Department of State awards $4.98M for financial management support, including GC pay processing

Contract Overview

Contract Amount: $4,981,546 ($5.0M)

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: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FINANCIAL MANAGEMENT SUPPORT SERVICES - GC PAY PROCESSING OPU VCP DP 1064

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of State obligated $5.0 million to INTEGRATED FINANCE AND ACCOUNTING SOLUTIONS, LLC. for work described as: FINANCIAL MANAGEMENT SUPPORT SERVICES - GC PAY PROCESSING OPU VCP DP 1064 Key points: 1. Contract value appears reasonable given the duration and scope of financial management services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of 1095 days (3 years) provides stability for service delivery. 4. Services include critical functions like GC pay processing, indicating a focus on essential operations. 5. The contractor, Integrated Finance and Accounting Solutions, LLC, is positioned to deliver specialized accounting services. 6. The contract is a delivery order under a larger contract, implying a structured procurement process.

Value Assessment

Rating: good

The contract value of approximately $4.98 million over three years for financial management support services, including GC pay processing, appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for accounting and financial management services at the Department of State or other large federal agencies would provide a more precise value-for-money assessment. However, the provided data does not include specific unit costs or detailed service breakdowns to conduct a granular price comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on pre-qualification or other criteria. The use of full and open competition generally promotes a competitive environment, which can lead to better pricing and service offerings. The number of bidders is not specified, but the method suggests an effort to ensure a wide range of qualified contractors could participate.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it encourages multiple firms to bid, driving down costs and improving the quality of services received by the government.

Public Impact

Department of State personnel and operations benefit from efficient financial management and accurate payroll processing. The contract supports the critical function of processing payments for government contractors (GC pay), ensuring smooth project execution. Geographic impact is likely concentrated around Department of State facilities or operations centers where these financial services are managed. Workforce implications may include the need for specialized financial and accounting professionals within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'financial management support' is not tightly controlled.
Reliance on a single contractor for critical pay processing functions could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Contract duration of three years provides continuity for essential financial services.
The specific nature of GC pay processing indicates a focus on a vital government function.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under accounting services (NAICS 541219). This sector is characterized by a wide range of specialized services supporting government operations. The market for federal financial management support is substantial, with numerous firms competing for contracts across various agencies. The Department of State's spending in this area is consistent with the needs of a large, global organization requiring robust financial oversight and payment processing capabilities.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, Integrated Finance and Accounting Solutions, LLC, may engage small businesses as subcontractors, contributing to the broader small business ecosystem. Further analysis would be needed to determine subcontracting plans and actual utilization.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases and reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of State Financial Management Services
Government Contractor Payment Systems
Federal Accounting and Auditing Services
Department of State IT and Financial Systems Support

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Risk of performance issues impacting critical financial operations.
Need for robust oversight to manage scope and ensure value.
Security risks associated with handling sensitive financial data.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $5.0 million to INTEGRATED FINANCE AND ACCOUNTING SOLUTIONS, LLC.. FINANCIAL MANAGEMENT SUPPORT SERVICES - GC PAY PROCESSING OPU VCP DP 1064

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 $5.0 million.

What is the period of performance?

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

What is the track record of Integrated Finance and Accounting Solutions, LLC with federal contracts, particularly in financial management and payroll processing?

A review of federal procurement data would be necessary to fully assess the track record of Integrated Finance and Accounting Solutions, LLC. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. Understanding their experience with similar scope contracts, especially those involving sensitive functions like Government Contractor (GC) pay processing for agencies like the Department of State, is crucial. A strong performance history in delivering financial services on time and within budget would indicate lower risk and higher reliability for this current award. Conversely, a history of performance issues or unresolved issues would raise concerns about their capability to meet the requirements of this $4.98 million contract.

How does the awarded value of $4.98 million compare to similar financial management support contracts awarded by the Department of State or other large federal agencies?

To benchmark the $4.98 million award, a comparative analysis with similar contracts is essential. This involves identifying contracts for financial management support, accounting services, and payroll processing awarded by the Department of State and other large federal agencies (e.g., Department of Defense, GSA) over the past 3-5 years. Key comparison points would include contract duration, scope of services (especially GC pay processing), contract type (e.g., Time and Materials, Firm-Fixed Price), and the number of bidders. If comparable contracts with similar scope and duration were awarded at significantly lower or higher values, it would indicate whether this award represents a particularly good or poor value. Without specific comparable data, assessing the precise value-for-money is challenging, but the duration of 1095 days (3 years) suggests a moderate annual spend.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract include potential performance failures by Integrated Finance and Accounting Solutions, LLC, leading to disruptions in financial management or GC pay processing. There's also a risk of cost overruns if the Time and Materials (T&M) contract type is not managed effectively, or if the scope of work expands beyond initial estimates. Security risks related to handling sensitive financial data are also present. Mitigation strategies likely include robust oversight by the Department of State's Contracting Officer's Representative (COR), clear performance metrics and Service Level Agreements (SLAs) in the contract, regular performance reviews, and potentially financial safeguards or bonding requirements. The T&M contract type necessitates careful monitoring to ensure efficient labor utilization and prevent scope creep.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for financial management services?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with the need for specific qualifications. It allows all responsible sources to submit an offer, but permits the exclusion of certain sources based on pre-defined criteria (e.g., past performance, specific certifications, or security clearances). This can be effective in ensuring competitive pricing by attracting multiple bidders while filtering out those who may not be suitable or capable, thereby streamlining the evaluation process. However, if the exclusion criteria are too narrow or subjective, it could inadvertently limit competition and potentially lead to less competitive pricing than true 'full and open' competition without exclusions. The effectiveness hinges on the justification and transparency of the exclusion criteria.

What is the historical spending pattern for financial management support services at the Department of State, and how does this award fit within that trend?

Analyzing historical spending patterns for financial management support at the Department of State would involve examining annual obligations and contract awards for similar services over the past several fiscal years. This would reveal trends in overall spending, the types of services procured, and the primary contractors utilized. This $4.98 million award over three years represents an average annual spend of approximately $1.66 million. If historical data shows consistent or increasing spending in this category, it suggests a sustained need for these services. A significant deviation from historical norms might warrant further investigation into the reasons behind the change, such as program expansion, new initiatives, or changes in procurement strategy. Understanding this context helps assess the appropriateness of the current award amount.

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: $6,558,308

Exercised Options: $6,558,308

Current Obligation: $4,981,546

Actual Outlays: $168,288

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