DoD's $18.8M contract for administrative management consulting services awarded to Davis-Paige Management Systems LLC

Contract Overview

Contract Amount: $18,788,921 ($18.8M)

Contractor: Davis-Paige Management Systems LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-01

End Date: 2011-10-15

Contract Duration: 1,323 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CONTRACTOR SUPPORT - LABOR

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to DAVIS-PAIGE MANAGEMENT SYSTEMS LLC for work described as: CONTRACTOR SUPPORT - LABOR Key points: 1. Contract value represents a significant investment in management consulting for the Department of Defense. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over three years) indicates a sustained need for these services. 4. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 5. The contract was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contract was not set aside for small businesses, suggesting large business participation. 7. The contract was awarded to a single contractor, indicating a specific focus or specialized service. 8. The contract was for labor hours, a common pricing structure for consulting services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of services provided. However, the total award amount of approximately $18.8 million over a period of roughly three years suggests a substantial investment in administrative management and general management consulting. The pricing structure based on labor hours can be variable, and a detailed cost analysis would be needed to assess if the rates were competitive. Compared to other large-scale consulting contracts within the federal government, the price point is within a common range for multi-year engagements requiring specialized expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which typically means that all responsible sources were permitted to submit a bid. The fact that it was competed suggests that the agency sought to leverage market competition to obtain the best value. The number of bidders is not specified, but the 'full and open' designation implies a robust competitive environment was intended.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down prices and encouraging innovation from multiple vendors, leading to more cost-effective service delivery.

Public Impact

The Department of Defense is the primary beneficiary, receiving administrative management and general management consulting services. These services likely aim to improve operational efficiency, strategic planning, and overall management within the Army. The geographic impact is primarily within the Department of the Army's operational areas, potentially worldwide. The contract supports a workforce of consultants and potentially impacts the administrative staff within the DoD by improving processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the specific deliverables are not tightly defined.
Reliance on a single contractor for critical management functions could pose a risk if performance falters.
The 'delivery order' nature might obscure the overall value and scope of the parent IDIQ contract.
Ensuring the consulting services directly translate into measurable improvements in administrative efficiency is key.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
The contract duration suggests a recognized and ongoing need for the services.
The specific NAICS code provides clarity on the type of expertise sought.
The contract was awarded to a company with a stated focus on management systems.

Sector Analysis

The federal sector for administrative management and general management consulting services (NAICS 541611) is substantial, with agencies frequently outsourcing specialized expertise to improve efficiency and effectiveness. The Department of Defense, as a massive organization, often utilizes such contracts to support its complex administrative and operational needs. This contract fits within the broader category of professional services procured by the government, where market research and competitive bidding are standard practices to ensure value for taxpayer money. Comparable spending benchmarks would depend on the specific nature of the consulting provided, but multi-million dollar contracts for multi-year engagements are common for large federal agencies.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'ss' and 'sb' fields being false. This suggests that the procurement was open to all responsible sources, including large businesses. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside means that opportunities for small business participation were not mandated through this specific award, though they may have participated as subcontractors if the prime contractor had such requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined within the contract's statement of work, including performance metrics and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS-NG, which provide basic information on awarded contracts. Inspector General jurisdiction could be invoked if allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

Department of Defense Management Consulting Services
Federal Administrative Support Contracts
Professional Services Contracts
General Management Consulting Services
Army IT and Management Support

Risk Flags

Potential for cost overruns due to labor hour pricing.
Risk of inadequate performance if scope is not clearly defined.
Dependency on a single contractor for extended period.
Need for robust oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to DAVIS-PAIGE MANAGEMENT SYSTEMS LLC. CONTRACTOR SUPPORT - LABOR

Who is the contractor on this award?

The obligated recipient is DAVIS-PAIGE MANAGEMENT SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2008-03-01. End: 2011-10-15.

What specific administrative and management challenges was the Department of the Army seeking to address with this contract?

The provided data indicates the contract was for 'Administrative Management and General Management Consulting Services' under NAICS code 541611. While the specific challenges are not detailed, such contracts typically aim to improve organizational efficiency, streamline processes, enhance strategic planning, implement new management techniques, or provide expert advice on complex administrative issues. For the Department of the Army, this could range from optimizing personnel management systems to improving logistical support coordination or advising on resource allocation strategies. The duration and value suggest a significant, ongoing need for expert external support to tackle these complex organizational requirements.

How does the awarded amount of $18.8 million compare to similar management consulting contracts within the Department of Defense?

The $18.8 million award over approximately three years places this contract in the mid-to-high range for individual consulting engagements within the Department of Defense. Large federal agencies, particularly the DoD, frequently award multi-million dollar contracts for specialized consulting services. Benchmarking requires comparing the scope, duration, and specific services rendered. Contracts for strategic planning, large-scale system implementation support, or comprehensive organizational reform can easily reach or exceed this figure. Without more granular data on the specific tasks performed, it's difficult to provide a precise comparison, but the amount is consistent with significant federal consulting investments.

What are the potential risks associated with a multi-year, sole-source-like delivery order for management consulting?

While the contract was awarded under 'full and open competition,' the data indicates it was a 'delivery order,' suggesting it might be part of a larger IDIQ contract. If this delivery order was one of only a few placed against a broader IDIQ, or if the competition for the parent IDIQ was limited, it could present risks. Potential risks include a lack of ongoing competitive pressure if the contractor's performance is merely adequate, potential for scope creep if not tightly managed, and the risk that the chosen contractor may not remain the most innovative or cost-effective solution over the entire period. Ensuring robust performance monitoring and clear deliverables is crucial to mitigate these risks.

What is the track record of Davis-Paige Management Systems LLC in performing federal contracts, particularly within the Department of Defense?

The provided data identifies Davis-Paige Management Systems LLC as the contractor. To assess their track record, one would need to consult federal procurement databases (like FPDS-NG or SAM.gov) to review their past performance on other contracts. This would include examining contract values, agencies served, types of services rendered, and any reported performance issues or awards. A history of successful, on-time, and within-budget contract completions, especially within the defense sector, would indicate a lower risk profile for this current engagement. Conversely, a history of disputes, contract terminations, or negative past performance reviews would raise concerns.

How does the pricing structure (labor hours) impact the overall value and cost control for this contract?

A 'labor hours' pricing structure means the government pays for the actual time consultants spend working on the contract, multiplied by agreed-upon hourly rates. This structure offers flexibility, as the total cost can adjust based on the actual effort required. However, it can also make precise cost control challenging if the scope of work is not well-defined or if work hours are not diligently monitored. The value derived depends heavily on the efficiency and productivity of the consultants and the competitiveness of the negotiated hourly rates. Effective oversight is essential to ensure that hours billed are reasonable and directly related to contract objectives, preventing cost overruns.

What does the NAICS code 541611 (Administrative Management and General Management Consulting Services) typically encompass in a federal context?

NAICS code 541611 covers establishments primarily engaged in providing operating advice and assistance on matters of management to their clients, covering areas such as administrative management, human resources, marketing, and production. In the federal context, this translates to a broad range of services aimed at improving the efficiency and effectiveness of government operations. This can include strategic planning, organizational design, process improvement, policy analysis, program management support, and advice on best practices. For the Department of the Army, it signifies a need for external expertise to optimize its vast and complex administrative functions.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 5427 BACKLICK RD, SPRINGFIELD, VA, 22151

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,402,490

Exercised Options: $19,402,353

Current Obligation: $18,788,921

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911W408D0003

IDV Type: IDC

Timeline