DoD's $10.6M HR Management Support Contract Awarded to ITILITY, LLC for Administrative Consulting

Contract Overview

Contract Amount: $10,599,222 ($10.6M)

Contractor: Itility, L.L.C

Awarding Agency: Department of Defense

Start Date: 2022-01-01

End Date: 2026-12-19

Contract Duration: 1,813 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EO14042 - HUMAN RESOURCE MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.6 million to ITILITY, L.L.C for work described as: EO14042 - HUMAN RESOURCE MANAGEMENT SUPPORT SERVICES Key points: 1. Contract focuses on administrative management and general management consulting services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration spans nearly five years, indicating a long-term need. 4. Firm Fixed Price contract type aims to control costs and provide predictability. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The base award amount is substantial, requiring careful monitoring of performance and value. 7. Virginia is the primary location for this contract, impacting the local economy.

Value Assessment

Rating: good

The contract's base award of approximately $10.6 million over nearly five years for HR management support services appears reasonable given the scope. While specific benchmarks for this exact service are difficult to ascertain without more granular data, the firm fixed-price structure suggests an effort to manage costs effectively. Comparing this to similar administrative and management consulting contracts within the Department of Defense or other federal agencies would provide a clearer picture of its value proposition. The number of bidders (4) also suggests a degree of competition that can help ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With four bidders participating, the competition level appears moderate. This suggests that the government likely received competitive pricing, as multiple companies vied for the opportunity. The open nature of the competition is a positive sign for price discovery and ensures that the government is not limited to a single provider.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it fosters a competitive environment, which typically leads to more favorable pricing and better value for the government's investment.

Public Impact

The Department of the Army benefits from enhanced human resource management capabilities. Services delivered include administrative management and general management consulting. The primary geographic impact is within Virginia, potentially supporting local employment. The contract supports the federal workforce by improving HR processes and efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical HR functions could pose a risk if performance falters.
Ensuring the contractor's personnel possess the necessary security clearances and expertise is crucial.

Positive Signals

Firm fixed-price contract type helps control costs and provides budget certainty.
Full and open competition suggests a competitive market and potentially fair pricing.
Long-term duration allows for continuity and deep integration of HR support services.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, a broad category encompassing a wide range of advisory and support functions for organizations. The federal government is a significant consumer of these services, particularly for human resources, strategic planning, and operational efficiency. The market for these services is competitive, with numerous large and small businesses offering specialized expertise. This contract represents a portion of the government's overall spending on professional services aimed at improving administrative functions.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was awarded under full and open competition, there is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether the prime contractor, ITILITY, LLC, actively seeks to engage small businesses for subcontracting opportunities to fulfill the contract's requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Army. Performance monitoring, adherence to contract terms, and quality assurance are key oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Human Resources Management Services
Administrative Support Services
Management Consulting Services
Department of Defense IT and Professional Services
Federal Workforce Support Programs

Risk Flags

Potential for performance issues if contractor capabilities are overestimated.
Risk of cost overruns if scope is not tightly managed, despite FFP.
Dependence on contractor personnel for critical HR functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.6 million to ITILITY, L.L.C. EO14042 - HUMAN RESOURCE MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ITILITY, L.L.C.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $10.6 million.

What is the period of performance?

Start: 2022-01-01. End: 2026-12-19.

What is the track record of ITILITY, LLC in performing similar federal contracts, particularly in HR management and administrative consulting?

Assessing ITILITY, LLC's track record requires a deep dive into federal procurement databases. While the provided data confirms their award for this specific HR management support contract, it doesn't detail their past performance. A comprehensive review would involve examining their contract history for similar services, including contract values, durations, agencies served, and any performance ratings or past performance evaluations. Understanding their experience with firm fixed-price contracts and delivery orders, as well as their ability to meet deadlines and quality standards, is crucial. Any history of contract disputes, terminations, or significant performance issues would be a red flag. Conversely, a history of successful, high-rated performance on comparable contracts would indicate a lower risk and a higher likelihood of successful execution for this current award.

How does the awarded price compare to market rates for similar HR management support services?

Benchmarking the price of this $10.6 million contract against market rates for similar HR management support services requires access to detailed cost breakdowns and market analysis data, which is not fully available in the provided summary. However, the fact that it was awarded under full and open competition with four bidders suggests that the pricing is likely competitive. Firm fixed-price contracts generally aim to align with market expectations. To conduct a thorough comparison, one would need to analyze the specific labor categories, hours, and overhead rates proposed by ITILITY, LLC against industry benchmarks for administrative management and general management consulting services. This would involve looking at data from professional services firms, industry reports, and potentially other government contracts for comparable services to determine if the price represents good value for money.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost overruns or delays. Another risk is the contractor's performance; if ITILITY, LLC fails to deliver quality services, it could impact the Department of the Army's HR functions. Personnel-related risks, such as the availability of qualified staff or security clearance issues, are also present. Mitigation strategies likely include robust contract management by the Army, clear definition and monitoring of the Statement of Work (SOW), regular performance reviews, and adherence to the firm fixed-price structure which incentivizes the contractor to manage costs. The competitive nature of the award also serves as a baseline mitigation, as underperformance could lead to negative past performance reviews for future opportunities.

How effective is the firm fixed-price (FFP) contract type in ensuring value for money for this HR support service?

The Firm Fixed-Price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks of unforeseen costs are relatively low. For HR management support services, where many tasks can be standardized and predictable, FFP provides cost certainty for the government. It places the risk of cost overruns on the contractor, ITILITY, LLC, incentivizing them to manage their resources efficiently and deliver services within the agreed budget. This structure helps prevent budget blowouts and encourages the contractor to focus on delivering the required services at the agreed price. However, if the scope is highly dynamic or subject to significant change, an FFP contract might lead to the contractor being less flexible or potentially overpricing to account for perceived risks.

What is the historical spending pattern for administrative management and general management consulting services within the Department of the Army?

Analyzing historical spending patterns for administrative management and general management consulting services within the Department of the Army is crucial for context. This contract, valued at approximately $10.6 million, represents a specific investment in HR support. To understand the broader pattern, one would need to examine aggregated spending data over several fiscal years for NAICS code 541611 (Administrative Management and General Management Consulting Services) and related codes within the Army. This would reveal trends in contract awards, average contract values, dominant contract types (FFP, T&M, etc.), and key contractors. Such analysis helps determine if this award is consistent with historical levels, indicative of an increase or decrease in demand for these services, and whether spending is concentrated with a few large firms or distributed more broadly.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14840 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,459,873

Exercised Options: $12,139,303

Current Obligation: $10,599,222

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F096AA

IDV Type: FSS

Timeline