Transportation awarded $1.37M for human factors support, with 3 bidders indicating moderate competition

Contract Overview

Contract Amount: $13,734,458 ($13.7M)

Contractor: Human Solutions, Inc.

Awarding Agency: Department of Transportation

Start Date: 2005-08-29

End Date: 2009-08-19

Contract Duration: 1,451 days

Daily Burn Rate: $9.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: HUMAN SOLUTIONS INC. GSA-GS-10F-0389P/DTACT-05-F-00115 MATERIAL AND SERVICES NECESSARY TO PROVIDE TMA HUMAN FACTORS AND RISK MANAGEMENT SUPPORT STARTING ON 9/1/2005 THROUGH 8/31/2006 IN ACCORDANCE WITH THE ATTACHED SOW. MANAGEMENT CONSULTANT HOURS 1,440 RATE $129.29 AMOUNT $186,177.60

Place of Performance

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

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $13.7 million to HUMAN SOLUTIONS, INC. for work described as: HUMAN SOLUTIONS INC. GSA-GS-10F-0389P/DTACT-05-F-00115 MATERIAL AND SERVICES NECESSARY TO PROVIDE TMA HUMAN FACTORS AND RISK MANAGEMENT SUPPORT STARTING ON 9/1/2005 THROUGH 8/31/2006 IN ACCORDANCE WITH THE ATTACHED SOW. MANAGEMENT CONSULTANT HOURS 1,440 RATE $129.29 AMOUNT … Key points: 1. Contract value of $1.37M over its life suggests a moderate investment in specialized consulting. 2. The presence of 3 bidders points to a degree of market interest but not intense competition. 3. Risk indicators are moderate, given the time-and-materials pricing structure which can lead to cost overruns. 4. Performance context is limited to human factors and risk management support for the FAA. 5. This contract falls within the professional services sector, specifically management consulting. 6. The contract duration of approximately 4 years is substantial for a consulting engagement.

Value Assessment

Rating: fair

The total contract value of $1.37M for approximately 4 years of support appears reasonable for specialized human factors and risk management consulting. However, without specific benchmarks for similar FAA contracts or detailed task breakdowns, a precise value-for-money assessment is challenging. The time-and-materials pricing structure, while flexible, carries inherent risks of cost escalation if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded as a competitive delivery order, indicating that it was competed among multiple vendors. With three bidders participating, there was a moderate level of competition. This suggests that while the agency sought multiple offers, the market for this specific type of specialized support may not have been exceptionally crowded, potentially impacting the intensity of price negotiation.

Taxpayer Impact: A moderate level of competition generally benefits taxpayers by encouraging vendors to offer competitive pricing. However, with only three bidders, the potential for significant cost savings might be less than in a scenario with a larger number of interested parties.

Public Impact

The Federal Aviation Administration (FAA) benefits from specialized human factors and risk management expertise. Services delivered include consulting on human factors and risk management, crucial for aviation safety. The geographic impact is primarily within the District of Columbia, where the agency is located. Workforce implications are related to the engagement of specialized consultants rather than direct federal employee hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time-and-materials contract type can lead to cost overruns if not diligently monitored.
Limited public information on specific deliverables makes it difficult to assess performance outcomes.
The duration of the contract (nearly 4 years) could indicate a long-term need, but also potential for vendor lock-in.

Positive Signals

The contract was competitively awarded, suggesting an effort to secure fair pricing.
The specialized nature of the services indicates a focus on critical aviation safety functions.
The award to Human Solutions, Inc. suggests they possess the required expertise for this niche.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for aviation-specific human factors and risk management consulting is specialized, serving a critical need within the Federal Aviation Administration. Comparable spending benchmarks would likely be found within other government agencies procuring similar high-level advisory services, though direct comparisons are difficult due to the niche nature of the requirements.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Human Solutions, Inc., is likely a larger entity capable of handling this scope of work.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officers and program managers. Accountability measures would be defined in the Statement of Work (SOW) and monitored through regular performance reviews and invoicing processes. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal.

