State Department awards $14.8M in management consulting services to Contracting Resources Group Inc

Contract Overview

Contract Amount: $14,801,212 ($14.8M)

Contractor: Contracting Resources Group Inc

Awarding Agency: Department of State

Start Date: 2022-09-29

End Date: 2025-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $13.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PROGRAM MANAGEMENT SUPPORT SERVICES.

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 $14.8 million to CONTRACTING RESOURCES GROUP INC for work described as: PROGRAM MANAGEMENT SUPPORT SERVICES. Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings through competition. 2. The contract duration of 1095 days suggests a need for sustained support, but the lack of competition limits price discovery. 3. Services are categorized under Administrative Management and General Management Consulting, a broad area where competition can often yield better value. 4. The contract's value of $14.8 million over three years warrants scrutiny for cost-effectiveness compared to similar engagements. 5. Performance is measured by labor hours, which can sometimes lead to cost overruns if not managed tightly. 6. The sole-source nature of this award means taxpayers may not have benefited from the most competitive pricing available.

Value Assessment

Rating: fair

The contract value of $14.8 million over three years for management consulting services appears substantial. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar government contracts. The reliance on labor hours as the contract type introduces a risk of cost escalation if not meticulously managed and monitored for efficiency. Further analysis would be needed to determine if the rates paid are reasonable for the services rendered.

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 on a sole-source basis. This indicates that the Department of State did not solicit bids from multiple vendors. The lack of competition means that the government did not benefit from a range of proposals and pricing strategies that typically emerge from an open bidding process, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The sole-source award means taxpayers did not benefit from competitive pricing, potentially resulting in a higher overall cost for these management consulting services.

Public Impact

The Department of State is the primary beneficiary, receiving essential program management support services. These services are crucial for the effective administration and execution of various State Department programs. The contract's impact is primarily within the administrative and management functions of the agency, supporting its operational efficiency. While not directly creating public-facing services, the improved management can indirectly benefit diplomatic and foreign policy initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Labor hour contract type can incentivize longer project durations and higher costs.
Limited transparency due to sole-source award makes performance and value assessment challenging.

Positive Signals

Contract awarded to a single vendor suggests a specific capability or relationship may be leveraged.
The contract duration indicates a recognized need for ongoing support.
Awarded to Contracting Resources Group Inc., whose performance history would need further review for specific strengths.

Sector Analysis

The Administrative Management and General Management Consulting Services sector (NAICS 541611) is a significant market within government contracting. Agencies frequently procure these services to enhance operational efficiency, strategic planning, and program execution. The total addressable market for these services within the federal government is substantial, with numerous contracts awarded annually across various agencies. This contract fits within the broader trend of agencies seeking external expertise for complex management challenges.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, this award does not appear to directly benefit the small business ecosystem or provide opportunities for small business participation. The focus is on a large prime contractor for management consulting services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a sole-source award, transparency might be limited compared to competitively bid contracts. Accountability would be measured by the contractor's adherence to the Statement of Work and performance standards. There is no specific mention of an Inspector General's direct involvement at this stage, but their jurisdiction could be invoked if specific concerns or allegations arise.

Related Government Programs

Program Management Support Services
Management and Consulting Services
Administrative Support Contracts
Department of State Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Labor hour contract type poses cost control risks.
Limited transparency in sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.8 million to CONTRACTING RESOURCES GROUP INC. PROGRAM MANAGEMENT SUPPORT SERVICES.

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 $14.8 million.

What is the period of performance?

Start: 2022-09-29. End: 2025-09-28.

What is the track record of Contracting Resources Group Inc. with the Department of State and other federal agencies?

A thorough review of federal procurement data would be necessary to assess Contracting Resources Group Inc.'s track record. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or disputes. Understanding their history with the Department of State specifically, and across other agencies, would provide insight into their reliability, quality of service, and ability to manage contracts effectively. Without this specific data, it's difficult to definitively assess their past performance, though the current award suggests a level of trust or necessity from the agency's perspective.

How does the $14.8 million contract value compare to similar management consulting contracts awarded by the Department of State?

Benchmarking this $14.8 million contract against similar management consulting services procured by the Department of State requires access to detailed contract data, including scope of work, duration, and pricing structures. Given this contract was awarded sole-source, a direct comparison of value-for-money is challenging. However, by analyzing other competitively awarded contracts for comparable services (e.g., program management, administrative consulting) within the State Department or other large federal agencies, one could identify typical cost ranges and identify if this award falls significantly outside those norms. The lack of competition here suggests that a precise value comparison is difficult without further internal agency data or a more comprehensive market analysis.

What are the specific risks associated with a sole-source award for program management support services?

The primary risk associated with a sole-source award for program management support services is the potential for inflated costs due to the absence of competitive pressure. Without multiple bids, the contractor may not be incentivized to offer the most competitive pricing. Additionally, there's a risk of reduced innovation and service quality, as the agency is locked into a single provider. Transparency can also be a concern, making it harder to objectively assess performance and value. Furthermore, if the sole-source justification is weak or if the contractor fails to perform, the agency has limited immediate alternatives for recourse or replacement without initiating a new, potentially lengthy, sole-source process.

How effective are labor hour contract types in managing costs for consulting services?

Labor hour contract types can be effective for services where the scope of work is not clearly defined at the outset or is expected to evolve. They allow for flexibility in adapting to changing requirements. However, they also carry inherent risks for cost control. The government pays for the time spent by contractor personnel, which can lead to cost overruns if projects take longer than anticipated or if labor rates are high. Effective management requires rigorous oversight, detailed tracking of hours, and clear performance metrics to ensure that the labor hours translate into valuable outcomes and that costs remain within budget. Without strong oversight, labor hour contracts can be less cost-efficient than fixed-price arrangements.

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

Analyzing the historical spending trends for management and consulting services at the Department of State would reveal the agency's reliance on external expertise in these areas over time. This involves examining annual expenditures for NAICS codes related to management consulting (like 541611) and program management support. Trends might indicate an increase or decrease in outsourcing these functions, shifts in the types of services procured, or changes in the average contract values. Understanding these patterns provides context for the current $14.8 million award, helping to determine if it aligns with historical spending levels or represents a significant deviation.

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: $20,388,096

Exercised Options: $20,388,096

Current Obligation: $14,801,212

Actual Outlays: $2,120,060

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM19A0234

IDV Type: BPA

Timeline