DOE awards $2.68M contract for Enterprise Business Process Improvement to The Efficiency Group LLC

Contract Overview

Contract Amount: $2,681,058 ($2.7M)

Contractor: THE Efficiency Group LLC

Awarding Agency: Department of Energy

Start Date: 2022-04-01

End Date: 2027-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: Other

Official Description: THE PURPOSE OF THIS REQUISITION IS TO ESTABLISH A NEW CONTRACT FOR ENTERPRISE BUSINESS PROCESS IMPROVEMENT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $2.7 million to THE EFFICIENCY GROUP LLC for work described as: THE PURPOSE OF THIS REQUISITION IS TO ESTABLISH A NEW CONTRACT FOR ENTERPRISE BUSINESS PROCESS IMPROVEMENT. Key points: 1. Contract aims to enhance enterprise business processes through improvement initiatives. 2. The Efficiency Group LLC, a single awardee, will provide these services. 3. The contract spans five years, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 611430 suggests professional development and training.

Value Assessment

Rating: fair

The contract value of $2.68 million over five years averages to approximately $536,000 annually. Without specific benchmarks for enterprise business process improvement services, it's difficult to definitively assess pricing. However, the duration suggests a sustained need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing and identify capable vendors. The award was a delivery order against an existing contract.

Taxpayer Impact: Taxpayer funds are being used for a service aimed at improving government operational efficiency, which could lead to long-term cost savings if successful.

Public Impact

Improved government efficiency could lead to better service delivery for the public. Investment in process improvement may reduce waste and optimize resource allocation. The contract supports the Department of Energy's operational effectiveness. Public funds are allocated to enhance internal government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics for 'improvement' makes success evaluation challenging.
  • Potential for scope creep in 'enterprise business process improvement' over a 5-year period.
  • Reliance on a single vendor for a critical function could pose a risk if performance degrades.

Positive Signals

  • Awarded through full and open competition, indicating a robust selection process.
  • Long-term contract suggests a recognized and ongoing need for these services.
  • Focus on process improvement aligns with government efficiency goals.

Sector Analysis

The Department of Energy is investing in professional and management development training, specifically focused on enterprise business process improvement. This falls under the professional services sector, where spending can vary significantly based on agency needs and project scope.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee, The Efficiency Group LLC, is not explicitly identified as a small business in this context. Therefore, the direct impact on small business participation appears limited for this specific award.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a degree of oversight in the procurement process. However, ongoing oversight of the 'improvement' process and its effectiveness will be crucial to ensure accountability and value for taxpayer money.

Related Government Programs

  • Professional and Management Development Training
  • Department of Energy Contracting
  • Department of Energy Programs

Risk Flags

  • Lack of defined performance metrics.
  • Potential for vendor lock-in.
  • Long contract duration without clear performance checkpoints.
  • Ambiguity in 'process improvement' scope.

Tags

professional-and-management-development-, department-of-energy, dc, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $2.7 million to THE EFFICIENCY GROUP LLC. THE PURPOSE OF THIS REQUISITION IS TO ESTABLISH A NEW CONTRACT FOR ENTERPRISE BUSINESS PROCESS IMPROVEMENT.

Who is the contractor on this award?

The obligated recipient is THE EFFICIENCY GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2022-04-01. End: 2027-03-31.

What specific metrics will be used to measure the 'improvement' in business processes, and how will the success of The Efficiency Group LLC be evaluated against these metrics?

The contract details do not specify the metrics for measuring business process improvement. Effective oversight would require the Department of Energy to establish clear, quantifiable performance indicators (KPIs) related to efficiency gains, cost reductions, or service delivery enhancements. These KPIs should be regularly monitored and reported on by the contractor to ensure accountability and demonstrate the value derived from the contract.

Given the five-year duration, what are the potential risks associated with vendor lock-in or a decline in service quality over time?

A five-year contract duration carries the inherent risk of vendor lock-in and potential complacency. To mitigate this, the Department of Energy should implement robust performance management, including regular reviews and feedback mechanisms. Contractual clauses allowing for adjustments based on performance and clear exit strategies can also help manage these risks and ensure continued value.

How will the effectiveness of the 'enterprise business process improvement' be assessed to ensure it translates into tangible benefits for the Department of Energy and potentially the public?

The effectiveness will be assessed by tracking the achievement of predefined performance metrics related to efficiency, cost savings, and operational outcomes. Regular progress reports, independent audits, and stakeholder feedback will be essential. The ultimate measure of effectiveness will be demonstrable improvements in the Department's ability to achieve its mission and deliver services.

Industry Classification

NAICS: Educational ServicesBusiness Schools and Computer and Management TrainingProfessional and Management Development Training

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4649 4TH ST S, ARLINGTON, VA, 22204

Business Categories: Category Business, Hispanic American Owned Business, 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: $3,564,062

Exercised Options: $3,564,062

Current Obligation: $2,681,058

Actual Outlays: $2,299,523

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA19D0029

IDV Type: FSS

Timeline

Start Date: 2022-04-01

Current End Date: 2027-03-31

Potential End Date: 2027-03-31 00:00:00

Last Modified: 2026-03-23

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