HHS awards $8.1M contract for administrative management consulting to Caplock Security LLC

Contract Overview

Contract Amount: $8,103,251 ($8.1M)

Contractor: Caplock Security LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: Other

Official Description: EXECUTIVE SERVICES AND CONSULTING

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $8.1 million to CAPLOCK SECURITY LLC for work described as: EXECUTIVE SERVICES AND CONSULTING Key points: 1. Contract value appears reasonable for the scope of administrative management consulting services. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. Performance period of two years provides a solid timeframe for service delivery. 4. The contract is categorized under administrative management and general management consulting services. 5. Virginia is the primary location for contract performance. 6. This contract represents a small portion of overall federal spending in management consulting.

Value Assessment

Rating: good

The contract value of $8.1 million for two years of administrative management consulting services seems within a reasonable range for the federal sector. Benchmarking against similar contracts for management consulting services at agencies like HHS would provide a more precise value-for-money assessment. However, without specific details on the deliverables and labor mix, a definitive price assessment is challenging. The contract type, 'LABOR HOURS', suggests payment based on actual hours worked, which can offer flexibility but requires diligent oversight to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was initially intended to be broad, certain sources were excluded prior to the final award. The specific reasons for exclusion are not detailed but suggest a pre-qualification or specific requirement that narrowed the field. The number of bidders is not specified, but the 'full and open' nature implies multiple potential offerors were considered.

Taxpayer Impact: A full and open competition, even with exclusions, generally promotes competitive pricing and allows for a wider pool of qualified contractors to bid, potentially leading to better value for taxpayers.

Public Impact

The Department of Health and Human Services (HHS) is the primary beneficiary of these consulting services. Services are expected to support administrative management and general management functions within the agency. Contract performance is located in Virginia. The contract may indirectly impact the federal workforce by providing support for administrative operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'exclusion of sources' could mask a less competitive process than implied.
The 'LABOR HOURS' contract type necessitates robust monitoring to prevent cost overruns.
The specific nature of the consulting services and their impact on agency efficiency are not detailed.

Positive Signals

Awarded through a 'full and open' competition, indicating a structured procurement process.
The two-year performance period allows for sustained support and evaluation of services.
The contractor, Caplock Security LLC, is receiving a significant award, suggesting confidence in their capabilities.

Sector Analysis

The federal market for administrative management and general management consulting services is substantial, with agencies consistently seeking external expertise to improve operations, efficiency, and strategic planning. This contract falls within the professional services sector, which is a significant component of federal procurement. Comparable spending benchmarks for similar consulting engagements at HHS and other large federal agencies would typically range from hundreds of thousands to several million dollars annually, depending on the complexity and duration of the services required.

Small Business Impact

This contract does not appear to have a small business set-aside designation (ss: false, sb: false). Therefore, the primary contractor, Caplock Security LLC, is not obligated to subcontract with small businesses under this specific award. The impact on the small business ecosystem would be indirect, primarily through the potential for Caplock Security LLC to engage small businesses as partners or subcontractors if it aligns with their project execution strategy, rather than a direct requirement.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the Office of the Assistant Secretary for Administration at HHS. Accountability measures would be tied to the contract's performance work statement and deliverables, with regular progress reviews. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Federal Management Consulting Services
Administrative Support Services
Professional Services Contracts
Department of Health and Human Services Contracts

Risk Flags

Potential for cost overruns due to 'LABOR HOURS' contract type.
Lack of transparency regarding the 'exclusion of sources' in the competition.
Need for detailed performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $8.1 million to CAPLOCK SECURITY LLC. EXECUTIVE SERVICES AND CONSULTING

Who is the contractor on this award?

The obligated recipient is CAPLOCK SECURITY LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $8.1 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What specific administrative management and general management consulting services is Caplock Security LLC expected to provide under this contract?

The provided data indicates the contract is for 'Administrative Management and General Management Consulting Services' (NAICS 541611). However, the specific scope of work, deliverables, and objectives are not detailed in the summary. Typically, such services could encompass areas like organizational structure analysis, process improvement, strategic planning support, human capital management consulting, financial management consulting, or IT management consulting, all aimed at enhancing the efficiency and effectiveness of HHS's administrative operations. A thorough review of the contract's Performance Work Statement (PWS) would be necessary to understand the precise nature and expected outcomes of the consulting engagement.

How does the contract value of $8.1 million compare to similar administrative consulting contracts awarded by HHS or other large federal agencies?

The contract value of $8.1 million over two years for administrative management and general management consulting services appears to be a moderate-sized award within the federal contracting landscape. Without access to a detailed database of comparable contracts, a precise benchmark is difficult. However, consulting contracts of this magnitude are common for agencies like HHS that require specialized expertise to address complex administrative challenges. Factors influencing this value include the number of labor hours, the seniority and skill mix of the consultants, the duration of the engagement, and the specific objectives. Larger, more complex strategic initiatives or agency-wide transformations might command higher values, while smaller, task-specific projects would be less.

What are the potential risks associated with a 'LABOR HOURS' contract type for consulting services?

The 'LABOR HOURS' contract type, while offering flexibility, carries inherent risks, primarily related to cost control and contractor performance. The primary risk is that the contractor may not manage their labor hours efficiently, leading to costs exceeding initial estimates or the allocated budget. This necessitates robust oversight from the government to monitor hours worked, ensure productivity, and validate the necessity of all labor expended. Another risk is the potential for scope creep if not managed carefully, where the contractor may bill for hours spent on tasks not originally envisioned. Effective contract administration, including detailed timesheet review and regular performance evaluations, is crucial to mitigate these risks and ensure value for money.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the procurement process and potential contractor pool?

The term 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a procurement process that began with the intent of broad competition but subsequently narrowed the field based on specific criteria or pre-qualification. This could mean that an initial solicitation was issued, and only a subset of interested parties that met certain stringent requirements were invited to submit proposals, or that certain sources were excluded for reasons documented in the procurement record (e.g., past performance, technical capabilities, or specific security requirements). While it aims for broad participation, the 'exclusion' aspect implies a more curated selection than a completely unrestricted open competition, potentially impacting the diversity of offerors and the ultimate price discovery.

What is the track record of Caplock Security LLC in performing federal contracts, particularly in management consulting?

Information regarding Caplock Security LLC's specific track record in performing federal contracts, especially within the management consulting domain, is not provided in the summary data. To assess their past performance, one would typically need to consult federal procurement databases (like FPDS or SAM.gov) to review their contract history, including contract values, agencies served, performance ratings, and any past performance issues or awards. A strong track record with positive past performance reviews would indicate a lower risk for this current $8.1 million award. Conversely, a limited or poor track record would raise concerns about the agency's due diligence in selecting this contractor.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1660 INTERNATIONAL DR STE 600, MC LEAN, VA, 22102

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,305,834

Exercised Options: $8,103,251

Current Obligation: $8,103,251

Actual Outlays: $2,937,429

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75P00124D00007

IDV Type: IDC

Timeline