Labor Department's $20M Administrative Management Consulting Contract Awarded to Paragon Technical Services

Contract Overview

Contract Amount: $19,927,493 ($19.9M)

Contractor: Paragon Technical Services, Inc.

Awarding Agency: Department of Labor

Start Date: 2007-09-28

End Date: 2009-09-26

Contract Duration: 729 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: NOT REPORTED

Sector: Other

Official Description: RESOURCE CENTER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $19.9 million to PARAGON TECHNICAL SERVICES, INC. for work described as: RESOURCE CENTER Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 729 days indicates a medium-term engagement for consulting services. 3. The primary service category is Administrative Management and General Management Consulting, a common area for federal support. 4. Awarded to Paragon Technical Services, Inc., a contractor with a history of federal engagements. 5. The contract's value is substantial, reflecting significant investment in management consulting. 6. Geographic location of the award is Washington D.C., a hub for federal agencies.

Value Assessment

Rating: fair

The contract value of approximately $20 million over two years for administrative management consulting services appears to be within a reasonable range for federal engagements of this nature. Benchmarking against similar contracts for management consulting services would provide a clearer picture of value for money. Without specific performance metrics or detailed cost breakdowns, it is difficult to definitively assess the efficiency and effectiveness of the pricing. However, the duration and scope suggest a significant need for these services within the Department of Labor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service quality. The agency likely sought proposals from multiple qualified firms to ensure they received the best value proposition for administrative management and general management consulting services.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it increases the likelihood of competitive pricing and encourages a wider pool of contractors to vie for government business, potentially driving down costs.

Public Impact

The Department of Labor benefits from enhanced administrative management and general management consulting services. Services delivered are expected to improve operational efficiency and strategic planning within the agency. The primary geographic impact is within Washington D.C., where the Department of Labor is headquartered. The contract supports the administrative functions of the agency, indirectly impacting the workforce by improving management structures.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and impact of the consulting services.
The raw dollar amount, while not excessive for the scope, warrants scrutiny to ensure efficient use of taxpayer funds.
Limited information on the number of bidders restricts a full assessment of the competitive landscape.
The contract's focus on administrative management could be broad, potentially leading to scope creep if not tightly managed.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contractor, Paragon Technical Services, Inc., has experience with federal contracts, implying familiarity with government requirements.
The contract addresses a core administrative need within the Department of Labor, indicating strategic alignment.
The duration of the contract allows for sustained support and potential for significant process improvements.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) represent a significant segment of the federal contracting market, supporting agencies across various functions. This sector encompasses a wide range of advisory services aimed at improving organizational efficiency, strategic planning, and operational effectiveness. Federal spending in this area is often driven by the need for specialized expertise that may not be available in-house, or to support major organizational changes and initiatives. Comparable spending benchmarks would typically look at the average contract values and durations for similar consulting services across different federal agencies.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Therefore, the direct impact on small businesses through this specific award is likely minimal unless Paragon Technical Services, Inc. engages in subcontracting with small businesses. Analysis of subcontracting plans would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's contracting officers and program managers responsible for the Office of the Assistant Secretary for Administration and Management. Transparency is facilitated through contract award databases like FPDS. Accountability measures would be defined in the contract's statement of work and performance standards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Financial Consulting, Acquisition and Commercialization Services
Professional, Scientific, and Technical Services
Federal Consulting Services
Department of Labor Administrative Support Contracts

Risk Flags

Potential for scope creep
Contractor performance risk
Knowledge transfer challenges
Data security and confidentiality concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $19.9 million to PARAGON TECHNICAL SERVICES, INC.. RESOURCE CENTER

Who is the contractor on this award?

The obligated recipient is PARAGON TECHNICAL SERVICES, 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 $19.9 million.

What is the period of performance?

Start: 2007-09-28. End: 2009-09-26.

What is the track record of Paragon Technical Services, Inc. with federal contracts, particularly in administrative management consulting?

Paragon Technical Services, Inc. has a history of receiving federal contracts, as indicated by its presence in contract award databases. While specific details on their performance for this particular Department of Labor contract are not readily available in the provided data, their ability to secure this award suggests they met the agency's requirements and qualifications. A deeper dive into their contract history, including past performance reviews, contract modifications, and any reported issues, would provide a more comprehensive understanding of their track record. Federal procurement systems often contain past performance information that can be accessed by agencies during source selection.

How does the $20 million contract value compare to similar administrative management consulting contracts within the federal government?

The $20 million contract value for administrative management and general management consulting services over approximately two years is a substantial award. To benchmark this effectively, one would need to compare it against contracts with similar scope, duration, and agency size. For instance, consulting contracts for large federal departments like Health and Human Services or Defense, which often have more complex administrative structures, might range from several million to tens of millions of dollars annually. Smaller agencies or contracts with a more focused scope would typically be valued lower. Without access to a comprehensive database of comparable contracts and their specific deliverables, a precise comparison is challenging, but the value appears consistent with significant federal consulting engagements.

What are the primary risks associated with a contract of this nature and duration?

Key risks for a contract of this nature include scope creep, where the project's objectives expand beyond the original agreement, leading to increased costs and delays. Another risk is the potential for contractor underperformance, where the delivered services do not meet the agency's expectations or quality standards. Contractor dependency is also a concern, as the agency might become overly reliant on the external consultants. Furthermore, knowledge transfer can be a challenge; if the consultants leave without adequately transferring their expertise to agency staff, the long-term benefits may be limited. Finally, ensuring the security and confidentiality of sensitive government information handled by the consultants is paramount.

What specific administrative management and general management consulting services are typically covered under such federal contracts?

Contracts for administrative management and general management consulting services typically cover a broad spectrum of support aimed at enhancing organizational efficiency and effectiveness. This can include strategic planning and policy development, organizational design and restructuring, process improvement and re-engineering, performance management system development, human capital management consulting, budget and financial management advisory, and IT strategy consulting related to administrative functions. The specific services are defined in the contract's Statement of Work (SOW), which details the objectives, tasks, deliverables, and performance standards expected from the contractor. The goal is generally to provide expert advice and implementation support to optimize agency operations.

What does the 'full and open competition' designation imply for the Department of Labor and taxpayers?

The 'full and open competition' designation signifies that the Department of Labor sought proposals from all responsible sources capable of meeting the contract requirements. This approach is generally favored in federal procurement because it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids. For taxpayers, this means that the contract was likely awarded at a price that reflects market competition, potentially leading to cost savings compared to sole-source or limited competition awards. It also promotes fairness and transparency in the government's acquisition process, ensuring that taxpayer funds are used efficiently and effectively.

How has federal spending on administrative management consulting services evolved over recent years?

Federal spending on administrative management consulting services has generally seen fluctuations influenced by budget cycles, agency priorities, and the need for specialized expertise. In recent years, there has been a continued demand for these services as agencies grapple with modernization efforts, efficiency drives, and the implementation of new policies and technologies. While specific aggregate data for this exact category can vary, the broader professional, scientific, and technical services sector, which includes management consulting, represents a significant portion of federal expenditures. Trends often show an increase in spending during periods of major government reform or when agencies undertake large-scale transformation projects.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: NOT REPORTED (NO)

Evaluated Preference: NONE

Contractor Details

Address: 4848 TRAMWAY RIDGE DR.# 220, ALBUQUERQUE, NM, 01

Business Categories: Category Business, Small Business, Veteran Owned Business

Parent Contract

Parent Award PIID: DOLQ069E24379

IDV Type: BPA

Timeline