GSA Awards $11.4M for Telecom Consulting, Raising Questions on Value and Competition
Contract Overview
Contract Amount: $11,430,000 ($11.4M)
Contractor: Snavely King Majoros O'connor
Awarding Agency: General Services Administration
Start Date: 2005-10-01
End Date: 2010-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $6.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: IT
Official Description: TELECOMMUNICATIONS CONSULTING SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
General Services Administration obligated $11.4 million to SNAVELY KING MAJOROS O'CONNOR for work described as: TELECOMMUNICATIONS CONSULTING SERVICES Key points: 1. Significant contract value for specialized consulting. 2. Competition method raises concerns about price discovery. 3. Potential for higher costs due to limited competition. 4. Sector context suggests high demand for such services.
Value Assessment
Rating: questionable
The contract's total value of $11.4M over five years is substantial. Without specific performance metrics or benchmarks, assessing the value for money is difficult. The pricing structure based on labor hours can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may restrict the pool of potential bidders, potentially leading to less competitive pricing and reduced innovation.
Taxpayer Impact: The limited competition could result in taxpayers paying a premium for these services compared to a fully open market scenario.
Public Impact
Taxpayers may be overpaying due to restricted competition. Government reliance on a limited number of consultants. Potential impact on the broader telecommunications consulting market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Labor hour pricing
- Lack of clear value assessment
Positive Signals
- Established contract vehicle
- Defined service period
Sector Analysis
Telecommunications consulting services are crucial for government modernization and efficiency. Benchmarks for similar contracts are highly variable, but this award appears to be within a moderate range for specialized expertise over a five-year period.
Small Business Impact
The data indicates this contract did not involve small businesses, suggesting a focus on larger, established consulting firms. Further analysis would be needed to determine if small businesses were excluded or if the scope inherently favored larger entities.
Oversight & Accountability
The 'exclusion of sources' clause warrants scrutiny to ensure fair opportunity was considered and justified. Robust oversight is needed to track performance and costs against the labor hour structure.
Related Government Programs
- Administrative Management and General Management Consulting Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for inflated costs due to limited competition.
- Lack of transparency in the source exclusion process.
- Risk of vendor lock-in with limited bidders.
- Difficulty in measuring ROI for consulting services.
Tags
administrative-management-and-general-ma, general-services-administration, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $11.4 million to SNAVELY KING MAJOROS O'CONNOR. TELECOMMUNICATIONS CONSULTING SERVICES
Who is the contractor on this award?
The obligated recipient is SNAVELY KING MAJOROS O'CONNOR.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $11.4 million.
What is the period of performance?
Start: 2005-10-01. End: 2010-09-30.
What specific deliverables and outcomes were expected from this $11.4M contract to justify its value?
The contract's value justification hinges on the specific deliverables and outcomes achieved. Without detailed performance reports or a clear statement of work, it's challenging to ascertain the precise value. Typically, such contracts aim for strategic guidance, network optimization, technology roadmaps, and policy development, all contributing to improved government operations and cost savings.
How did the 'exclusion of sources' impact the final negotiated price?
The 'exclusion of sources' likely limited the number of bidders, potentially reducing the downward pressure on price that a fully open competition might exert. While some competition still occurred, the exclusion could have led to a higher negotiated price than if all qualified vendors had been allowed to bid, impacting the overall cost-effectiveness for the government.
What mechanisms were in place to ensure the effectiveness of the consulting services provided?
Effectiveness is typically measured through performance metrics, milestone achievements, and client satisfaction surveys. For this contract, the effectiveness would depend on the specific task orders issued and the oversight provided by the GSA. Regular reviews and clear performance standards are crucial to ensure the consulting services deliver the intended strategic and operational benefits.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 1220 L ST NW STE 410, WASHINGTON, DC, 98
Business Categories: Category Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $11,430,000
Exercised Options: $11,430,000
Current Obligation: $11,430,000
Parent Contract
Parent Award PIID: GS00T05NSD0006
IDV Type: IDC
Timeline
Start Date: 2005-10-01
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2011-01-07
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