SBA's $69.4M PPP contract for financial admin services awarded to RP Professional Services, LLC

Contract Overview

Contract Amount: $69,410,075 ($69.4M)

Contractor: RP Professional Services, LLC

Awarding Agency: Small Business Administration

Start Date: 2022-04-01

End Date: 2023-10-27

Contract Duration: 574 days

Daily Burn Rate: $120.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: OFFICE OF CAPITAL ACCESS PAYCHECK PROTECTION PROGRAM (PPP) FINANCIAL ADMINISTRATIVE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20416

State: District of Columbia Government Spending

Plain-Language Summary

Small Business Administration obligated $69.4 million to RP PROFESSIONAL SERVICES, LLC for work described as: OFFICE OF CAPITAL ACCESS PAYCHECK PROTECTION PROGRAM (PPP) FINANCIAL ADMINISTRATIVE SERVICES Key points: 1. Contract provides essential financial and administrative support for the Paycheck Protection Program. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Contract duration of 574 days indicates a significant, ongoing need for these services. 4. The contract's value is substantial, reflecting the scale of the PPP's operational demands. 5. Performance is situated within the 'Other Computer Related Services' NAICS code. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires comparison to similar financial administrative support services for large-scale government programs. The raw dollar amount of $69.4 million over approximately 1.5 years suggests a significant investment. Without specific performance metrics or detailed cost breakdowns, it's challenging to definitively assess value for money. However, the scale of the Paycheck Protection Program likely necessitated substantial administrative resources, making this expenditure potentially justifiable if services were delivered effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement method. This typically means that all responsible sources were permitted to submit a bid. The fact that it was competed openly suggests that the Small Business Administration sought to leverage market competition to obtain the best possible price and quality for these financial administrative services. The number of bidders is not specified, but open competition generally leads to better price discovery.

Taxpayer Impact: Taxpayers benefit from open competition as it generally drives down costs and encourages the selection of the most capable contractor, ensuring efficient use of public funds.

Public Impact

Small businesses and self-employed individuals who received Paycheck Protection Program loans benefit indirectly through the efficient administration of the program. The contract supports the delivery of financial and administrative services crucial for the ongoing operation of the PPP. The geographic impact is national, as the PPP served businesses across the United States. The contract supports a workforce involved in financial administration and IT services related to the PPP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not closely managed given the large contract value.
Dependence on a single contractor for critical financial administrative functions could pose a risk if performance falters.
Ensuring continued alignment with evolving PPP regulations and requirements throughout the contract period.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contract duration suggests a stable, long-term need for these services, allowing for contractor investment in efficiency.
The specific nature of financial administrative services implies a focus on operational efficiency and compliance.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically under the 'Other Computer Related Services' category. The Paycheck Protection Program was a massive federal initiative, and contracts supporting its financial and administrative operations are critical for its success. The market for such services is competitive, with many firms capable of providing specialized support. The value of this contract, approximately $69.4 million, is significant but must be viewed in the context of the overall scale and importance of the PPP.

Small Business Impact

This contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned in the provided data. The contractor, RP Professional Services, LLC, is identified as a small business itself. This means the primary award went to a small business entity, but the contract itself was competed broadly. Further analysis would be needed to determine if RP Professional Services, LLC intends to utilize small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Small Business Administration (SBA), the awarding agency. As a financial administrative services contract supporting a major federal program, it is likely subject to regular performance reviews, audits, and reporting requirements. The contract's duration and value suggest that robust oversight mechanisms, including potential reviews by the SBA's Office of Inspector General, would be in place to ensure accountability and transparency.

Related Government Programs

Paycheck Protection Program (PPP)
Small Business Administration Financial Services
Federal Financial Administration Contracts
Government IT and Administrative Support

Risk Flags

Potential for performance issues impacting program delivery.
Risk of data breaches or cybersecurity incidents.
Concerns regarding cost efficiency and value for money.
Dependence on contractor for critical operational functions.

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $69.4 million to RP PROFESSIONAL SERVICES, LLC. OFFICE OF CAPITAL ACCESS PAYCHECK PROTECTION PROGRAM (PPP) FINANCIAL ADMINISTRATIVE SERVICES

Who is the contractor on this award?

The obligated recipient is RP PROFESSIONAL SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $69.4 million.

What is the period of performance?

Start: 2022-04-01. End: 2023-10-27.

What is the track record of RP Professional Services, LLC in performing similar federal contracts?

Information regarding the specific track record of RP Professional Services, LLC in performing similar federal contracts is not detailed in the provided data. However, as the awardee of this significant $69.4 million contract for financial administrative services for the Paycheck Protection Program, it implies they possess the necessary qualifications and experience to undertake such a large-scale government engagement. A deeper dive into their contract history, past performance reviews, and any potential past issues would be necessary for a comprehensive assessment of their reliability and capability. Federal procurement databases and agency performance records would be the primary sources for this information.

How does the cost of this contract compare to similar financial administrative support contracts for large federal programs?

Directly comparing the cost of this $69.4 million contract to similar financial administrative support contracts is challenging without specific details on the scope of work, service levels, and duration of comparable contracts. However, the Paycheck Protection Program was an unprecedented initiative requiring rapid deployment and extensive administrative support. The cost per year for this contract is approximately $38.5 million ($69.4M / 1.8 years). This figure needs to be benchmarked against contracts for managing large-scale loan programs, disaster relief efforts, or other major federal financial assistance initiatives to determine if it represents good value for money. Factors such as the complexity of the services, the number of beneficiaries served, and the required technological infrastructure would influence such comparisons.

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

Primary risks associated with this contract likely include performance failures (e.g., delays in processing, errors in financial reporting), cybersecurity threats to sensitive financial data, and potential cost overruns if not managed effectively. Mitigation strategies would typically involve robust performance monitoring by the SBA, adherence to strict security protocols and data protection measures, clear contract terms and conditions, and regular financial reviews. The 'full and open competition' award method itself can be seen as a risk mitigation strategy, as it aims to select the most capable and reliable contractor. The contract's duration also allows for the development of a strong working relationship and iterative improvements.

How effective has RP Professional Services, LLC been in delivering the contracted financial administrative services for the PPP?

The provided data does not include specific metrics or assessments of the effectiveness of RP Professional Services, LLC in delivering the contracted financial administrative services for the PPP. Effectiveness would typically be measured by factors such as the timeliness and accuracy of financial reporting, the efficiency of administrative processes, adherence to program guidelines, and overall user satisfaction (if applicable). The fact that the contract was awarded and is presumably being executed suggests a baseline level of expected performance. A thorough evaluation would require access to SBA performance reports, audit findings, and potentially feedback from program beneficiaries or internal agency stakeholders.

What are the historical spending patterns for financial administrative services supporting large federal loan or assistance programs?

Historical spending on financial administrative services for large federal loan or assistance programs can vary significantly based on the program's scale, duration, and complexity. For instance, the administration of the Troubled Asset Relief Program (TARP) involved substantial costs for financial advisory, legal, and administrative support. Similarly, disaster relief programs managed by FEMA often require extensive logistical and financial management services. The Paycheck Protection Program, being one of the largest economic relief efforts in U.S. history, naturally incurred significant administrative costs. Benchmarking requires comparing the cost relative to the total program outlay and the number of beneficiaries served, considering the specific services rendered.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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

Solicitation ID: 73351022Q0057

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 44927 GEORGE WASHINGTON BLVD STE 265, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $69,410,075

Exercised Options: $69,410,075

Current Obligation: $69,410,075

Actual Outlays: $69,410,075

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D009S

IDV Type: FSS

Timeline