Cornerstone Solutions Inc. awarded $30M contract for support services by Dept. of Labor

Contract Overview

Contract Amount: $30,090,573 ($30.1M)

Contractor: Cornerstone Solutions, Inc.

Awarding Agency: Department of Labor

Start Date: 2005-11-01

End Date: 2011-04-30

Contract Duration: 2,006 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Other

Official Description: AL/FL OACTS

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33181

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $30.1 million to CORNERSTONE SOLUTIONS, INC. for work described as: AL/FL OACTS Key points: 1. Contract value of $30 million over six years suggests a significant investment in support services. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The duration of the contract (2005-2011) provides a substantial performance history for analysis. 4. The North American Industry Classification System (NAICS) code 561990 covers 'All Other Support Services,' a broad category. 5. The contract's performance in Florida (ST/SN) may have specific regional economic implications. 6. The absence of small business set-aside (ss: false, sb: false) indicates no specific provisions for small business participation.

Value Assessment

Rating: fair

The contract value of $30 million over six years averages $5 million annually, which is a substantial but not exceptionally high figure for comprehensive support services. Without specific details on the services rendered, direct comparison to similar contracts is challenging. However, the duration suggests a stable, long-term need for these services. The pricing structure and value for money would depend heavily on the scope and quality of the 'All Other Support Services' provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that the initial solicitation was open to all responsible sources, but specific exclusions were made later in the process. This suggests a competitive environment, though the exact number of bidders and the reasons for exclusions would provide further clarity on the extent of competition. A full and open competition generally aims to achieve the best value through market forces.

Taxpayer Impact: This level of competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing and innovative solutions, potentially leading to cost savings.

Public Impact

The Department of Labor benefits from consistent and potentially cost-effective support services. The contract likely supports administrative and operational functions within the Office of the Assistant Secretary for Administration and Management. The geographic impact is primarily in Florida, where the contractor is based. Workforce implications include employment opportunities for individuals performing support services, both directly by the contractor and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Broad NAICS code 'All Other Support Services' lacks specificity, making it difficult to assess the exact nature and value of services.
The 'exclusion of sources' clause in the competition type warrants further investigation to understand potential limitations on competition.
Lack of explicit small business participation could mean missed opportunities for small business growth and economic contribution.

Positive Signals

Awarded under full and open competition, suggesting a robust process to find the best value.
Long contract duration (six years) indicates a stable relationship and potentially consistent service delivery.
Contractor's base in Florida may provide localized economic benefits and support for regional services.

Sector Analysis

The contract falls under the broad 'Support Services' sector, specifically NAICS code 561990. This category encompasses a wide range of non-professional, non-technical support activities. The federal government is a significant consumer of such services, ranging from administrative and facilities support to logistics and specialized operational assistance. Benchmarking this contract's value requires comparing it against other government contracts for similar broad support services, considering the specific deliverables and performance periods.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting goals for small businesses. This suggests that small businesses may not have been specifically targeted for participation in this contract. The impact on the small business ecosystem is neutral to potentially negative if small businesses with relevant capabilities were excluded from bidding or subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Labor's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Department of Labor Administrative Support Contracts
Federal Government Support Services Procurement
IT Support Services (if applicable)
Facilities Management Contracts
Professional and Management Support Services

Risk Flags

Lack of specificity in service description
Potential for reduced competition due to source exclusions
Broad NAICS code limits detailed performance assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $30.1 million to CORNERSTONE SOLUTIONS, INC.. AL/FL OACTS

Who is the contractor on this award?

The obligated recipient is CORNERSTONE SOLUTIONS, 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 $30.1 million.

What is the period of performance?

Start: 2005-11-01. End: 2011-04-30.

What specific services were provided under NAICS code 561990 for this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 561990, which is broadly defined as 'All Other Support Services.' This category can encompass a wide array of non-professional, non-technical support activities that do not fit into more specific NAICS codes. Without access to the detailed contract statement of work (SOW) or performance reports, the precise nature of the services rendered remains unspecified. These could range from administrative assistance, mailroom operations, document management, facilities support, or other operational tasks essential for the functioning of the Office of the Assistant Secretary for Administration and Management within the Department of Labor. The lack of specificity in the NAICS code highlights a common challenge in federal procurement data, where broad categories can obscure the exact nature and value of contracted services.

How does the $30 million contract value compare to similar support service contracts awarded by the Department of Labor?

Comparing the $30 million contract value for Cornerstone Solutions, Inc. requires context regarding the duration and scope of services. Awarded from 2005 to 2011 (a six-year period), the average annual value is approximately $5 million. To benchmark this effectively, one would need to analyze other Department of Labor contracts for 'All Other Support Services' or similar broad categories awarded within a comparable timeframe. Factors such as the specific agency component, the complexity of the services, geographic location, and the level of competition would influence pricing. Generally, $5 million annually for comprehensive support services is a significant but not extraordinary amount for a federal agency of the Department of Labor's size. A detailed comparison would involve examining contract award databases for similar NAICS codes and contract types to identify average values and identify outliers.

What are the potential risks associated with a broad 'All Other Support Services' contract?

A primary risk associated with a broad 'All Other Support Services' contract (NAICS 561990) is the lack of specificity regarding the exact deliverables and performance expectations. This ambiguity can lead to scope creep, disputes over service quality, and difficulties in performance monitoring and evaluation. For taxpayers, the risk lies in potentially paying for services that are not clearly defined or are less efficient than more specialized contracts. Furthermore, the 'exclusion of sources' in the competition type, while potentially justified, introduces a risk of limiting the pool of qualified bidders, which could impact price competitiveness and innovation. Ensuring robust oversight and clear performance metrics within the contract's statement of work is crucial to mitigate these risks.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for contractor performance and pricing?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the initial solicitation was open to all eligible bidders. However, specific sources were excluded at some point during the process. This implies that while a competitive environment was intended, certain potential contractors were deemed ineligible or were otherwise removed from consideration. For taxpayers, this could mean a potentially reduced competitive landscape compared to a purely full and open competition, which might affect price discovery. For the awarded contractor, it suggests they successfully navigated the competitive process, but the reasons for exclusions could warrant further scrutiny to ensure fairness and optimal value. The ultimate impact on performance and pricing depends on the number of remaining bidders and the justification for the exclusions.

What is the historical spending trend for 'All Other Support Services' by the Department of Labor?

Analyzing the historical spending trend for 'All Other Support Services' (NAICS 561990) by the Department of Labor requires accessing and aggregating data over multiple fiscal years. This specific contract (2005-2011) represents a snapshot within that trend. To understand the broader pattern, one would need to examine spending in this category before, during, and after this contract period. Factors influencing trends include agency priorities, budget allocations, shifts in service delivery models (e.g., insourcing vs. outsourcing), and the overall economic climate. A comprehensive analysis would reveal whether spending in this broad service category has increased, decreased, or remained stable, and identify major contract awards and their durations within the Department of Labor.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: AL/FL OACTS

Offers Received: 4

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Address: 817 WEST PEACHTREE STREET, NE, ATLANTA, GA, 30308

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $30,090,575

Exercised Options: $30,090,575

Current Obligation: $30,090,573

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline