DHS awards $20.3M for Management Consulting, raising concerns over Time & Materials contract

Contract Overview

Contract Amount: $20,345,582 ($20.3M)

Contractor: Touchstone Consulting Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-09-08

End Date: 2011-10-08

Contract Duration: 1,125 days

Daily Burn Rate: $18.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROFESSIONAL AND PROGRAM MANAGEMENT SUPPORT SERVICE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.3 million to TOUCHSTONE CONSULTING GROUP, INC. for work described as: PROFESSIONAL AND PROGRAM MANAGEMENT SUPPORT SERVICE Key points: 1. Contract awarded to Touchstone Consulting Group, Inc. for administrative management services. 2. The $20.3M contract utilized a competitive delivery order under a larger IDIQ. 3. Concerns exist regarding the Time and Materials pricing structure and its potential for cost overruns. 4. The contract falls under Administrative Management and General Management Consulting Services (NAICS 541611).

Value Assessment

Rating: questionable

The Time and Materials pricing structure, while common for evolving scopes, can lead to higher costs compared to fixed-price contracts if not closely managed. Benchmarking against similar management consulting contracts is difficult without detailed scope and labor mix.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded via a competitive delivery order, indicating a degree of price discovery. However, the Time and Materials (T&M) pricing model may not fully incentivize cost efficiency from the contractor's perspective.

Taxpayer Impact: The T&M pricing model presents a risk of increased taxpayer cost if not rigorously monitored for scope creep and labor hours.

Public Impact

Citizens may be impacted by the efficiency and effectiveness of management consulting services provided to the Department of Homeland Security. The use of Time and Materials contracts can lead to higher overall spending than anticipated, affecting the federal budget. Transparency in contract spending and performance is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Potential for scope creep
Lack of detailed performance metrics in provided data

Positive Signals

Competitive award process
Awarded to a single entity, allowing for focused support

Sector Analysis

This contract falls within the professional and management consulting sector, which is a significant area of federal spending. Benchmarks for this sector vary widely based on the specific services and complexity.

Small Business Impact

The provided data does not indicate if small businesses were involved in this specific delivery order, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight of Time and Materials contracts is critical to ensure that costs remain reasonable and that the work performed aligns with the stated objectives. The Office of Procurement Operations is responsible for this contract's administration.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Time and Materials pricing model
Potential for cost overruns
Lack of detailed performance metrics
Contract duration of over 3 years
Contract awarded to a single entity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.3 million to TOUCHSTONE CONSULTING GROUP, INC.. PROFESSIONAL AND PROGRAM MANAGEMENT SUPPORT SERVICE

Who is the contractor on this award?

The obligated recipient is TOUCHSTONE CONSULTING GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2008-09-08. End: 2011-10-08.

What specific management and administrative tasks were performed under this contract, and how did they contribute to DHS objectives?

The contract was for 'PROFESSIONAL AND PROGRAM MANAGEMENT SUPPORT SERVICE' under NAICS 541611. This typically includes services like strategic planning, organizational analysis, process improvement, and program management support. The specific contributions would depend on the task orders issued and the projects undertaken by Touchstone Consulting Group to enhance DHS operations and efficiency.

How effectively was the Time and Materials pricing structure managed to control costs and prevent scope creep?

Effective management of T&M contracts requires stringent oversight, detailed tracking of labor hours and materials, and clear definition of work. Without access to performance reports and audit trails, it's difficult to assess the effectiveness of cost controls. Regular reviews and potential ceiling adjustments would be key indicators of management.

What was the overall value proposition of using Touchstone Consulting Group for these services compared to alternative approaches?

The value proposition hinges on the expertise and efficiency Touchstone brought to DHS. As a competitive delivery order, the initial award likely reflected a favorable price for the anticipated scope. However, the long-term value is contingent on the successful delivery of services that demonstrably improved DHS operations, which is best assessed through performance metrics and outcomes.

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: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sterling Parent Inc. (UEI: 968838909)

Address: 1920 N STREET NW, WASHINGTON, DC, 20036

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,345,582

Exercised Options: $20,345,582

Current Obligation: $20,345,582

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0018M

IDV Type: FSS

Timeline