Agriculture awards $9.5M contract for HACS Operations and Assessment Support Services to B & M Consulting Group

Contract Overview

Contract Amount: $9,504,082 ($9.5M)

Contractor: B & M Consulting Group, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-09-27

End Date: 2029-09-26

Contract Duration: 1,825 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PURCHASE HACS OPERATIONS AND ASSESSMENT SUPPORT SERVICES. BASE YEAR PLUS FOUR(4) ONE YEAR OPTION PERIODS.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Agriculture obligated $9.5 million to B & M CONSULTING GROUP, INC. for work described as: THE PURPOSE OF THIS CONTRACT IS TO PURCHASE HACS OPERATIONS AND ASSESSMENT SUPPORT SERVICES. BASE YEAR PLUS FOUR(4) ONE YEAR OPTION PERIODS. Key points: 1. Contract aims to secure essential operational and assessment support services. 2. The contract duration spans five years, indicating a long-term need. 3. Awarded through full and open competition, suggesting a competitive bidding process. 4. The contract type is Firm Fixed Price, providing cost certainty. 5. B & M Consulting Group, Inc. is the selected contractor. 6. The North American Industry Classification System (NAICS) code is 541519, 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract value of $9.5 million over five years averages to $1.9 million annually. Benchmarking this against similar IT support services contracts is challenging without more specific service details. However, the firm fixed-price structure suggests a degree of cost control. The awarded amount appears reasonable for specialized operational and assessment support, assuming the scope of work is well-defined and aligns with market rates for such expertise.

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 offers. The presence of two bids suggests a moderate level of competition for this requirement. While two bidders participated, the specific details of the bidding process and the evaluation criteria would determine if this level of competition was sufficient to drive optimal pricing and value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality. The fact that multiple companies vied for this contract suggests that taxpayer dollars are being used efficiently.

Public Impact

The Office of the Chief Financial Officer within the Department of Agriculture is the primary beneficiary, receiving critical support services. The services provided are essential for the smooth operation and assessment of HACS (likely a financial or administrative system). The contract's geographic impact is centered in Maryland, where the contractor is located. The contract supports specialized IT and consulting roles, potentially impacting the workforce in these areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bidders could potentially lead to higher prices than a more robustly competed contract.
The specific nature of 'HACS Operations and Assessment Support Services' is not fully detailed, making it difficult to assess the full scope and potential risks.
Reliance on a single contractor for five years could pose a risk if performance issues arise or if market conditions change significantly.

Positive Signals

Awarded through full and open competition, which is a positive indicator of a fair and transparent process.
The Firm Fixed Price contract type provides budget certainty for the agency and taxpayers.
The contract duration of five years suggests a stable and ongoing need for these critical support services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on 'Other Computer Related Services' (NAICS 541519). This category encompasses a wide range of IT consulting, integration, and support activities. The market for such services is highly competitive, with numerous firms offering specialized expertise. The Department of Agriculture's spending in this area is consistent with the general trend of federal agencies outsourcing IT support to leverage specialized skills and manage operational complexities.

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 or specific benefits to the small business ecosystem stemming from a set-aside provision. The prime contractor, B & M Consulting Group, Inc., is likely a small business itself given the contract value, but this is not explicitly stated. The absence of a small business set-aside means larger businesses could also compete, and subcontracting opportunities would depend on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Agriculture's Office of the Chief Financial Officer, which is the contracting activity. Standard federal procurement regulations and contract management practices will apply. Transparency is generally maintained through contract award databases like FPDS. Accountability measures will be tied to the performance work statement and the firm fixed-price nature of the contract, with potential for remedies if performance standards are not met. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Operations Support Services
Financial Systems Support
Government IT Consulting
Federal IT Services Contracts
Department of Agriculture IT Spending

Risk Flags

Limited Competition
Long Contract Duration
Scope Ambiguity

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $9.5 million to B & M CONSULTING GROUP, INC.. THE PURPOSE OF THIS CONTRACT IS TO PURCHASE HACS OPERATIONS AND ASSESSMENT SUPPORT SERVICES. BASE YEAR PLUS FOUR(4) ONE YEAR OPTION PERIODS.

Who is the contractor on this award?

The obligated recipient is B & M CONSULTING GROUP, 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 $9.5 million.

What is the period of performance?

Start: 2024-09-27. End: 2029-09-26.

What is the specific nature of 'HACS Operations and Assessment Support Services' and what are the key performance indicators?

The provided data does not detail the specific functions encompassed by 'HACS Operations and Assessment Support Services.' HACS likely refers to a specific system or program within the Department of Agriculture, possibly related to financial management or administrative operations, given the contracting office is the Office of the Chief Financial Officer. Key performance indicators (KPIs) would typically be outlined in the Performance Work Statement (PWS) or Statement of Work (SOW) attached to the contract. These KPIs would define measurable standards for service delivery, such as system uptime, response times for support requests, accuracy of assessments, and adherence to reporting deadlines. Without access to the PWS/SOW, a precise understanding of performance expectations and how success is measured remains elusive.

How does the $9.5 million contract value compare to historical spending on similar services by the Department of Agriculture?

To accurately compare the $9.5 million contract value to historical spending, one would need to identify previous contracts with similar scopes of work, specifically for 'HACS Operations and Assessment Support Services' or closely related functions within the Department of Agriculture. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would be necessary. Factors such as contract duration, inflation, and changes in service requirements over time must be considered for a meaningful comparison. If this is a new requirement or a consolidation of previous efforts, direct historical comparisons might be limited. However, if it replaces or continues similar services, an analysis of prior award values and durations would reveal trends in spending for this type of support.

What is the track record of B & M Consulting Group, Inc. with federal contracts, particularly within the Department of Agriculture?

Information regarding the track record of B & M Consulting Group, Inc. with federal contracts, including within the Department of Agriculture, is not provided in the summary data. A thorough assessment would require accessing federal procurement databases (e.g., FPDS) to review their contract history. This would involve examining past awards, contract values, performance ratings (if available), and any history of contract modifications, disputes, or terminations. Understanding their past performance, especially in delivering similar IT operations and assessment support services, is crucial for evaluating the risk associated with this new award and confirming their capability to meet the contract's requirements.

What are the potential risks associated with a five-year Firm Fixed Price contract for IT support services?

A five-year Firm Fixed Price (FFP) contract for IT support services presents several potential risks. For the government, the primary risk is that the fixed price may become uncompetitive over the contract's lifespan if market rates decrease or if the scope of work evolves significantly, leading to the government potentially overpaying for services. Conversely, for the contractor, there's a risk that unforeseen technical challenges, increased labor costs, or scope creep (if not managed contractually) could erode profit margins. For IT services, the rapid pace of technological change can also render initial assumptions about required support obsolete, necessitating careful change management. The long duration increases the likelihood of such market or technological shifts occurring.

How does the 'Other Computer Related Services' NAICS code (541519) typically encompass operational and assessment support?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that can indeed encompass operational and assessment support services. This classification typically includes establishments primarily engaged in providing on-site or on-demand computer hardware and software support services. This can range from troubleshooting and technical support to system maintenance, network management, and IT infrastructure operations. Assessment support could fall under this code if it involves evaluating IT systems' performance, security, or efficiency. The 'other' designation signifies that it captures services not classified under more specific IT-related NAICS codes, making it a flexible category for specialized IT support functions like those described for HACS.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314424Q0046

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10401 GROSVENOR PL APT 925, ROCKVILLE, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $24,856,416

Exercised Options: $9,504,082

Current Obligation: $9,504,082

Actual Outlays: $6,289,247

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F122BA

IDV Type: FSS

Timeline