Commerce Department awards $4.48M contract for staffing support to Snapit Solutions LLC

Contract Overview

Contract Amount: $4,482,869 ($4.5M)

Contractor: Snapit Solutions LLC

Awarding Agency: Department of Commerce

Start Date: 2023-09-26

End Date: 2026-06-30

Contract Duration: 1,008 days

Daily Burn Rate: $4.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STAFFING SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $4.5 million to SNAPIT SOLUTIONS LLC for work described as: STAFFING SUPPORT Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings and market fairness. 2. The contract's duration of approximately 3 years suggests a need for sustained administrative support. 3. Focus on administrative management and general management consulting services indicates a need for operational efficiency improvements. 4. The firm fixed-price structure aims to control costs, but the lack of competition may limit price negotiation. 5. Awarded to a single vendor, highlighting potential reliance on specialized capabilities or limited market availability. 6. The contract's value is moderate, suggesting it addresses a specific, albeit important, departmental need.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its non-competitive nature and the specific nature of administrative management services. Without comparable bids, it's difficult to definitively assess if the $4.48 million represents optimal value for money. The firm fixed-price contract type suggests an attempt to cap costs, but the absence of competition means there's no direct market pressure to drive the price down. Further analysis would require understanding the specific deliverables and the contractor's proposed labor rates against industry standards for similar administrative support roles.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the agency determined that only one source was capable of satisfying the agency's needs. This could be due to proprietary technology, unique expertise, or specific circumstances. The lack of a competitive bidding process means that multiple vendors were not given the opportunity to propose their services, which can limit price discovery and potentially lead to higher costs than if the contract had been competed.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these administrative management services due to the absence of a competitive bidding process. The government's ability to negotiate favorable terms is reduced when only one vendor is considered.

Public Impact

The primary beneficiaries are the Department of Commerce's Office of the Secretary, which will receive administrative and management consulting support. The services delivered will likely enhance the operational efficiency and administrative functions within the department. The geographic impact is concentrated in the District of Columbia, where the Department of Commerce is headquartered. Workforce implications may include the augmentation of existing staff or the provision of specialized skills through the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to inflated prices and reduced innovation.
Sole-source awards can create barriers to entry for other potential vendors.
Transparency is limited due to the non-competitive nature of the award.

Positive Signals

Firm fixed-price contract type helps to control costs and provides budget certainty.
The contract duration suggests a stable need for these services.
Awarding to a single vendor may indicate specialized expertise is being leveraged.

Sector Analysis

The administrative management and general management consulting services sector is a broad category encompassing a wide range of support functions for government agencies. This contract falls within the professional services segment of the federal market. Comparable spending benchmarks for similar administrative support contracts can vary significantly based on the scope of work, duration, and specific expertise required. The federal government frequently procures these types of services to supplement internal capabilities and improve operational effectiveness.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates the awardee is Snapit Solutions LLC. There is no explicit information regarding subcontracting plans for small businesses. The lack of a small business set-aside means that opportunities for small businesses to directly compete for or participate in this specific contract may be limited, unless they are part of a subcontracting effort by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's internal contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is somewhat limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Administrative Support Services
Management Consulting Services
Professional Services Contracts
Department of Commerce Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency regarding the justification for non-competition.
Potential for cost overruns if scope is not tightly managed despite FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $4.5 million to SNAPIT SOLUTIONS LLC. STAFFING SUPPORT

Who is the contractor on this award?

The obligated recipient is SNAPIT SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2023-09-26. End: 2026-06-30.

What specific administrative management and general management consulting services are being procured under this contract?

The contract, NAICS code 541611, specifies 'Administrative Management and General Management Consulting Services.' While the specific tasks are not detailed in the provided data, these services typically encompass areas such as organizational structure review, process improvement, strategic planning support, operational efficiency analysis, and general administrative support functions. The Department of Commerce likely requires these services to enhance the effectiveness and efficiency of its operations within the Office of the Secretary. The exact nature of the support would be elaborated in the contract's Statement of Work (SOW), detailing deliverables, timelines, and performance metrics.

Why was this contract awarded on a sole-source basis instead of being competed?

The contract was designated as 'NOT AVAILABLE FOR COMPETITION,' which implies that the Department of Commerce determined that only one source, Snapit Solutions LLC, was capable of meeting its requirements. This justification for sole-source awards typically stems from unique capabilities, proprietary technology, or specific circumstances where competition is not feasible or practical. Without further details from the agency's justification for other than full and open competition (JOFOC), the precise reasons remain undisclosed. However, such justifications are subject to review and must meet strict federal acquisition regulations to ensure fair and responsible use of taxpayer funds.

How does the firm fixed-price contract type mitigate risk for the government?

A firm fixed-price (FFP) contract is generally considered advantageous for the government when the scope of work is well-defined and risks of cost overruns are manageable. Under an FFP contract, the contractor agrees to a total price for a specific set of goods or services, and is responsible for all costs incurred to complete the work. This shifts the financial risk from the government to the contractor. If the contractor's costs exceed the agreed-upon price, the government is not obligated to pay more. This structure provides budget certainty for the agency and incentivizes the contractor to manage its costs efficiently to maximize profit.

What is the typical cost range for similar administrative management consulting contracts in the federal government?

The cost range for similar administrative management and general management consulting services contracts in the federal government can vary widely, influenced by factors such as contract duration, scope of services, geographic location, and the specific expertise required. Contracts can range from tens of thousands to millions of dollars. For a contract valued at approximately $4.48 million over roughly three years, this falls within a moderate range for specialized administrative support. However, without detailed scope of work and labor hour breakdowns, direct cost comparisons are difficult. Benchmarking would ideally involve comparing against contracts with similar NAICS codes, agencies, and service levels, adjusted for inflation and market conditions.

What are the potential implications of this contract for small businesses?

As this contract was not awarded under a small business set-aside and is a sole-source award to Snapit Solutions LLC, there are limited direct opportunities for small businesses to compete for this prime contract. However, small businesses could potentially benefit if Snapit Solutions LLC engages them as subcontractors. The extent of small business subcontracting would depend on the prime contractor's subcontracting plan, if any, and the specific needs of the services being provided. Federal regulations encourage prime contractors to utilize small businesses for subcontracting, but it is not always mandated, especially in sole-source situations.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7780 W 119TH ST, OVERLAND PARK, KS, 66213

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,482,869

Exercised Options: $4,482,869

Current Obligation: $4,482,869

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline