Agency for International Development awards $69.3M contract for HR consulting, highlighting IT Concepts Inc.'s role

Contract Overview

Contract Amount: $69,299,618 ($69.3M)

Contractor: IT Concepts, Inc.

Awarding Agency: Agency for International Development

Start Date: 2023-11-07

End Date: 2026-11-06

Contract Duration: 1,095 days

Daily Burn Rate: $63.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NEW PERSONNEL AWARD FOR HCTM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $69.3 million to IT CONCEPTS, INC. for work described as: NEW PERSONNEL AWARD FOR HCTM Key points: 1. Contract value of $69.3M for HR consulting services. 2. Awarded to IT Concepts, Inc. under a full and open competition. 3. Contract duration spans three years, from November 2023 to November 2026. 4. Service type is Time and Materials, indicating potential for cost variability. 5. The contract is for Human Resources Consulting Services. 6. Geographic focus is Washington D.C.

Value Assessment

Rating: fair

The contract value of $69.3 million for three years of HR consulting services appears to be within a reasonable range for large-scale government support. However, without specific details on the deliverables and the number of personnel involved, a precise value-for-money assessment is challenging. The Time and Materials pricing structure introduces a degree of uncertainty regarding the final cost, as it is dependent on actual hours worked and material usage. Benchmarking against similar HR consulting contracts awarded by the Agency for International Development or other federal agencies would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition after exclusion of sources' mechanism. While this indicates a competitive process, the 'exclusion of sources' aspect warrants further investigation to understand if specific capabilities or prior performance were prerequisites that may have limited the pool of potential bidders. The presence of two bids suggests some level of competition, but the exact number of interested parties and the rationale for excluding other sources would be crucial for a comprehensive assessment of price discovery.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging a wider range of offers, potentially leading to more competitive pricing. However, the exclusion of sources might limit this benefit if it unnecessarily restricted the competitive landscape.

Public Impact

The primary beneficiaries are likely the Agency for International Development's internal HR departments and its employees, who will receive enhanced consulting services. The services delivered will focus on human resources consulting, potentially covering areas such as talent management, organizational development, and workforce planning. The geographic impact is centered in Washington D.C., where the agency's operations are concentrated. Workforce implications may include the engagement of specialized HR consultants, both from the prime contractor and potentially subcontractors, to support agency needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored, as it directly links payment to hours worked and resources consumed.
The 'exclusion of sources' clause in the competition type requires scrutiny to ensure it did not unduly limit competition and potentially inflate prices.
Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the effectiveness and efficiency of the awarded services.
The contract's duration of three years, coupled with T&M, presents a significant long-term financial commitment that needs continuous oversight.

Positive Signals

The contract was awarded through a full and open competition, suggesting a broad search for qualified vendors.
The award to IT Concepts, Inc. indicates a selection based on perceived capability to meet the agency's HR consulting needs.
The contract specifies a clear end date, providing a defined period for service delivery and budget allocation.
The agency has established a clear need for HR consulting services, indicating a proactive approach to managing its human capital.

Sector Analysis

The federal IT consulting and professional services market is substantial, with agencies frequently outsourcing specialized functions like human resources. This contract falls within the broader professional services sector, which includes management and financial consulting, and scientific and technical consulting services. The market is characterized by a mix of large prime contractors and numerous small businesses, with significant competition for large-scale awards. Benchmarking this $69.3 million award against other HR consulting contracts would place it as a mid-to-large size engagement within the federal space.

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 mandated by a set-aside. However, the prime contractor, IT Concepts, Inc., may choose to subcontract portions of the work to small businesses as part of its overall business strategy or to meet broader socioeconomic goals. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this specific contract were limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Time and Materials nature of the contract necessitates rigorous oversight of labor hours and material costs to prevent overspending. Transparency is facilitated through contract award databases, but detailed performance reports and audits are typically internal or conducted by oversight bodies like the USAID Office of Inspector General, if deemed necessary based on risk assessment.

