Department of Labor's travel services contract awarded to CW Government Travel Inc. for $3.66M, supporting 8,500 traveling staff

Contract Overview

Contract Amount: $3,662,098 ($3.7M)

Contractor: CW Government Travel Inc

Awarding Agency: Department of Labor

Start Date: 2015-09-28

End Date: 2027-06-03

Contract Duration: 4,266 days

Daily Burn Rate: $858/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CT::IGF EFFICIENT AND STANDARDIZED TRAVEL PROCESS THAT IS IN COMPLIANCE WITH THE FEDERAL TRAVEL REGULATION (FTR) AND OTHER APPLICABLE TRAVEL REGULATIONS TO SUPPORT DOL'S APPROXIMATELY 17,000 STAFF, OF WHICH APPROXIMATELY 8,500 TRAVEL IN LARGE DISPERSED GEOGRAPHIC AREAS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $3.7 million to CW GOVERNMENT TRAVEL INC for work described as: IGF::CT::IGF EFFICIENT AND STANDARDIZED TRAVEL PROCESS THAT IS IN COMPLIANCE WITH THE FEDERAL TRAVEL REGULATION (FTR) AND OTHER APPLICABLE TRAVEL REGULATIONS TO SUPPORT DOL'S APPROXIMATELY 17,000 STAFF, OF WHICH APPROXIMATELY 8,500 TRAVEL IN LARGE DISPERSED GEOGRAPHIC AREAS. Key points: 1. The contract aims to create an efficient and standardized travel process compliant with federal regulations. 2. It supports a significant portion of the Department of Labor's staff, indicating broad operational impact. 3. The contract duration extends over several years, suggesting a need for sustained travel management services. 4. The use of a delivery order under a larger contract implies a structured procurement approach. 5. The service is categorized under Scheduled Passenger Air Transportation, a core operational need.

Value Assessment

Rating: good

The contract value of $3.66 million over its period appears reasonable for supporting the travel needs of approximately 8,500 staff. Benchmarking against similar government-wide travel management contracts would provide a more precise value-for-money assessment. The pricing structure, based on 'LABOR HOURS', suggests a cost-plus or time-and-materials approach, which requires careful monitoring to ensure efficiency and prevent cost overruns.

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 had the opportunity to bid. This competitive process is expected to drive better pricing and service quality. The presence of two bids suggests a moderately competitive environment for this specific award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market that encourages competitive pricing and innovation, leading to potentially lower costs for government services.

Public Impact

Department of Labor staff who travel for official business will benefit from streamlined and compliant travel arrangements. The contract ensures the delivery of scheduled passenger air transportation services. The geographic scope covers large, dispersed areas, indicating support for national and potentially international travel. Workforce implications include enabling staff to conduct official duties efficiently through reliable travel support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if 'LABOR HOURS' are not closely managed.
Reliance on a single vendor for a critical operational function could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract duration provides stability for travel planning and execution.
Compliance with Federal Travel Regulation (FTR) ensures adherence to established standards.

Sector Analysis

The contract falls within the broader professional, scientific, and technical services sector, specifically focusing on travel management. The North American Industry Classification System (NAICS) code 481111 (Scheduled Passenger Air Transportation) highlights the core service. Government travel spending is a significant component of federal expenditures, with numerous contracts awarded annually to manage employee travel, aiming for cost savings and compliance.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. Further analysis would be needed to determine if small businesses are involved in the supply chain or if there are opportunities for them to participate.

Oversight & Accountability

Oversight is likely managed by the Office of the Assistant Secretary for Administration and Management (OASAM) within the Department of Labor. Accountability measures would include performance metrics tied to service delivery, compliance with travel regulations, and budget adherence. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Federal Travel Regulation (FTR)
Government-wide Travel Management Programs
Department of Labor Administrative Services

Risk Flags

Potential for cost overruns due to 'LABOR HOURS' pricing structure.
Risk of service disruption impacting employee travel.
Long contract duration may not keep pace with evolving travel technologies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $3.7 million to CW GOVERNMENT TRAVEL INC. IGF::CT::IGF EFFICIENT AND STANDARDIZED TRAVEL PROCESS THAT IS IN COMPLIANCE WITH THE FEDERAL TRAVEL REGULATION (FTR) AND OTHER APPLICABLE TRAVEL REGULATIONS TO SUPPORT DOL'S APPROXIMATELY 17,000 STAFF, OF WHICH APPROXIMATELY 8,500 TRAVEL IN LARGE DISPERSED GEOGRAPHIC AREAS.

Who is the contractor on this award?

The obligated recipient is CW GOVERNMENT TRAVEL INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2015-09-28. End: 2027-06-03.

What is the historical spending pattern for travel services at the Department of Labor?

Analyzing historical spending on travel services at the Department of Labor would involve reviewing contract data over several fiscal years. This would reveal trends in total travel expenditures, the types of services procured (e.g., airfare, lodging, booking platforms), and the primary contractors utilized. Understanding past spending can help identify potential cost-saving opportunities, assess the impact of policy changes on travel costs, and benchmark current contract values against historical norms. For instance, a significant increase in spending might warrant an investigation into the drivers, such as increased travel volume or rising service costs, while a decrease could indicate successful efficiency measures or reduced travel needs.

How does the per-person travel cost under this contract compare to other federal agencies?

To compare the per-person travel cost, we would need to calculate the average cost per traveling employee. This contract supports approximately 8,500 traveling staff with a total value of $3.66 million. This yields an approximate per-person cost of $430.59 over the contract's duration. This figure needs to be contextualized by the average duration and frequency of travel for these employees. A comprehensive comparison would involve analyzing similar contracts across other federal agencies, considering factors like the nature of travel (e.g., domestic vs. international, conference vs. operational), the level of service provided (e.g., basic booking vs. full-service travel management), and the overall travel volume. Without this comparative data, it's difficult to definitively state if this cost is high or low.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for federal travel management contracts often include metrics such as on-time booking rates, adherence to travel policies and budgets, customer satisfaction scores from traveling employees, and the percentage of travel booked through preferred vendors or systems. Performance is usually measured through regular reporting by the contractor, periodic reviews by the contracting officer's representative (COR), and potentially through user feedback mechanisms. The contract's objective to ensure an 'EFFICIENT AND STANDARDIZED TRAVEL PROCESS THAT IS IN COMPLIANCE WITH THE FEDERAL TRAVEL REGULATION (FTR)' suggests that compliance and efficiency are core performance areas.

What is the track record of CW Government Travel Inc. in managing federal travel contracts?

CW Government Travel Inc. has a history of managing federal travel contracts. To assess their track record thoroughly, one would examine their past performance evaluations on similar contracts, including any awards or penalties received. Information from sources like the Federal Procurement Data System (FPDS) can reveal the number and value of contracts they have held with various government agencies. Additionally, reviewing past performance questionnaires (PPQs) or CPARS (Contractor Performance Assessment Reporting System) reports, if available, would provide insights into their reliability, quality of service, and adherence to contract terms. A positive track record suggests a lower risk for the Department of Labor.

Are there any identified risks associated with this contract, such as vendor lock-in or service disruptions?

Potential risks associated with this contract include vendor lock-in, where the Department of Labor becomes heavily reliant on CW Government Travel Inc.'s systems and processes, making future transitions difficult or costly. Service disruptions are another risk; if the contractor experiences technical issues or operational failures, it could significantly impact the ability of Department of Labor staff to travel. Furthermore, if the contract is structured with 'LABOR HOURS', there's a risk of cost overruns if not managed diligently. The long duration of the contract (ending June 2027) also means that market conditions or technological advancements could outpace the services offered, potentially leading to suboptimal value over time.

Industry Classification

NAICS: Transportation and Warehousing › Scheduled Air Transportation › Scheduled Passenger Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4300 WILSON BLVD STE 230, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,297,441

Exercised Options: $4,297,441

Current Obligation: $3,662,098

Actual Outlays: $1,997,921

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS33FAA009

IDV Type: IDC

Timeline