FTC awards $2.6M for acquisitions support, with Seventh Sense, LLC to provide services through February 2027

Contract Overview

Contract Amount: $2,620,019 ($2.6M)

Contractor: Seventh Sense, LLC

Awarding Agency: Federal Trade Commission

Start Date: 2025-01-20

End Date: 2027-02-26

Contract Duration: 767 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ACQUISITIONS 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 $2.6 million to SEVENTH SENSE, LLC for work described as: ACQUISITIONS SUPPORT SERVICES Key points: 1. Contract value of $2.6M over approximately 2.5 years suggests a moderate investment in specialized support. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. Delivery order type suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The North American Industry Classification System (NAICS) code 541611 points to a focus on management consulting services. 5. The contract duration of 767 days allows for sustained support but requires careful performance monitoring. 6. The absence of small business set-aside flags indicates this was not specifically targeted for small business participation.

Value Assessment

Rating: good

The contract value of $2.6 million for acquisitions support services over approximately two years appears reasonable for specialized consulting. Benchmarking against similar contracts for administrative management and general management consulting services would provide a clearer picture of value for money. Without specific per-unit cost data or detailed service breakdowns, a precise value assessment is challenging, but the overall award size is not disproportionately high for federal agency support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. The presence of two bids (no: 2) indicates some level of competition, though the exact number of bidders is not explicitly stated beyond the awardee. A low number of bids can sometimes lead to less competitive pricing, but full and open competition is generally the preferred method for ensuring fair market prices.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it aims to secure the best possible pricing and quality by allowing a wide range of potential contractors to compete, driving down costs through market forces.

Public Impact

The Federal Trade Commission (FTC) benefits from enhanced acquisitions support, potentially leading to more efficient procurement processes. Services delivered are expected to improve the FTC's ability to manage and execute its acquisition strategies. The primary geographic impact is within the District of Columbia, where the FTC is headquartered. Workforce implications include the potential for specialized consulting expertise to augment existing FTC staff capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition indicated by only two bids could potentially lead to higher costs for taxpayers.
The labor hours contract type (pt: LABOR HOURS) can sometimes lead to cost overruns if not managed tightly.
The specific deliverables and performance metrics are not detailed in the provided data, making it difficult to assess performance risks.
The contractor's track record and past performance on similar federal contracts are not detailed here, posing a potential risk.

Positive Signals

Awarded under full and open competition, which generally promotes fair pricing and access for qualified vendors.
The contract duration allows for sustained support, enabling the contractor to become deeply familiar with the FTC's needs.
The FTC is a well-established agency, suggesting a stable environment for contract performance.
The NAICS code indicates a focus on professional consulting services, aligning with potential needs for specialized expertise.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, supporting agencies across various functions. Federal spending on management and general management consulting services (NAICS 541611) typically supports agency operations, strategic planning, and process improvements. The $2.6 million award is moderate within this broad category, reflecting a focused need for acquisitions support rather than a large-scale program implementation.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. The prime contractor, Seventh Sense, LLC, may still choose to subcontract portions of the work to small businesses as part of its overall business strategy, but this is not a requirement of this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Trade Commission's contracting officers and program managers. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract databases like SAM.gov, where award details are published. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

Acquisition Planning and Support Services
Management and Consulting Services
Federal Procurement Support
Administrative Services Contracts
Professional Services Contracts

Risk Flags

Limited competition (2 bids)
Labor Hours contract type risk
Lack of detailed performance metrics in award data
Unknown contractor performance history

Frequently Asked Questions

What is this federal contract paying for?

Federal Trade Commission awarded $2.6 million to SEVENTH SENSE, LLC. ACQUISITIONS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SEVENTH SENSE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2025-01-20. End: 2027-02-26.

What is Seventh Sense, LLC's track record with federal contracts, particularly in acquisitions support?

Information regarding Seventh Sense, LLC's specific track record with federal contracts, especially in acquisitions support, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any reported issues or successes. Understanding their experience with similar agencies and contract types (like labor hours) would be crucial for evaluating their capability and reliability in fulfilling this FTC contract effectively. Without this data, it's difficult to gauge their proven expertise and potential risks associated with their performance.

How does the $2.6 million contract value compare to similar acquisitions support contracts at the FTC or other agencies?

The $2.6 million contract value for approximately 2.5 years of acquisitions support services represents a moderate investment. To benchmark this value, one would need to compare it against historical FTC contracts for similar services or against contracts awarded by comparable federal agencies (e.g., other independent agencies or bureaus with significant procurement needs). Factors such as the scope of work, duration, required expertise, and number of personnel involved would need to be aligned for a meaningful comparison. If similar contracts have been awarded for significantly less or more, it could indicate potential overpricing or under-resourcing, respectively. However, without access to a broader dataset of comparable contracts, this specific award's value is difficult to definitively assess as high or low.

What are the primary risks associated with a 'labor hours' contract type for acquisitions support?

The primary risk associated with a 'labor hours' contract type (PT: LABOR HOURS) for acquisitions support is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, labor hours contracts pay for the actual time spent by personnel, plus a fixed hourly rate. This means that if the project takes longer than anticipated, or if personnel work more hours than planned, the total cost will increase. Effective risk mitigation requires robust oversight, detailed timesheet tracking, clear task definitions, and regular progress reviews to ensure that labor hours are being used efficiently and are aligned with project objectives. Without strong management, the 'open-ended' nature of labor hours can lead to unexpected expenses for the government.

What is the expected impact of this contract on the FTC's overall procurement efficiency and effectiveness?

This contract is expected to enhance the FTC's procurement efficiency and effectiveness by providing specialized expertise in acquisitions support. The contractor, Seventh Sense, LLC, will likely assist the FTC in navigating complex procurement regulations, improving documentation, streamlining processes, and potentially identifying cost-saving opportunities. By augmenting the FTC's internal acquisition workforce with external consultants, the agency can potentially accelerate its procurement cycles, ensure compliance, and achieve better outcomes from its purchasing activities. The success of this impact will depend on the clarity of the SOW, the contractor's performance, and the FTC's ability to integrate the support effectively into its existing operations.

Given the limited competition (2 bids), what is the potential impact on price discovery and taxpayer value?

A contract awarded with only two bids, even under full and open competition, can raise concerns about optimal price discovery and taxpayer value. When fewer bidders participate, the competitive pressure to offer the lowest possible price is reduced. This can lead to prices that are higher than they might be in a more robustly competed scenario. While the FTC selected one of the two available offers, the lack of broader competition means there's less certainty that the government received the absolute best value available in the market. Taxpayers may potentially pay a premium due to this limited competitive landscape, underscoring the importance of strong negotiation and oversight by the contracting agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 14626 CROSSFIELD WAY, WOODBRIDGE, VA, 22191

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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

Financial Breakdown

Contract Ceiling: $5,466,310

Exercised Options: $3,638,336

Current Obligation: $2,620,019

Actual Outlays: $1,158,861

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F102GA

IDV Type: FSS

Timeline