State Department awards $23.8M contract for management consulting, spanning over 8 years

Contract Overview

Contract Amount: $23,792,962 ($23.8M)

Contractor: Crisis Response CO LLC

Awarding Agency: Department of State

Start Date: 2011-09-29

End Date: 2020-09-25

Contract Duration: 3,284 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACT AWARD

Plain-Language Summary

Department of State obligated $23.8 million to CRISIS RESPONSE CO LLC for work described as: CONTRACT AWARD Key points: 1. Contract value appears reasonable given the extended duration and scope of management consulting services. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The long performance period (over 8 years) may introduce risks related to evolving needs and contractor performance. 4. This contract falls within the 'Other Management Consulting Services' category, indicating a broad range of potential support. 5. The firm-fixed-price structure shifts performance risk to the contractor, which can be beneficial for the government if well-defined. 6. Awarded as a purchase order, suggesting a streamlined procurement process for these services.

Value Assessment

Rating: good

The contract award of approximately $23.8 million over a period of 3284 days (over 8 years) for management consulting services appears to be within a reasonable range for such a long-term engagement. Without specific details on the services rendered, direct comparisons are difficult. However, the average annual value is around $2.9 million. This figure should be benchmarked against similar large-scale, long-duration consulting contracts awarded by the State Department or other agencies for comparable services to ensure value for money. The firm-fixed-price contract type suggests that the government has a clear understanding of the scope, and the contractor bears the cost risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust market for the required management consulting services. The presence of 4 bidders, as indicated by the data, is a moderate level of competition. While more bidders could potentially drive prices lower, four bidders generally provide sufficient market visibility to ensure a competitive outcome and prevent undue price inflation. The agency likely benefited from a range of proposals to choose from.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that encourages lower prices and higher quality services. The presence of multiple bidders suggests that taxpayer funds are being used efficiently, as the government had options to select the most cost-effective and capable provider.

Public Impact

The primary beneficiaries are likely the Department of State, receiving strategic and operational support to enhance its functions. Services delivered likely encompass a wide array of management consulting needs, potentially including policy development, organizational efficiency, program management, and strategic planning. The geographic impact is likely global, given the State Department's international mission, affecting its operations worldwide. Workforce implications could include support for government personnel, potentially involving training, process improvement, or strategic human capital management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years) increases the risk of scope creep or misalignment with evolving agency needs.
Firm-fixed-price contracts can lead to contractor cost-cutting if not adequately monitored, potentially impacting service quality.
Lack of specific service details makes it difficult to assess the true value and effectiveness of the consulting provided.
Reliance on external consultants for core management functions might indicate internal capacity gaps within the agency.

Positive Signals

Full and open competition suggests a competitive market, likely resulting in a fair price.
The firm-fixed-price contract type shifts cost risk to the contractor, potentially saving taxpayer money if managed effectively.
The extended duration allows for deep integration and long-term strategic support, potentially leading to more impactful outcomes.
Awarded as a purchase order, indicating a potentially efficient procurement process.

Sector Analysis

This contract falls under the 'Other Management Consulting Services' category (NAICS 541618). The management consulting services market is a significant sector within professional services, encompassing a wide range of advisory and assistance functions for government and commercial clients. Federal spending in this area is substantial, supporting agencies in areas like strategic planning, organizational change, IT strategy, and operational efficiency. This specific contract likely supports the Department of State's broad mission requirements, fitting within the larger trend of federal agencies utilizing external expertise to address complex challenges and improve performance.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the large contract value and the nature of management consulting services, it is plausible that the prime contractor is a mid-to-large-sized firm. There is no information provided regarding subcontracting plans or actual subcontracting to small businesses. Without this data, it's difficult to assess the impact on the small business ecosystem. Typically, larger contracts like this offer opportunities for small businesses to participate as subcontractors, but this depends on the prime contractor's strategy and the specific requirements of the services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a purchase order, it likely falls under the agency's internal procurement regulations and oversight procedures. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be embedded in the contract terms, performance metrics, and payment schedules. Given the nature of management consulting, oversight would focus on deliverables, adherence to scope, and overall performance against objectives. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State - General Services
Management and Management Consulting Services
Professional Services Contracts
Government-wide Acquisition Contracts (GWACs) for Consulting
Department of State - IT Consulting
Department of State - Program Management Support

Risk Flags

Long contract duration may lead to scope misalignment.
Firm-fixed-price risk requires diligent oversight.
Lack of specific service details hinders performance assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $23.8 million to CRISIS RESPONSE CO LLC. CONTRACT AWARD

Who is the contractor on this award?

