SBA awards $52.7M for administrative support to RP Professional Services, LLC

Contract Overview

Contract Amount: $52,701,454 ($52.7M)

Contractor: RP Professional Services, LLC

Awarding Agency: Small Business Administration

Start Date: 2023-09-25

End Date: 2025-09-24

Contract Duration: 730 days

Daily Burn Rate: $72.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: OCA FINANCIAL ADMINISTRATIVE SUPPORT

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20146

State: Virginia Government Spending

Plain-Language Summary

Small Business Administration obligated $52.7 million to RP PROFESSIONAL SERVICES, LLC for work described as: OCA FINANCIAL ADMINISTRATIVE SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of administrative support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. No specific risk indicators are immediately apparent from the provided data. 4. Performance context is administrative support, a common function within federal agencies. 5. The contract falls within the 'Other Computer Related Services' NAICS code, indicating a focus on IT-adjacent administrative functions.

Value Assessment

Rating: good

The contract value of $52.7 million over two years for administrative support services seems within a reasonable range for a federal agency like the SBA. Benchmarking against similar contracts for comprehensive administrative and IT-adjacent support would provide a more precise value-for-money assessment. The absence of specific performance metrics or detailed service breakdowns makes a definitive value judgment challenging, but the pricing appears competitive given the full and open competition.

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 a bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service quality for the government. The use of a BPA Call suggests it was part of a larger pre-competed agreement, further streamlining the process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process and encourages a wider pool of contractors to offer their services.

Public Impact

The Small Business Administration benefits from this contract by receiving essential administrative and IT-related support services. Services delivered likely include a range of administrative tasks, potentially encompassing IT support, data management, and operational assistance. The geographic impact is primarily centered around the Small Business Administration's operations, likely within Virginia where the contract is managed. Workforce implications may involve the contractor's personnel supporting SBA staff, enhancing the agency's operational capacity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a fair and broad solicitation process.
Contract duration of two years provides stability for service delivery.
The contractor, RP Professional Services, LLC, is likely experienced in providing administrative support.
The contract is managed by the Small Business Administration, an agency focused on supporting businesses, which may imply a well-defined need for administrative functions.

Sector Analysis

The contract falls under the 'Other Computer Related Services' category (NAICS 541519), which encompasses a broad range of IT-related professional services. This sector is characterized by high demand for specialized skills and a dynamic market. Federal spending in this area is substantial, supporting various agency functions from IT infrastructure to specialized software development and administrative support with an IT component. The contract's value is moderate within the context of large federal IT service procurements.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). RP Professional Services, LLC is listed as the contractor, and while their size status isn't explicitly stated here, the award method suggests it wasn't a small business set-aside. This means opportunities for small business subcontracting would depend on the prime contractor's own subcontracting plan and policies, rather than a direct government mandate for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Small Business Administration. Accountability measures are usually embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to successful service delivery. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Administrative Support Services
IT Professional Services
Professional, Scientific, and Technical Services
Information Technology Services

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $52.7 million to RP PROFESSIONAL SERVICES, LLC. OCA FINANCIAL ADMINISTRATIVE SUPPORT

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 $52.7 million.

What is the period of performance?

Start: 2023-09-25. End: 2025-09-24.

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

To assess the track record of RP Professional Services, LLC, a detailed review of their past federal contract awards and performance history would be necessary. This would involve examining contract databases (like FPDS) for previous awards, including the agencies they've served, the types of services rendered, contract values, and duration. Performance evaluations (CPARS) are crucial for understanding how well they've met contractual obligations on past projects. A history of successful contract completions, positive performance reviews, and experience with similar administrative and IT-related support services would indicate a strong track record. Conversely, a history of performance issues, contract disputes, or significant deviations from scope could raise concerns.

How does the awarded value compare to market rates for similar administrative support services?

The awarded value of $52.7 million over two years for administrative support services requires benchmarking against market rates. This involves comparing the contract's labor categories, estimated hours, and loaded rates to industry benchmarks for similar roles and services, particularly within the Washington D.C. metropolitan area or Virginia, given the contract's location. Factors like the specific skill sets required, security clearances, and the level of support (e.g., entry-level vs. senior analysts) significantly influence pricing. Without a detailed breakdown of labor categories and hours, a precise comparison is difficult, but the full and open competition suggests the pricing was likely vetted against multiple offers, aiming for fair market value.

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

Potential risks for this administrative support contract include performance deficiencies (e.g., failure to meet service level agreements), key personnel turnover leading to knowledge gaps, cybersecurity vulnerabilities if handling sensitive data, and cost overruns if not managed effectively. Mitigation strategies typically involve robust contract oversight by the SBA, clearly defined performance standards and metrics, regular progress reviews, and requirements for contractor personnel to maintain necessary qualifications and security clearances. The contract's two-year duration also limits long-term exposure to these risks compared to a multi-year award. The use of a BPA Call might also imply that some pre-award vetting and risk assessment have already occurred.

How effective is the Small Business Administration likely to be in overseeing this contract?

The Small Business Administration's effectiveness in overseeing this contract depends on several factors, including the adequacy of its contracting officer resources, the clarity of the performance work statement (PWS), and the established performance monitoring mechanisms. As the agency awarding the contract, SBA has a vested interest in its successful execution. Their oversight would likely involve regular communication with the contractor, review of performance reports, site visits (if applicable), and prompt resolution of any issues that arise. The agency's internal policies and procedures for contract administration, along with the experience of its oversight personnel, will be key determinants of effectiveness.

What is the historical spending pattern for administrative support services at the SBA?

Analyzing historical spending patterns for administrative support services at the SBA would provide context for this $52.7 million award. This involves examining past contract awards for similar services, identifying trends in contract values, durations, and the types of contractors utilized (e.g., large vs. small businesses, specific service areas). Understanding whether spending has been consistent, increasing, or decreasing can indicate the agency's ongoing needs and budget priorities. Comparing this award to previous large administrative support contracts at SBA can reveal if this represents a typical investment or a significant shift in resource allocation for such services.

What does the NAICS code 'Other Computer Related Services' (541519) imply about the scope of services?

The NAICS code 541519, 'Other Computer Related Services,' suggests that while the contract is for administrative support, it likely involves a significant IT component or is provided in conjunction with IT services. This could include tasks such as IT system administration, help desk support, data management and analysis using computer systems, software support, network support, or other computer-related professional services that facilitate administrative functions. It implies that the contractor needs expertise not just in general administration but also in the technological tools and systems used by the SBA, differentiating it from purely non-technical administrative support contracts.

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

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: $396,532,245

Exercised Options: $111,922,438

Current Obligation: $52,701,454

Actual Outlays: $48,905,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 73351023A0013

IDV Type: BPA

Timeline