Executive Office of the President awards $23.2M for translation services, with no competition

Contract Overview

Contract Amount: $23,229 ($23.2K)

Contractor: Valbin Corporation

Awarding Agency: Executive Office of the President

Start Date: 2023-08-31

End Date: 2024-03-02

Contract Duration: 184 days

Daily Burn Rate: $126/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRANSLATION AND INTERPRETATION SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20503

State: District of Columbia Government Spending

Plain-Language Summary

Executive Office of the President obligated $23,229.28 to VALBIN CORPORATION for work described as: TRANSLATION AND INTERPRETATION SERVICES Key points: 1. The contract was awarded on a non-competitive basis, raising questions about potential cost savings and market competitiveness. 2. The firm fixed-price contract type suggests predictable costs, but the lack of competition limits benchmarking opportunities. 3. The duration of 184 days for a $23.2M contract indicates a high daily burn rate, warranting scrutiny of service delivery efficiency. 4. The services are categorized under Translation and Interpretation Services (NAICS 541930), a niche but essential government function. 5. The contract was awarded as a BPA Call, suggesting it's part of a larger pre-negotiated agreement, but the specific call was not competed. 6. The absence of small business set-aside flags indicates this contract did not prioritize small business participation.

Value Assessment

Rating: questionable

Benchmarking the value for this contract is challenging due to the lack of competitive bidding. The high dollar amount awarded without competition suggests a potential risk of overpayment or suboptimal pricing. Without comparable contract data or market analysis, it's difficult to definitively assess if the $23.2 million represents a fair price for the translation and interpretation services rendered. The firm fixed-price structure provides cost certainty for the government, but the absence of competition means the government may not have benefited from the most cost-effective solutions available in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded under 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), which typically allows for non-competitive awards under certain thresholds or specific circumstances. However, the substantial value of $23.2 million raises questions about why a competitive process was not pursued. The specific justification for the non-competitive award is not detailed, making it difficult to assess the level of competition. If this was a sole-source award, it implies that only one vendor was deemed capable of meeting the requirement, which could be due to specialized expertise or unique circumstances.

Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may not have received the best possible price. Without a competitive bidding process, there is less pressure on the contractor to offer cost-saving measures or innovative solutions.

Public Impact

The Executive Office of the President (EOP) is the primary beneficiary, receiving essential translation and interpretation services. These services are critical for facilitating communication with non-English speaking individuals, stakeholders, and potentially foreign entities. The services likely support a wide range of EOP functions, including policy development, diplomatic engagement, and public outreach. The contract's impact on the workforce is indirect, primarily supporting the operational needs of the EOP rather than direct job creation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract value raises concerns about potential overpricing and missed opportunities for cost savings.
The high dollar amount awarded without a competitive process warrants further investigation into the justification for the sole-source or non-competitive award.
The short performance period (184 days) for a large sum suggests a high daily expenditure rate that needs efficient service delivery to be justified.
Absence of small business participation flags may indicate a missed opportunity to support small businesses in the translation and interpretation sector.

Positive Signals

The firm fixed-price contract type provides budget certainty for the government, mitigating the risk of cost overruns.
The award is made to VALBIN CORPORATION, suggesting they possess the necessary qualifications and capacity to fulfill the requirement.
The contract falls under a BPA Call, indicating it is part of a potentially pre-vetted and established procurement vehicle, which can streamline acquisition.

Sector Analysis

The translation and interpretation services sector is characterized by a mix of large corporations and specialized small businesses. Government contracts in this area are crucial for agencies operating in multilingual environments or engaging with international partners. The NAICS code 541930 covers establishments primarily engaged in providing translation and interpretation services. While specific market size data for government translation services is not readily available, the overall demand is driven by federal mandates for accessibility and global engagement. This contract represents a significant portion of spending within this niche for the Executive Office of the President.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by the 'sb: false' flag. Furthermore, the 'ss: false' flag suggests it was not awarded under specific small business programs. This means that opportunities for small businesses to participate in this significant contract, either as prime contractors or subcontractors, were likely limited or non-existent. The absence of small business subcontracting requirements could mean that the full value of the contract flows to the prime contractor, potentially a larger entity, rather than being distributed within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Executive Office of the President's contracting and program management offices. As a non-competed award, the justification and approval process would be subject to internal review and potentially agency-level oversight. Transparency regarding the specific reasons for the non-competitive award and the performance metrics used to evaluate VALBIN CORPORATION's services would be key indicators of accountability. Without further details on reporting requirements or specific oversight mechanisms, it is difficult to fully assess the robustness of the accountability measures.

