DOT's $38.5M contract with The Rockhill Group for professional services shows a high per-unit cost

Contract Overview

Contract Amount: $38,475,297 ($38.5M)

Contractor: Rockhill Group, Inc., the

Awarding Agency: Department of Transportation

Start Date: 2013-11-14

End Date: 2022-06-30

Contract Duration: 3,150 days

Daily Burn Rate: $12.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CWO - THE ROCKHILL GROUP IGF::CT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $38.5 million to ROCKHILL GROUP, INC., THE for work described as: CWO - THE ROCKHILL GROUP IGF::CT::IGF Key points: 1. The contract's value of $38.5 million over its duration suggests a significant investment in specialized services. 2. As a sole-source award, the lack of competition may have impacted price discovery and potentially led to higher costs. 3. The contract's long duration of 9 years indicates a sustained need for the services provided. 4. The firm fixed-price contract type aims to control costs, but the overall value warrants scrutiny. 5. The absence of small business set-aside provisions means opportunities for smaller firms were not specifically prioritized. 6. The contract's performance period ending in mid-2022 means current relevance needs to be assessed against ongoing needs.

Value Assessment

Rating: questionable

The total award of $38.5 million for a 9-year period for 'All Other Professional, Scientific, and Technical Services' appears high when considering the number of contract actions (1). Benchmarking against similar sole-source contracts for broad professional services is challenging due to the unique nature of such awards. However, the significant total value without clear performance metrics or competitive pricing suggests a potential for overpayment or inefficient resource allocation. Further analysis of the specific services rendered and their necessity would be required for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation. The absence of multiple offers limits the ability to benchmark pricing against market alternatives.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive pressure. Without competing the award, there is less assurance that the most cost-effective solution was secured.

Public Impact

The primary beneficiary is likely the Department of Transportation, which received professional, scientific, and technical services to support its mission. The services delivered are broadly categorized as 'All Other Professional, Scientific, and Technical Services,' indicating a wide range of potential support functions. The contract was performed in Washington D.C., suggesting a focus on services supporting the agency's headquarters or regional operations. The contract's duration and sole-source nature suggest a stable, long-term relationship with the contractor, potentially impacting workforce planning within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Broad service category ('All Other Professional, Scientific, and Technical Services') lacks specificity, making performance and value assessment difficult.
Long contract duration (9 years) without clear performance milestones could indicate a lack of agility or evolving needs.
No small business set-aside suggests limited opportunities for smaller, specialized firms in this contract.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
The contractor, The Rockhill Group, Inc., has a sustained relationship with the agency, implying a level of trust and established performance.
The contract was awarded by the Federal Aviation Administration, a major component of the DOT, indicating a potentially critical support function.

Sector Analysis

The professional, scientific, and technical services sector is vast and encompasses a wide array of support functions for government agencies. This contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which is a catch-all category for services not elsewhere classified. The market for such services is highly fragmented, with many firms offering specialized expertise. Government spending in this area is substantial, supporting everything from management consulting to scientific research. Benchmarking this specific contract is difficult due to its sole-source nature and broad service description, but its significant value over a long period suggests a substantial commitment to these services.

Small Business Impact

This contract did not include any small business set-aside provisions, nor does it indicate any subcontracting requirements for small businesses. The award to a single, presumably larger, entity means that opportunities for small businesses to participate in delivering these services were not explicitly facilitated through this contract vehicle. This could represent a missed opportunity to leverage the agility and specialized capabilities often found within the small business sector.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight. However, the sole-source nature and broad service description may present challenges for detailed performance and value oversight. Transparency is limited by the lack of competitive bidding documentation. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Professional and Management Support Services
Scientific and Technical Consulting Services
Other Support Services

Risk Flags

Sole-source award
Broad service category
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $38.5 million to ROCKHILL GROUP, INC., THE. CWO - THE ROCKHILL GROUP IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is ROCKHILL GROUP, INC., THE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.5 million.

What is the period of performance?

Start: 2013-11-14. End: 2022-06-30.

What specific services did The Rockhill Group provide under this contract?

The contract data indicates the service category as 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). This is a broad classification that can encompass a wide range of activities, including but not limited to research, development, consulting, analysis, and technical support. Without more specific line-item details or a detailed statement of work, it is difficult to ascertain the precise nature of the services rendered. The Federal Aviation Administration (FAA) would be the primary source for this detailed information, likely found in the contract's statement of work or task orders issued against it. The broadness of the category makes it challenging to assess the value and effectiveness of the services without further context.

How does the $38.5 million total award compare to similar sole-source contracts for professional services?

Direct comparison of sole-source contracts is inherently difficult due to their unique circumstances and lack of competitive benchmarking. However, $38.5 million over a 9-year period represents an average annual value of approximately $4.28 million. For broad professional, scientific, and technical services, this figure is substantial, especially when awarded without competition. Agencies typically justify sole-source awards based on unique capabilities or critical needs. Without knowing the specific services and their criticality, it's hard to definitively state if this is high or low relative to comparable sole-source awards. However, the absence of competition means there's less market validation of the price.

What are the risks associated with a 9-year sole-source contract for professional services?

A significant risk with a long-term, sole-source contract is the potential for cost escalation and reduced innovation. Without competitive pressure, the contractor may have less incentive to find cost efficiencies or offer innovative solutions over time. Furthermore, the government risks being locked into a contract that may not fully align with evolving needs or technological advancements over a 9-year period. There's also a risk that the initial justification for the sole-source award may become outdated, leading to a situation where competition would have been feasible later in the contract's life. Ensuring robust oversight and clear performance metrics becomes crucial to mitigate these risks.

What is the historical spending pattern for 'All Other Professional, Scientific, and Technical Services' by the FAA?

Historical spending data for the Federal Aviation Administration (FAA) within the broad 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) would reveal trends in their reliance on external support for these types of services. Analyzing this data over several fiscal years could indicate whether this $38.5 million contract represents a significant increase or a continuation of established spending levels. It could also highlight whether the FAA frequently utilizes sole-source awards within this category or if competitive procurements are more common. Understanding this context is vital for assessing whether this specific contract aligns with broader agency procurement strategies and budget allocations for professional services.

What is the track record of The Rockhill Group, Inc. with federal contracts?

The Rockhill Group, Inc. has a history of receiving federal contracts, as evidenced by this award from the Department of Transportation. A deeper dive into their contract history would reveal the types of services they have provided, the agencies they have served, and their performance ratings on past contracts. Examining past performance, including any awards, terminations, or disputes, provides insight into their reliability and capability. Their sustained relationship with the FAA on this contract suggests a level of satisfaction, but a comprehensive review of all their federal engagements would offer a more complete picture of their track record.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1170 LAGUNA LN, GULF BREEZE, FL, 32563

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $50,307,408

Exercised Options: $38,475,297

Current Obligation: $38,475,297

Actual Outlays: $8,923,076

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline