Department of State awards $5.6M administrative management consulting contract to Contracting Resources Group Inc

Contract Overview

Contract Amount: $5,623,867 ($5.6M)

Contractor: Contracting Resources Group Inc

Awarding Agency: Department of State

Start Date: 2022-09-01

End Date: 2026-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $3.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CONSULAR BIDDING ASSESSMENT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $5.6 million to CONTRACTING RESOURCES GROUP INC for work described as: CONSULAR BIDDING ASSESSMENT Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings and market-driven pricing. 2. The contract's duration of nearly four years suggests a long-term need for these consulting services. 3. Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category, making specific performance benchmarks difficult without further detail. 4. The contract was awarded as a BPA Call, indicating it leverages an existing Blanket Purchase Agreement. 5. The single award suggests limited market engagement for this specific task order. 6. The contract is labor-hour based, which can introduce cost uncertainty if not managed closely.

Value Assessment

Rating: questionable

The contract value of $5.6 million over approximately four years for administrative management consulting services requires careful scrutiny. Without a competitive bidding process, it is challenging to benchmark the pricing against market rates or similar contracts. The labor-hour pricing structure also introduces a degree of uncertainty regarding the final cost. Further analysis would be needed to determine if this represents a fair and reasonable price for the services rendered, especially given the lack of demonstrated competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a BPA Call. The data indicates a sole-source award, meaning only one vendor, Contracting Resources Group Inc., was solicited or considered for this specific task order. This lack of competition limits the government's ability to explore alternative solutions or secure potentially lower prices through a broader bidding process.

Taxpayer Impact: A sole-source award means taxpayers may not be receiving the most cost-effective solution, as the benefits of competitive pricing were not leveraged.

Public Impact

The Department of State is the primary beneficiary, receiving administrative management and general management consulting services. These services are intended to support the agency's operational efficiency and management functions. The contract is geographically focused on Washington D.C., where the Department of State is headquartered. The contract likely supports a workforce of consultants, contributing to employment in the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Labor-hour contracts can be susceptible to cost overruns if not closely monitored.
The broad nature of the service category (541611) makes it difficult to assess the specific value and necessity of the services without more detail.

Positive Signals

Award leverages an existing Blanket Purchase Agreement (BPA Call), potentially streamlining the acquisition process.
The contract is awarded to a single entity, which could imply a pre-existing relationship or specialized expertise.
The contract duration suggests a recognized and ongoing need for these services by the agency.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the professional services industry. Federal agencies frequently procure these services to enhance operational efficiency, implement new strategies, and manage complex projects. Spending in this sector can vary widely depending on agency needs, but typically involves expertise in areas such as organizational structure, process improvement, and strategic planning. Benchmarking this contract's value would ideally involve comparing it to other similar consulting engagements within the federal government or the private sector, considering the scope and duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a small business set-aside. The award to Contracting Resources Group Inc. does not appear to be driven by a small business procurement strategy.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a labor-hour contract, diligent monitoring of hours worked and deliverables will be crucial for accountability. Transparency regarding the specific tasks performed and the value derived from these consulting services would be enhanced by public reporting of performance metrics and outcomes. The Inspector General for the Department of State would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Management and Financial Consulting, Acquisition and Grants Training
Professional, Scientific, and Technical Services
Department of State - Other Services

Risk Flags

Non-competitive award
Labor-hour pricing structure
Lack of detailed service description

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $5.6 million to CONTRACTING RESOURCES GROUP INC. CONSULAR BIDDING ASSESSMENT

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 $5.6 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-08-31.

What specific services are being provided under this administrative management consulting contract?

The contract falls under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. This broad category can encompass a wide range of activities, including organizational planning, process improvement, strategic planning, human capital management, and operational efficiency analysis. Without more specific details from the contract's statement of work, it is difficult to ascertain the precise nature of the services. However, given it's for the Department of State, these services likely aim to support the agency's diplomatic, consular, and administrative functions, potentially focusing on improving internal operations, managing resources, or implementing new policies and procedures.

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

The provided data states the contract was 'NOT COMPETED UNDER SAP' and awarded as a 'BPA CALL'. While this indicates it wasn't competed under Simplified Acquisition Procedures, the specific justification for a sole-source award is not detailed. Agencies typically sole-source contracts when only one responsible source can satisfy the agency's needs, such as when there is a unique capability, a critical need for compatibility with existing systems, or in cases of urgent and compelling circumstances. For a contract of this value and duration, a more robust justification for foregoing full and open competition would typically be expected and publicly documented to ensure fair and reasonable pricing and access to the broadest range of qualified vendors.

How does the labor-hour pricing structure impact cost control and value for money?

A labor-hour (LH) contract pays the contractor for the direct labor hours expended at specified fixed hourly rates. While LH contracts offer flexibility, especially when the scope of work is not clearly defined at the outset, they can pose challenges for cost control and ensuring value for money. The government pays for the time spent, regardless of the efficiency or ultimate outcome, unless specific performance metrics and oversight are rigorously applied. This structure places a significant burden on the government to closely monitor contractor effort, ensure accurate timekeeping, and manage the overall duration and intensity of work to prevent cost overruns. Without strong oversight, the total cost can exceed estimates, and the value derived may not be commensurate with the expenditure.

What is the typical spending range for administrative management consulting services within the federal government?

Federal spending on administrative management and general management consulting services (NAICS 541611) is substantial and varies significantly by agency and fiscal year. Agencies like the Department of Defense, Health and Human Services, and Homeland Security often procure these services for a wide array of needs, from strategic planning and organizational restructuring to IT modernization and program management. While specific benchmarks are hard to provide without context, millions of dollars are routinely spent annually across the government in this category. The $5.6 million awarded here is within the range of significant consulting engagements, but its value proposition is heavily dependent on the specific services rendered and the outcomes achieved, especially given the non-competitive nature of this award.

What is Contracting Resources Group Inc.'s track record with federal contracts, particularly with the Department of State?

Information regarding Contracting Resources Group Inc.'s specific track record with federal contracts, and particularly with the Department of State, is not provided in the data snippet. A comprehensive assessment would require reviewing historical contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or successes. Understanding their past performance, especially in delivering similar consulting services, would be crucial for evaluating the risk associated with this award and assessing the likelihood of successful contract completion within budget and schedule.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $7,517,856

Exercised Options: $5,857,792

Current Obligation: $5,623,867

Actual Outlays: $1,089,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM19A0234

IDV Type: BPA

Timeline