Related Government Programs

General Services Administration (GSA) Schedules
Department of State - Language Services
Department of Justice - Interpretation Services
Intelligence Community - Translation Services

Risk Flags

Non-competitive award for a large value contract
High daily expenditure rate
Lack of transparency regarding justification for non-competition

Frequently Asked Questions

What is this federal contract paying for?

Executive Office of the President awarded $23,229.28 to VALBIN CORPORATION. TRANSLATION AND INTERPRETATION SERVICES

Who is the contractor on this award?

The obligated recipient is VALBIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Executive Office of the President (Executive Office of the President).

What is the total obligated amount?

The obligated amount is $23,229.28.

What is the period of performance?

Start: 2023-08-31. End: 2024-03-02.

What was the specific justification for awarding this contract on a non-competitive basis, especially given its substantial value?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP'. Simplified Acquisition Procedures (SAP) can sometimes allow for non-competitive awards under specific circumstances, such as when only one responsible source is available or for urgent and compelling reasons. However, for a contract valued at $23.2 million, a more robust justification, likely requiring a Justification and Approval (J&A) document, would typically be necessary. Without access to the J&A, the precise rationale remains unclear. Potential reasons could include highly specialized linguistic skills, security clearances, or an urgent need that precluded a competitive solicitation. The lack of competition for such a significant sum raises concerns about whether the government explored all viable options to secure the best value through a competitive process.

How does the per-day cost of this contract compare to industry benchmarks for translation and interpretation services?

The contract is valued at $23,229,280 and has a duration of 184 days. This equates to a daily expenditure of approximately $126,246. Benchmarking this per-day cost against industry standards for translation and interpretation services is challenging without more specific details about the scope of services (e.g., number of languages, types of interpretation - simultaneous, consecutive, document translation, volume of text). However, this daily rate appears exceptionally high, suggesting either a very broad scope of services, extremely high-demand languages, or potentially a lack of cost efficiency due to the non-competitive award. Standard industry rates can vary widely, but such a high daily burn rate warrants scrutiny to ensure value for money.

What is VALBIN CORPORATION's track record with federal contracts, particularly in translation and interpretation services?

Information on VALBIN CORPORATION's specific track record with federal contracts, beyond this award, is not detailed in the provided data. However, the fact that they were awarded this significant contract, even on a non-competitive basis, suggests they are recognized as a capable provider by the Executive Office of the President. To fully assess their track record, one would need to examine their past performance on other government contracts, including client satisfaction, adherence to schedules, and compliance with contract terms. A review of federal procurement databases and past performance evaluations would provide a more comprehensive understanding of their experience and reliability in delivering translation and interpretation services.

What are the potential risks associated with awarding a large translation services contract without competition?

The primary risk associated with awarding a large contract without competition is the potential for paying a higher price than necessary. Without the pressure of competing bids, the contractor may not be incentivized to offer the most cost-effective solution. Other risks include a potential reduction in service quality if the contractor faces less scrutiny, limited access to innovative solutions that might be offered by other vendors, and a lack of transparency in the procurement process. For a critical service like translation and interpretation, ensuring both quality and cost-effectiveness is paramount, making the lack of competition a significant concern.

How does this contract's value compare to historical federal spending on translation and interpretation services?

The $23.2 million awarded to VALBIN CORPORATION represents a substantial investment in translation and interpretation services for the Executive Office of the President. To contextualize this historically, one would need to analyze aggregate federal spending data for NAICS code 541930 over previous fiscal years. This would involve looking at spending patterns across various agencies and contract types. Without that comparative data, it's difficult to definitively state whether this contract is an outlier or aligns with historical trends. However, given its size and the fact it's for a single agency's support, it likely represents a significant portion of the EOP's budget for these services in the current period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Translation and Interpretation Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4800 HAMPDEN LN STE 320, BETHESDA, MD, 20814

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $23,229

Exercised Options: $23,229

Current Obligation: $23,229

Actual Outlays: $23,229

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 11316021A0010EOP

IDV Type: BPA

Timeline