Treasury's $73.4M relocation services contract with BGRS Inc. awarded under full and open competition

Contract Overview

Contract Amount: $73,371,116 ($73.4M)

Contractor: Bgrs Relocation Inc

Awarding Agency: Department of the Treasury

Start Date: 2012-10-01

End Date: 2021-03-31

Contract Duration: 3,103 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF OTHER FUNCTIONS = INHERENTLY GOVERNMENTAL RATING RELOCATION SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $73.4 million to BGRS RELOCATION INC for work described as: IGF::OT::IGF OTHER FUNCTIONS = INHERENTLY GOVERNMENTAL RATING RELOCATION SERVICES Key points: 1. The contract provided relocation services, a critical function for federal employees. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of over 8 years indicates a long-term need for these services. 4. The firm-fixed-price structure aims to control costs by setting a predetermined price. 5. The contract was awarded to a single vendor, BGRS Relocation Inc. 6. The North American Industry Classification System (NAICS) code 531210 points to offices of real estate agents and brokers.

Value Assessment

Rating: good

The total award amount of $73.4 million over approximately 8 years suggests a significant investment in employee relocation. Benchmarking this against similar government-wide relocation contracts would provide a clearer picture of value for money. The firm-fixed-price contract type is generally favorable for the government in managing cost certainty. However, without specific per-service cost data or comparisons to private sector relocation costs, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a reasonably competitive environment for this service. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where vendors strive to offer the best value and pricing to secure government contracts, potentially leading to cost savings.

Public Impact

Federal employees relocating for government assignments benefit from managed relocation services. Services likely include assistance with moving household goods, finding housing, and managing logistical aspects of a move. The contract's impact is primarily national, supporting federal workforce mobility across various agencies and locations. The contract supports the workforce by ensuring a smooth transition for employees, minimizing disruption to their personal lives and professional duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single vendor for a critical service like relocation presents continuity risks.
Potential for scope creep if not strictly managed within the defined service parameters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost predictability for the government.
The contract appears to have been successfully managed over its multi-year term.

Sector Analysis

The federal government is a significant consumer of relocation services to support its geographically dispersed workforce. This contract falls within the broader professional services sector, specifically real estate and moving services. Comparable spending benchmarks would involve analyzing other large-scale government relocation contracts or private sector corporate relocation spending. The market for relocation services is competitive, with numerous providers offering a range of specialized services.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it's possible that small businesses could have bid, but the scale of the contract might favor larger, established firms. There is no explicit information on subcontracting plans with small businesses. Further analysis would be needed to determine if small businesses were involved in fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting agency, the Department of the Treasury, specifically the Office of the Comptroller of the Currency. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Employee Relocation Services
Government Moving Contracts
Employee Benefits Administration
Real Estate Brokerage Services
Office of Personnel Management (OPM) Services

Risk Flags

Long-term contract duration
Single vendor award
Potential for service degradation over time

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $73.4 million to BGRS RELOCATION INC. IGF::OT::IGF OTHER FUNCTIONS = INHERENTLY GOVERNMENTAL RATING 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 the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $73.4 million.

What is the period of performance?

Start: 2012-10-01. End: 2021-03-31.

What was the contractor's track record prior to this award?

Information regarding BGRS Relocation Inc.'s specific track record prior to this award is not detailed in the provided data. However, as a recipient of a significant federal contract, it can be inferred that they likely possessed relevant experience and qualifications deemed sufficient by the contracting agency. A deeper dive into their past performance on other government contracts, client references, and financial stability would provide a more comprehensive understanding of their capabilities and reliability. Government contract awards often consider past performance as a key evaluation factor, suggesting BGRS met certain performance benchmarks.

How does the per-year cost of this contract compare to industry benchmarks?

The total award of $73.4 million over approximately 8 years equates to an average annual expenditure of roughly $9.175 million. Direct comparison to industry benchmarks for relocation services is complex due to variations in service scope, geographic coverage, and the specific needs of federal employees versus private sector employees. Factors such as the volume of relocations, the types of services included (e.g., household goods, temporary housing, home sale assistance), and the average distance of moves significantly influence costs. Without detailed service breakdowns and comparable market data for government-specific relocation programs, establishing a precise benchmark is challenging. However, the firm-fixed-price nature suggests an attempt to control costs within a defined budget.

What are the primary risks associated with this contract?

Key risks include potential vendor lock-in due to the long contract duration and the specialized nature of relocation services, which could make switching providers difficult or costly. There's also a risk of service quality degradation over time if performance is not rigorously monitored. Furthermore, reliance on a single vendor for a critical function like employee relocation could lead to disruptions if the vendor experiences financial difficulties or operational failures. Ensuring consistent adherence to government regulations and policies throughout the contract lifecycle is another area requiring vigilance.

How effective was the competition in driving down costs?

The contract was awarded under full and open competition with five bids received. While this indicates a competitive process, the effectiveness in driving down costs can only be fully assessed by comparing the awarded price against the initial government cost estimates or against prices from similar, previously competed contracts. The firm-fixed-price structure inherently aims to cap costs. However, without knowing the bid spread or the government's target price, it's difficult to definitively state how much cost savings were achieved solely due to competition. A higher number of bids often correlates with better price discovery.

What is the historical spending pattern for relocation services by this agency?

The provided data focuses on a single contract award from 2012 to 2021. To understand historical spending patterns, one would need to examine the Department of the Treasury's (and specifically the Office of the Comptroller of the Currency's) spending on relocation services over a longer period, including prior contracts with BGRS or other vendors, and potentially compare it to spending by other agencies. This single data point suggests a significant, long-term commitment to outsourcing these services, but it does not reveal trends, fluctuations, or the overall budget allocation for relocation services over time.

What are the implications of the firm-fixed-price contract type for this service?

A firm-fixed-price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. For relocation services, this provides the government with cost certainty, as the total expenditure is largely predictable, barring any approved contract modifications. It places the risk of cost overruns on the contractor, incentivizing them to manage their operations efficiently. This structure is generally favored by the government for services where the scope is well-defined and risks can be reasonably estimated, helping to prevent budget overruns.

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: TRANSPORT, TRAVEL, RELOCATION › RELOCATION OR TRAVEL AGENT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1100 CONNECTICUT AVE NW STE 900, WASHINGTON, DC, 20036

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

Financial Breakdown

Contract Ceiling: $88,598,616

Exercised Options: $73,371,116

Current Obligation: $73,371,116

Actual Outlays: $7,318,589

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS23F9734H

IDV Type: FSS

Timeline