Labor Department awards $4M+ contract for administrative support, but competition was limited

Contract Overview

Contract Amount: $4,016,749 ($4.0M)

Contractor: Property & Environmental Management Inc

Awarding Agency: Department of Labor

Start Date: 2022-02-10

End Date: 2026-11-13

Contract Duration: 1,737 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ENVIRONMENTAL PROTECTION, SAFETY & OCCUPATIONAL HEALTH PROGRAM, AND ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $4.0 million to PROPERTY & ENVIRONMENTAL MANAGEMENT INC for work described as: ENVIRONMENTAL PROTECTION, SAFETY & OCCUPATIONAL HEALTH PROGRAM, AND ADMINISTRATIVE SUPPORT SERVICES Key points: 1. The contract's value of over $4 million for administrative support services represents a significant investment in operational efficiency. 2. The sole-source nature of this award raises questions about potential cost savings and the availability of competitive pricing. 3. The use of a Time and Materials contract type can lead to cost overruns if not closely monitored. 4. The contract duration of nearly five years suggests a long-term need for these administrative services. 5. The geographic focus on Washington D.C. indicates a need for localized support for the agency's operations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar sole-source awards. The Time and Materials pricing structure inherently carries a higher risk of cost escalation compared to fixed-price contracts. While the total award value is substantial, the true value for money will depend on the efficiency and effectiveness of the services delivered by PROPERTY & ENVIRONMENTAL MANAGEMENT INC. Further analysis of the specific tasks and deliverables would be needed to provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor is uniquely qualified or when circumstances prevent a full and open competition. The lack of competition means that the Department of Labor did not benefit from the price discovery and innovation that typically arises from a competitive bidding process. This could potentially lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for this contract means taxpayers may not have received the most cost-effective solution available in the market. The government's negotiating power is diminished in sole-source situations.

Public Impact

The primary beneficiary of this contract is the Department of Labor's Office of the Assistant Secretary for Administration and Management, which will receive essential administrative support. Services delivered include administrative management and general management consulting, crucial for the smooth functioning of departmental operations. The geographic impact is concentrated in Washington D.C., where the agency's primary administrative functions are likely located. This contract supports administrative roles, potentially impacting the workforce by providing necessary operational assistance to federal employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially increasing costs.
Time and Materials contract type poses a risk of cost overruns if not managed diligently.
Lack of transparency in the justification for sole-source award.
Limited data available to assess the contractor's past performance on similar sole-source contracts.

Positive Signals

Contract awarded to a single entity suggests a potential for specialized expertise.
Long-term contract duration indicates a stable and ongoing need for the services.
Focus on administrative support ensures essential agency functions are maintained.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, a broad category supporting various government functions. The market for these services is competitive, with numerous firms offering expertise in operational efficiency, human resources, and program management. The Department of Labor's spending in this area is typical for large federal agencies requiring robust administrative infrastructure. Comparable spending benchmarks would involve analyzing other agencies' contracts for similar support services, considering factors like agency size and scope of operations.

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 PROPERTY & ENVIRONMENTAL MANAGEMENT INC., a single entity, does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. Further investigation into the contractor's own utilization of small businesses in its supply chain would be necessary to fully assess the impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's contracting officers and program managers. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract. Transparency is limited due to the sole-source nature of the award, with less public visibility into the selection and negotiation process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Administrative Support Services
Management and Consulting Services
Federal Agency Operations Support
Office of the Assistant Secretary for Administration and Management Contracts

Risk Flags

Sole-source award
Time and Materials contract type
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $4.0 million to PROPERTY & ENVIRONMENTAL MANAGEMENT INC. ENVIRONMENTAL PROTECTION, SAFETY & OCCUPATIONAL HEALTH PROGRAM, AND ADMINISTRATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PROPERTY & ENVIRONMENTAL MANAGEMENT INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2022-02-10. End: 2026-11-13.

What is the track record of PROPERTY & ENVIRONMENTAL MANAGEMENT INC. in performing similar administrative support services for federal agencies, particularly under sole-source contracts?

Information regarding PROPERTY & ENVIRONMENTAL MANAGEMENT INC.'s specific track record on similar sole-source administrative support contracts is not readily available in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract histories, and any publicly available reports or awards associated with the company. Without this data, it is difficult to definitively gauge their experience and success in fulfilling such requirements, especially in a non-competitive context. Further due diligence would be needed to ascertain their capabilities and reliability for this specific Department of Labor contract.

How does the pricing structure of this Time and Materials contract compare to industry benchmarks for administrative support services, especially considering the sole-source nature?

The Time and Materials (T&M) pricing structure for this contract means that the government pays for the direct labor hours at specified hourly rates, plus the actual cost of materials. This structure is generally considered less cost-effective for the government than fixed-price contracts, as it shifts much of the cost risk to the buyer. Benchmarking T&M rates for administrative support services is complex and depends heavily on the specific skill sets, experience levels of personnel, and geographic location. Given that this contract was sole-sourced, it is unlikely that the government achieved the most competitive rates possible. A thorough analysis would involve comparing the proposed hourly rates for various labor categories against government-wide contract vehicles (like GSA schedules) or industry surveys for similar services in the Washington D.C. area.

What are the specific risks associated with a sole-source Time and Materials contract for administrative support, and what mitigation strategies are in place?

The primary risks associated with a sole-source Time and Materials contract for administrative support include potential cost overruns due to the open-ended nature of T&M pricing, lack of competitive pressure leading to inflated prices, and reduced incentive for contractor efficiency. Mitigation strategies typically involve robust oversight by the contracting officer, detailed monitoring of labor hours and material costs, clear definition of tasks and deliverables, and potentially establishing cost ceilings or award-fee structures. The Department of Labor would need to implement stringent project management controls and regular performance reviews to ensure value for money and prevent scope creep or unnecessary expenditures. The justification for the sole-source award should also clearly articulate why competition was not feasible and how potential risks are being managed.

What is the anticipated impact of these administrative support services on the Department of Labor's overall operational effectiveness and efficiency?

The anticipated impact of these administrative support services is to enhance the overall operational effectiveness and efficiency of the Department of Labor, particularly within the Office of the Assistant Secretary for Administration and Management. These services are expected to streamline administrative processes, provide essential consulting on management practices, and ensure the smooth functioning of daily operations. By outsourcing or contracting for these specialized functions, the agency can potentially free up its internal resources to focus on its core mission-critical activities. The success of this impact hinges on the quality of services provided by PROPERTY & ENVIRONMENTAL MANAGEMENT INC. and the effective integration of their support into the department's existing workflows.

How does the total contract value of approximately $4 million compare to historical spending patterns for similar administrative support services within the Department of Labor or similar federal agen

The total contract value of approximately $4 million over its duration (estimated at 1737 days, or roughly 4.75 years) suggests an average annual spending of around $840,000 for administrative support services. To compare this to historical patterns, one would need to analyze past contracts awarded by the Department of Labor or other agencies of similar size and scope for comparable services (NAICS code 541611). Factors such as the specific functions covered, the level of expertise required, and the prevailing market rates at the time of award would influence such comparisons. Without access to historical spending data and detailed contract scopes, it's difficult to definitively state whether this $4 million figure is high, low, or average. However, for a sole-source award, there's a presumption that it might be higher than a competitively bid contract.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1605C2-22-R-00006

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6161 BUSCH BLVD SUITE 255, COLUMBUS, OH, 43229

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,487,949

Exercised Options: $4,487,949

Current Obligation: $4,016,749

Actual Outlays: $3,428,881

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline