MCC awards $1.05M contract for administrative and travel support to Omega World Travel Inc

Contract Overview

Contract Amount: $1,050,281 ($1.1M)

Contractor: Omega World Travel Inc

Awarding Agency: Millennium Challenge Corporation

Start Date: 2022-04-28

End Date: 2027-04-27

Contract Duration: 1,825 days

Daily Burn Rate: $575/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: MCC TRAVEL BRANCH CONTRACT FOR ACQUIRING A WIDE RANGE OF ADMINISTRATIVE AND TRAVEL SUPPORT SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Millennium Challenge Corporation obligated $1.1 million to OMEGA WORLD TRAVEL INC for work described as: MCC TRAVEL BRANCH CONTRACT FOR ACQUIRING A WIDE RANGE OF ADMINISTRATIVE AND TRAVEL SUPPORT SERVICES. Key points: 1. Contract provides comprehensive administrative and travel support services. 2. Awarded through full and open competition, indicating a broad market search. 3. The contract duration is five years, suggesting a need for sustained support. 4. The contract type is labor hours, which can offer flexibility but requires careful monitoring. 5. The primary place of performance is Washington D.C., a common hub for federal agencies. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: fair

The contract value of $1.05 million over five years averages to $210,040 annually. Benchmarking this against similar administrative and travel support contracts is challenging without more specific service details. However, the award to a single contractor suggests a potentially competitive bidding process that resulted in a negotiated price. Further analysis would require comparing the specific services rendered against industry standards and other government contracts for comparable support.

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 data indicates three bids were received. While three bidders suggest some level of competition, it is on the lower end for a full and open solicitation. This could imply that the market for this specific type of comprehensive administrative and travel support is limited, or that other potential bidders chose not to participate.

Taxpayer Impact: A competitive process, even with a limited number of bidders, generally benefits taxpayers by encouraging more favorable pricing and service offerings compared to sole-source or limited competition awards.

Public Impact

The Millennium Challenge Corporation (MCC) benefits from streamlined administrative and travel processes. Employees of the MCC will receive support for booking travel, managing itineraries, and related administrative tasks. The primary geographic impact is within the District of Columbia, where the MCC is headquartered. The contract supports the operational efficiency of the MCC, indirectly impacting its global development initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only three bids received could potentially lead to higher costs than a more robustly competed contract.
The labor hours contract type requires diligent oversight to ensure efficient use of billable hours and prevent cost overruns.
Lack of small business participation may limit opportunities for smaller, specialized travel management firms.

Positive Signals

Awarded through full and open competition, ensuring a broad search for qualified vendors.
The five-year duration provides stability and continuity for essential administrative and travel support services.
The contractor, Omega World Travel Inc., is an established entity in the travel industry, suggesting experience and capability.

Sector Analysis

The travel agency and administrative support sector is a mature market with numerous providers, ranging from large corporations to specialized small businesses. Federal agencies often contract for these services to manage complex travel requirements and administrative tasks efficiently. Spending in this category can vary significantly based on agency size, mission, and travel volume. This contract fits within the broader professional services category, where competition is typically robust, though specific niche services can see fewer bidders.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in providing these administrative and travel support services under this specific contract are limited. The absence of a small business set-aside or subcontracting plan may not significantly impact the broader small business ecosystem unless this represents a substantial portion of the agency's travel support needs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Millennium Challenge Corporation's contracting and program management officials. Accountability measures would be embedded in the contract's performance work statement, requiring adherence to service level agreements and reporting requirements. Transparency is facilitated through public contract databases where award details are available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Travel Regulations (FTR)
GSA Travel Management Services
Administrative Support Services Contracts
Government Travel Cards

Risk Flags

Limited competition may impact price competitiveness.
Labor hours contract type requires robust oversight to manage costs.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Millennium Challenge Corporation awarded $1.1 million to OMEGA WORLD TRAVEL INC. MCC TRAVEL BRANCH CONTRACT FOR ACQUIRING A WIDE RANGE OF ADMINISTRATIVE AND TRAVEL SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is OMEGA WORLD TRAVEL INC.

Which agency awarded this contract?

