Labor Department's $30M IGF Operations contract awarded to Adams and Associates Inc. without competition

Contract Overview

Contract Amount: $30,047,297 ($30.0M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2017-01-31

End Date: 2019-03-31

Contract Duration: 789 days

Daily Burn Rate: $38.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF OPERATIONS OF WOODSTOCK JCC

Place of Performance

Location: WOODSTOCK, BALTIMORE County, MARYLAND, 21163

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $30.0 million to ADAMS AND ASSOCIATES INC for work described as: IGF::CT::IGF OPERATIONS OF WOODSTOCK JCC Key points: 1. The contract's value of $30 million over its period of performance raises questions about cost-effectiveness given the lack of competitive bidding. 2. The sole-source award suggests potential limitations in market research or a specific need that only one vendor could fulfill. 3. The 'NOT COMPETED' status is a significant risk indicator, potentially leading to inflated prices and reduced innovation. 4. Performance context is limited due to the absence of comparative contract data, making it difficult to assess value for money. 5. This contract falls within the administrative and management support sector, crucial for departmental operations. 6. The use of a Cost Plus Fixed Fee (CPFF) contract type can sometimes incentivize cost overruns if not closely monitored.

Value Assessment

Rating: questionable

Benchmarking the value of this $30 million contract is challenging without competitive data. The absence of competition means there was no market pressure to ensure the lowest possible price. The CPFF structure, while offering flexibility, requires rigorous oversight to prevent cost escalation. Without comparable contracts or detailed cost breakdowns, it's difficult to definitively state if this represents good value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that the agency likely determined that only one source was capable of meeting the requirement. The lack of competition limits the agency's ability to explore alternative solutions or secure potentially better pricing through a bidding process.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits transparency in the procurement process.

Public Impact

The primary beneficiaries are the administrative and operational functions of the Department of Labor, ensuring smooth internal processes. The services delivered likely include support for the Office of the Assistant Secretary for Administration and Management. The geographic impact is primarily within Maryland, where the contract is managed. Workforce implications are tied to the contractor's employees supporting the Department of Labor's administrative needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises concerns about market research and potential vendor lock-in.
CPFF contract type requires robust oversight to manage costs effectively.
Limited transparency due to non-competitive nature of the award.

Positive Signals

Contract supports essential administrative functions of the Department of Labor.
The contractor, Adams and Associates Inc., is performing a defined role within the agency.

Sector Analysis

This contract falls under the professional, scientific, and technical services sector, specifically focusing on administrative and management support. The market for such services is vast, with numerous firms capable of providing these functions. However, the specific nature of this 'IGF OPERATIONS' suggests a specialized requirement. Comparable spending benchmarks for similar administrative support contracts within federal agencies can vary widely based on scope and duration.

Small Business Impact

The contract details indicate that small business participation was not a primary consideration, as the 'sb' field is false and the 'ss' field is also false. There is no indication of small business set-aside or subcontracting requirements within the provided data. This suggests that the prime contractor is likely a larger entity, and the impact on the small business ecosystem is minimal unless subcontracting occurs without explicit set-aside provisions.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the Department of Labor's contracting officers and program managers. Accountability measures are inherent in the CPFF contract type, requiring detailed reporting and justification of costs. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Labor Administrative Support Contracts
Federal IT and Administrative Services
Cost Plus Fixed Fee Contracts
Sole-Source Federal Procurements

Risk Flags

Sole-source award
Lack of competition
Unusual NAICS code assignment
Cost Plus Fixed Fee contract type requires close monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $30.0 million to ADAMS AND ASSOCIATES INC. IGF::CT::IGF OPERATIONS OF WOODSTOCK JCC

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2017-01-31. End: 2019-03-31.

What specific services does 'IGF OPERATIONS OF WOODSTOCK JCC' entail?

The provided data does not detail the specific services encompassed by 'IGF OPERATIONS OF WOODSTOCK JCC'. The acronym 'IGF' and 'JCC' are not standard federal procurement terms, suggesting they may be internal project codes or specific to the Department of Labor's operational structure. The North American Industry Classification System (NAICS) code 611519, 'Other Technical and Trade Schools,' is listed, which is unusual for administrative operations and might indicate a training or specialized technical support component. Further investigation into the contract's statement of work would be required to ascertain the precise nature of the services.

Why was this contract awarded on a sole-source basis?

The data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without additional documentation from the Department of Labor, the precise justification for this sole-source award remains unknown. It is possible that Adams and Associates Inc. possessed unique capabilities, proprietary knowledge, or a prior relationship that made them the only viable option in the agency's assessment.

What is the typical cost structure for a Cost Plus Fixed Fee (CPFF) contract?

A Cost Plus Fixed Fee (CPFF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. The fixed fee represents the contractor's profit and is not subject to adjustment based on the actual costs incurred. This structure aims to provide flexibility for complex projects where the scope may evolve, but it places a significant emphasis on the government's ability to monitor and control costs, as the contractor is incentivized to incur costs to cover their overhead, while the fixed fee provides a predictable profit margin.

How does the duration of the contract (789 days) compare to similar administrative support contracts?

The contract duration of 789 days, approximately 2.16 years, is a moderate length for a federal administrative support contract. Many such contracts can range from one to five years, with options for extensions. The specific duration is often dictated by the nature of the services required and the agency's budgetary planning. Without knowing the exact scope of 'IGF OPERATIONS,' it's difficult to definitively benchmark this duration against all similar contracts. However, it falls within a common range for ongoing operational support.

What is the significance of the NAICS code 611519 ('Other Technical and Trade Schools') for this contract?

The assignment of NAICS code 611519 ('Other Technical and Trade Schools') to a contract for 'IGF OPERATIONS' awarded to 'ADAMS AND ASSOCIATES INC.' is unusual and warrants further investigation. This code typically applies to establishments primarily engaged in providing vocational, trade, and technical instruction. It is incongruous with a contract described as 'IGF OPERATIONS' and awarded to a company whose name does not immediately suggest an educational institution. This discrepancy could indicate a specialized training component within the operations, a misclassification, or a unique business model for the contractor.

What is the historical spending pattern for 'IGF OPERATIONS' or similar services by the Department of Labor?

The provided data only includes information for this single contract awarded to Adams and Associates Inc. There is no historical spending data available within this dataset to analyze past expenditures on 'IGF OPERATIONS' or comparable services by the Department of Labor. To understand historical spending patterns, one would need to access broader federal procurement databases and search for similar contracts awarded over multiple fiscal years, looking for trends in contract values, award types, and incumbent contractors.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DOL-ETA-17-Q-0037

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,047,297

Exercised Options: $30,047,297

Current Obligation: $30,047,297

Actual Outlays: $3,285,669

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline