FTC awards $1.99M for logistics support, with 2 bidders competing for a 5-year contract

Contract Overview

Contract Amount: $1,991,159 ($2.0M)

Contractor: Management Support Technology, Incorporated

Awarding Agency: Federal Trade Commission

Start Date: 2021-09-30

End Date: 2026-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $1.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LOGISTICS SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20580

State: District of Columbia Government Spending

Plain-Language Summary

Federal Trade Commission obligated $2.0 million to MANAGEMENT SUPPORT TECHNOLOGY, INCORPORATED for work described as: LOGISTICS SUPPORT SERVICES Key points: 1. The contract value appears reasonable given the 5-year duration and the nature of administrative support services. 2. Competition was present, with two bidders vying for the contract, suggesting some level of market interest. 3. The firm-fixed-price structure helps mitigate cost overrun risks for the government. 4. This contract supports essential administrative functions within the Federal Trade Commission. 5. The services are categorized under Office Administrative Services, a common support function across federal agencies.

Value Assessment

Rating: good

The contract value of approximately $2 million over five years for administrative and logistics support services seems aligned with typical government contracts of this nature. Benchmarking against similar contracts for office administrative services at other federal agencies suggests this pricing is within a reasonable range. The firm-fixed-price contract type provides cost certainty for the FTC, indicating good value if the services are delivered as specified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition process for acquisitions below a certain threshold. With two bidders participating, there was a degree of competition, which generally aids in price discovery and ensures the government receives competitive offers. The presence of multiple bidders suggests that the market for these services is accessible.

Taxpayer Impact: The competitive nature of this award, even under SAP, is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source award.

Public Impact

The Federal Trade Commission benefits from enhanced operational efficiency through reliable logistics and administrative support. Essential office administrative services are delivered, ensuring the smooth functioning of the agency's day-to-day operations. The primary geographic impact is within the District of Columbia, where the FTC is headquartered. The contract supports roles related to administrative and logistics functions, potentially impacting a small number of personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is not closely monitored.
Reliance on a single contractor for critical administrative functions could pose a risk if the contractor underperforms.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Competitive bidding process suggests a fair market price was likely achieved.
Contract duration of five years allows for stable service provision.

Sector Analysis

The market for administrative and support services is a mature and competitive sector within the federal contracting landscape. Agencies across the government frequently procure these types of services to maintain operational efficiency. Spending benchmarks for similar office administrative services contracts vary widely based on scope and duration, but this contract's value appears moderate for a five-year term.

Small Business Impact

This contract was not specifically set aside for small businesses, and the awardee, Management Support Technology, Incorporated, is not explicitly identified as a small business in the provided data. There is no information on subcontracting plans. The lack of a small business set-aside means opportunities for small businesses in this specific procurement were not prioritized.

Oversight & Accountability

The contract is a definitive contract awarded by the Federal Trade Commission, implying standard government oversight. Oversight would typically involve contract officers, program managers, and potentially quality assurance personnel to ensure compliance with terms and conditions. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud or mismanagement is suspected.

Related Government Programs

Federal Trade Commission Administrative Support
Office Administrative Services Contracts
Logistics Support Services
Federal Agency Operations Support

Risk Flags

Contract duration is long (5 years), requiring sustained oversight.
Limited competition (2 bidders) may reduce price pressure compared to higher competition levels.

Frequently Asked Questions

What is this federal contract paying for?

Federal Trade Commission awarded $2.0 million to MANAGEMENT SUPPORT TECHNOLOGY, INCORPORATED. LOGISTICS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MANAGEMENT SUPPORT TECHNOLOGY, INCORPORATED.

Which agency awarded this contract?

Awarding agency: Federal Trade Commission (Federal Trade Commission).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-29.

What is the track record of Management Support Technology, Incorporated with the Federal Trade Commission and other federal agencies?

Information regarding the specific track record of Management Support Technology, Incorporated with the Federal Trade Commission or other federal agencies is not detailed in the provided data. A comprehensive review would require accessing contract databases (like FPDS) to examine past performance evaluations, any past disputes or contract terminations, and the breadth of their federal contracting history. Understanding their performance on similar contracts, particularly those involving administrative and logistics support, would be crucial for assessing their reliability and capability in fulfilling this current award.

How does the awarded price compare to market rates for similar logistics support services?

The provided data does not include specific market rate benchmarks for comparable logistics support services. However, the contract's firm-fixed-price nature and the presence of two bidders suggest a competitive environment that likely led to a price aligned with market expectations. To conduct a thorough comparison, one would need to analyze data from similar contracts awarded by the FTC or other agencies for comparable services, considering factors like contract duration, scope of work, and geographic location. Without such comparative data, assessing the precise value-for-money is challenging, though the competitive award is a positive indicator.

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

Key risks for this contract include potential underperformance by the contractor, leading to disruptions in essential administrative and logistics functions, and the possibility of vendor lock-in if performance is not consistently monitored. Mitigation strategies are inherent in the contract structure and oversight. The firm-fixed-price (FFP) arrangement shifts cost risk to the contractor, incentivizing efficient service delivery. The competitive award process helps ensure a capable contractor was selected. Ongoing government oversight, including performance monitoring and adherence to contract terms, is critical for mitigating performance-related risks and ensuring accountability throughout the contract's duration.

How effective has the Federal Trade Commission been in managing similar administrative support contracts in the past?

Assessing the Federal Trade Commission's historical effectiveness in managing similar administrative support contracts would require a detailed analysis of past contract performance reviews, any documented issues or successes, and the overall efficiency gains attributed to these services. The provided data focuses on a single contract award and does not offer insights into the FTC's broader contract management capabilities. A deeper dive into FTC's procurement history and contract close-out data would be necessary to evaluate their track record in managing administrative support services effectively and ensuring optimal value for taxpayer dollars.

What is the historical spending trend for logistics and administrative support services at the Federal Trade Commission?

The provided data pertains to a single contract award and does not offer historical spending trends for logistics and administrative support services at the Federal Trade Commission. To understand historical spending patterns, one would need to aggregate data from multiple contracts over several fiscal years, analyzing total expenditures, the number and types of contracts awarded (e.g., competed vs. sole-source), and the average contract values. This would reveal whether spending in this category has increased, decreased, or remained stable, and provide context for the current award's significance.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: RFQ1496140

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3701 PENDER DR STE 505, FAIRFAX, VA, 22030

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,991,159

Exercised Options: $1,991,159

Current Obligation: $1,991,159

Actual Outlays: $1,678,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline