State Department awards $2.17M for staffing support, raising questions on competition and value

Contract Overview

Contract Amount: $2,168,812 ($2.2M)

Contractor: Kaiva Tech, LLC

Awarding Agency: Department of State

Start Date: 2023-04-07

End Date: 2025-07-06

Contract Duration: 821 days

Daily Burn Rate: $2.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: STAFFING 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 $2.2 million to KAIVA TECH, LLC for work described as: STAFFING SUPPORT SERVICES Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. The contract's duration and value suggest a need for specialized administrative support. 3. Performance is tied to a Time and Materials pricing structure, which can lead to cost overruns if not managed closely. 4. The specific services are categorized under Administrative Management and General Management Consulting. 5. The award is a Delivery Order, indicating it's part of a larger, pre-existing contract vehicle. 6. No small business set-aside was applied, with the contractor not being a small business.

Value Assessment

Rating: questionable

The contract's value of $2.17 million over approximately 2.5 years for staffing support services requires careful benchmarking. Without a competitive bidding process, it is difficult to ascertain if the pricing reflects fair market value. The Time and Materials (T&M) pricing model, while flexible, carries inherent risks of cost escalation if not rigorously monitored. Comparing this to similar administrative support contracts within the federal government would be crucial to assess value for money, especially given the lack of competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' status, indicating a sole-source procurement. This means that only one contractor, KAIVA TECH, LLC, was solicited. The lack of competition limits the government's ability to explore alternative solutions or secure the most favorable pricing through a bidding process. This approach is typically reserved for situations where only one source can fulfill the requirement, which warrants further investigation.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. The government missed an opportunity to leverage market forces to drive down costs and ensure the best possible value for public funds.

Public Impact

The Department of State benefits from specialized staffing support services to ensure operational continuity. Services delivered likely include administrative, logistical, and potentially management consulting functions. The geographic impact is concentrated in the District of Columbia, where the State Department's operations are largely based. Workforce implications include the potential augmentation of existing state department staff or the provision of specialized expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potentially inflates costs.
Time and Materials contract type poses a risk of cost overruns without strict oversight.
Lack of transparency in the justification for sole-source award.
No small business participation noted, potentially missing opportunities for economic inclusion.

Positive Signals

Contract addresses a specific need for staffing support within the Department of State.
Delivery Order mechanism suggests it aligns with an existing strategic procurement framework.
Contract duration provides stability for the supported services.

Sector Analysis

Staffing support services, particularly those involving administrative and management consulting, are a common requirement across federal agencies. The market for these services is competitive, with numerous firms offering specialized expertise. The Department of State's spending in this area is part of a broader trend of federal agencies outsourcing non-core functions to enhance efficiency and access specialized skills. Benchmarking against similar contracts for administrative support within large federal departments would provide context for the $2.17 million award.

Small Business Impact

This contract was not awarded as a small business set-aside, and the contractor, KAIVA TECH, LLC, is not listed as a small business. This indicates no direct subcontracting opportunities for small businesses were mandated through this specific award. The absence of small business considerations in this sole-source procurement means potential benefits to the small business ecosystem were not realized through this particular contract vehicle.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures would be tied to the performance standards outlined in the contract and the Time and Materials reporting requirements. Transparency is limited due to the sole-source nature of the award, with justifications for the procurement approach needing to be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Administrative Support Services
Management and Consulting Services
Staff Augmentation Contracts
Department of State Procurement

Risk Flags

Non-competitive award
Time and Materials pricing
Lack of transparency in justification

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.2 million to KAIVA TECH, LLC. STAFFING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is KAIVA TECH, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2023-04-07. End: 2025-07-06.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is a designation for sole-source procurements. Typically, agencies must demonstrate that only one responsible source can provide the required supplies or services. Common justifications include unique capabilities, urgent needs where no other source can be identified in time, or specific follow-on work to a previously competed contract where only the original contractor possesses the necessary knowledge or proprietary data. Without the specific justification document (e.g., a Justification and Approval - J&A), it's impossible to detail the exact reasoning. However, the lack of competition raises concerns about whether alternative solutions were adequately explored or if market research was sufficiently comprehensive.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or when the government anticipates changes. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers more flexibility but carries a higher risk of cost overruns for the government, as the final price is not predetermined. For administrative and staffing support services, FFP contracts are often preferred when requirements are well-defined, as they provide greater cost certainty. The primary risk with T&M is the potential for contractors to extend labor hours or use more expensive materials than necessary, necessitating robust government oversight, detailed reporting, and strict adherence to labor hour ceilings to mitigate these risks and ensure value.

What is the track record of KAIVA TECH, LLC in performing similar federal contracts?

Information on KAIVA TECH, LLC's track record with federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and values of previous contracts awarded to them, and their success in fulfilling those obligations. Without this information, it is difficult to gauge their experience, reliability, and ability to deliver the required staffing support services effectively. Agencies typically conduct thorough past performance reviews during the procurement process, especially for sole-source awards, to ensure the selected contractor has the necessary qualifications and a history of successful performance.

What is the total federal spending on 'Administrative Management and General Management Consulting Services' (NAICS 541611) and how does this contract compare?

Federal spending on NAICS code 541611, 'Administrative Management and General Management Consulting Services,' is substantial, often running into billions of dollars annually across various agencies. This specific contract, valued at approximately $2.17 million, represents a relatively small portion of the overall federal expenditure in this category. To contextualize its value, one would compare its per-hour labor rates, total value, and duration against other similar contracts awarded by the Department of State or other large agencies for comparable services. Factors like geographic location, specific skill sets required, and the level of experience of the personnel provided would influence these comparisons. The $2.17M award, while significant for a single contract, is likely within the typical range for specialized administrative support needs within a large federal agency.

Are there any specific performance metrics or deliverables associated with this contract that can be assessed for effectiveness?

The provided data does not specify the performance metrics or deliverables for this contract. Effectiveness assessment typically relies on the contract's Performance Work Statement (PWS) or Statement of Work (SOW), which outlines the required services, quality standards, and key performance indicators (KPIs). For staffing support services, metrics might include timeliness of staffing, accuracy of administrative tasks, client satisfaction, and adherence to project timelines. Without access to these contractual details, it is impossible to quantitatively assess the effectiveness of the services provided by KAIVA TECH, LLC. Robust oversight would involve regular monitoring of these metrics and addressing any performance deficiencies promptly.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM22R0305

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6060 W 3650 N STE 500, IVINS, UT, 84738

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,168,812

Exercised Options: $2,168,812

Current Obligation: $2,168,812

Actual Outlays: $333,344

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM23D0023

IDV Type: IDC

Timeline