DoD's $25.6M advisory services contract to Harlan Lee & Associates shows fair value with 3 bidders

Contract Overview

Contract Amount: $25,633,832 ($25.6M)

Contractor: Harlan LEE & Associates LLC

Awarding Agency: Department of Defense

Start Date: 2010-11-19

End Date: 2013-09-30

Contract Duration: 1,046 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: EXECUTIVE ADMINISTRATIVE AND ACTION OFFICER SUPPORT ADVISORY AND ASSISTANCE SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $25.6 million to HARLAN LEE & ASSOCIATES LLC for work described as: EXECUTIVE ADMINISTRATIVE AND ACTION OFFICER SUPPORT ADVISORY AND ASSISTANCE SERVICES Key points: 1. The contract's value appears reasonable given the scope of administrative and management consulting services. 2. Competition was robust with three bidders, suggesting a healthy market for these services. 3. The fixed-fee pricing structure provides some cost control, though the 'cost plus' element warrants attention. 4. Performance context is limited without specific deliverables, but the duration suggests ongoing support. 5. This contract falls within the administrative management consulting sector, a common area for federal support services. 6. The contract was awarded under full and open competition after exclusion of sources, indicating a broad search for qualified contractors.

Value Assessment

Rating: good

The contract's total value of approximately $25.6 million over its period of performance suggests a moderate investment for advisory and assistance services. Benchmarking against similar contracts for administrative management consulting is challenging without more specific details on the scope of work. However, the presence of three bidders indicates that the pricing was likely competitive and aligned with market expectations for such services. The Cost Plus Fixed Fee (CPFF) award type means that while the contractor's profit is fixed, the government covers allowable costs, which can introduce some cost variability.

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,' indicating that the agency sought proposals from all responsible sources but may have excluded certain entities based on specific criteria. The fact that three bids were received suggests a reasonable level of competition for this type of service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competition level, with three bidders, suggests that taxpayers likely received a fair price. However, more bidders could have potentially driven prices even lower.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Missile Defense Agency, which receives critical administrative and executive support. The services delivered likely include strategic planning, policy development, program management support, and general administrative functions to aid agency operations. The geographic impact is centered within Alabama, where the contractor is located, but the support provided impacts national defense initiatives. The contract supports a professional services workforce, likely comprising consultants and administrative staff, contributing to employment in the consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'cost plus' component of the CPFF contract type requires careful monitoring of allowable costs to prevent overruns.
The duration of the contract (over 1000 days) necessitates ongoing performance management to ensure continued value.
Lack of specific performance metrics makes it difficult to quantitatively assess the impact of the advisory services.

Positive Signals

Awarded under full and open competition, ensuring a broad search for qualified contractors.
The fixed-fee element provides a degree of cost certainty regarding contractor profit.
The contract supports a critical agency within the Department of Defense, indicating strategic importance.

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 contracting, providing essential support across various agencies. The total federal spending on administrative management and general management consulting services is substantial, with contracts like this representing a portion of that expenditure. Comparable spending benchmarks would typically involve analyzing the average cost of similar advisory services contracts awarded by defense agencies.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. This suggests that the primary focus was on securing specialized expertise, and opportunities for small business participation may have been limited for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Missile Defense Agency. Accountability measures are inherent in the CPFF contract type, requiring the contractor to justify all costs. Transparency is facilitated through contract databases like FPDS, which provide public access to award details, though specific performance reports are often internal.

Related Government Programs

Defense-wide Administrative Support Services
Management and Consulting Services
Executive Support Contracts
Missile Defense Agency Support
Advisory and Assistance Services

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Performance Measurement Difficulty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to HARLAN LEE & ASSOCIATES LLC. EXECUTIVE ADMINISTRATIVE AND ACTION OFFICER SUPPORT ADVISORY AND ASSISTANCE SERVICES

Who is the contractor on this award?

The obligated recipient is HARLAN LEE & ASSOCIATES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $25.6 million.

What is the period of performance?

Start: 2010-11-19. End: 2013-09-30.

What specific types of advisory and assistance services were provided under this contract?

While the contract is broadly categorized under 'Administrative Management and General Management Consulting Services' (NAICS 541611), the specific deliverables are not detailed in the provided data. Typically, such contracts support executive leadership and action officers with functions like strategic planning, policy analysis, program management support, organizational improvement initiatives, and general administrative functions. The Missile Defense Agency likely utilized these services to enhance operational efficiency, support decision-making processes, and manage complex projects within its mission.

How does the total contract value of $25.6 million compare to similar contracts for advisory services within the Department of Defense?

Comparing the $25.6 million total value requires context on the contract's duration and scope. This contract spanned approximately 3 years (from Nov 2010 to Sep 2013). For advisory and assistance services within DoD, this value is moderate. Larger, more complex programs or agency-wide support contracts can reach hundreds of millions or even billions. However, for specialized executive and administrative support to a specific agency like the Missile Defense Agency, $25.6 million over three years represents a significant but not extraordinary investment, especially considering the specialized nature of defense advisory roles.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for these services?

The primary risk with a CPFF contract is that the government bears the cost of all allowable expenses incurred by the contractor, while the contractor's profit is fixed. If the contractor's costs are higher than anticipated (due to inefficiencies, unforeseen challenges, or scope creep not properly managed), the government pays more. While the fixed fee provides some predictability for the contractor's profit, it doesn't cap the total contract cost. Effective oversight is crucial to ensure costs are reasonable, allocable, and necessary, and that the scope remains controlled to prevent cost overruns.

What does the 'after exclusion of sources' clause in the competition type imply?

The 'full and open competition after exclusion of sources' designation suggests that the agency initially intended to compete the contract broadly but subsequently excluded certain potential offerors based on specific, documented reasons. This could be due to unique capabilities, prior performance on related tasks, or specific security requirements that only a subset of potential contractors could meet. While it still aims for broad competition among the remaining eligible sources, it implies a narrower field than pure 'full and open' competition, potentially impacting the number of bids received and the ultimate price competitiveness.

What is the historical spending trend for administrative and management consulting services at the Missile Defense Agency?

Analyzing historical spending trends for administrative and management consulting services specifically at the Missile Defense Agency (MDA) would require access to historical contract data beyond this single award. Generally, defense agencies like MDA often utilize significant amounts of advisory and assistance (A&AS) services to support complex technical programs and administrative functions. Spending in this category can fluctuate based on program needs, budget allocations, and strategic priorities. Without broader data, it's difficult to determine if this $25.6M contract represents a typical or an outlier level of spending for MDA in this service area.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ014709R0001

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8229 BOONE BLVD STE 610, VIENNA, VA, 22182

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,454,131

Exercised Options: $26,997,109

Current Obligation: $25,633,832

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014710D0030

IDV Type: IDC

Timeline