DoD's $12.6M consulting contract for HR support awarded to Interactive Government Holdings, Inc

Contract Overview

Contract Amount: $12,656,577 ($12.7M)

Contractor: Interactive Government Holdings, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-11-27

End Date: 2026-11-26

Contract Duration: 1,095 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ESGR STATE COMMITTEE (VST) SUPPORT LABOR

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to INTERACTIVE GOVERNMENT HOLDINGS, INC. for work described as: ESGR STATE COMMITTEE (VST) SUPPORT LABOR Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for administrative management and general management consulting services. 3. The duration of the contract is 1095 days, spanning three years. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was a delivery order, indicating it's part of a larger contract vehicle. 6. The North American Industry Classification System (NAICS) code is 541611, for management consulting. 7. The contract value is over $12.6 million, representing significant investment in HR support.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the scope of 'VST Support Labor'. However, the firm fixed-price structure is generally favorable for the government as it caps potential cost overruns. Comparing the per-diem rates or overall cost to similar HR consulting contracts within the DoD or other federal agencies would provide a clearer picture of value for money. The absence of specific performance metrics in the provided data makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that there were 7 bidders suggests a healthy level of interest and competition for this requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of solutions, which is beneficial for the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that the government is receiving services at a price driven by market forces.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive enhanced HR support services. Services delivered include administrative management and general management consulting, aimed at improving HR functions. The contract is managed by the Defense Human Resources Activity, indicating a focus on military and civilian personnel support. The geographic impact is likely national, given the scope of DoD operations, though specific deployment locations are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The specific nature of 'VST Support Labor' is not fully defined, raising questions about the precise services rendered.
Without comparative data on similar HR consulting contracts, it's hard to definitively state if the $12.6M represents optimal value for money.

Positive Signals

Awarded through full and open competition with multiple bidders, indicating a competitive market for these services.
The firm fixed-price contract type transfers cost overrun risk to the contractor.
The contract duration of three years provides stability for service delivery and planning.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant part of federal contracting, with agencies frequently outsourcing specialized expertise. The market for HR consulting services is competitive, with numerous firms offering solutions to government and commercial clients. The $12.6M value places this contract in the mid-to-large tier for consulting services within the federal space.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the primary contractor, Interactive Government Holdings, Inc., is likely not a small business. There is no explicit information on subcontracting plans for small businesses, which could represent missed opportunities for the small business ecosystem in this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Human Resources Activity (DHRA) contracting officers and program managers. As a delivery order under a larger contract vehicle, oversight may also be influenced by the terms of the base contract. Transparency is facilitated by public contract databases, but detailed operational oversight and accountability measures are internal to the agency and contractor.

Related Government Programs

DoD Human Resources Management
Federal Management Consulting Services
Defense Civilian Personnel Management Support
HR Transformation Initiatives

Risk Flags

Potential for scope creep
Contractor performance variability
Dependency on contractor for critical HR functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to INTERACTIVE GOVERNMENT HOLDINGS, INC.. ESGR STATE COMMITTEE (VST) SUPPORT LABOR

Who is the contractor on this award?

The obligated recipient is INTERACTIVE GOVERNMENT HOLDINGS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Human Resources Activity).

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2023-11-27. End: 2026-11-26.

What is the specific nature of the 'ESGR STATE COMMITTEE (VST) SUPPORT LABOR' services provided under this contract?

The 'ESGR STATE COMMITTEE (VST) SUPPORT LABOR' likely refers to support services for the Employer Support of the Guard and Reserve (ESGR) State Committee. ESGR's mission is to promote cooperation and understanding between Reserve component members and their civilian employers and to assist in resolving employer-related issues. The 'VST' could denote a specific program or function within ESGR, such as 'Volunteer Support Team' or a similar designation. The support labor would encompass administrative, logistical, and potentially outreach or advisory services necessary for the State Committee to effectively carry out its mission of supporting Guard and Reserve members and their employers.

How does the $12.6 million contract value compare to historical spending on similar HR consulting services within the DoD?

Direct comparison of this $12.6 million contract value to historical spending on similar HR consulting services within the DoD is difficult without access to detailed historical spending data categorized by specific HR functions and contract types. However, federal agencies, including the DoD, consistently spend billions annually on management and professional services, which includes HR consulting. Contracts of this magnitude are not uncommon for large-scale support functions within major federal departments. To provide a precise benchmark, one would need to analyze comparable contracts awarded over the past several years for HR support, talent management, or personnel administration services within the DoD, considering factors like contract duration, scope of work, and number of bidders.

What are the key performance indicators (KPIs) used to measure the success of Interactive Government Holdings, Inc. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for management and administrative support services, KPIs might include metrics related to response times for inquiries, accuracy of data processing, efficiency of administrative tasks, client satisfaction surveys (from DoD personnel or leadership), adherence to project timelines, and successful implementation of any process improvements. The effectiveness of the contractor's performance would be formally assessed through contract performance reports, which are usually part of the contract administration process, though these reports are not publicly detailed here.

What is the track record of Interactive Government Holdings, Inc. in performing similar federal contracts, particularly within the Department of Defense?

Interactive Government Holdings, Inc. (IGH) has a history of performing federal contracts, including those with the Department of Defense. A review of federal procurement data would reveal past awards and performance history. Companies like IGH often specialize in providing a range of professional services, including IT, administrative support, and management consulting, to government agencies. Their track record would be assessed based on factors such as past performance evaluations, contract completion success, and any history of disputes or performance issues. Without specific access to their detailed contract performance history, it's assumed they were deemed capable based on the competitive award process.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include scope creep, where the requirements expand beyond the initial agreement, potentially leading to cost overruns if not managed under a fixed-price contract. Another risk is contractor performance falling short of expectations, impacting the efficiency of HR support. Dependency on a single contractor for critical HR functions could also pose a risk. Mitigation strategies typically involve robust contract oversight, clear definition of scope and deliverables, regular performance reviews, and contingency planning. The firm fixed-price nature itself mitigates financial risk for the government regarding cost overruns, shifting that risk to the contractor.

How does the competition level (7 bidders) influence the pricing and quality of services received by the DoD?

A competition level involving 7 bidders generally indicates a healthy and active market for the services required. This level of competition typically drives down prices as contractors vie for the award, forcing them to offer their most competitive rates. Furthermore, a larger pool of bidders increases the likelihood that the government will receive proposals offering high-quality solutions and innovative approaches. The DoD benefits from this by potentially securing services at a better price point and with a higher standard of quality than might be achieved through a less competitive procurement process.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7426 ALBAN STATION BLVD STE B218, SPRINGFIELD, VA, 22150

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: $21,889,194

Exercised Options: $12,656,577

Current Obligation: $12,656,577

Actual Outlays: $1,263,899

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA18D00BT

IDV Type: FSS

Timeline