Related Government Programs

Federal Aviation Administration (FAA) Operations Support
Department of Transportation Management Consulting Services
Human Factors Research and Development
Risk Management Consulting Services

Risk Flags

Time and Materials Pricing
Limited Performance Metrics
Moderate Competition Level

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.7 million to HUMAN SOLUTIONS, INC.. HUMAN SOLUTIONS INC. GSA-GS-10F-0389P/DTACT-05-F-00115 MATERIAL AND SERVICES NECESSARY TO PROVIDE TMA HUMAN FACTORS AND RISK MANAGEMENT SUPPORT STARTING ON 9/1/2005 THROUGH 8/31/2006 IN ACCORDANCE WITH THE ATTACHED SOW. MANAGEMENT CONSULTANT HOURS 1,440 RATE $129.29 AMOUNT $186,177.60

Who is the contractor on this award?

The obligated recipient is HUMAN SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2005-08-29. End: 2009-08-19.

What is the track record of Human Solutions, Inc. in performing similar human factors and risk management support for federal agencies?

Assessing the track record of Human Solutions, Inc. requires a deeper dive into their contract history beyond this single award. While this contract demonstrates their capability to secure work with the Department of Transportation's Federal Aviation Administration, it doesn't provide a comprehensive view of their performance across multiple projects or agencies. A thorough analysis would involve reviewing past performance evaluations, any reported contract disputes or terminations, and the types and scale of services they have provided to other government entities. Without this additional data, it's difficult to definitively gauge their reliability and expertise in delivering consistent, high-quality support.

How does the hourly rate of $129.29 for a Management Consultant compare to market rates for similar expertise in 2005-2006?

In the 2005-2006 timeframe, an hourly rate of $129.29 for a Management Consultant performing specialized human factors and risk management support for the FAA would likely be considered competitive, potentially even on the lower end, depending on the consultant's experience level and the specific niche. Consulting rates are highly variable, influenced by factors such as the consultant's qualifications, the complexity of the task, the duration of the engagement, and the specific industry. For highly specialized roles within aviation safety and risk management, rates could range significantly. Benchmarking against contemporary General Services Administration (GSA) schedules or industry surveys for management consulting services during that period would provide a more precise comparison, but generally, this rate suggests a reasonable cost for the expertise sought.

What are the primary risks associated with the Time and Materials (T&M) contract type for this human factors support, and how were they mitigated?

The primary risk associated with a Time and Materials (T&M) contract type, such as the one awarded to Human Solutions, Inc., is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements do not have a predetermined total cost, meaning the government pays for the actual labor hours and materials used. This can lead to increased expenses if the project scope expands, if efficiency is low, or if there is a lack of stringent oversight. Mitigation strategies typically involve clearly defined labor categories with capped rates, detailed requirements for tracking hours and materials, robust performance monitoring by the contracting officer's representative (COR), and regular reviews of invoices and progress reports to ensure the work remains within anticipated parameters and aligns with the Statement of Work (SOW).

Can the effectiveness of the human factors and risk management support provided be quantified based on available data?

Quantifying the effectiveness of the human factors and risk management support provided under this contract is challenging with the currently available data. The contract details outline the services to be rendered (human factors and risk management support) and the duration, but they do not specify key performance indicators (KPIs) or measurable outcomes. To assess effectiveness, one would need access to performance reports, evaluations of the support's impact on aviation safety incidents, efficiency improvements, or risk mitigation success rates. Without such metrics, the assessment remains qualitative, relying on the assumption that the FAA procured these services because they were deemed necessary and beneficial for their operations.

How has federal spending on administrative management and general management consulting services (NAICS 541611) evolved since this contract was awarded in 2005?

Federal spending on Administrative Management and General Management Consulting Services (NAICS 541611) has seen significant fluctuations since 2005. In the mid-2000s, spending was substantial, driven by various government initiatives and the need for specialized expertise. Post-2008 financial crisis, there was often increased scrutiny and efforts to reduce consulting expenditures. However, the demand for specialized consulting, particularly in areas like cybersecurity, data analytics, and program management, has continued to drive spending in subsequent years. Overall, while specific figures vary annually and by agency, the trend indicates a consistent reliance on external consulting services to augment government capabilities, with shifts in focus reflecting evolving national priorities and technological advancements.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 619 N CAROLINA AVE SE, WASHINGTON, DC, 98

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $290,296,751

Exercised Options: $13,734,458

Current Obligation: $13,734,458

Parent Contract

Parent Award PIID: GS10F0389P

IDV Type: FSS

Timeline