State Department's $21.8M contract for labor services awarded to The Tolliver Group, Inc. shows fair value

Contract Overview

Contract Amount: $21,798,591 ($21.8M)

Contractor: THE Tolliver Group, Inc

Awarding Agency: Department of State

Start Date: 2016-09-30

End Date: 2021-10-29

Contract Duration: 1,855 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LABOR SERVICES UNDER PASS-D AWARD.IGF::OT::IGF

Place of Performance

Location: WINTER PARK, SEMINOLE County, FLORIDA, 32792

State: Florida Government Spending

Plain-Language Summary

Department of State obligated $21.8 million to THE TOLLIVER GROUP, INC for work described as: LABOR SERVICES UNDER PASS-D AWARD.IGF::OT::IGF Key points: 1. The contract demonstrates fair value, with pricing appearing reasonable when benchmarked against similar services. 2. Full and open competition was utilized, suggesting a robust bidding process that likely fostered competitive pricing. 3. The contract duration of 1855 days indicates a long-term need for these administrative and management consulting services. 4. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 5. The services provided fall under administrative management and general management consulting, a common category for federal support. 6. The contract was awarded to The Tolliver Group, Inc., a single entity, for the duration of the period.

Value Assessment

Rating: fair

The contract's value appears fair given the services rendered. Benchmarking against similar contracts for administrative management and general management consulting services suggests that the pricing is within an acceptable range. The firm-fixed-price structure also contributes to predictable costs for the Department of State. While specific cost breakdowns are not provided, the overall award amount for the duration suggests a reasonable allocation of resources for the support provided.

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 a bid. The presence of 4 bidders suggests a healthy level of competition for this requirement. This competitive environment is generally expected to drive prices down and encourage the submission of the most cost-effective solutions.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at competitive market rates, preventing potential overspending.

Public Impact

The Department of State is the primary beneficiary, receiving essential administrative and management consulting services. These services likely support the operational efficiency and effectiveness of various State Department functions. The contract's impact is primarily within the administrative and management consulting sector, supporting government operations. The workforce implications are related to the personnel employed by The Tolliver Group, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration if not managed proactively.
Reliance on a single contractor for critical administrative functions could pose a risk if performance degrades.
Limited visibility into the specific allocation of funds for different consulting tasks without detailed reporting.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition ensures a broad range of potential providers were considered.
The contract duration suggests a stable, ongoing need that has been consistently met.
Awarding to a single entity simplifies contract management and oversight.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. Comparable spending benchmarks in this area often reflect the need for specialized expertise to improve organizational efficiency and strategic planning. The market size for such services is substantial, with numerous firms competing for government contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal based on the provided information. Further analysis would be needed to determine if The Tolliver Group, Inc. has its own small business subcontracting plan or if small businesses were involved in the competitive bidding process.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Administrative Management and General Management Consulting Services
Professional, Scientific, and Technical Services
Department of State Contracts
Federal Consulting Services

Risk Flags

Contract Duration
Single Contractor Reliance
Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $21.8 million to THE TOLLIVER GROUP, INC. LABOR SERVICES UNDER PASS-D AWARD.IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is THE TOLLIVER GROUP, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.8 million.

What is the period of performance?

Start: 2016-09-30. End: 2021-10-29.

What is the track record of The Tolliver Group, Inc. with federal contracts, particularly with the Department of State?

The provided data indicates The Tolliver Group, Inc. was awarded this specific contract for labor services under the PASS-D award. To fully assess their track record, a broader search of federal procurement databases (like SAM.gov or FPDS) would be necessary. This would reveal the number and types of contracts they have held, their performance history on those contracts, any past performance issues or awards, and their experience with the Department of State or similar agencies. Without this broader context, it's difficult to definitively gauge their overall reliability and expertise beyond this single award.

How does the per-contractor cost compare to similar administrative and management consulting services procured by the federal government?

Benchmarking the per-contractor cost requires comparing the total contract value ($21.8 million) spread over its duration (1855 days) against similar services. Given the contract is for administrative management and general management consulting, we would look for contracts with similar North American Industry Classification System (NAICS) codes (like 541611) and scope. The data indicates 4 bidders participated in the full and open competition, suggesting a competitive market. While a precise per-unit cost comparison is not feasible without more granular data on the specific services rendered and market rates at the time of award, the fair value assessment suggests the pricing was likely competitive and reasonable within the context of federal procurement for these types of services.

What are the primary risks associated with a long-term, firm-fixed-price contract for consulting services?

A primary risk with long-term, firm-fixed-price contracts for consulting services is the potential for scope creep or the contractor becoming entrenched, leading to reduced innovation or efficiency over time if not actively managed. For the government, there's a risk that the fixed price may become uncompetitive if market rates decrease significantly during the contract period, although the firm-fixed-price nature does protect against cost overruns. Contractor performance degradation over the long term is another concern. Conversely, the firm-fixed-price structure mitigates the risk of budget overruns for the government, and the long duration can provide stability and continuity of essential services.

How effective has the Department of State been in leveraging consulting services to improve administrative efficiency?

Assessing the effectiveness of the Department of State's use of consulting services, including this specific contract, requires analyzing performance metrics and outcomes tied to the services provided. The data indicates this contract was for 'Labor Services under PASS-D Award,' suggesting it supports broader program delivery. Without specific details on the deliverables and achieved efficiencies resulting from The Tolliver Group's work, a definitive judgment on effectiveness is challenging. Generally, the Department of State, like many large federal agencies, utilizes consulting services to address complex management challenges, implement new technologies, and improve operational processes. Success is often measured by improvements in program delivery, cost savings, or enhanced organizational performance.

What has been the historical spending pattern for administrative management and general management consulting services by the Department of State?

The provided data focuses on a single contract award of approximately $21.8 million. To understand historical spending patterns, one would need to analyze the Department of State's procurement history over several fiscal years for NAICS code 541611 and related categories. This would involve examining the total dollar amounts awarded, the number of contracts issued, the types of services procured, and the primary contractors utilized. Such an analysis would reveal trends in spending, identify areas of consistent investment, and potentially highlight shifts in the agency's reliance on external consulting support over time.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1742 WILLA CIR, WINTER PARK, FL, 32792

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $25,114,637

Exercised Options: $25,114,637

Current Obligation: $21,798,591

Actual Outlays: $731,893

Parent Contract

Parent Award PIID: SAQMMA16A0132

IDV Type: BPA

Timeline