FMR Consulting Inc. awarded $10.46M for financial advisory services by Dept. of Education

Contract Overview

Contract Amount: $10,456,624 ($10.5M)

Contractor: FMR Consulting Inc.

Awarding Agency: Department of Education

Start Date: 2023-02-01

End Date: 2027-01-31

Contract Duration: 1,460 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FINANCIAL ADVISORY SERVICES

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Education obligated $10.5 million to FMR CONSULTING INC. for work described as: FINANCIAL ADVISORY SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of financial advisory services. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include contractor performance and the need for ongoing oversight. 4. This contract supports essential financial operations within the Department of Education. 5. The accounting services NAICS code (541219) places this within a broad professional services sector. 6. The firm fixed-price contract type helps manage cost certainty for the government.

Value Assessment

Rating: good

The contract value of approximately $10.46 million over four years for financial advisory services seems within a reasonable range for federal contracts of this nature. Benchmarking against similar contracts for financial consulting or accounting services at the Department of Education or other large federal agencies would provide a more precise value-for-money assessment. However, the award amount does not immediately suggest overpricing, especially considering the fixed-price nature which shifts some risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of two bidders suggests a moderate level of competition for this specific award. While more bidders would typically lead to greater price discovery and potentially lower costs, two bidders still provide a basis for comparison and negotiation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation among service providers.

Public Impact

The Department of Education benefits from expert financial guidance to manage its operations and programs. Services delivered include financial advisory, likely encompassing budgeting, financial planning, and accounting support. The geographic impact is primarily within the Department of Education's operational sphere, likely supporting its headquarters or major offices in Virginia. Workforce implications may involve specialized financial expertise being brought in, potentially augmenting or supporting existing government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if advisory services extend beyond the initially defined requirements.
Reliance on contractor expertise could lead to knowledge transfer challenges if not managed proactively.
Ensuring continued alignment with evolving federal financial regulations and reporting standards.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
The contract duration allows for sustained support and development of institutional knowledge.

Sector Analysis

Financial advisory services fall under the broader professional, scientific, and technical services sector. This sector is characterized by a wide range of specialized expertise, from accounting and legal to management consulting. Federal spending in this area supports various agencies in managing complex financial operations, compliance, and strategic planning. Comparable spending benchmarks would typically be found within government-wide contract vehicles or agency-specific spending reports for professional services.

Small Business Impact

This contract was not specifically set aside for small businesses, and the awardee, FMR Consulting Inc., is not explicitly identified as a small business in the provided data. Therefore, there are no direct subcontracting implications or immediate impacts on the small business ecosystem stemming from a small business set-aside. Future analysis could explore if FMR Consulting Inc. utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Education's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Financial Management Services
Accounting and Auditing Services
Management and Consulting Services
Federal Financial Management Support

Risk Flags

Contractor Performance Risk
Scope Creep Potential
Knowledge Transfer Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $10.5 million to FMR CONSULTING INC.. FINANCIAL ADVISORY SERVICES

Who is the contractor on this award?

The obligated recipient is FMR CONSULTING INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2023-02-01. End: 2027-01-31.

What is the track record of FMR Consulting Inc. in performing similar federal financial advisory contracts?

A review of FMR Consulting Inc.'s past performance on federal contracts would be necessary to assess their track record. This would involve examining contract award histories, past performance evaluations (if publicly available), and any reported issues or successes on previous engagements. Understanding their experience with agencies of similar size and complexity to the Department of Education, particularly in financial advisory roles, would provide crucial context for evaluating their capability to successfully execute this current contract. Without specific past performance data, it is difficult to definitively assess their reliability.

How does the awarded amount compare to the average cost for similar financial advisory services procured by the federal government?

The awarded amount of approximately $10.46 million over four years for financial advisory services needs to be benchmarked against similar federal procurements. This comparison should consider the specific services rendered (e.g., budgeting, financial reporting, audit support), the level of expertise required, and the duration of the contract. Data from sources like the Federal Procurement Data System (FPDS) can be used to identify comparable contracts. If the average cost per year or per hour for similar services is significantly lower or higher, it would indicate whether this contract represents a particularly good or poor value for taxpayer dollars. The firm fixed-price nature also influences cost comparison, as it includes contractor profit and risk premium.

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

Key risks include potential contractor underperformance, where FMR Consulting Inc. may not deliver services to the required standard or within the specified timelines. Another risk is the potential for scope creep, where the services requested expand beyond the original contract definition, leading to cost overruns or delays. Mitigation strategies typically involve robust contract oversight by the Department of Education, clear performance metrics and deliverables, regular progress reviews, and a well-defined change management process. The firm fixed-price structure also mitigates cost risk for the government, provided the scope is well-defined.

How effective is the Department of Education likely to be in overseeing this contract to ensure optimal value and performance?

The effectiveness of the Department of Education's oversight will depend on several factors, including the resources allocated to contract management, the expertise of the contracting officer's representatives (CORs), and the clarity of the contract's performance work statement (PWS). Strong oversight involves regular communication with the contractor, diligent monitoring of performance against key performance indicators (KPIs), timely review of deliverables, and proactive identification and resolution of issues. The department's established procurement and financial management processes, along with potential utilization of independent quality assurance reviews, will contribute to effective oversight.

What is the historical spending trend for financial advisory services at the Department of Education over the past five years?

Analyzing historical spending trends for financial advisory services at the Department of Education over the past five years would provide valuable context. This would involve examining FPDS data to identify the total amount obligated annually for contracts with similar NAICS codes (e.g., 541219) and service descriptions. Understanding whether spending has been increasing, decreasing, or remaining stable can indicate shifts in the department's needs, reliance on external expertise, or budget priorities. It also helps in assessing if the current $10.46 million award is consistent with past investment levels or represents a significant change.

What specific financial advisory functions are included under this contract, and how critical are they to the Department of Education's mission?

The provided data indicates 'FINANCIAL ADVISORY SERVICES' without detailing specific functions. These could range from strategic financial planning, budget formulation and execution support, financial systems analysis, internal controls assessment, compliance reviews, to debt management or grant financial oversight. The criticality of these functions to the Department of Education's mission is likely high, as sound financial management is fundamental to the effective operation of any large federal agency, ensuring resources are allocated efficiently and accountability is maintained across its diverse programs and initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

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

Solicitation ID: 91990023Q0006

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7301 OLDHAM LEEDS WAY, SPRINGFIELD, VA, 22150

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,615,283

Exercised Options: $10,456,624

Current Obligation: $10,456,624

Actual Outlays: $7,871,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS23F0040U

IDV Type: FSS

Timeline