Agriculture Department's $18.9M accounting services contract awarded to RWC Consulting Group LLC

Contract Overview

Contract Amount: $18,911,010 ($18.9M)

Contractor: RWC Consulting Group LLC

Awarding Agency: Department of Agriculture

Start Date: 2010-01-04

End Date: 2015-03-31

Contract Duration: 1,912 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CO: ELLERY TAYLOR - THIS IS A PROPOSAL FROM RWC FOR BUSINESS PRACTICE SUPPORT FOR THE PERIOD OF PERFORMANCE TO LAST THROUGH MARCH 2010.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $18.9 million to RWC CONSULTING GROUP LLC for work described as: CO: ELLERY TAYLOR - THIS IS A PROPOSAL FROM RWC FOR BUSINESS PRACTICE SUPPORT FOR THE PERIOD OF PERFORMANCE TO LAST THROUGH MARCH 2010. Key points: 1. Contract awarded for business practice support, indicating a need for specialized accounting expertise. 2. The firm fixed-price contract type suggests predictable costs for the government. 3. A long performance period of over 5 years may indicate a stable, ongoing requirement. 4. The contract was awarded through full and open competition, suggesting a robust bidding process. 5. The North American Industry Classification System (NAICS) code 541219 points to a focus on accounting services beyond standard bookkeeping. 6. The contract's value of nearly $19 million over its duration warrants scrutiny for value for money. 7. The absence of small business set-asides means opportunities for smaller firms were not specifically prioritized in this award.

Value Assessment

Rating: fair

The contract value of $18.9 million over approximately 5 years averages to about $3.78 million per year. Benchmarking this against similar accounting services contracts for federal agencies is difficult without more specific service details. However, the duration and value suggest a significant engagement. The firm fixed-price structure is generally favorable for cost control, but the overall value proposition depends heavily on the quality and impact of the business practice support provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this accounting services requirement. While competition is present, the exact number of bidders is on the lower side for a contract of this magnitude, which could potentially limit price discovery.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings for the government.

Public Impact

The Office of the Chief Financial Officer within the Department of Agriculture is the primary beneficiary, receiving business practice support. The services delivered are expected to enhance the efficiency and effectiveness of the department's financial operations. The contract's impact is primarily concentrated within the District of Columbia, where the agency is headquartered. The contract supports professional services roles, likely within the accounting and business consulting fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'business practice support' is not tightly managed.
Risk of vendor lock-in due to the long performance period if performance is satisfactory but not exceptional.
Dependence on a single contractor for critical financial support functions.
Limited transparency into the specific deliverables and performance metrics without further detail.

Positive Signals

Awarded through full and open competition, suggesting a fair and accessible process.
Firm fixed-price contract type provides cost certainty for the government.
Long performance period indicates a potentially stable and reliable service provider.
Contract awarded to a single entity, potentially allowing for focused expertise and streamlined communication.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting services. The federal government is a significant consumer of such services to manage its complex financial operations. The NAICS code 541219 covers accounting, tax preparation, bookkeeping, and payroll services. Spending in this category can fluctuate based on agency needs for financial system modernization, audit support, and operational efficiency improvements. Comparable spending benchmarks would typically be found within the broader professional services category for federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that the competition was open to all eligible firms, including large businesses. Consequently, there is no specific subcontracting requirement mandated for small businesses as part of this award. The lack of a small business set-aside suggests that the primary focus was on obtaining the best value from the entire market, rather than specifically promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer's representative (COR) within the Department of Agriculture's Office of the Chief Financial Officer. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance reports and specific deliverables may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal Financial Management Services
Government Accounting Standards
Audit and Compliance Services
Management and Consulting Services

Risk Flags

Potential for scope creep given the broad 'business practice support' description.
Long contract duration may reduce flexibility to adapt to changing agency needs.
Limited competition (3 bidders) might have resulted in suboptimal pricing.
Lack of detailed public information on specific deliverables and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $18.9 million to RWC CONSULTING GROUP LLC. CO: ELLERY TAYLOR - THIS IS A PROPOSAL FROM RWC FOR BUSINESS PRACTICE SUPPORT FOR THE PERIOD OF PERFORMANCE TO LAST THROUGH MARCH 2010.