Awarding agency: Millennium Challenge Corporation (Millennium Challenge Corporation).

What is the total obligated amount?

The obligated amount is $1.1 million.

What is the period of performance?

Start: 2022-04-28. End: 2027-04-27.

What is the track record of Omega World Travel Inc. with federal government contracts?

Omega World Travel Inc. has a history of serving federal agencies. While specific details on past performance metrics for this contractor are not provided in the summary data, their ability to secure this five-year contract with the Millennium Challenge Corporation suggests they have met the agency's requirements and demonstrated capability. Federal contractors are typically evaluated on past performance, and securing this award implies a satisfactory rating in that area. Further investigation into publicly available contract databases or agency performance reviews could provide more granular insights into their track record, including any past issues or commendations.

How does the annual cost of this contract compare to similar federal travel support services?

The annual cost for this contract averages approximately $210,040 ($1.05M / 5 years). Comparing this figure directly to similar federal travel support services is challenging without a detailed breakdown of the services provided and the specific volume of travel managed. Federal travel contracts can vary widely in scope, from booking simple domestic flights to managing complex international itineraries, visa processing, and duty of care services. Generally, contracts with broader service offerings and higher volume will command higher prices. The fact that this contract was competed suggests the price was deemed reasonable relative to the scope of work by the procuring agency, but a precise benchmark requires a more detailed comparison of service level agreements and performance metrics.

What are the primary risks associated with a labor-hours contract for travel services?

A primary risk with labor-hours contracts, especially for services like travel support, is the potential for cost overruns if the scope of work is not well-defined or if the contractor's labor efficiency is lower than anticipated. Unlike fixed-price contracts, the government pays for the actual hours worked, making diligent oversight crucial. Risks include inefficient task completion, scope creep without corresponding price adjustments, and difficulty in forecasting final costs accurately. For travel services, this could manifest as extended time spent on booking, research, or administrative tasks beyond what is considered standard or efficient, leading to higher overall expenditure than initially projected.

What is the expected impact of this contract on the Millennium Challenge Corporation's operational efficiency?

This contract is expected to significantly enhance the operational efficiency of the Millennium Challenge Corporation by outsourcing the complex and time-consuming tasks associated with administrative and travel support. By engaging a specialized vendor like Omega World Travel Inc., MCC employees can focus more on their core mission objectives rather than administrative burdens. This includes streamlined booking processes, potentially better travel rates through established vendor relationships, and efficient management of itineraries and related documentation. The continuity of service over five years also ensures reliable support, minimizing disruptions and improving overall productivity within the agency.

How does the competition level (3 bidders) for this contract potentially affect pricing and service quality?

A competition level with three bidders, while indicating some market interest, is on the lower side for a 'full and open' solicitation. This limited competition could potentially lead to less aggressive pricing than if there were a larger pool of bidders vying for the contract. Contractors may feel less pressure to offer the absolute lowest price or the most innovative solutions when faced with fewer direct competitors. Similarly, service quality might not be pushed to its highest potential. However, it's also possible that these three bidders were the most qualified and capable, and the resulting price reflects a fair market value for the specific, potentially niche, services required.

What are the implications of awarding this contract to a single vendor for five years?

Awarding this contract to a single vendor, Omega World Travel Inc., for a duration of five years provides significant benefits in terms of continuity and stability for the Millennium Challenge Corporation's administrative and travel support. It allows for a deep working relationship to develop, potentially leading to more tailored and efficient service delivery over time. However, it also concentrates risk with one provider. If the contractor underperforms or faces financial instability, the agency could face significant disruption. Furthermore, a long-term, single-vendor relationship might reduce the incentive for the contractor to continuously innovate or offer the most competitive pricing throughout the contract period, compared to more frequent re-competitions.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Travel Arrangement and Reservation Services › Travel Agencies

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › RELOCATION OR TRAVEL AGENT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 95332421Q0052

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Omega World Travel, Inc.

Address: 3102 OMEGA OFFICE PARK, FAIRFAX, VA, 22031

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $1,443,561

Exercised Options: $1,443,561

Current Obligation: $1,050,281

Actual Outlays: $290,089

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS33F0027P

IDV Type: FSS

Timeline