SBA's $65.4M contract for pandemic loan support awarded to Goldschmitt and Associates LLC

Contract Overview

Contract Amount: $65,353,590 ($65.4M)

Contractor: Goldschmitt and Associates LLC

Awarding Agency: Small Business Administration

Start Date: 2023-09-26

End Date: 2026-05-01

Contract Duration: 948 days

Daily Burn Rate: $68.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE CARES ACT SUPPORT TO SBA ACROSS SEVERAL PANDEMIC RELATED LOAN PROGRAMS.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20194

State: Virginia Government Spending

Plain-Language Summary

Small Business Administration obligated $65.4 million to GOLDSCHMITT AND ASSOCIATES LLC for work described as: PROVIDE CARES ACT SUPPORT TO SBA ACROSS SEVERAL PANDEMIC RELATED LOAN PROGRAMS. Key points: 1. Contract aims to bolster SBA's capacity in managing pandemic-related loan programs. 2. Focus on administrative and management consulting services highlights the need for specialized expertise. 3. The contract duration of 948 days suggests a long-term commitment to ongoing support. 4. Awarded under a BPA Call, indicating a pre-negotiated framework for efficient procurement. 5. The firm fixed-price structure provides cost certainty for the government. 6. No small business set-aside was applied, suggesting the primary contractor is not a small business.

Value Assessment

Rating: good

The contract value of $65.4 million over approximately 2.5 years represents a significant investment in administrative support for SBA's pandemic loan programs. Benchmarking this against similar large-scale consulting contracts for government agencies would provide a clearer picture of value for money. However, the firm fixed-price nature of the award suggests a degree of cost control and predictability. The specific services rendered will be key to assessing the overall value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and service quality. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field, encouraging efficiency, and potentially driving down costs through market forces.

Public Impact

Small businesses and individuals who received pandemic-related loans will benefit from improved administrative support and program management. The contract ensures the continued operational capacity of the Small Business Administration in managing critical loan programs. Geographic impact is national, as SBA loan programs serve businesses across the United States. Workforce implications include potential support roles for consultants and administrative staff managed by Goldschmitt and Associates LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical administrative functions.
Scope creep could lead to increased costs if not managed tightly.
Ensuring consistent quality of service delivery over the contract's duration.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract provides cost certainty.
Contract supports vital pandemic relief programs, addressing a critical government need.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise that agencies may not possess internally. The market for such services is large and competitive, with many firms capable of supporting federal agencies. This contract's value places it in the mid-to-large tier for consulting services within the federal government.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates the primary contractor is not a small business. This means that opportunities for small businesses would primarily arise through subcontracting, if Goldschmitt and Associates LLC chooses to engage them. The impact on the small business ecosystem depends on the extent to which subcontracting is utilized and the types of services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Small Business Administration's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price structure, requiring delivery of specified services. Transparency is generally maintained through federal procurement databases, though specific performance metrics and oversight reports may not be publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

CARES Act Programs
SBA Loan Programs
Pandemic Relief Efforts
Administrative Support Services
Management Consulting Contracts

Risk Flags

Contract duration is lengthy, requiring sustained oversight.
Potential for scope creep if not managed diligently.
Dependence on a single contractor for critical functions.

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $65.4 million to GOLDSCHMITT AND ASSOCIATES LLC. PROVIDE CARES ACT SUPPORT TO SBA ACROSS SEVERAL PANDEMIC RELATED LOAN PROGRAMS.

Who is the contractor on this award?

The obligated recipient is GOLDSCHMITT AND ASSOCIATES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $65.4 million.

What is the period of performance?

Start: 2023-09-26. End: 2026-05-01.

What is the track record of Goldschmitt and Associates LLC in performing similar government contracts, particularly those involving large-scale administrative support or pandemic-related programs?

Information regarding Goldschmitt and Associates LLC's specific track record with similar government contracts, especially those of this magnitude and focus on pandemic relief, would require a detailed review of federal procurement databases such as FPDS or SAM.gov. A comprehensive analysis would look at past performance evaluations, contract history, and any reported issues or successes. Without direct access to this detailed performance data, it's difficult to definitively assess their suitability and past performance on comparable projects. However, the award itself suggests they met the minimum requirements and were deemed capable of performing the services.

How does the per-unit cost or overall value of this contract compare to similar administrative support contracts awarded by the SBA or other federal agencies for pandemic-related initiatives?

A precise value comparison is challenging without knowing the specific deliverables and service levels. However, the total contract value of $65.4 million over approximately 948 days (about 2.5 years) averages to roughly $26 million per year. This figure needs to be contextualized by the scope of services provided. Benchmarking against other large administrative support contracts, especially those related to emergency response or economic stimulus programs, would be necessary. Factors like the number of personnel supported, the complexity of the loan programs, and the specific consulting services offered would influence the cost. A preliminary assessment suggests this is a substantial investment, indicative of the scale of SBA's pandemic support operations.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential cost overruns if the scope is not well-defined or managed (though the firm fixed-price structure mitigates this to an extent), contractor performance issues leading to delays or subpar service, and the risk of contractor lock-in. Mitigation strategies likely involve robust contract management by the SBA, clear performance metrics, regular progress reviews, and contingency planning. The firm fixed-price nature itself is a risk mitigation tool for the government, shifting some financial risk to the contractor. Ensuring clear communication channels and performance feedback loops are also critical.

How effective is the current administrative support provided by Goldschmitt and Associates LLC in facilitating the SBA's pandemic-related loan programs?

Assessing the effectiveness of the administrative support requires access to SBA's internal performance metrics and feedback on the contractor's delivery. Key indicators would include the speed and accuracy of loan processing, the satisfaction of loan recipients with the administrative aspects, and the overall efficiency gains attributed to the contractor's services. Without direct performance data from the SBA, it is impossible to provide a definitive assessment of effectiveness. The continued duration of the contract suggests a level of satisfaction, but formal evaluations would be needed for a conclusive judgment.

What has been the historical spending by the SBA on administrative and management consulting services, and how does this contract fit within that pattern?

Historical spending on administrative and management consulting by the SBA can vary significantly year-to-year, often influenced by specific program needs and funding appropriations. During the pandemic, spending on such services likely surged to manage the unprecedented volume of loan applications and disbursements. This $65.4 million contract, while substantial, may represent a necessary scaling up of resources to meet extraordinary demands. A review of SBA's budget and contract awards over the past five to ten years would reveal trends and help contextualize this specific award within broader spending patterns for consulting services.

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: 11601 QUAIL RIDGE CT, RESTON, VA, 20194

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $119,199,718

Exercised Options: $65,353,590

Current Obligation: $65,353,590

Actual Outlays: $58,575,827

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $23,018,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 73351023A0012

IDV Type: BPA

Timeline