor on this award?

The obligated recipient is RER SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Small Business Administration (Small Business Administration).

What is the total obligated amount?

The obligated amount is $80.0 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-06-30.

What specific administrative management and general management consulting services are being provided under this contract?

The provided data indicates the contract is for 'EIDL SBA-ODA DATA ANALYSIS AND LOAN RECOMMENDATION SERVICES FOR COVID-19' and falls under NAICS code 541611 (Administrative Management and General Management Consulting Services). While the specific tasks are not detailed, these services typically involve analyzing data related to loan applications, assessing eligibility, providing recommendations for loan approval or denial, and potentially assisting with the operational aspects of managing a large volume of applications. This could include process optimization, workflow management, data quality assurance, and reporting on application processing metrics for the SBA's Office of Disaster Assistance Programs (ODA).

How does the $80 million contract value compare to similar EIDL or disaster relief consulting contracts?

Benchmarking the $80 million contract value requires comparing it to similar large-scale, time-bound consulting engagements focused on disaster relief loan processing. The EIDL program saw unprecedented demand during COVID-19, necessitating significant administrative support. Without access to a comprehensive database of all such contracts, a direct comparison is difficult. However, the scale of the EIDL program suggests that substantial investments in administrative and data analysis services were necessary. The 272-day duration for this $80 million contract implies a high daily expenditure, underscoring the need for efficient service delivery and clear performance metrics to justify the cost.

What are the key performance indicators (KPIs) or deliverables expected from RER SOLUTIONS, INC. under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific deliverables for this contract. However, given the contract's description as 'DATA ANALYSIS AND LOAN RECOMMENDATION SERVICES FOR COVID-19 EIDL,' typical KPIs would likely revolve around the accuracy and timeliness of data analysis, the efficiency of loan recommendation processing, adherence to SBA guidelines, and potentially the volume of applications processed or recommendations made. Deliverables might include regular reports on application status, data analysis summaries, risk assessments of loan applicants, and recommendations for process improvements within the EIDL program.

What is the track record of RER SOLUTIONS, INC. in handling large federal contracts, particularly in disaster relief or financial services?

Information regarding the specific track record of RER SOLUTIONS, INC. in handling large federal contracts, especially within disaster relief or financial services, is not detailed in the provided data. To assess their capability, one would need to review their past performance on similar contracts, including client satisfaction, adherence to schedule and budget, and the quality of services delivered. Their award of this $80 million contract by the Small Business Administration suggests they possess the necessary qualifications and experience deemed sufficient by the agency for this critical function.

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

Potential risks associated with this contract could include data security breaches given the sensitive financial information handled, delays in loan processing impacting small businesses, cost overruns despite the fixed-price structure (if scope changes significantly), and the effectiveness of the loan recommendations. Mitigation strategies would typically involve robust data security protocols, clear service level agreements with performance metrics, regular oversight by the SBA, and contingency planning for unforeseen challenges. The 'limited' competition aspect also presents a risk if it means less competitive pricing.

How does this contract align with the SBA's broader mission and its role in economic recovery post-COVID-19?

This contract directly aligns with the SBA's core mission of supporting small businesses and fostering economic recovery. The Economic Injury Disaster Loan (EIDL) program is a critical tool for providing financial assistance to businesses impacted by disasters, including the COVID-19 pandemic. By outsourcing data analysis and loan recommendation services, the SBA can enhance its capacity to process applications efficiently and effectively, ensuring that eligible businesses receive the necessary support to survive and recover. This contract is therefore instrumental in the SBA's efforts to fulfill its mandate during a period of significant economic challenge.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 73351021Q0090

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 950 HERNDON PKWY STE 410, HERNDON, VA, 20170

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $80,000,000

Exercised Options: $80,000,000

Current Obligation: $80,000,000

Actual Outlays: $80,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 73351019D0001

IDV Type: IDC

Timeline