State Department awards $22.7M for management consulting, with 1 bidder in a competed SAP action

Contract Overview

Contract Amount: $22,675,268 ($22.7M)

Contractor: Contracting Resources Group Inc

Awarding Agency: Department of State

Start Date: 2022-03-30

End Date: 2027-03-29

Contract Duration: 1,825 days

Daily Burn Rate: $12.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS CALL IS ISSUED AGAINST PROGRAM MANAGEMENT SUPPORT SERVICES (PMSS) BPA #19AQMM19A0234

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21230

State: Maryland Government Spending

Plain-Language Summary

Department of State obligated $22.7 million to CONTRACTING RESOURCES GROUP INC for work described as: THIS CALL IS ISSUED AGAINST PROGRAM MANAGEMENT SUPPORT SERVICES (PMSS) BPA #19AQMM19A0234 Key points: 1. The contract value represents a significant investment in administrative and management consulting services. 2. Competition was limited to one bidder under the Simplified Acquisition Procedures (SAP), raising questions about price discovery. 3. The firm-fixed-price contract type aims to control costs, but the single-bidder scenario may have inflated the final price. 4. Performance is expected over five years, indicating a long-term need for these services. 5. The contract falls within the administrative management and general management consulting services sector. 6. The awardee, Contracting Resources Group Inc., has secured a substantial portion of the BPA's value. 7. The geographic location of performance is Maryland.

Value Assessment

Rating: fair

The contract value of $22.7 million over five years for management consulting services requires careful benchmarking. Without specific deliverables or performance metrics, it's difficult to assess value for money definitively. The single-bidder scenario under SAP suggests potential for overpayment compared to a more competitive environment. However, the firm-fixed-price structure provides some cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for more streamlined procurement but can result in limited competition. Only one bid was received, indicating that either the pool of qualified contractors was small, or the specific requirements of the BPA call were not widely advertised or appealing to multiple vendors. This limited competition may have reduced the government's leverage in negotiating the best possible price.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the most competitive pricing achievable through a broader solicitation. The government may have paid a premium due to the lack of alternative offers.

Public Impact

The Department of State is the primary beneficiary, receiving management and administrative support. Services delivered are expected to enhance the operational efficiency of the agency. Performance is concentrated in Maryland, potentially impacting the local economy through contractor employment. The contract supports administrative functions crucial for government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about optimal pricing for taxpayers.
The long-term nature of the contract (5 years) could lock the government into a potentially suboptimal arrangement if performance or pricing issues arise.
Reliance on a single bidder for critical management support could pose a risk if the contractor underperforms or faces financial instability.

Positive Signals

The firm-fixed-price contract type provides cost predictability.
The contract is issued against an existing BPA, suggesting some level of pre-qualification and established terms.
The awardee is a known entity within the contracting space, potentially indicating a level of established capability.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector is characterized by firms providing expertise in organizational efficiency, strategic planning, and operational improvements. The market size for government management consulting is substantial, with agencies frequently outsourcing these functions to leverage specialized knowledge and manage workload. This specific award is a BPA call, indicating it's a task order against a pre-existing Blanket Purchase Agreement, a common vehicle for recurring services.

Small Business Impact

The data indicates that small business participation was not a specific requirement for this contract (ss: false, sb: false). There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the primary focus was on securing the necessary management support services, potentially overlooking opportunities to engage or develop small businesses within this specific procurement action.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officer and program managers. As a firm-fixed-price contract, the primary oversight would focus on performance delivery against the agreed-upon scope. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Program Management Support Services (PMSS) BPA
Administrative Management and General Management Consulting Services
Department of State Contracts
Simplified Acquisition Procedures (SAP) Contracts

Risk Flags

Limited competition
Potential for inflated pricing
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22.7 million to CONTRACTING RESOURCES GROUP INC. THIS CALL IS ISSUED AGAINST PROGRAM MANAGEMENT SUPPORT SERVICES (PMSS) BPA #19AQMM19A0234

Who is the contractor on this award?

The obligated recipient is CONTRACTING RESOURCES GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2022-03-30. End: 2027-03-29.

What is the historical spending pattern for Contracting Resources Group Inc. with the Department of State?