The obligated recipient is CRISIS RESPONSE CO LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2011-09-29. End: 2020-09-25.

What specific types of management consulting services were provided under this contract?

The contract falls under NAICS code 541618, 'Other Management Consulting Services.' This broad category can encompass a wide range of activities, including strategic planning, organizational analysis, process improvement, program management support, policy development assistance, and potentially IT strategy consulting. Without more granular data on the specific task orders or statements of work issued against this contract, it is difficult to pinpoint the exact services rendered. However, given the client is the Department of State, the services likely supported the agency's complex foreign policy, diplomatic, and operational missions, potentially involving areas like resource allocation, risk management, or enhancing operational efficiency in various global contexts.

How does the $23.8 million award compare to similar management consulting contracts awarded by the Department of State?

Comparing the $23.8 million award requires context regarding the contract's duration and scope. This contract spans over 8 years (3284 days), making its total value less indicative of annual spending. The average annual value is approximately $2.9 million. To assess value, this figure should be benchmarked against other large, long-term management consulting contracts awarded by the State Department or similar large federal agencies (e.g., DoD, HHS) for comparable services. Factors like the specific expertise required, the complexity of the problems addressed, and the number of bidders influence pricing. A preliminary assessment suggests the value is substantial but potentially reasonable for an extended, broad-scope engagement.

What are the primary risks associated with a firm-fixed-price contract of this duration?

The primary risks with a firm-fixed-price (FFP) contract, especially one spanning over eight years, involve potential misalignment with evolving requirements and the contractor's ability to maintain quality under a fixed budget. For the government, the risk is that the defined scope may become outdated, requiring costly modifications or failing to meet new needs. For the contractor, the risk is underestimating costs or facing unforeseen challenges that erode profit margins. In an FFP structure, the contractor bears most cost risk, which can incentivize efficiency but also lead to corners being cut if oversight is insufficient. The long duration amplifies these risks, as the environment and agency needs are likely to change significantly over such a period.

What does the level of competition (4 bidders) indicate about the contractor's track record and the market for these services?

The fact that this contract was awarded under full and open competition with four bidders suggests a moderately competitive market for the specific management consulting services required by the Department of State. Four bidders indicate that multiple firms were interested and capable of performing the work, which generally leads to a more competitive price discovery process than a sole-source or limited competition scenario. While more bidders could potentially yield even lower prices, four is often considered a healthy number. It implies that the contractor selected likely presented a strong proposal in terms of technical approach, past performance, and price, relative to the other three competitors. It does not inherently speak to the contractor's specific track record beyond their success in this particular competition.

How has federal spending on 'Other Management Consulting Services' trended, and how does this award fit within that trend?

Federal spending on 'Other Management Consulting Services' (NAICS 541618) has historically been significant, reflecting agencies' reliance on external expertise for strategic planning, organizational improvement, and specialized advisory functions. Trends often show fluctuations based on budget priorities, agency needs, and shifts towards or away from outsourcing. This $23.8 million award, spread over more than eight years, represents a substantial but not extraordinary investment within this category for a large agency like the Department of State. It aligns with the general trend of federal agencies utilizing consulting services to navigate complex challenges, implement reforms, and enhance operational effectiveness, particularly in areas requiring specialized knowledge or temporary surge capacity.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1505 WINDSOR FOREST TRL, ROANOKE, TX, 76262

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $47,720,722

Exercised Options: $23,799,251

Current Obligation: $23,792,962

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline