DO for GENTECH ASSOCIATES INC awarded by US Marshals Service for $3.26M, exceeding benchmark by 15%

Contract Overview

Contract Amount: $3,258,482 ($3.3M)

Contractor: Gentech Associates Inc

Awarding Agency: Department of Justice

Start Date: 2025-01-01

End Date: 2026-12-31

Contract Duration: 729 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: 01, 03, 04, 07, 08, 12

Place of Performance

Location: ZIONSVILLE, BOONE County, INDIANA, 46077

State: Indiana Government Spending

Plain-Language Summary

Department of Justice obligated $3.3 million to GENTECH ASSOCIATES INC for work described as: 01, 03, 04, 07, 08, 12 Key points: 1. Value for money appears questionable given the 15% over-benchmark pricing. 2. Competition dynamics indicate a full and open process, suggesting fair market exploration. 3. Risk indicators are moderate, with potential for cost overruns due to time and materials. 4. Performance context is a delivery order under a larger IDIQ, implying established needs. 5. Sector positioning is within administrative management consulting, a common government service area.

Value Assessment

Rating: questionable

The contract's total value of $3.26M is 15% above the benchmark of $2.84M (calculated from BR). While the time and materials (T&M) pricing structure allows for flexibility, it also introduces a risk of cost escalation. Benchmarking against similar administrative management consulting services suggests that while GENTECH ASSOCIATES INC's pricing is not unprecedented, the 15% premium warrants scrutiny. Further analysis of the specific services rendered and the contractor's historical performance would be needed to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bidders suggests a reasonably competitive environment. However, the fact that the award went to GENTECH ASSOCIATES INC at a price exceeding the benchmark raises questions about the effectiveness of the competition in driving down costs for this specific requirement.

Taxpayer Impact: Taxpayers may have paid a premium due to the contract exceeding the benchmark, despite a competitive bidding process. The efficiency of the procurement process in securing the best value for taxpayer dollars could be improved.

Public Impact

The U.S. Marshals Service benefits from administrative management and general management consulting services. These services are crucial for supporting the operational efficiency and administrative functions of the agency. The contract is being performed in Indiana, potentially creating local economic benefits. The duration of the contract (729 days) suggests a sustained need for these consulting services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type increases risk of cost overruns.
Award price exceeds benchmark by 15%, indicating potential for reduced value for money.
Limited information on specific performance metrics makes it difficult to assess effectiveness.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Multiple bidders (5) participated, indicating market interest and potential for competitive pricing.
Contract is a delivery order under an IDIQ, implying a pre-vetted contractor and established framework.

Sector Analysis

The administrative management and general management consulting services sector is a significant area of government procurement. Agencies frequently contract for these services to improve efficiency, implement new strategies, and manage complex operations. The market is characterized by a mix of large, established firms and smaller, specialized consultancies. Spending in this category can fluctuate based on agency needs and budget allocations, but it consistently represents a substantial portion of federal IT and professional services spending.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to GENTECH ASSOCIATES INC, a company not explicitly identified as a small business in the provided data, suggests that larger firms were likely the primary participants in this competition. This may limit opportunities for small businesses to participate in this specific contract's execution.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Marshals Service's contracting officer and program managers. Accountability measures are inherent in the delivery order process, which usually requires adherence to specific task orders and performance standards. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Administrative Management and General Management Consulting Services
U.S. Marshals Service Contracts
Department of Justice Procurements
Delivery Orders
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Award price exceeds benchmark by 15%.
Limited transparency on specific performance metrics.
No explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.3 million to GENTECH ASSOCIATES INC. 01, 03, 04, 07, 08, 12

Who is the contractor on this award?

The obligated recipient is GENTECH ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-12-31.

What is the track record of GENTECH ASSOCIATES INC with the federal government?

GENTECH ASSOCIATES INC has a history of federal contracts, primarily within the Department of Justice and related agencies. Their awards often fall within the administrative and management consulting services categories. While specific performance details for past contracts are not provided here, the recurring nature of their awards suggests a level of satisfaction or competitive capability. Further investigation into past performance reviews and contract close-outs would provide a more comprehensive understanding of their track record. The current award, a delivery order under an IDIQ, implies they have successfully navigated previous procurement stages with the government.

How does the $3.26M award compare to similar administrative management consulting contracts?

The $3.26M award for administrative management and general management consulting services is within a common range for such federal contracts, especially for multi-year delivery orders. However, the key concern is that this award exceeds the benchmark (estimated at $2.84M based on BR) by approximately 15%. While some variation is expected due to market conditions, scope, and specific requirements, a 15% premium warrants closer examination. Comparable contracts awarded under similar competitive conditions and with similar scopes of work would need to be analyzed to determine if this premium is justified by unique service offerings, contractor expertise, or unforeseen market pressures.

What are the primary risks associated with this Time and Materials (T&M) contract?

The primary risk associated with this Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements do not have a ceiling on the total cost, as payment is based on the actual hours worked and materials used. This structure can incentivize longer project durations or less efficient work if not managed stringently. For the government, this means the final cost could significantly exceed the initial estimate or the benchmark price. Effective oversight, detailed task order management, and clear performance metrics are crucial to mitigate these risks and ensure value for money.

How effective is the full and open competition process in ensuring competitive pricing for this type of service?

Full and open competition is generally considered the most effective method for ensuring competitive pricing, as it allows all responsible sources to submit offers. In this case, with 5 bidders, the process appears to have been robust. However, the fact that the award exceeded the benchmark by 15% suggests that either the benchmark was set too low, the bidders did not perceive sufficient competitive pressure to lower their prices, or the winning proposal offered unique value not captured by the benchmark. While the process itself is sound, its outcome in this instance indicates potential inefficiencies in price discovery or negotiation, suggesting that even with open competition, careful evaluation and negotiation are vital.

What is the historical spending trend for administrative management consulting services by the U.S. Marshals Service?

Historical spending data for administrative management and general management consulting services by the U.S. Marshals Service would reveal trends in their reliance on external expertise for operational and administrative support. Analyzing past years' spending in this category would indicate whether this $3.26M delivery order represents an increase, decrease, or stable level of investment. Such analysis could also highlight shifts in the types of consulting services procured or changes in the average contract values. Understanding these historical patterns is essential for contextualizing current spending and identifying potential budget efficiencies or areas of growing need within the agency.

What are the implications of the contract duration (729 days) on service delivery and cost?

A contract duration of 729 days (approximately two years) for administrative management and general management consulting services suggests a long-term need for the services provided. This extended period allows for the development of deeper relationships, more comprehensive project execution, and potentially greater efficiency through familiarity with the agency's operations. From a cost perspective, a longer duration under a T&M contract increases the risk of cumulative cost overruns if not managed carefully. However, it can also lead to better overall value if the extended period allows for more thorough implementation and sustained impact compared to shorter, potentially less effective 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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15M10424QA4700007

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gentech Associates, Inc.

Address: 11644 N MICHIGAN RD, ZIONSVILLE, IN, 46077

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,117,633

Exercised Options: $4,166,395

Current Obligation: $3,258,482

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS23F053AA

IDV Type: FSS

Timeline