Department of Labor Awards $16.18M Task Order for Financial Statement Services to Verdi Consulting Inc

Contract Overview

Contract Amount: $16,186,328 ($16.2M)

Contractor: Verdi Consulting Inc

Awarding Agency: Department of Labor

Start Date: 2020-03-27

End Date: 2026-02-15

Contract Duration: 2,151 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: NEW TASK ORDER TO PROVIDE FINANCIAL STATEMENT PREPARATION SERVICES UNDER THE FINANCIAL SERVICES BLANKET PURCHASE AGREEMENT (BPA). PERIOD OF PERFORMANCE: THE PERIOD OF PERFORMANCE SHALL BE A TWELVE (12) MONTH BASE AND FOUR OPTION YEAR PERIODS.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $16.2 million to VERDI CONSULTING INC for work described as: NEW TASK ORDER TO PROVIDE FINANCIAL STATEMENT PREPARATION SERVICES UNDER THE FINANCIAL SERVICES BLANKET PURCHASE AGREEMENT (BPA). PERIOD OF PERFORMANCE: THE PERIOD OF PERFORMANCE SHALL BE A TWELVE (12) MONTH BASE AND FOUR OPTION YEAR PERIODS. Key points: 1. The task order, valued at $16.18 million, is for financial statement preparation services. 2. Verdi Consulting Inc. is the awardee, operating under a Blanket Purchase Agreement (BPA). 3. The contract spans a 12-month base period with four option years, ending February 15, 2026. 4. The service falls under Administrative Management and General Management Consulting Services (NAICS 541611).

Value Assessment

Rating: fair

The contract value of $16.18 million for financial statement preparation services over five years appears reasonable, but a direct per-unit cost comparison is difficult without more detailed service scope and labor hour breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition via a BPA Call, suggesting a competitive process. However, the specific pricing mechanisms within the BPA and the call process's impact on price discovery are not detailed.

Taxpayer Impact: Taxpayer funds are being used for essential financial reporting services, with the competitive award aiming for cost-effectiveness.

Public Impact

Ensures compliance with financial reporting regulations for the Department of Labor. Supports the Office of the Assistant Secretary for Administration and Management's operational needs. Provides continuity in financial statement preparation services. Potential impact on the efficiency and accuracy of DOL's financial management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for labor hours.
Potential for scope creep over the option periods.
Reliance on a BPA may limit future competition if not managed carefully.

Positive Signals

Awarded under full and open competition.
Clear period of performance.
Established vendor with existing BPA.

Sector Analysis

This contract falls within the professional services sector, specifically management consulting. Benchmarks for similar financial statement preparation services can vary widely based on agency size, complexity, and specific requirements.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the primary awardee is not a small business, and no specific small business set-aside was applied.

Oversight & Accountability

Oversight is likely managed by the Department of Labor's contracting officers and program managers. The BPA structure implies established terms, but ongoing monitoring of performance and costs is crucial for accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns if labor hours are not managed effectively.
Dependence on a single vendor for a critical function.
Limited transparency into specific pricing components.
Scope creep risk during option periods.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $16.2 million to VERDI CONSULTING INC. NEW TASK ORDER TO PROVIDE FINANCIAL STATEMENT PREPARATION SERVICES UNDER THE FINANCIAL SERVICES BLANKET PURCHASE AGREEMENT (BPA). PERIOD OF PERFORMANCE: THE PERIOD OF PERFORMANCE SHALL BE A TWELVE (12) MONTH BASE AND FOUR OPTION YEAR PERIODS.

Who is the contractor on this award?

The obligated recipient is VERDI CONSULTING 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 $16.2 million.

What is the period of performance?

Start: 2020-03-27. End: 2026-02-15.

What is the average hourly rate being paid under this contract, and how does it compare to industry benchmarks for similar financial statement preparation services?

The provided data does not specify the average hourly rate. The total award value is $16.18 million over a maximum of 2151 days (approximately 5.9 years). Without knowing the total labor hours or specific rates, a direct comparison to industry benchmarks is not possible. Further analysis would require detailed contract line item details.

What specific risks are associated with relying on a single vendor, even under a competitive BPA call, for critical financial statement preparation services?

Risks include potential vendor lock-in, reduced incentive for innovation or cost reduction if competition is perceived as weak, and vulnerability if the vendor experiences financial instability or performance issues. While the BPA was competitively awarded, ongoing performance monitoring is key to mitigating these risks.

How effectively does this contract ensure the accuracy and timeliness of the Department of Labor's financial statements, and what metrics are used to measure this effectiveness?

Effectiveness is primarily measured by the successful preparation and delivery of accurate financial statements according to federal standards. While the contract award suggests a belief in the vendor's capability, specific performance metrics, quality assurance reviews, and audit findings would provide a clearer picture of effectiveness.

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

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 7799 LEESBURG PIKE, FALLS CHURCH, VA, 22043

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

Financial Breakdown

Contract Ceiling: $17,721,770

Exercised Options: $17,721,770

Current Obligation: $16,186,328

Actual Outlays: $16,013,968

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1605DC19A0025

IDV Type: BPA

Timeline