Related Government Programs

Human Resources Management Services
Professional and Management Consulting Services
Federal Workforce Development Programs
Agency Operational Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for detailed scrutiny of 'exclusion of sources' in competition.
Lack of specific performance metrics for outcome assessment.
Reliance on contractor's self-reporting for hours and materials.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $69.3 million to IT CONCEPTS, INC.. NEW PERSONNEL AWARD FOR HCTM

Who is the contractor on this award?

The obligated recipient is IT CONCEPTS, INC..

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $69.3 million.

What is the period of performance?

Start: 2023-11-07. End: 2026-11-06.

What is the specific track record of IT Concepts, Inc. in delivering similar HR consulting services to federal agencies?

A thorough review of IT Concepts, Inc.'s past performance is crucial to assess their suitability for this $69.3 million HR consulting contract. This would involve examining their history with federal agencies, specifically looking for contracts of similar scope, duration, and complexity related to human resources. Key indicators to evaluate include client satisfaction ratings, successful completion of project milestones, adherence to budget and schedule, and any instances of contract disputes or performance issues. Analyzing their experience with Time and Materials contracts would also be important, given the pricing structure of this award. Information on their past performance can often be found in federal procurement databases, agency performance reports, and through direct inquiries with previous government clients, if permissible.

How does the awarded price of $69.3 million compare to market rates for similar HR consulting services?

Benchmarking the $69.3 million contract value against market rates requires detailed analysis of the specific services to be provided. Factors such as the number of consultants, their skill sets and experience levels, the duration of the contract (three years), and the geographic location (Washington D.C.) all influence pricing. Comparing this award to similar HR consulting contracts awarded by the Agency for International Development or other federal agencies, as well as private sector benchmarks for comparable services, would be necessary. The Time and Materials pricing structure adds complexity, as the final cost is variable. A comprehensive comparison would involve analyzing average hourly rates for different consultant roles, overhead rates, and material markups to determine if the projected cost aligns with industry standards and offers good value for the taxpayer.

What are the primary risks associated with the Time and Materials (T&M) contract type for this HR consulting service?

The primary risk associated with the Time and Materials (T&M) contract type for this HR consulting service is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor hours and materials used, plus a fee. This structure can lead to unpredictable final costs if the scope of work expands, inefficiencies arise, or if the contractor does not diligently manage their resources. For the government, this necessitates robust oversight to monitor hours billed, ensure the necessity of materials used, and verify that consultant activities directly contribute to contract objectives. Without stringent controls and clear performance metrics, T&M contracts can become more expensive than anticipated, potentially diminishing the overall value for money.

What specific HR consulting outcomes or improvements is the Agency for International Development expecting from this contract?

The provided data indicates the contract is for 'Human Resources Consulting Services' but does not specify the expected outcomes or improvements. Typically, such contracts aim to enhance various aspects of an agency's human capital management. Potential objectives could include improving recruitment and retention strategies, optimizing organizational structures, developing leadership and employee training programs, enhancing performance management systems, or addressing workforce planning needs. The success of the contract would be measured against the achievement of these specific, measurable, achievable, relevant, and time-bound (SMART) goals. Without a clear definition of these expected outcomes, it is difficult to assess the program's effectiveness or the contractor's performance beyond adherence to billing and basic service delivery.

How has the Agency for International Development's spending on HR consulting services trended over the past five years?

To assess the significance of this $69.3 million award, analyzing the Agency for International Development's historical spending on HR consulting services over the past five years is essential. This trend analysis would reveal whether this contract represents a typical investment, an increase, or a decrease in HR consulting expenditures. Understanding past spending patterns can help identify any shifts in agency priorities, the effectiveness of previous HR initiatives, or potential areas of concern regarding cost efficiency. For instance, a consistent increase in spending might suggest growing HR challenges or a greater reliance on external expertise, while a decrease could indicate successful internal capacity building or a reprioritization of resources. This historical context is vital for evaluating the current contract's strategic alignment and financial prudence.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 7200AA23R00097

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8201 GREENSBORO DR STE 735, MCLEAN, VA, 22102

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $193,481,739

Exercised Options: $81,743,609

Current Obligation: $69,299,618

Actual Outlays: $32,468,696

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QREB21D0028

IDV Type: IDC

Timeline