Agriculture awards $114.7M contract for administrative management services to Midtown Personnel Inc

Contract Overview

Contract Amount: $114,744,350 ($114.7M)

Contractor: Midtown Personnel Inc.

Awarding Agency: Department of Agriculture

Start Date: 2023-05-01

End Date: 2025-03-06

Contract Duration: 675 days

Daily Burn Rate: $170.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: APPLICATIONS ADMINISTRATOR-NATIONAL ADMINISTRATOR

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $114.7 million to MIDTOWN PERSONNEL INC. for work described as: APPLICATIONS ADMINISTRATOR-NATIONAL ADMINISTRATOR Key points: 1. Contract value represents a significant investment in administrative support. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. Contract duration of over 1.5 years indicates a need for sustained support. 5. The award is concentrated in Washington D.C., suggesting a localized impact. 6. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services.

Value Assessment

Rating: fair

The contract value of $114.7 million for administrative management services appears substantial. Benchmarking against similar contracts for administrative support services is crucial to determine if this represents a fair price. Without specific details on the scope of services and the number of personnel involved, a definitive value-for-money assessment is challenging. However, the fixed-price nature of the contract suggests an attempt to control costs, though it could lead to less favorable outcomes if the scope of work expands significantly.

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 method is generally preferred for maximizing competition and potentially achieving better pricing. The number of bidders is not specified, but the open competition suggests a deliberate effort to solicit a wide range of proposals, which can lead to more innovative solutions and competitive pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a level playing field, encourages efficiency among bidders, and increases the likelihood of securing services at competitive rates.

Public Impact

The primary beneficiary is the Department of Agriculture, which will receive administrative management and general management consulting services. The services delivered are expected to support the operational efficiency of the Office of the Chief Financial Officer. The geographic impact is concentrated in Washington D.C., where the contractor will likely operate. The contract may have implications for the administrative support workforce, potentially creating or sustaining jobs within this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in fixed-price contracts if not managed meticulously.
Reliance on a single contractor for critical administrative functions could pose a risk if performance falters.
The substantial contract value warrants close monitoring to ensure adherence to the defined scope and budget.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
The contract duration allows for stability and continuity in administrative support services.

Sector Analysis

Administrative management and general management consulting services fall under a broad sector that supports government operations across various agencies. This contract, valued at over $114 million, represents a significant procurement within this category. Comparable spending benchmarks would typically involve analyzing other large-scale administrative support contracts awarded to consulting firms by federal agencies, considering factors like service scope, duration, and geographic concentration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The focus of this large contract is likely on larger, established firms capable of handling the extensive administrative management needs of a federal agency. The absence of a small business set-aside means opportunities for small businesses in this specific procurement are limited unless they are prime contractors or subcontractors to the selected large business.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting officers and program managers. Accountability measures are inherent in the fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated by the contract award notice, which is publicly available. The Inspector General's office for the Department of Agriculture would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Administrative Management Services
General Management Consulting Services
Federal IT Support Contracts
Professional Services Contracts
Department of Agriculture Contracts

Risk Flags

Contract Value
Scope Definition
Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $114.7 million to MIDTOWN PERSONNEL INC.. APPLICATIONS ADMINISTRATOR-NATIONAL ADMINISTRATOR

Who is the contractor on this award?

The obligated recipient is MIDTOWN PERSONNEL INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $114.7 million.

What is the period of performance?

Start: 2023-05-01. End: 2025-03-06.

What is the specific scope of 'Administrative Management and General Management Consulting Services' covered by this contract?

The contract specifies 'APPLICATIONS ADMINISTRATOR-NATIONAL ADMINISTRATOR' and falls under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. While the exact deliverables are not detailed in the provided data, these services typically encompass a wide range of support functions. This could include strategic planning, organizational analysis, process improvement, policy development, program management support, and potentially the administration of specific government applications or systems. The 'Applications Administrator' designation suggests a focus on managing and supporting software applications critical to the agency's operations, likely within the Office of the Chief Financial Officer, as indicated by the 'sa' field. A more detailed statement of work (SOW) would be required to fully understand the precise services expected from Midtown Personnel Inc.

How does the awarded amount of $114.7 million compare to historical spending on similar administrative support contracts by the Department of Agriculture?

To compare the $114.7 million award to historical spending, one would need to analyze past contracts awarded by the Department of Agriculture (USDA) for administrative management and general management consulting services (NAICS 541611). This involves querying federal procurement databases like FPDS or USASpending.gov for similar contracts over the past several fiscal years. Key comparison points would include contract value, duration, scope of services, and the type of competition. For instance, if the USDA has historically awarded numerous contracts in the $10-$30 million range for similar services, then $114.7 million would represent a significantly larger, potentially program-critical award. Conversely, if the USDA frequently awards contracts of this magnitude for large-scale administrative support, then this award might be within the expected range. Without this comparative data, it's difficult to definitively state whether this award is high or low relative to historical trends.

What are the key performance indicators (KPIs) or metrics used to evaluate the performance of Midtown Personnel Inc. under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or performance metrics for this contract. However, in federal contracts, especially those for administrative and management consulting services, performance is typically evaluated against a Statement of Work (SOW) and Service Level Agreements (SLAs). Common KPIs might include timeliness of service delivery, accuracy of administrative tasks, adherence to project milestones, client satisfaction (measured through surveys or feedback), efficiency improvements achieved, and compliance with relevant regulations and policies. For an 'Applications Administrator' role, KPIs could also involve system uptime, response times for user support, successful implementation of application updates, and data security compliance. The contracting officer's representative (COR) at the Department of Agriculture would be responsible for monitoring these metrics and formally evaluating the contractor's performance.

What is the potential impact of this contract on the small business ecosystem, given it was not a small business set-aside?

Since this contract was awarded under full and open competition and is not designated as a small business set-aside, its direct impact on the small business ecosystem is likely minimal in terms of prime contracting opportunities. Small businesses will not be directly competing for this $114.7 million award. However, there could be indirect impacts. The prime contractor, Midtown Personnel Inc., may choose to subcontract a portion of the work to small businesses, particularly for specialized services or to meet broader socioeconomic goals if they have them. The extent of this subcontracting would depend on the prime contractor's strategy and any specific subcontracting plans negotiated. Furthermore, the concentration of administrative support services within a single large contract might reduce the number of smaller, individual contracts available to small businesses in this domain.

Are there any known performance issues or past performance concerns associated with Midtown Personnel Inc. on previous federal contracts?

Assessing the past performance of Midtown Personnel Inc. requires accessing detailed contract performance records, which are not included in the provided summary data. Federal agencies typically maintain Past Performance Information (PPI) databases, and contracting officers review this information during the source selection process. To determine if there are known performance issues, one would need to consult resources like the Contractor Performance Assessment Reporting System (CPARS) or conduct a deeper dive into federal procurement history for Midtown Personnel Inc. CPARS reports provide ratings and narrative comments on contractor performance for completed federal contracts. Without access to these specific records, it is impossible to definitively state whether Midtown Personnel Inc. has a history of performance issues or successes on prior government engagements.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1130 CONNECTICUT AVE NW STE 450, WASHINGTON, DC, 20036

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: $114,744,350

Exercised Options: $114,744,350

Current Obligation: $114,744,350

Actual Outlays: $114,744,350

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F0438Y

IDV Type: FSS

Timeline