Department of State awards $4.8M for financial management support, with a significant portion allocated to delivery orders

Contract Overview

Contract Amount: $4,822,857 ($4.8M)

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: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FINANCIAL MANAGEMENT SUPPORT SERVICES- GC AMPAY 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 $4.8 million to INTEGRATED FINANCE AND ACCOUNTING SOLUTIONS, LLC. for work described as: FINANCIAL MANAGEMENT SUPPORT SERVICES- GC AMPAY DP 1064 Key points: 1. The contract value of $4.8M appears reasonable for the duration and scope of financial management support services. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially limited but justified bidding process. 3. The contract type is Time and Materials, which can introduce cost uncertainty if not managed closely. 4. Performance is expected over three years, aligning with typical support service contract lengths. 5. The North American Industry Classification System (NAICS) code 541219 indicates a focus on specialized accounting services. 6. The contract is managed by the Department of State, indicating its importance for agency financial operations.

Value Assessment

Rating: good

The contract's total value of $4.8M over three years for financial management support services seems within a reasonable range for government contracts of this nature. Benchmarking against similar contracts for accounting and financial services at the Department of State or other large federal agencies would provide a more precise value-for-money assessment. The Time and Materials pricing structure, while common, warrants close monitoring to ensure costs remain controlled and do not exceed the anticipated value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be open, certain sources may have been excluded based on specific criteria, potentially limiting the number of bidders. Further details on the reasons for exclusion would clarify the extent of competition and its impact on price discovery.

Taxpayer Impact: While the competition was not fully open, the 'after exclusion of sources' clause suggests an effort to ensure a competitive process. Taxpayers benefit from a structured procurement, but the exclusion of certain sources might have limited the potential for even greater cost savings.

Public Impact

The primary beneficiaries are the Department of State's financial operations, ensuring accurate and efficient management of its funds. Services delivered include essential accounting and financial management support, crucial for government accountability. The geographic impact is primarily within the Department of State's administrative functions, supporting its global operations. Workforce implications include the need for skilled financial analysts and accountants, potentially supporting jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not diligently managed and monitored.
The 'exclusion of sources' in the competition method warrants further investigation to ensure fair market access and optimal pricing.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality and effectiveness of services delivered.

Positive Signals

The contract is awarded to a company specializing in finance and accounting solutions, suggesting relevant expertise.
The Department of State, a major federal agency, is the contracting authority, indicating a need for reliable financial support.
The contract duration of three years provides stability for both the agency and the contractor.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting services. The market for federal financial management support is substantial, with numerous firms competing for government contracts. The Department of State, like other large federal agencies, relies heavily on such services to manage complex budgets and financial operations. Comparable spending benchmarks would involve analyzing other contracts for similar accounting and financial advisory services awarded to agencies of similar size and complexity.

Small Business Impact

The data indicates that small business participation (ss and sb fields) is not a primary focus for this specific contract, as both are marked as false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the primary contractor is likely a larger entity, and the impact on the small business ecosystem may be minimal unless subcontracting opportunities are pursued independently by the awardee.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. The Inspector General for the Department of State would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Financial Management Systems
Accounting and Auditing Services
Department of State Financial Operations
Government Contract Management

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition due to 'exclusion of sources' clause.
Lack of specific performance metrics makes outcome assessment difficult.
Contract duration may not align with long-term strategic financial goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.8 million to INTEGRATED FINANCE AND ACCOUNTING SOLUTIONS, LLC.. FINANCIAL MANAGEMENT SUPPORT SERVICES- GC AMPAY 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 $4.8 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?

Integrated Finance and Accounting Solutions, LLC has a history of securing federal contracts, primarily within the Department of Defense and other civilian agencies. Their awards often center around financial management, accounting, and administrative support services. Analyzing their past performance on similar Time and Materials contracts would be crucial to assess their reliability and cost control capabilities. A review of past performance evaluations and any reported issues or successes on prior government engagements would provide deeper insight into their contractor performance rating and ability to meet federal requirements effectively.

How does the $4.8M contract value compare to similar financial management support services at the Department of State?

The $4.8M contract value for three years of financial management support services appears to be within a moderate range for a large federal agency like the Department of State. To provide a precise comparison, one would need to analyze the scope of work, duration, and specific services rendered in comparable contracts. For instance, contracts for similar accounting, auditing, or financial advisory services awarded to other large agencies or even within different bureaus of the State Department could serve as benchmarks. Without detailed service descriptions, it's challenging to definitively state if this represents exceptional value, but the amount is not outliers for the sector.

What are the primary risks associated with a Time and Materials contract for financial management support?

The primary risk associated with a Time and Materials (T&M) contract for financial management support is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not clearly defined, or if project management is weak, the contractor may incur more hours or use more expensive materials than anticipated, leading to costs exceeding the initial estimates. For financial management support, this could manifest as extended hours for analysis, unforeseen research, or the need for specialized, costly software or tools. Robust oversight and detailed tracking of labor hours and material costs are essential to mitigate these risks.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific agency needs. It implies that the solicitation was initially open, but certain potential offerors were excluded based on predefined criteria, possibly related to technical capabilities, past performance, or security clearances. While this method can ensure that bidders meet essential requirements, the exclusion of sources inherently limits the pool of competitors. This reduced competition might lead to less aggressive pricing compared to a truly unrestricted full and open competition. The effectiveness in ensuring competitive pricing depends heavily on the justification for the exclusions and the number of remaining qualified bidders.

What are the implications of the NAICS code 541219 for the services provided?

The North American Industry Classification System (NAICS) code 541219, 'Other Accounting Services,' indicates that the contract is for specialized accounting services that do not fall under broader categories like tax preparation or payroll. This suggests the services may include areas such as forensic accounting, financial statement analysis, internal control assessment, accounting system implementation, or specialized financial reporting. For the Department of State, this could mean support for complex international financial transactions, compliance with specific governmental accounting standards, or assistance with audits and financial investigations. The specificity of the NAICS code implies a need for expertise beyond general bookkeeping.

What is the historical spending pattern for financial management support services at the Department of State?

Analyzing historical spending patterns for financial management support services at the Department of State would require access to detailed procurement data over several fiscal years. Generally, large federal agencies like the State Department have consistent needs for financial management support due to the complexity of their operations, global presence, and regulatory requirements. Spending in this category often fluctuates based on specific initiatives, system upgrades, audit cycles, or changes in accounting standards. Understanding past spending levels, contract durations, and award values for similar services can help contextualize the current $4.8M award and identify trends or potential areas for cost optimization.

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: $5,769,591

Exercised Options: $5,769,591

Current Obligation: $4,822,857

Actual Outlays: $159,215

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