HHS awards $1.8M for accounting services to Castro & Company, LLC under full and open competition

Contract Overview

Contract Amount: $181,209 ($181.2K)

Contractor: Castro & Company, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-28

End Date: 2026-05-01

Contract Duration: 3,137 days

Daily Burn Rate: $58/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF ESTABLISH AND MAINTAIN CONTROLLED ACCOUNTING DATA AND VENDOR FILE INFORMATION.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $181,208.57 to CASTRO & COMPANY, LLC for work described as: IGF::OT::IGF ESTABLISH AND MAINTAIN CONTROLLED ACCOUNTING DATA AND VENDOR FILE INFORMATION. Key points: 1. Contract provides essential accounting data and vendor file management. 2. Castro & Company, LLC, a relatively small firm, holds this contract. 3. The contract duration extends through May 2026. 4. The award was made under a Blanket Purchase Agreement (BPA) Call. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The North American Industry Classification System (NAICS) code 541219 indicates 'Other Accounting Services'.

Value Assessment

Rating: fair

The contract value of $1.8M over its extended period appears reasonable for accounting services. However, without specific deliverables or performance metrics, a precise value-for-money assessment is difficult. The Time and Materials pricing structure warrants close monitoring to ensure costs remain within expected bounds. Benchmarking against similar accounting service contracts within HHS or other agencies would provide a clearer picture of its cost-effectiveness.

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. The fact that it was a BPA Call suggests it was part of a pre-competed agreement, potentially streamlining the process. The presence of two bids (no) indicates some level of competition, but the exact number of interested parties and the rigor of the evaluation process are not detailed.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. This approach ensures that the government explores a wide range of options before selecting a contractor.

Public Impact

The Department of Health and Human Services (HHS) benefits from improved accounting data and vendor file management. This contract supports the operational efficiency of the Office of the Assistant Secretary for Administration. The services provided are crucial for maintaining accurate financial records and vendor relationships. The contract's impact is primarily internal to HHS operations, with no direct public-facing services delivered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Limited information on specific performance metrics makes it hard to gauge contractor efficiency.
The contract has been extended significantly from its original end date, raising questions about initial planning.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent process.
The contractor, Castro & Company, LLC, is responsible for critical accounting functions.
The contract duration ensures continuity of essential accounting services for HHS.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting services. The market for these services is broad, with numerous firms capable of providing them. The government frequently procures accounting and financial management services to ensure compliance and operational efficiency. Benchmarks for similar services vary widely based on scope, complexity, and duration.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Castro & Company, LLC may be a small business itself, there's no explicit requirement for subcontracting to small businesses. Further analysis would be needed to determine if this contract contributes to the broader small business ecosystem or if there are opportunities for small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' internal financial management and contracting offices. The Office of Inspector General (OIG) for HHS may conduct audits or investigations into financial management practices. Transparency is facilitated through contract databases like FPDS, but detailed performance reports are not always publicly available.

Related Government Programs

HHS Financial Management Services
Federal Accounting Standards Advisory Board (FASAB)
Government Accountability Office (GAO) Audits

Risk Flags

Time and Materials contract type requires careful monitoring.
Extended contract duration may indicate planning issues or scope changes.
Limited competition (2 bidders) could impact price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $181,208.57 to CASTRO & COMPANY, LLC. IGF::OT::IGF ESTABLISH AND MAINTAIN CONTROLLED ACCOUNTING DATA AND VENDOR FILE INFORMATION.

Who is the contractor on this award?

The obligated recipient is CASTRO & COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $181,208.57.

What is the period of performance?

Start: 2017-09-28. End: 2026-05-01.

What is the specific scope of work for Castro & Company, LLC under this contract?

The provided data indicates the contract's purpose is to 'ESTABLISH AND MAINTAIN CONTROLLED ACCOUNTING DATA AND VENDOR FILE INFORMATION.' This suggests the contractor is responsible for managing and organizing financial data, ensuring accuracy and accessibility of vendor records. The specific tasks likely include data entry, validation, reconciliation, and potentially system maintenance related to accounting and vendor databases. A more detailed statement of work (SOW) would be required to fully understand the granular responsibilities and deliverables.

How does the Time and Materials (T&M) pricing structure compare to other accounting service contracts?

Time and Materials contracts are often used when the scope of work is not clearly defined or is expected to change. For accounting services, T&M can be suitable for ongoing support or tasks where effort is difficult to estimate upfront. However, it carries a higher risk of cost overruns compared to fixed-price contracts. Agencies typically mitigate this risk through close monitoring of labor hours, established ceiling prices, and detailed reporting requirements. Benchmarking T&M rates against industry standards for similar accounting roles and experience levels is crucial for ensuring fair pricing.

What is the track record of Castro & Company, LLC with federal contracts?

Information on Castro & Company, LLC's specific track record with federal contracts is limited in the provided data. As a recipient of this HHS contract, they have demonstrated the capability to secure government work. Further investigation into their past performance on other federal awards, client feedback, and any history of contract disputes or awards would be necessary for a comprehensive assessment of their reliability and performance history.

What are the potential risks associated with the extended duration of this contract?

The contract's original start date was September 28, 2017, with an end date of May 1, 2026, indicating a significant extension. Potential risks include the contractor becoming entrenched, potentially leading to complacency or reduced incentive for efficiency. It also raises questions about the initial contract planning and whether the extended duration was foreseen or a result of scope creep or performance issues. Long contract durations can also make it harder to adapt to evolving technological needs or regulatory changes without formal modifications.

How does this contract's value compare to the overall federal spending on accounting services?

The $1.8 million awarded to Castro & Company, LLC is a relatively small portion of the total federal spending on accounting and financial management services. Federal agencies collectively spend billions annually on a wide array of professional services, including auditing, bookkeeping, payroll, and tax preparation. This specific contract addresses a niche need within HHS for accounting data and vendor file management. Its value is best understood in the context of similar, smaller-scale support contracts rather than the entirety of federal accounting expenditures.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting 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: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1711 KING ST STE C, ALEXANDRIA, VA, 22314

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $181,209

Exercised Options: $181,209

Current Obligation: $181,209

Actual Outlays: $16,310

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSP233201700002B

IDV Type: BPA

Timeline