Analyzing historical spending patterns for Contracting Resources Group Inc. (CRG) with the Department of State is crucial for understanding their track record and the government's reliance on their services. While this specific BPA call represents a significant award of $22.7 million, it's important to examine CRG's broader contract history with the agency. This includes looking at the number of previous contracts, their values, the types of services rendered, and their performance ratings, if available. A pattern of consistent, successful contract performance would bolster confidence in CRG's ability to deliver on this new award. Conversely, a history of cost overruns, performance issues, or frequent contract modifications might signal increased risk for this $22.7 million BPA call. Without access to CRG's complete federal contract database history, a definitive assessment is challenging, but this BPA call suggests a substantial existing relationship or a strong competitive proposal.

How does the $22.7 million value compare to similar management consulting contracts awarded by the Department of State?

The $22.7 million value for this five-year BPA call for management consulting services needs to be benchmarked against similar contracts awarded by the Department of State. Agencies like the State Department often procure management and administrative support services to enhance operational efficiency, manage complex programs, and provide strategic guidance. Comparable contracts might include those for program management, organizational development, policy analysis, or general administrative support. The average value and duration of such contracts can provide context. If this $22.7 million award falls within the typical range for similar five-year engagements, it suggests a standard market rate. However, if it appears significantly higher or lower, it warrants further investigation into the scope of work, the level of expertise required, and the competitive landscape at the time of award. The fact that it was competed under SAP with only one bidder might suggest the value is at the higher end of what might be expected in a more competitive scenario.

What are the primary risks associated with a single-bidder scenario in a competed SAP action?

A single-bidder scenario in a competed Simplified Acquisition Procedures (SAP) action presents several primary risks. Firstly, it significantly diminishes price competition, potentially leading to the government paying a higher price than if multiple bids were received. Without competing offers, there's less incentive for the bidder to offer their most aggressive pricing. Secondly, it raises concerns about the adequacy of market research and outreach conducted by the agency. It could indicate that the agency did not effectively identify or reach all potential qualified sources, or that the requirements were too niche or restrictive. Thirdly, it limits the government's ability to assess the full range of capabilities and innovative solutions available in the market. Finally, it can create a perception of a non-level playing field, even if the procurement was conducted fairly, potentially impacting future contractor interest. For this $22.7 million award, the risk is that taxpayers are not receiving the best possible value for their investment.

How effective is the firm-fixed-price contract type in managing costs for long-term consulting services?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for long-term consulting services, especially when the scope of work is well-defined and unlikely to change significantly. Under an FFP contract, the contractor assumes most of the risk for cost overruns, as they are obligated to complete the work for the agreed-upon price. This provides the government with cost certainty, making budgeting more predictable. For the Department of State's $22.7 million BPA call, the FFP structure aims to cap the government's expenditure over the five-year period. However, the effectiveness can be diminished if the initial price was inflated due to limited competition. While the total cost is fixed, the contractor's profit margin could be higher if they can deliver the services more efficiently than anticipated. Therefore, while FFP controls the upper limit of spending, ensuring true cost-effectiveness still relies on a competitive award and robust performance monitoring.

What is the historical spending trend for management consulting services at the Department of State?

The Department of State, like many large federal agencies, has a consistent and often substantial need for management and administrative consulting services. Historical spending trends reveal a pattern of outsourcing these functions to leverage external expertise, manage fluctuating workloads, and improve operational efficiencies. Agencies often utilize various contracting vehicles, including Blanket Purchase Agreements (BPAs) like the one against which this call was issued, Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, and sole-source awards for specialized needs. Spending in this category can fluctuate based on agency priorities, budget allocations, and specific program requirements. Analyzing past spending on similar services can help contextualize the $22.7 million award, indicating whether it represents an increase, decrease, or stable level of investment in management consulting. A review of historical data would reveal if the Department of State has consistently relied on contractors like Contracting Resources Group Inc. or if this represents a new or expanded engagement.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8 W WEST ST, BALTIMORE, MD, 21230

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,062,195

Exercised Options: $22,873,593

Current Obligation: $22,675,268

Actual Outlays: $5,847,403

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM19A0234

IDV Type: BPA

Timeline