DOE's $10.3M Management Consulting Contract Awarded to Technology and Management Services, Inc

Contract Overview

Contract Amount: $10,332,736 ($10.3M)

Contractor: Technology and Management Services, Inc.

Awarding Agency: Department of Energy

Start Date: 2001-12-15

End Date: 2007-09-13

Contract Duration: 2,098 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879

State: Maryland Government Spending

Plain-Language Summary

Department of Energy obligated $10.3 million to TECHNOLOGY AND MANAGEMENT SERVICES, INC. for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a potentially competitive pricing environment. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but requires careful oversight to manage costs. 3. The duration of the contract (2098 days) indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541611 points to a focus on administrative and general management consulting. 5. The award was made by the Department of Energy, suggesting a need for specialized management expertise within the agency. 6. The contract was awarded in 2001, providing a historical perspective on federal spending in this category.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Award Fee structure means the final cost could vary based on performance. Comparing it to similar contracts for administrative management consulting services would require detailed analysis of scope and outcomes. However, the total award amount of $10.3 million over nearly six years suggests a moderate investment for ongoing management support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 6 bids (no) suggests a reasonable level of competition for this requirement. This competitive process is generally expected to drive more favorable pricing and better service offerings for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering a market-driven price discovery mechanism.

Public Impact

The Department of Energy benefits from enhanced administrative and general management consulting services. The contract supports the agency's operational efficiency and strategic planning efforts. The geographic impact is primarily within Maryland, where the contract was administered. The contract likely supports a team of consultants, contributing to employment in the management consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and general management consulting. This is a broad category encompassing a wide range of advisory services aimed at improving organizational efficiency and effectiveness. Federal spending in this area is substantial, supporting agencies in areas like strategic planning, human capital management, and operational improvements. Comparable spending benchmarks would depend on the specific nature of the consulting services provided and the agency's size and mission.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of management consulting services, it is possible that larger firms or teams were involved, but the extent of small business participation is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. As a Cost Plus Award Fee contract, performance monitoring and evaluation would be critical to determining award fees. Transparency would be subject to federal procurement regulations and agency policies regarding contract information disclosure. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

department-of-energy, management-consulting, administrative-services, cost-plus-award-fee, full-and-open-competition, technology-and-management-services-inc, naics-541611, maryland, federal-contract, historical-spending

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $10.3 million to TECHNOLOGY AND MANAGEMENT SERVICES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TECHNOLOGY AND MANAGEMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2001-12-15. End: 2007-09-13.

What was the specific scope of work for Technology and Management Services, Inc. under this contract?

The provided data indicates the contract falls under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. This suggests the scope likely involved providing expert advice and assistance to the Department of Energy on improving management practices, organizational structures, operational efficiency, and strategic planning. Specific tasks could have included process re-engineering, policy development, program evaluation, or organizational assessments. However, the exact deliverables and detailed scope of work are not specified in the abbreviated data.

How does the $10.3 million award compare to typical spending on similar management consulting contracts by the Department of Energy?

Comparing this $10.3 million award requires context on the contract's duration and the specific services rendered. Awarded in 2001 and ending in 2007, this represents an average annual spend of approximately $1.7 million. The Department of Energy, being a large agency with complex operations, often engages management consultants for strategic initiatives, technological integration, and operational improvements. Without knowing the precise nature of the consulting services and the agency's specific needs at the time, a direct comparison is difficult. However, for a multi-year engagement supporting administrative and general management functions, this amount appears to be within a reasonable range for federal agency consulting expenditures.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract like this one?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract involve potential cost overruns and the difficulty in precisely defining and measuring performance for award fees. For the government, there's a risk that costs could escalate beyond initial projections, as the contractor is reimbursed for allowable costs. The 'award fee' component introduces subjectivity in performance evaluation, which can lead to disputes or dissatisfaction if not clearly defined and objectively measured. Contractors may also focus on achieving metrics that trigger award fees, potentially at the expense of other critical, but less incentivized, aspects of the work. Robust oversight and clear performance criteria are essential to mitigate these risks.

What does the 'full and open competition' designation imply for the value received by the Department of Energy?

The designation of 'full and open competition' implies that the Department of Energy sought proposals from all responsible sources and that the contract was awarded based on the best value to the government. This process typically involves advertising the requirement widely, allowing numerous potential bidders to compete. The presence of 6 bids suggests a healthy level of competition. In theory, this competitive environment should drive down prices, encourage innovation, and ensure that the selected contractor offers the most advantageous combination of price, technical approach, and past performance, thereby maximizing the value received by the agency and taxpayers.

How has federal spending on administrative and general management consulting services (NAICS 541611) evolved since this contract was awarded?

Federal spending on administrative and general management consulting services (NAICS 541611) has generally seen fluctuations but has remained a significant category of federal procurement since 2001. Post-9/11 security concerns, economic stimulus packages, and evolving technological landscapes have driven demand for consulting services across various agencies. While specific year-over-year data requires detailed analysis, the trend has been towards agencies seeking external expertise for efficiency improvements, strategic planning, and navigating complex policy environments. The total federal spend in this category has likely increased over the years, reflecting the growing complexity of government operations and the continued reliance on specialized advisory services.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: International Business Machines Corporation (UEI: 001368083)

Address: 18757 N FREDERICK AVE, GAITHERSBURG, MD, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,816,508

Exercised Options: $10,831,923

Current Obligation: $10,332,736

Timeline

Start Date: 2001-12-15

Current End Date: 2007-09-13

Potential End Date: 2007-09-13 00:00:00

Last Modified: 2011-04-14

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