DOJ's FBI Spends $63.3M on Relocation Services with BGRS, Raising Value Concerns
Contract Overview
Contract Amount: $63,313,280 ($63.3M)
Contractor: Bgrs Relocation Inc
Awarding Agency: Department of Justice
Start Date: 2008-10-01
End Date: 2012-03-12
Contract Duration: 1,258 days
Daily Burn Rate: $50.3K/day
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RELOCATION SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Department of Justice obligated $63.3 million to BGRS RELOCATION INC for work described as: RELOCATION SERVICES Key points: 1. Significant spending on relocation services highlights a critical support function for federal agencies. 2. The contract was awarded to BGRS Relocation Inc., indicating a specific vendor relationship. 3. The total award value of $63.3 million warrants scrutiny regarding cost-effectiveness and market alternatives. 4. The duration of the contract (over 3 years) suggests a long-term need for these services.
Value Assessment
Rating: questionable
The total award of $63.3 million for relocation services over approximately 3.5 years appears high. Benchmarking against industry standards for similar government or large corporate relocation contracts is needed to assess if this represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type is 'FIRM FIXED PRICE', which can provide cost certainty but may limit flexibility. The competition method is not specified, making it difficult to assess if the pricing reflects competitive market forces or a sole-source arrangement.
Taxpayer Impact: The substantial expenditure of taxpayer funds on relocation services necessitates a thorough review to ensure efficiency and prevent potential overspending.
Public Impact
Federal employees often require relocation services, impacting workforce mobility and agency operational capacity. The cost of relocation services can be a significant, though often indirect, expense for taxpayers. Efficient relocation services are crucial for employee morale and a smooth transition during job transfers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High total award value
- Lack of specified competition
- Potential for cost overruns if not managed effectively
Positive Signals
- Firm Fixed Price contract type can offer budget predictability
- Relocation services are essential for federal workforce management
Sector Analysis
Relocation services fall under professional services, often supporting administrative functions within agencies. Spending benchmarks for such services can vary widely based on the volume and complexity of moves, but significant contracts like this warrant comparison to industry averages.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of Justice to the Federal Bureau of Investigation. Oversight would typically involve contract management officials within the FBI to ensure compliance with terms and conditions.
Related Government Programs
- Offices of Real Estate Agents and Brokers
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- High total contract value
- Lack of transparency on competition method
- Potential for uncompetitive pricing
- Need for performance and value assessment
Tags
offices-of-real-estate-agents-and-broker, department-of-justice, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $63.3 million to BGRS RELOCATION INC. RELOCATION SERVICES
Who is the contractor on this award?
The obligated recipient is BGRS RELOCATION INC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $63.3 million.
What is the period of performance?
Start: 2008-10-01. End: 2012-03-12.
What was the basis for the $63.3 million award value, and how does it compare to market rates for similar relocation services?
The basis for the $63.3 million award value is not detailed in the provided data. A comprehensive review would involve comparing this figure against industry benchmarks for relocation services, considering factors like the number of employees relocated, distance, and the scope of services provided (e.g., housing assistance, moving logistics). Without this comparison, it's difficult to ascertain if the price reflects competitive market rates or represents potential overspending.
What were the specific competition methods used for this contract, and how did they influence the final price?
The provided data does not specify the competition method used for this contract. If it was a sole-source award or a limited competition, the pricing might be higher than if it underwent a full and open competition. Understanding the procurement process is crucial to evaluating whether the FBI achieved the best possible price and value for taxpayer dollars.
How effectively did BGRS Relocation Inc. manage the relocation process for federal employees under this contract, and what was the overall impact on workforce mobility?
The provided data focuses on the financial aspects of the contract and does not offer insights into the performance or effectiveness of BGRS Relocation Inc. Evaluating the effectiveness would require analyzing employee satisfaction surveys, on-time delivery rates, adherence to budgets, and the overall impact on the FBI's ability to move personnel efficiently to meet operational needs.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Offices of Real Estate Agents and Brokers › Offices of Real Estate Agents and Brokers
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Contractor Details
Parent Company: Prudential Financial, Inc. (UEI: 018300884)
Address: 1325 G ST NW STE 600, WASHINGTON, DC, 98
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $63,313,280
Exercised Options: $63,313,280
Current Obligation: $63,313,280
Parent Contract
Parent Award PIID: GS23F9734H
IDV Type: FSS
Timeline
Start Date: 2008-10-01
Current End Date: 2012-03-12
Potential End Date: 2012-03-12 00:00:00
Last Modified: 2012-08-17
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- Relocation and Moving Services — $36.7M (Department of the Treasury)
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