Commerce Department's $26.3M HR support contract awarded to YOUR RECRUITING COMPANY, INC. for administrative management services

Contract Overview

Contract Amount: $26,324,349 ($26.3M)

Contractor: Your Recruiting Company, Inc.

Awarding Agency: Department of Commerce

Start Date: 2020-08-19

End Date: 2026-08-06

Contract Duration: 2,178 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: HUMAN RESOURCE SUPPORT SERVICES

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $26.3 million to YOUR RECRUITING COMPANY, INC. for work described as: HUMAN RESOURCE SUPPORT SERVICES Key points: 1. Contract awarded via a Best Practices Acquisition (BPA) Call, indicating a pre-competed framework. 2. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 3. The duration of the contract is substantial, spanning over 6 years, requiring sustained performance. 4. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 5. The contract was awarded under full and open competition, suggesting a broad market search. 6. The base contract value is $1.2M, with significant potential for growth through task orders.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure requires careful monitoring to ensure value for money. Without fixed price components or clear performance metrics tied to payment, there's a risk of cost overruns if not managed diligently. Benchmarking T&M rates against industry standards for administrative management and HR support services would be crucial for assessing pricing fairness. The significant difference between the base award and the total potential value suggests flexibility but also highlights the need for robust oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not provided but the 'full and open' designation suggests a robust competitive environment.

Taxpayer Impact: A full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring that the government secures services at a competitive rate.

Public Impact

Benefits the Department of Commerce by providing essential human resource support services. Services delivered include administrative management and general management consulting. The contract is geographically focused on Maryland, where the Office of the Secretary is located. Potential workforce implications for HR professionals and administrative staff within the Department of Commerce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation without strict controls.
Long contract duration necessitates ongoing performance monitoring to ensure sustained quality.
Limited visibility into specific performance metrics and deliverables within the provided data.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
BPA Call award mechanism implies a pre-vetted and potentially more efficient procurement.
Contract supports critical administrative and HR functions for a federal agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is characterized by a wide range of service providers, from large consulting firms to specialized boutique agencies. Federal spending in this area often supports agency operations, strategic planning, and human capital management. Comparable spending benchmarks would depend on the specific services rendered, but federal agencies frequently contract for HR and administrative support to augment internal capabilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, it did not directly involve small business set-aside provisions. However, the prime contractor, YOUR RECRUITING COMPANY, INC., may engage small businesses as subcontractors. The impact on the small business ecosystem would depend on the subcontracting plan, if any, and the extent to which small businesses are utilized in fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the Department of Commerce's program officials. As a Time and Materials contract, rigorous oversight of labor hours, rates, and direct costs is essential to ensure compliance and prevent overspending. Transparency is facilitated through contract reporting mechanisms, and any potential issues could be addressed by the agency's Inspector General, although specific IG involvement is not detailed here.

Related Government Programs

Federal Human Resources Management
Administrative Support Services
Management and Consulting Services
Department of Commerce Contracts
BPA Call Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for robust oversight to manage long contract duration.
Scope creep risk inherent in T&M contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $26.3 million to YOUR RECRUITING COMPANY, INC.. HUMAN RESOURCE 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 $26.3 million.

What is the period of performance?

Start: 2020-08-19. End: 2026-08-06.

What is the typical hourly rate for administrative management consulting services under Time and Materials contracts with the federal government?

Hourly rates for Time and Materials (T&M) contracts in administrative management and general consulting can vary significantly based on the specific skill sets required, the contractor's overhead, and the prevailing market rates. For services like those under NAICS code 541611, rates can range from $75 to over $300 per hour. Factors influencing this range include the level of expertise (e.g., junior analyst vs. senior consultant), geographic location, and the specific nature of the administrative or management tasks. Without knowing the specific labor categories and their associated rates within this contract, a precise benchmark is difficult. However, the Department of Commerce would have evaluated these rates during the procurement process to ensure they were fair and reasonable, likely comparing them against historical data and industry benchmarks for similar services.

How does the $26.3 million total potential value compare to other federal HR support contracts?

The total potential value of $26.3 million for this human resource support services contract with the Department of Commerce is moderate within the federal contracting landscape. Federal spending on HR and administrative support services can range from a few hundred thousand dollars for smaller, specialized tasks to hundreds of millions for large-scale, enterprise-wide solutions. Contracts of this magnitude often cover multi-year periods and support significant agency functions. To provide a precise comparison, one would need to analyze contracts with similar scope, duration, and agency size. However, this value suggests a substantial, ongoing need for the services provided, likely encompassing a significant portion of the department's HR administrative functions.

What are the primary risks associated with a Time and Materials contract of this duration?

The primary risks associated with a Time and Materials (T&M) contract, especially one with a duration of over six years and a potential value of $26.3 million, revolve around cost control and scope creep. T&M contracts pay the contractor for the actual labor hours expended and the cost of materials used. This structure can incentivize longer task durations or less efficient work if not rigorously monitored, potentially leading to cost overruns. For long-duration contracts, the risk of escalating labor rates over time also exists, impacting the overall cost-effectiveness. Furthermore, defining and managing the 'materials' component can be complex. Effective risk mitigation requires strong government oversight, detailed task order definitions, and regular audits of invoices and labor records.

What does the 'BPA Call' award mechanism imply about the procurement process?

The 'BPA Call' award mechanism signifies that this contract was awarded under a pre-existing Blanket Purchase Agreement (BPA). BPAs are simplified acquisition methods that allow federal agencies to streamline the process of obtaining a wide variety of supplies and services from pre-approved vendors. A 'BPA Call' specifically refers to an order placed against an established BPA. This implies that the initial BPA itself likely underwent a competitive procurement process, establishing terms, conditions, and potentially pricing structures. The 'Call' then represents a specific task order issued under that BPA, often with a simplified competition or direct award depending on the BPA's terms and the value of the call order. This method generally leads to faster award times and potentially better pricing due to the pre-negotiated framework.

How does the NAICS code 541611 (Administrative Management and General Management Consulting Services) define the scope of this contract?

The North American Industry Classification System (NAICS) code 541611 defines the scope of this contract as encompassing establishments primarily engaged in providing operating advice and assistance on administrative and management issues. This includes policy planning and development, administrative management, and general management consulting services. Services provided under this code can cover a broad range of activities such as strategic and organizational planning, business process improvement, human resource policy development, and executive research. For this specific contract with the Department of Commerce, it suggests the contractor is providing expertise to help the agency manage its operations more effectively, improve internal processes, and potentially advise on organizational structure and policy.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3975 FAIR RIDGE DR SUITE 300S, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,324,349

Exercised Options: $26,324,349

Current Obligation: $26,324,349

Actual Outlays: $11,864,020

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $516,486

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L520A13ES0009

IDV Type: BPA

Timeline