State Department's $20.75M administrative services contract awarded to undisclosed domestic entities over 7 years

Contract Overview

Contract Amount: $20,753,882 ($20.8M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of State

Start Date: 2007-10-01

End Date: 2014-12-31

Contract Duration: 2,648 days

Daily Burn Rate: $7.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROFESSIONAL AND SUPPORT SERVICES

Plain-Language Summary

Department of State obligated $20.8 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: PROFESSIONAL AND SUPPORT SERVICES Key points: 1. The contract's value of over $20 million for administrative services suggests a significant need for support functions within the Department of State. 2. Awarding to 'domestic awardees (undisclosed)' raises questions about transparency and the potential for limited competition. 3. The duration of the contract, spanning over 7 years, indicates a long-term requirement for these services. 4. The use of a 'Time and Materials' contract type can sometimes lead to cost overruns if not closely managed. 5. The absence of specific details on the awarded entities makes it difficult to assess contractor track record or potential conflicts of interest. 6. The North American Industry Classification System (NAICS) code 561110 points to general office administrative services, a broad category.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the undisclosed nature of the awardees and the lack of specific service details. However, a $20.75 million expenditure over seven years for administrative support services, particularly when awarded under a 'not available for competition' basis, warrants scrutiny. Without comparable contract data or a clear understanding of the scope of work, it's difficult to definitively assess value for money. The 'Time and Materials' pricing model, while flexible, can be less cost-effective than fixed-price contracts if not meticulously monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was designated as 'not available for competition,' indicating a sole-source award. This means that the Department of State did not solicit bids from multiple vendors. The reasons for this designation are not provided, but it significantly limits the opportunity for price discovery and potentially leads to higher costs compared to a fully competed contract. The lack of competition means taxpayers do not benefit from the cost savings that can arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price for these administrative services, as competitive pressures were bypassed.

Public Impact

The primary beneficiaries are likely internal departments within the Department of State requiring administrative and office support. Services delivered include general office administrative functions, potentially encompassing tasks like record keeping, scheduling, and general clerical support. The geographic impact is likely concentrated within the operational areas of the Department of State, primarily within the United States given the 'domestic awardees' designation. Workforce implications could include the direct employment of individuals by the awarded contractor to perform these administrative tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding awardee identity hinders assessment of contractor performance and potential conflicts.
Sole-source award limits competitive pressure, potentially increasing costs for taxpayers.
Use of Time and Materials contract type can lead to cost escalation without stringent oversight.
Broad scope of 'Office Administrative Services' makes it difficult to pinpoint specific value or efficiency metrics.

Positive Signals

Contract supports essential administrative functions for a major federal agency.
Awardees are domestic entities, potentially supporting the U.S. economy.
Long contract duration suggests a stable, ongoing need for these services.

Sector Analysis

The Professional and Support Services sector is a vast and critical component of federal contracting, encompassing a wide range of services from administrative support to specialized consulting. This contract falls under the General Office Administrative Services (NAICS 561110) sub-sector. Federal spending in this area is consistently high, as agencies rely on these services to maintain operational efficiency. Comparable spending benchmarks are difficult to establish without more specific service details, but the overall market for administrative support services is robust, with numerous providers capable of fulfilling such requirements.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a stated requirement or outcome for this contract. There is no information regarding small business set-asides or subcontracting plans. This suggests that the contract was not specifically structured to benefit small businesses, and their involvement, if any, would be incidental or through prime contractors not identified. The lack of focus on small business inclusion means potential opportunities for the small business ecosystem may have been missed.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. As a Department of State contract, it would typically fall under the purview of the Department's Office of the Inspector General (OIG) for audits and investigations. However, the 'not available for competition' status and undisclosed awardees make assessing the effectiveness of oversight challenging. Transparency is limited due to the lack of public information about the contractor and the specific services rendered. Accountability would depend on the contract's performance metrics and reporting requirements, which are not specified.

Related Government Programs

Department of State Administrative Support Contracts
Federal General Office Administrative Services
Sole-Source Professional Services Contracts
Time and Materials Contracts

Risk Flags

Lack of transparency regarding awardee identity.
Sole-source award bypasses competitive bidding.
Potential for cost overruns with Time and Materials contract.
Long contract duration may not adapt to future needs.
Undisclosed scope of services hinders performance assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $20.8 million to DOMESTIC AWARDEES (UNDISCLOSED). PROFESSIONAL AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $20.8 million.

What is the period of performance?

Start: 2007-10-01. End: 2014-12-31.

What specific administrative services were included under this contract?

The contract falls under NAICS code 561110, which covers General Office Administrative Services. This typically includes a broad range of support functions such as document management, record keeping, mail processing, scheduling, reception services, and general clerical support. However, without the specific statement of work or contract details, the precise scope of services provided to the Department of State remains undisclosed. This lack of specificity makes it difficult to assess the efficiency or effectiveness of the services rendered or to compare them against industry standards.

Why was this contract designated as 'not available for competition'?

The designation 'not available for competition' indicates that the Department of State awarded this contract on a sole-source basis, meaning they did not solicit bids from multiple potential contractors. The specific justification for this sole-source award is not provided in the data. Common reasons for sole-sourcing include unique capabilities of a single provider, urgent and compelling needs where competition is impractical, or when the contract is a follow-on to a previously competed effort where only one contractor can fulfill the requirement. Without this justification, it is impossible to evaluate the necessity of bypassing the competitive bidding process.

What is the typical cost range for similar administrative support contracts awarded by the federal government?

The cost range for similar administrative support contracts can vary significantly based on the scope of services, duration, geographic location, and the specific agency's needs. For a contract valued at approximately $20.75 million over seven years, this averages to roughly $2.96 million per year. This figure is within the expected range for substantial administrative support services supporting a large federal agency like the Department of State. However, without knowing the exact deliverables, labor mix, and overhead, a precise cost comparison is not feasible. The 'Time and Materials' pricing structure also adds variability.

What are the risks associated with a 'Time and Materials' contract type for administrative services?

Time and Materials (T&M) contracts, like the one used here, carry inherent risks, primarily related to cost control. In a T&M contract, the government pays the contractor for the actual labor hours at specified hourly rates and for the actual cost of materials used. The primary risk is that costs can escalate beyond initial estimates if the project takes longer than anticipated or if labor rates are high. Without robust oversight, detailed tracking of hours, and clear task definitions, contractors may have less incentive to control costs, potentially leading to overspending. For administrative services, ensuring efficient use of labor hours is crucial.

How does the duration of this contract (over 7 years) impact its value and risk?

A contract duration exceeding seven years, as seen here, suggests a long-term, stable requirement for administrative support services within the Department of State. From a value perspective, a longer duration can provide cost savings through economies of scale and reduced administrative burden associated with frequent re-procurement. It also allows the contractor to invest in specialized resources and personnel. However, a long duration also increases risk. Market conditions, technology, and agency needs can change significantly over seven years, potentially making the contracted services obsolete or less efficient. Furthermore, it locks the government into a specific provider and pricing structure for an extended period, limiting flexibility.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $20,753,882

Exercised Options: $20,753,882

Current Obligation: $20,753,882

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA07D0044

IDV Type: IDC

Timeline