DOE's $13.3M administrative support contract awarded to Rividium Inc. shows 8 bidders in full and open competition
Contract Overview
Contract Amount: $13,335,234 ($13.3M)
Contractor: Rividium Inc.
Awarding Agency: Department of Energy
Start Date: 2018-10-01
End Date: 2024-07-30
Contract Duration: 2,129 days
Daily Burn Rate: $6.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TO PROVIDE ADMINISTRATIVE SUPPORT SERVICES TO DESERT SOUTHWEST REGIONAL OFFICE.
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85009
State: Arizona Government Spending
Plain-Language Summary
Department of Energy obligated $13.3 million to RIVIDIUM INC. for work described as: TO PROVIDE ADMINISTRATIVE SUPPORT SERVICES TO DESERT SOUTHWEST REGIONAL OFFICE. Key points: 1. The contract's value of $13.3 million over approximately 5.8 years suggests a moderate annual spend for administrative support. 2. Full and open competition with 8 bidders indicates a healthy market response and potential for competitive pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor, Rividium Inc. 4. Awarded as a delivery order, this contract likely represents a specific need within the Desert Southwest Regional Office. 5. The North American Industry Classification System (NAICS) code 541612 points to a focus on Human Resources Consulting Services. 6. The contract's duration of 2129 days (approx. 5.8 years) is substantial for administrative support services.
Value Assessment
Rating: good
The contract value of $13.3 million over nearly six years averages to approximately $2.3 million annually. Benchmarking this against similar administrative support contracts requires detailed market analysis, but the presence of 8 bidders in a full and open competition suggests that the pricing is likely competitive. The firm-fixed-price structure further supports value by incentivizing contractor efficiency. Without specific per-unit cost data, a precise value-for-money assessment is limited, but the competitive landscape is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The fact that 8 bidders participated indicates a robust level of interest and competition within the market for these administrative support services. A higher number of bidders generally leads to more competitive pricing and a greater likelihood that the government will receive the best value.
Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers, as it likely drove down the price and ensured that the Department of Energy received high-quality services at a reasonable cost.
Public Impact
The primary beneficiaries are the Department of Energy's Desert Southwest Regional Office, which will receive essential administrative support. Services delivered include administrative support, likely encompassing functions such as human resources, record-keeping, and office management. The geographic impact is focused on the Desert Southwest region of the United States, specifically Arizona. Workforce implications may include the creation or maintenance of jobs by the contractor, Rividium Inc., within the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for over-reliance on a single contractor for extended periods, even with competitive initial award.
- Scope creep could increase costs beyond the initial $13.3 million if not managed tightly.
- Ensuring consistent service quality over the contract's nearly six-year duration can be challenging.
Positive Signals
- The contract was awarded through full and open competition, indicating a competitive marketplace.
- The firm-fixed-price contract type aligns incentives for efficient service delivery.
- The Department of Energy has established a clear need for administrative support in the region.
Sector Analysis
Administrative support services, often categorized under professional, scientific, and technical services, represent a significant segment of federal contracting. This contract falls within the Human Resources Consulting Services sub-sector (NAICS 541612). The federal market for these services is substantial, with agencies frequently outsourcing non-core functions to improve efficiency and access specialized expertise. Comparable spending benchmarks would typically involve analyzing the average cost per administrative support employee or the average contract value for similar services across different federal agencies.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Rividium Inc., is likely a larger entity. While there is no explicit mention of subcontracting requirements for small businesses, it is common practice for larger prime contractors to engage small businesses for specific tasks or services. The absence of a small business set-aside means that opportunities for direct contracting with the government for this specific award were not prioritized for small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers responsible for the Desert Southwest Regional Office. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver services within the agreed-upon price. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Federal Administrative Support Services
- Human Resources Consulting Services
- Department of Energy Regional Operations Support
- Professional, Scientific, and Technical Services Contracts
Risk Flags
- Potential for service quality degradation under fixed-price contract if not monitored.
- Risk of scope creep impacting overall cost and delivery timeline.
- Contract duration may lead to complacency if oversight is lax.
Tags
administrative-support, human-resources-consulting, department-of-energy, desert-southwest-regional-office, firm-fixed-price, full-and-open-competition, delivery-order, arizona, professional-scientific-and-technical-services, medium-value-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $13.3 million to RIVIDIUM INC.. TO PROVIDE ADMINISTRATIVE SUPPORT SERVICES TO DESERT SOUTHWEST REGIONAL OFFICE.
Who is the contractor on this award?
The obligated recipient is RIVIDIUM INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $13.3 million.
What is the period of performance?
Start: 2018-10-01. End: 2024-07-30.
What is Rividium Inc.'s track record with federal contracts, particularly with the Department of Energy?
Rividium Inc. has a history of federal contracting, though specific details on its track record with the Department of Energy (DOE) require further investigation beyond the provided data. The data shows this specific contract (ID: not provided) was awarded by DOE for administrative support. To assess their track record, one would typically examine their past performance on similar contracts, including contract values, duration, types of services rendered, and any reported performance issues or awards. A review of the Federal Procurement Data System (FPDS) or other contract databases would reveal the extent of their federal awards, agencies served, and payment history. Without this broader context, it's difficult to definitively state their overall track record, but the award itself indicates they met the requirements for this particular DOE solicitation.
How does the $13.3 million contract value compare to similar administrative support contracts awarded by the DOE or other agencies?
The $13.3 million contract value for administrative support services over approximately 5.8 years, averaging around $2.3 million annually, falls within a moderate range for such services. To provide a precise comparison, one would need to benchmark against contracts with similar scope, duration, and geographic focus. For instance, comparing it to other DOE regional office support contracts or similar HR consulting services contracts awarded by agencies like the General Services Administration (GSA) or other cabinet-level departments would be informative. The presence of 8 bidders in a full and open competition suggests that the market found this value proposition reasonable and competitive. However, without access to a detailed database of comparable contract pricing and performance metrics, a definitive statement on whether this represents exceptional or merely standard value is challenging.
What are the primary risks associated with this firm-fixed-price contract for administrative support?
The primary risks associated with this firm-fixed-price (FFP) contract, while generally favorable for the government in terms of cost certainty, lie in potential contractor performance issues and scope management. For the government, the risk is that Rividium Inc. might cut corners on service quality to maintain profitability under the fixed price, especially if unforeseen challenges arise. There's also a risk of scope creep if the requirements are not clearly defined or if the agency requests additional services not covered by the original contract without a formal modification and price adjustment. For the contractor, the risk is absorbing cost overruns if their initial estimates were inaccurate or if market conditions (like labor costs) change unfavorably. Effective oversight by the DOE is crucial to mitigate these risks and ensure consistent service delivery and adherence to the contract's terms.
How effective is the 'full and open competition' strategy in ensuring value for money for this type of service?
The 'full and open competition' strategy is generally considered highly effective in ensuring value for money for administrative support services. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids. The fact that 8 bidders participated in this specific contract award suggests a robust market response, which typically drives down prices and encourages innovation and quality improvements as contractors vie for the award. This competitive pressure incentivizes contractors to offer their best pricing and service levels. While effective, the ultimate value for money also depends on the clarity of the solicitation requirements, the evaluation process, and ongoing contract administration to ensure the awarded services meet the government's needs at the agreed-upon price.
What are the historical spending patterns for administrative support services within the Department of Energy's regional offices?
Analyzing historical spending patterns for administrative support services within the Department of Energy's regional offices would involve examining past contract awards for similar functions across various regional offices. This would include looking at the frequency of such contracts, their average values, durations, and the types of contractors (large vs. small business) that have historically secured these awards. Understanding these patterns can reveal trends in outsourcing, budget allocations for administrative functions, and the stability of demand for these services. For example, consistent spending on administrative support might indicate a long-term need, while fluctuating amounts could suggest shifts in agency priorities or internal resource allocation. This contract's $13.3 million value over nearly six years provides a data point, but a broader historical analysis would offer more comprehensive insights into DOE's spending strategies in this area.
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) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 89503118RWA000008
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1951 KIDWELL DR STE 400, VIENNA, VA, 22182
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $13,335,234
Exercised Options: $13,335,234
Current Obligation: $13,335,234
Actual Outlays: $9,625,638
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS02F183AA
IDV Type: FSS
Timeline
Start Date: 2018-10-01
Current End Date: 2024-07-30
Potential End Date: 2024-07-30 00:00:00
Last Modified: 2025-09-15
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