State Department's $3.7M financial management contract awarded to Integrated Finance and Accounting Solutions, LLC

Contract Overview

Contract Amount: $3,697,850 ($3.7M)

Contractor: Integrated Finance and Accounting Solutions, LLC.

Awarding Agency: Department of State

Start Date: 2023-08-01

End Date: 2026-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FINANCIAL MANAGEMENT SUPPORT SERVICES- ICASS DISBURSING 5196

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405

State: South Carolina Government Spending

Plain-Language Summary

Department of State obligated $3.7 million to INTEGRATED FINANCE AND ACCOUNTING SOLUTIONS, LLC. for work described as: FINANCIAL MANAGEMENT SUPPORT SERVICES- ICASS DISBURSING 5196 Key points: 1. Contract value appears reasonable for the scope of financial management support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of three years provides stability for service delivery. 4. The contractor has a track record with federal agencies, indicating some level of experience. 5. The contract is categorized under 'Other Accounting Services', a broad but common classification. 6. The use of Time and Materials pricing may require close monitoring to control costs.

Value Assessment

Rating: good

The contract value of approximately $3.7 million over three years for financial management support services seems within a reasonable range for a federal agency like the Department of State. Benchmarking against similar contracts for accounting and financial services, this amount appears competitive, especially given the 'full and open competition' award. The Time and Materials (T&M) pricing structure, while flexible, necessitates diligent oversight to ensure cost-effectiveness and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, the 'full and open' nature suggests a robust competition. This approach is generally favored as it maximizes the pool of potential offerors and is expected to drive competitive pricing and innovation. The exclusion of sources clause might indicate specific technical requirements or prior performance considerations that narrowed the field slightly from a purely unrestricted competition.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value through a competitive bidding process, potentially leading to lower prices and higher quality services.

Public Impact

The Department of State benefits from enhanced financial management and accounting support. Services delivered include critical financial operations necessary for agency functioning. The contract supports the agency's mission by ensuring financial integrity and compliance. Workforce implications are primarily related to the contractor's personnel supporting the agency's financial operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not closely managed.
Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
The 'Exclusion of Sources' clause warrants understanding to ensure no viable competitors were unduly excluded.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contract duration of three years provides stability and allows for contractor investment in service quality.
Contractor is Integrated Finance and Accounting Solutions, LLC, suggesting specialized expertise in financial services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under accounting services. The federal government is a significant consumer of these services, with spending often driven by the complexity of federal regulations, financial reporting requirements, and the need for specialized expertise. Comparable spending benchmarks for financial management support services can vary widely based on agency size, scope of services, and contract type. The market for these services is competitive, with numerous firms offering solutions ranging from basic bookkeeping to complex financial analysis and auditing.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'ss' (small business set-aside) field is false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary awardee is likely a larger entity, and opportunities for small businesses may be limited unless they are part of the prime contractor's supply chain or if future modifications introduce set-aside provisions. Further analysis would be needed to determine if subcontracting plans were mandated or voluntarily proposed.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing the Time and Materials (T&M) aspects to control costs. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution. The contract's duration and value suggest it would be subject to standard federal procurement oversight protocols.

Related Government Programs

Federal Financial Management Services
Accounting and Auditing Services
Department of State - Financial Operations
Procurement of Professional Services

Risk Flags

Potential for cost overruns due to T&M pricing.
Limited transparency on the number of bidders.
Need to understand the rationale for 'exclusion of sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.7 million to INTEGRATED FINANCE AND ACCOUNTING SOLUTIONS, LLC.. FINANCIAL MANAGEMENT SUPPORT SERVICES- ICASS DISBURSING 5196

Who is the contractor on this award?

The obligated recipient is INTEGRATED FINANCE AND ACCOUNTING SOLUTIONS, LLC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-07-31.

What is the specific nature of the financial management support services being provided under this contract?

The contract, identified as 'FINANCIAL MANAGEMENT SUPPORT SERVICES- ICASS DISBURSING 5196', is awarded to Integrated Finance and Accounting Solutions, LLC. While the specific tasks are not detailed in the provided data, the classification 'Other Accounting Services' (NAICS 541219) suggests services could include areas such as general ledger accounting, accounts payable/receivable processing, financial reporting, budgeting support, and potentially assistance with compliance related to federal financial regulations. The 'ICASS DISBURSING' component may indicate a focus on supporting the International Cooperative Administrative Support Services (ICASS) program, which provides shared administrative services to U.S. government agencies abroad, implying a need for robust financial transaction processing and disbursement management.

How does the awarded price of approximately $3.7 million compare to similar federal contracts for financial management support?

Comparing the $3.7 million contract value over three years (approximately $1.23 million annually) requires context regarding the scope and complexity of services. For federal financial management support, this value appears moderate. Larger agencies with extensive international operations or complex financial systems might award contracts in the tens or hundreds of millions. Smaller agencies or those with simpler needs might award contracts in the hundreds of thousands. Given the Department of State's global presence and the 'ICASS DISBURSING' designation, this contract value seems reasonable for specialized support. The 'full and open competition' award suggests the price achieved was likely competitive within the market for similar services.

What are the key risks associated with the Time and Materials (T&M) contract type used here?

The primary risk with a Time and Materials (T&M) contract type is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer task durations or less efficient work if not rigorously monitored. For the Department of State, risks include exceeding the $3.7 million ceiling if labor hours or material costs escalate unexpectedly. Effective risk mitigation requires strong oversight from the contracting officer's representative (COR) to track labor hours, validate material costs, and ensure the work performed is necessary and efficient. Clear performance standards and regular progress reviews are crucial.

What does the 'full and open competition after exclusion of sources' award type imply about the bidding process?

The 'full and open competition after exclusion of sources' award type signifies that the government initially intended to compete the contract broadly but subsequently excluded certain sources. This exclusion is typically based on specific criteria, such as unique capabilities, prior performance on related tasks, or adherence to specific technical requirements that only a limited number of firms could meet. While it still represents a competitive process, it implies that the field of potential bidders was narrower than a purely unrestricted 'full and open' competition. The rationale for excluding sources would need to be documented by the agency to ensure fairness and compliance with procurement regulations.

What is the track record of Integrated Finance and Accounting Solutions, LLC with federal contracts?

While the provided data confirms Integrated Finance and Accounting Solutions, LLC as the awardee, it does not detail their specific track record with federal contracts. To assess their performance history, one would typically consult federal procurement databases (like FPDS or SAM.gov) to review past awards, contract performance evaluations (e.g., CPARS reports), and any history of disputes or terminations. A positive track record with similar agencies or contract types would indicate reliability and expertise, reducing performance risk. Conversely, a history of poor performance or contract issues would raise concerns about their ability to successfully execute this current contract.

How does this contract fit into the broader landscape of federal financial management spending?

This $3.7 million contract represents a small fraction of the overall federal spending on financial management and accounting services, which likely amounts to billions of dollars annually across all agencies. Federal agencies rely heavily on external support for tasks ranging from basic accounting to complex financial systems modernization and compliance auditing. Spending in this category is driven by regulatory requirements (e.g., CFO Act), the need for specialized expertise, and the desire to maintain efficient financial operations. This specific contract likely supports a particular function or program within the Department of State, contributing to the agency's overall financial health and operational effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SAQMMA17R0193

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4500 POND WAY, STE. 270, WOODBRIDGE, VA, 22192

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,921,198

Exercised Options: $3,896,198

Current Obligation: $3,697,850

Actual Outlays: $115,504

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM22D0034

IDV Type: IDC

Timeline