OPM Awards $24M for Lodging and Food Services to The Federal Group, Inc. Over 10 Years

Contract Overview

Contract Amount: $23,985,942 ($24.0M)

Contractor: THE Federal Group, Inc.

Awarding Agency: Office of Personnel Management

Start Date: 2005-09-01

End Date: 2015-12-23

Contract Duration: 3,765 days

Daily Burn Rate: $6.4K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LODGING AND FOOD SERVICES PROVIDED TO A TRAINING FACILITY.

Place of Performance

Location: SHEPHERDSTOWN, JEFFERSON County, WEST VIRGINIA, 25443

State: West Virginia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $24.0 million to THE FEDERAL GROUP, INC. for work described as: LODGING AND FOOD SERVICES PROVIDED TO A TRAINING FACILITY. Key points: 1. Significant 10-year contract for essential training facility support. 2. Sole-source award raises questions about competition and potential cost savings. 3. High contract value warrants scrutiny for value for money. 4. Long duration may not reflect current market conditions or needs.

Value Assessment

Rating: questionable

The contract value of $23.9M over 10 years for lodging and food services is substantial. Without comparable contracts or detailed cost breakdowns, it's difficult to assess if this pricing is competitive. The long duration could lead to overpayment if market rates decrease.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This appears to be a sole-source award, meaning competition was likely limited or waived. This significantly impacts price discovery, as there was no competitive bidding process to drive down costs. The agency must have justified the sole-source nature.

Taxpayer Impact: The lack of competition in a sole-source award raises concerns about taxpayer value. Without competitive pressure, the price may be higher than what could have been achieved through an open bidding process.

Public Impact

Federal employees and trainees relying on the facility will receive services. Taxpayers fund this significant expenditure for government operations. Potential for higher costs due to lack of competitive bidding. Long-term commitment impacts budget flexibility for the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of competition
High total value

Positive Signals

Provides essential services
Long-term stability for service provider

Sector Analysis

This contract falls under general administrative and support services, specifically lodging and food. Benchmarking requires comparison with similar long-term service contracts for government facilities, considering location and service scope. The $24M value over a decade is considerable for this sector.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or if this contract was specifically set aside for small business participation. Further investigation is needed to determine the extent of small business involvement.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight from the Office of Personnel Management to ensure the contractor is meeting all performance requirements and that the pricing remains fair throughout the contract's long duration.

Related Government Programs

Office of Personnel Management Contracting
Office of Personnel Management Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Long contract duration may not reflect current needs/market
Limited transparency on justification for sole-source award
Risk of contractor complacency over extended period

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $24.0 million to THE FEDERAL GROUP, INC.. LODGING AND FOOD SERVICES PROVIDED TO A TRAINING FACILITY.

Who is the contractor on this award?

The obligated recipient is THE FEDERAL GROUP, INC..

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2005-09-01. End: 2015-12-23.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award is critical. Agencies typically pursue sole-source contracts when only one responsible source can satisfy the agency's needs. This often occurs due to unique capabilities, urgent needs, or specific circumstances. Without the justification, it's impossible to assess if competition was appropriately bypassed or if a more competitive approach could have yielded better value for taxpayers.

How was the 'fair and reasonable' price determined for this long-term, sole-source contract, and are there mechanisms for price adjustments?

Determining a fair and reasonable price for a sole-source contract is challenging without competition. Agencies rely on various methods, including historical pricing, commercial price lists, independent government cost estimates, or price analysis techniques. The contract should include provisions for price adjustments based on economic factors or changes in scope to mitigate risks of overpayment over the 10-year period.

What performance metrics and quality assurance measures are in place to ensure the effectiveness and value of these lodging and food services?

Effective oversight requires clear performance standards and quality assurance. The agency must have defined metrics for service quality, timeliness, and customer satisfaction. Regular performance reviews and inspections are essential to ensure the contractor meets these standards and that the services provided align with the contract's objectives and represent good value for the funds expended.

Contractor Details

Address: 17 LOWE DR, SHEPHERDSTOWN, WV, 25443

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $24,005,893

Exercised Options: $24,005,893

Current Obligation: $23,985,942

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: OPML00033

IDV Type: IDC

Timeline