Commerce awarded $10.8M for HR consulting, with a high per-unit cost for a time and materials contract

Contract Overview

Contract Amount: $10,852,123 ($10.9M)

Contractor: Your Recruiting Company, Inc.

Awarding Agency: Department of Commerce

Start Date: 2018-08-30

End Date: 2021-04-04

Contract Duration: 948 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF HR SUPPORT SERVICES

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $10.9 million to YOUR RECRUITING COMPANY, INC. for work described as: IGF::OT::IGF HR SUPPORT SERVICES Key points: 1. The contract utilized a time and materials pricing structure, which can lead to cost overruns if not carefully managed. 2. With only one bid received, the level of competition was limited, potentially impacting price negotiation. 3. The contract duration of 948 days suggests a need for sustained support in HR consulting services. 4. The awarded amount represents a significant investment in human resources support for the Office of the Secretary. 5. The North American Industry Classification System (NAICS) code 541612 indicates specialized human resources consulting services.

Value Assessment

Rating: fair

The contract's value is difficult to assess without detailed labor rates and hours. However, the total award of $10.8M over approximately 2.6 years for HR consulting services appears substantial. Benchmarking against similar HR consulting contracts would be necessary to determine if the overall price is competitive. The time and materials (T&M) pricing model, while flexible, carries inherent risks of cost escalation if not rigorously monitored against established labor categories and rates.

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. However, only one bid was received. This limited competition could suggest potential barriers to entry for other firms, or perhaps a lack of market interest in this specific requirement at the time of solicitation. The single bid raises questions about whether the government received the most advantageous pricing possible.

Taxpayer Impact: A single bid limits the government's ability to leverage competitive pressures to secure the lowest possible price for taxpayers. This could result in a higher overall cost compared to a scenario with multiple competing offers.

Public Impact

The Office of the Secretary within the Department of Commerce benefits from specialized HR consulting services. Services delivered likely include strategic HR planning, policy development, and operational HR support. The contract's geographic impact is primarily focused on the Department of Commerce's operations, likely within Maryland. Workforce implications may involve supporting existing HR staff or providing expertise that augments the agency's internal capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (one bid) may have reduced price discovery.
Time and materials contract type carries a risk of cost overruns if not managed closely.
The specific deliverables and performance metrics are not detailed, making it hard to assess effectiveness.
The contract's duration suggests a long-term need, potentially indicating a gap in internal HR capacity.

Positive Signals

Awarded under full and open competition, allowing for broad market participation.
The contract addresses a critical function: human resources support for a major federal agency.
The contract was awarded to a single entity, potentially indicating a clear point of accountability.

Sector Analysis

Human Resources Consulting Services fall under the professional, scientific, and technical services sector. This sector is characterized by a wide range of specialized expertise offered to businesses and government agencies. The market size for government HR consulting is substantial, driven by the need for agencies to manage complex workforces, comply with regulations, and implement modern HR practices. This contract fits within the broader category of management consulting services for federal agencies.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the total award value, it is unlikely to have been a small business set-aside. The absence of small business participation details means its direct impact on the small business ecosystem is not evident from the provided data.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer's representative (COR) within the Department of Commerce's Office of the Secretary. Performance monitoring, invoice review, and ensuring compliance with contract terms are key oversight functions. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Commerce HR Support Services
Federal Human Capital Management Consulting
Professional Services Administration (GSA) Contracts
Management and Consulting Services

Risk Flags

Limited competition
Time and Materials pricing
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $10.9 million to YOUR RECRUITING COMPANY, INC.. IGF::OT::IGF HR SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is YOUR RECRUITING COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2018-08-30. End: 2021-04-04.

What was the specific nature of the HR consulting services provided under this contract?

The contract, NAICS code 541612, specifies 'Human Resources Consulting Services.' While the exact nature of the services isn't detailed in the provided data, such contracts typically encompass a range of activities. These can include strategic workforce planning, organizational design, compensation and benefits analysis, talent acquisition strategy, employee relations guidance, HR policy development and implementation, performance management systems, and HR information system support. The specific tasks would have been outlined in the Statement of Work (SOW) attached to the contract, detailing the objectives, deliverables, and performance standards expected from YOUR RECRUITING COMPANY, INC.

How does the awarded amount compare to similar HR consulting contracts within the federal government?

Comparing this $10.8 million contract requires access to a broader dataset of federal HR consulting procurements. However, for a contract spanning nearly three years (948 days) and awarded under full and open competition, this amount is within a plausible range for specialized consulting services to a federal agency. Factors influencing cost include the complexity of the agency's HR needs, the level of expertise required, and the specific deliverables. Contracts with fewer bidders or those using time and materials can sometimes appear higher if not benchmarked against comparable scope and service levels. A detailed analysis would involve comparing labor rates, overhead, and profit margins against similar T&M contracts for HR consulting.

What are the primary risks associated with a Time and Materials (T&M) contract for HR consulting?

The primary risk with a Time and Materials (T&M) contract, like this one, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work expands, or if the contractor's hours are not efficiently managed, the total cost can significantly exceed initial estimates. For HR consulting, this means that if the project takes longer than anticipated or requires more senior personnel hours than planned, the overall expenditure will increase. Effective oversight, clear task definitions, and diligent monitoring of labor hours and rates are crucial to mitigate these risks and ensure value for money.

What does the fact that only one bid was received imply for the Department of Commerce?

The receipt of only one bid under a full and open competition solicitation presents several implications for the Department of Commerce. Firstly, it suggests that the market may not have been as robustly competitive as anticipated for this specific requirement. This could be due to various factors, such as the specialized nature of the services, the contract's geographic location, the specific requirements outlined in the solicitation, or the timing of the procurement. Secondly, with only one offer, the Department had limited leverage to negotiate pricing and terms, potentially leading to a less favorable outcome than if multiple bids had been received. It also raises questions about whether the solicitation was structured in a way that inadvertently discouraged other potential bidders.

What is the historical spending pattern for HR consulting services by the Department of Commerce?

Analyzing the historical spending pattern for HR consulting services by the Department of Commerce would require accessing historical procurement data over multiple fiscal years. This specific contract award of $10.8 million from 2018 to 2021 represents a significant investment. To understand the pattern, one would need to aggregate spending on similar NAICS codes (e.g., 541612) awarded by the Department over time. This would reveal whether this contract is an outlier, part of a consistent trend, or indicative of increasing reliance on external HR consulting. It would also help identify trends in contract types (T&M vs. fixed-price), competition levels, and average award values within the Department for these services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources 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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11710 PLAZA AMERICA DR STE 920, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $10,875,803

Exercised Options: $10,852,123

Current Obligation: $10,852,123

Actual Outlays: $3,819,804

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $237,322

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS02Q16DCR0072

IDV Type: IDC

Timeline