State Department awards $3.86M IT services contract to FEDERAL RESOURCES CORPORATION for HR support

Contract Overview

Contract Amount: $3,860,000 ($3.9M)

Contractor: Federal Resources Corporation

Awarding Agency: Department of State

Start Date: 2025-09-29

End Date: 2026-09-28

Contract Duration: 364 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GTM HR

Place of Performance

Location: ERIE, ERIE County, PENNSYLVANIA, 16503

State: Pennsylvania Government Spending

Plain-Language Summary

Department of State obligated $3.9 million to FEDERAL RESOURCES CORPORATION for work described as: GTM HR Key points: 1. Contract value appears reasonable for the duration and scope of IT HR services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. No immediate risk indicators are apparent from the contract details provided. 4. This contract supports essential human resources functions within the Department of State. 5. The IT services sector is characterized by rapid technological advancement and evolving needs. 6. The contract falls within the 'Other Computer Related Services' NAICS code.

Value Assessment

Rating: good

The contract value of $3.86 million over one year for IT HR services seems aligned with market rates for similar specialized support. Benchmarking against other federal contracts for HR IT solutions would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs for the government.

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 process was competitive, specific circumstances led to excluding some potential bidders. The exact number of bidders is not specified, but the 'full and open' nature suggests a robust competition was intended.

Taxpayer Impact: This competitive approach is generally favorable for taxpayers as it aims to secure the best value through multiple offers, driving down prices and improving service quality.

Public Impact

Federal employees within the Department of State will benefit from improved HR IT systems and support. The contract delivers essential IT services focused on human resources management. The primary geographic impact is likely within the Department of State's operational locations. Workforce implications include the potential for specialized IT roles to be supported or filled by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a fair and accessible process.
Firm-fixed-price contract type helps manage budget predictability.
Contract duration of one year allows for flexibility and reassessment of needs.

Sector Analysis

The IT services sector is a significant component of federal spending, with agencies increasingly relying on technology for operational efficiency. This contract for HR IT support fits within the broader market for specialized IT solutions, which includes software development, system integration, and managed services. Comparable spending benchmarks for HR IT services within government agencies can vary widely based on complexity and scale.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if FEDERAL RESOURCES CORPORATION chooses to engage them. Without explicit subcontracting goals, the direct benefit to the small business ecosystem from this specific award is uncertain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services within budget. Transparency is facilitated by the contract award notice, but further details on performance metrics and reporting would be found in the contract itself.

Related Government Programs

Federal Human Resources IT Support
Department of State IT Modernization
Government HR Management Systems
IT Professional Services Contracts

Risk Flags

Potential for scope creep if HR IT requirements are not clearly defined.
Reliance on contractor's specialized knowledge could create dependency.
Risk of service disruption if contractor performance falters.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.9 million to FEDERAL RESOURCES CORPORATION. GTM HR

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 $3.9 million.

What is the period of performance?

Start: 2025-09-29. End: 2026-09-28.

What is the track record of FEDERAL RESOURCES CORPORATION in delivering IT services to the federal government, particularly in HR-related systems?

FEDERAL RESOURCES CORPORATION has been awarded federal contracts primarily within the IT services domain. While specific details on their HR IT system delivery performance require deeper analysis of past performance reports and contract histories, their presence in the federal contracting space suggests experience. A comprehensive review would involve examining past contract values, durations, agencies served, and any reported performance issues or commendations. Understanding their specialization within IT, whether it leans towards infrastructure, software development, or specialized HR modules, is crucial for assessing their capability for this specific State Department requirement.

How does the $3.86 million contract value compare to similar HR IT support contracts awarded by the Department of State or other federal agencies?

The $3.86 million contract value for one year of HR IT support appears to be within a reasonable range for specialized federal IT services. However, a precise comparison requires benchmarking against contracts with similar scopes of work, service levels, and durations. Factors such as the complexity of the HR systems supported, the number of users, and the specific IT functions required (e.g., system maintenance, upgrades, data migration, user support) significantly influence pricing. Without access to detailed statements of work for comparable contracts, it's difficult to definitively assess if this represents exceptional value, but it does not immediately appear to be an outlier.

What are the primary risks associated with this contract, considering the contractor, service type, and competition level?

Potential risks for this contract include performance risk, where FEDERAL RESOURCES CORPORATION may not meet the required service levels or deadlines for HR IT support. Technical risk is also present, given the evolving nature of IT systems and the potential for unforeseen challenges in maintaining or upgrading HR platforms. Given the 'full and open competition after exclusion of sources' award type, there's a moderate risk that the exclusion of certain bidders might have limited the overall competitive pressure, potentially impacting price or innovation. Contractor viability and key personnel retention are also standard risks in IT service contracts.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this specific HR IT support requirement?

The firm-fixed-price (FFP) contract type is generally effective in controlling costs for the government, as the contractor assumes most of the risk for cost overruns. For HR IT support, where the scope of services can be clearly defined, FFP encourages the contractor to be efficient and manage resources effectively to maintain profitability. This structure provides budget predictability for the Department of State. However, if the scope of work is not precisely defined or if unforeseen technical issues arise, the contractor might be incentivized to cut corners, potentially impacting service quality, or seek change orders, which could increase costs.

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

Analyzing historical spending patterns for HR IT support at the Department of State would reveal trends in IT modernization efforts, outsourcing strategies, and overall investment in human capital technology. This $3.86 million award represents a specific investment in maintaining or enhancing these capabilities. If historical data shows consistent or increasing investment in HR IT, this award aligns with that trend. Conversely, if spending has been declining, this award might indicate a renewed focus or a shift in strategy. Understanding the context of past procurements, including contract vehicles used and incumbent contractors, provides valuable insight into the agency's long-term approach to HR IT.

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: $40,000,000

Exercised Options: $11,440,000

Current Obligation: $3,860,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC61B

IDV Type: GWAC

Timeline