Who is the contractor on this award?

The obligated recipient is RWC CONSULTING GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2010-01-04. End: 2015-03-31.

What specific 'business practice support' is RWC Consulting Group LLC expected to provide under this contract?

The provided data indicates the contract is for 'business practice support' under NAICS code 541219 (Other Accounting Services). However, the specific nature of this support is not detailed. It could encompass a wide range of activities such as improving financial reporting processes, implementing new accounting software, enhancing internal controls, providing strategic financial planning advice, or assisting with compliance related to federal financial regulations. Without access to the contract's statement of work (SOW), it is impossible to ascertain the precise deliverables, performance metrics, and expected outcomes. This lack of specificity makes a granular assessment of value for money challenging.

How does the $18.9 million contract value compare to similar accounting services contracts awarded by the Department of Agriculture or other federal agencies?

Direct comparison of the $18.9 million value is difficult without knowing the exact scope and duration of services. However, federal agencies frequently award large contracts for accounting and financial consulting services. For instance, contracts for financial system implementation, large-scale audits, or comprehensive financial management support can easily reach tens of millions of dollars over several years. The Department of Agriculture, being a large agency, would require substantial financial support. This contract's value appears significant but potentially within the expected range for a multi-year, comprehensive support engagement for a major federal entity, especially given its 5-year performance period.

What is the track record of RWC Consulting Group LLC in performing federal contracts, particularly in accounting services?

The provided data identifies RWC Consulting Group LLC as the contractor but does not offer details on their past performance or track record with federal contracts. To assess their suitability, one would need to examine their contract history, including past performance evaluations, any awards or penalties received, and the types and values of previous government engagements. A review of federal procurement databases like SAM.gov or FPDS would be necessary to understand their experience in delivering similar accounting and business practice support services to federal agencies. Without this information, it's difficult to gauge their reliability and expertise.

What are the potential risks associated with a firm fixed-price contract of this duration (over 5 years) for accounting services?

While firm fixed-price contracts offer cost certainty, a long duration like this (nearly 5 years) for specialized services like business practice support can introduce risks. If the initial pricing did not accurately anticipate future needs or unforeseen complexities, the contractor might face financial strain, potentially impacting service quality. Conversely, if the scope of work is not meticulously defined and managed, the government could end up paying for services that become less critical or less efficient over time. There's also a risk of complacency from the contractor if performance is merely adequate, potentially stifling innovation or proactive problem-solving throughout the extended period.

How does the number of bidders (3) impact the government's ability to achieve competitive pricing for this contract?

Having three bidders suggests a moderate level of competition. While competition is present, it is generally understood that a higher number of bidders typically leads to more aggressive pricing and a greater likelihood of achieving the best possible value for the government. With only three offers, there is a possibility that the pricing might not have been driven down as much as it could have been if, for example, five or more firms had competed. However, the quality and technical approach of the bidders also play a crucial role, and three competitive proposals could still result in a favorable outcome if the offers were strong.

What is the historical spending pattern for 'Other Accounting Services' (NAICS 541219) within the Department of Agriculture?

The provided data does not include historical spending patterns for NAICS 541219 within the Department of Agriculture. To analyze this, one would need to access historical federal procurement data (e.g., FPDS) and filter for the Department of Agriculture, the specific NAICS code, and potentially related contract types or agencies. Such an analysis would reveal trends in spending, identify major contractors in this space, and help contextualize the $18.9 million award against past investments. It could highlight whether this contract represents an increase, decrease, or stable level of spending for these services.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Double Eagle Strategies LLC (UEI: 014160528)

Address: 113 FALLS CT STE 400, BOERNE, TX, 78006

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,911,010

Exercised Options: $18,911,010

Current Obligation: $18,911,010

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS23F0006V

IDV Type: FSS

Timeline