DoD's $27.3M logistics consulting contract with SRM GROUP, LLC awarded under full and open competition

Contract Overview

Contract Amount: $27,260,917 ($27.3M)

Contractor: SRM Group, LLC

Awarding Agency: Department of Defense

Start Date: 2015-09-23

End Date: 2020-04-30

Contract Duration: 1,681 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79920

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $27.3 million to SRM GROUP, LLC for work described as: IGF::OT::IGF Key points: 1. The contract was awarded as a firm-fixed-price delivery order, indicating a clear scope and predictable costs. 2. SRM GROUP, LLC, the sole awardee, has a track record with the Department of Defense. 3. The contract's duration of 1681 days suggests a significant, long-term need for logistics consulting services. 4. Awarded under NAICS code 541614, the contract focuses on process, physical distribution, and logistics consulting. 5. The contract was not set aside for small businesses, suggesting a focus on larger, established firms. 6. The contract was awarded by the Department of the Army, a major component of the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed task orders and deliverables. However, the firm-fixed-price structure suggests that the government aimed for cost certainty. Comparing the total award amount to similar large-scale logistics consulting contracts within the DoD would provide a better understanding of its value. The absence of specific performance metrics in the provided data makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of full and open competition is the government's preferred method for procurement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of innovative solutions, ultimately aiming to secure the best value for public funds.

Public Impact

The Department of Defense benefits from improved logistics and distribution processes, potentially leading to cost savings and enhanced operational efficiency. The services delivered likely involve strategic planning, process optimization, and implementation support for military logistics operations. The geographic impact is likely broad, given the nature of defense logistics, potentially affecting various military installations and operational theaters. Workforce implications could include the need for specialized logistics personnel within the DoD to manage and implement the consulting recommendations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true impact and effectiveness of the consulting services.
The long duration of the contract could lead to scope creep or a need for contract modifications if requirements evolve significantly.
Without knowing the number of bidders, it's hard to definitively say if competition was robust enough to ensure optimal pricing.
The sole awardee nature of this delivery order means the government relied on one contractor for the entirety of this specific award's scope.

Positive Signals

Awarded under a firm-fixed-price contract, which provides cost predictability for the government.
The contract was competed under full and open procedures, suggesting an effort to achieve competitive pricing.
The Department of the Army, a major defense entity, is the contracting agency, indicating a significant requirement.
The contract duration suggests a sustained need and potential for long-term improvements in logistics.

Sector Analysis

The logistics and supply chain management consulting sector is a critical component of the broader professional services industry, supporting government and commercial entities in optimizing their operations. Federal spending in this area is substantial, driven by the need for efficiency, cost reduction, and modernization of complex supply chains, particularly within defense and large federal agencies. This contract fits within the segment of government consulting services focused on operational efficiency and process improvement for physical distribution and logistics.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does the data indicate any specific subcontracting requirements for small businesses. This suggests that the primary awardee, SRM GROUP, LLC, is likely a larger entity capable of performing the services independently or through its own established network. The absence of small business considerations in this specific award might mean fewer opportunities for small businesses to participate directly, though they could potentially be involved in the broader defense supply chain.

Oversight & Accountability

The contract is subject to the oversight mechanisms of the Department of Defense and the Department of the Army. As a firm-fixed-price contract, performance is typically monitored against defined deliverables and milestones. Transparency would be enhanced through public contract databases and potential Inspector General reviews if performance issues or fraud were suspected. Specific oversight details, such as reporting requirements or dedicated review boards, are not provided in the data.

Related Government Programs

Department of Defense Logistics Modernization Programs
Army Sustainment Command Contracts
Supply Chain Management Consulting Services
Federal Logistics Support Contracts

Risk Flags

Potential for scope creep due to long contract duration.
Risk of contractor performance not meeting evolving requirements.
Dependence on a single contractor for critical logistics consulting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to SRM GROUP, LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SRM GROUP, 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 $27.3 million.

What is the period of performance?

Start: 2015-09-23. End: 2020-04-30.

What is the track record of SRM GROUP, LLC with the Department of Defense?

The provided data indicates that SRM GROUP, LLC has been awarded this specific contract by the Department of the Army. To fully assess their track record, a deeper dive into other contracts awarded to SRM GROUP, LLC by the DoD, including their performance history, past performance evaluations, and any documented issues or successes, would be necessary. This would involve searching federal procurement databases for all awards to SRM GROUP, LLC and analyzing their contract performance reports and payment histories. Without this broader context, we can only confirm their involvement in this particular $27.3 million contract.

How does the value of this contract compare to similar logistics consulting engagements within the federal government?

Directly comparing the $27.3 million value of this contract requires identifying similar large-scale, long-duration logistics consulting services procured by other federal agencies or even within different branches of the DoD. Factors such as the specific scope of work (e.g., strategic planning vs. tactical implementation), the duration, and the complexity of the logistics challenges addressed would influence comparability. Generally, contracts of this magnitude suggest a significant undertaking, potentially involving extensive analysis, system integration, or major process re-engineering. Benchmarking would ideally involve analyzing the cost per day or per deliverable against a portfolio of comparable contracts to ascertain if the pricing is within an expected range for the services rendered.

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

Key risks for a contract of this nature and duration (1681 days) include scope creep, where the project's objectives expand beyond the original agreement, leading to cost overruns or delays. There's also a risk of contractor performance not meeting expectations, especially given the long timeframe, which could necessitate corrective actions or termination. Technological obsolescence or changes in the operational environment could render the consulting advice outdated before implementation. Furthermore, reliance on a single contractor for a significant period might reduce flexibility. Ensuring robust contract management, clear performance metrics, and regular progress reviews are crucial mitigation strategies.

How effective are firm-fixed-price contracts for complex logistics consulting services?

Firm-fixed-price (FFP) contracts are generally preferred by the government for their cost control benefits, as they shift the risk of cost overruns to the contractor. For complex logistics consulting, FFP can be effective if the scope of work is well-defined and unlikely to change significantly. However, if the consulting engagement involves exploring novel solutions or adapting to unforeseen challenges, an FFP contract might incentivize the contractor to cut corners to maintain profitability, potentially compromising quality. In such cases, other contract types like Cost-Plus-Fixed-Fee (CPFF) or Time-and-Materials (T&M) might offer more flexibility, though with increased government oversight and potential for higher costs. The success of FFP here depends heavily on the clarity and stability of the defined requirements.

What is the historical spending trend for logistics consulting services within the Department of the Army?

Analyzing historical spending trends for logistics consulting within the Department of the Army would require accessing and aggregating data from previous fiscal years. This would involve identifying all contracts awarded under relevant NAICS codes (like 541614) related to logistics, supply chain, and distribution consulting. Trends might reveal an increasing or decreasing reliance on external consultants, shifts in the types of services procured (e.g., from strategic planning to technology implementation), and average contract values. Such analysis could indicate whether this $27.3 million contract represents a typical investment, an increase, or a decrease in spending for these services within the Army.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics 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

Solicitation ID: W912DY15R0024

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6910 RICHMOND HIGHWAY, SUITE 500, ALEXANDRIA, VA, 22306

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,260,917

Exercised Options: $27,260,917

Current Obligation: $27,260,917

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY15D0099

IDV Type: IDC

Timeline