State Department awards $1.89M IT services contract to Federal Resources Corporation for public awareness campaign

Contract Overview

Contract Amount: $18,871,100 ($18.9M)

Contractor: Federal Resources Corporation

Awarding Agency: Department of State

Start Date: 2025-05-01

End Date: 2027-04-30

Contract Duration: 729 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ESTABLISH A DOWO FOR CA PUBLIC AWARENESS

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 $18.9 million to FEDERAL RESOURCES CORPORATION for work described as: ESTABLISH A DOWO FOR CA PUBLIC AWARENESS Key points: 1. Contract value appears reasonable for a 2-year IT services engagement focused on public awareness. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Potential risk indicators include the limited number of bids received, which could impact price. 4. Performance context is a public awareness campaign, requiring effective communication and outreach strategies. 5. Sector positioning is within IT services, specifically computer-related services for government outreach. 6. The contract's duration of 729 days aligns with typical project timelines for such initiatives.

Value Assessment

Rating: good

The contract value of $1.89 million for a two-year period for IT services related to public awareness seems within a reasonable range. Benchmarking against similar public awareness campaigns or IT support contracts for government agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the ultimate value will depend on the effectiveness of the campaign delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, certain sources were excluded. The data does not specify the number of bids received, which is crucial for assessing the level of competition. A limited number of bidders could potentially lead to less competitive pricing.

Taxpayer Impact: The specific competition level needs further clarification to determine its impact on taxpayer value. If the exclusion of sources limited competition significantly, taxpayers might not have received the most cost-effective solution.

Public Impact

The primary beneficiaries are the public, who will receive information through the awareness campaign. The services delivered will focus on IT support for public awareness initiatives. The geographic impact is likely national, given the Department of State's mission. Workforce implications may involve IT specialists and communication experts, both within the contractor and potentially government personnel overseeing the campaign.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on the number of bids received under the limited competition.
Potential for less competitive pricing due to source exclusion.
Effectiveness of the public awareness campaign is a key performance metric not yet assessed.

Positive Signals

Firm fixed-price contract provides cost certainty.
Contract duration is clearly defined.
Awarded to a single contractor, potentially streamlining management.

Sector Analysis

This contract falls within the IT services sector, specifically under the 'Other Computer Related Services' NAICS code (541519). This broad category encompasses a wide range of IT support, consulting, and implementation services. The market for such services is highly competitive, with numerous providers ranging from large corporations to specialized small businesses. The value of this contract, at approximately $1.89 million, is relatively modest within the broader federal IT spending landscape, which often involves multi-million or billion-dollar engagements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, Federal Resources Corporation, is not identified as a small business in the provided data. Further analysis would be needed to determine if the prime contractor has a history of subcontracting with small businesses on other contracts.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of State's contracting officers and program managers. Accountability measures will be tied to the performance metrics outlined in the contract's statement of work. Transparency regarding the campaign's progress and outcomes would be subject to the Department's public reporting policies and Freedom of Information Act requests. Inspector General jurisdiction would apply if any potential fraud, waste, or abuse is identified.

Related Government Programs

Department of State Public Diplomacy and Public Affairs
Federal IT Services Procurement
Government Public Awareness Campaigns
IT Consulting Services

Risk Flags

Limited competition may impact price discovery.
Effectiveness of public awareness campaign is a key performance indicator.
Justification for exclusion of sources needs review.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $18.9 million to FEDERAL RESOURCES CORPORATION. ESTABLISH A DOWO FOR CA PUBLIC AWARENESS

Who is the contractor on this award?

The obligated recipient is FEDERAL RESOURCES CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2025-05-01. End: 2027-04-30.

What is the track record of Federal Resources Corporation in delivering similar public awareness IT services for government agencies?

Information regarding Federal Resources Corporation's specific track record in delivering public awareness IT services for government agencies is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client testimonials. Key areas to investigate would include their experience with communication strategies, digital outreach platforms, data analytics for campaign effectiveness, and adherence to government security and compliance standards. Understanding their past successes and challenges in similar projects is crucial for evaluating their capability to meet the Department of State's objectives for this contract.

How does the awarded price of $1.89 million compare to market rates for similar IT services supporting public awareness campaigns?

Benchmarking the $1.89 million contract value against market rates for similar IT services supporting public awareness campaigns requires detailed analysis of the specific services included. Factors such as the scope of work, duration (729 days), required expertise (e.g., digital marketing, content creation, IT infrastructure), and geographic reach (national) are critical. Without a detailed statement of work and comparable market data, a precise comparison is difficult. However, for a two-year engagement involving IT support for a national campaign, this figure appears to be within a plausible range, assuming the scope is not exceptionally complex or resource-intensive. Further investigation into industry pricing models for similar government outreach initiatives would be necessary for a definitive assessment.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential underperformance by the contractor in delivering effective public awareness outcomes, cost overruns if the firm fixed-price model is not strictly managed, and challenges in adapting to evolving communication technologies or public sentiment. Risks related to the 'limited' competition also exist, potentially impacting price competitiveness. Mitigation strategies would typically involve robust contract oversight by the Department of State, clear performance metrics and deliverables, regular progress reviews, and contingency planning for unforeseen issues. The firm fixed-price nature itself acts as a cost mitigation tool. The specific mitigation plans embedded within the contract terms and the Department's oversight processes would need further examination.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers in this specific instance?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring taxpayer value is contingent on the justification for excluding certain sources and the resulting level of competition. If legitimate reasons existed for excluding specific vendors (e.g., specialized capabilities, past performance issues), and if the remaining open competition still attracted multiple qualified bidders, it could lead to a fair price. However, if the exclusion significantly limited the pool of potential bidders, it might have reduced competitive pressure, potentially leading to a higher price than a truly open competition. Without knowing which sources were excluded and how many bids were ultimately received, it's difficult to definitively assess the value for taxpayers. This procurement method requires careful justification to ensure it serves the government's best interests.

What are the historical spending patterns for similar public awareness IT services within the Department of State or other federal agencies?

Historical spending patterns for similar public awareness IT services within the Department of State and other federal agencies can vary significantly based on the scope, duration, and specific objectives of the campaigns. General trends indicate a growing reliance on digital platforms and data analytics for outreach, often involving substantial investments in IT infrastructure, software, and specialized services. Contracts for public awareness campaigns can range from tens of thousands to millions of dollars, depending on the agency's mission and target audience. Analyzing past contracts for similar initiatives, such as public health campaigns, national security awareness programs, or diplomatic outreach efforts, would provide a benchmark. This $1.89 million award appears to be a mid-range investment for a national-level campaign over two years, but a detailed historical analysis would be needed for precise comparison.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1401 STATE ST, ERIE, PA, 16501

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $74,942,800

Exercised Options: $29,942,800

Current Obligation: $18,871,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC61B

IDV Type: GWAC

Timeline