DoD's Missile Defense Agency Spends $40M on Management Consulting for Executive Support

Contract Overview

Contract Amount: $40,005,651 ($40.0M)

Contractor: Harlan LEE & Associates LLC

Awarding Agency: Department of Defense

Start Date: 2013-03-18

End Date: 2016-11-28

Contract Duration: 1,351 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: STRATEGIC PLANNING, PROGRAMMATIC AND COMMUNICATION SUPPORT - DS-04-13 - THIS COVERS DAILY OPERATIONS AND MANAGEMENT SUPPORT FOR AGENCY EXECUTIVES AND SENIOR LEADERSHIP, ORGANIZATIONAL SYNCHRONIZATION, EXECUTIVE BOARDS PROCESSES, AND LEGAL ADMINISTRATION/PARALEGAL.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $40.0 million to HARLAN LEE & ASSOCIATES LLC for work described as: STRATEGIC PLANNING, PROGRAMMATIC AND COMMUNICATION SUPPORT - DS-04-13 - THIS COVERS DAILY OPERATIONS AND MANAGEMENT SUPPORT FOR AGENCY EXECUTIVES AND SENIOR LEADERSHIP, ORGANIZATIONAL SYNCHRONIZATION, EXECUTIVE BOARDS PROCESSES, AND LEGAL ADMINISTRATION/PARALEGAL. Key points: 1. The contract focuses on administrative management and general management consulting, including legal support. 2. Harlan Lee & Associates LLC is the sole awardee under a full and open competition after exclusion of sources. 3. The contract duration is over 3 years, indicating a significant need for ongoing support. 4. The use of a Cost Plus Fixed Fee (CPFF) pricing structure warrants scrutiny for cost control. 5. This spending falls within the broader IT and professional services sector for government support.

Value Assessment

Rating: fair

The $40M contract for administrative and management consulting appears substantial. Benchmarking against similar contracts for executive support and legal administration services is needed to assess if the pricing is competitive, especially given the CPFF structure which can incentivize cost increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process but with specific criteria. The impact on price discovery is unclear without knowing the number of bidders and the rationale for source exclusion.

Taxpayer Impact: Taxpayer funds are being used for specialized consulting services to support agency executives and leadership. The value for money and efficiency of this spending will determine the ultimate taxpayer impact.

Public Impact

Supports critical agency executives and senior leadership, potentially improving operational efficiency. Includes legal administration and paralegal support, addressing a key functional need. The contract's duration suggests a long-term reliance on external expertise for strategic planning and programmatic support. Focuses on organizational synchronization and executive board processes, aiming for better governance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns if not managed tightly.
The 'exclusion of sources' clause requires careful review to ensure it did not unduly limit competition.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the support provided.

Positive Signals

Full and open competition, even with exclusions, suggests an attempt at a competitive process.
Support for executive leadership and daily operations is crucial for agency functioning.
The contract addresses a broad range of management and administrative needs.

Sector Analysis

This contract falls under administrative management and general management consulting services, a common area of government spending. Benchmarks for similar support contracts within the Department of Defense or other federal agencies would provide context for the $40M expenditure over three years.

Small Business Impact

The data indicates the awardee is Harlan Lee & Associates LLC, a large business. There is no explicit mention of small business participation or subcontracting goals within this specific award notice, suggesting limited direct impact on small businesses for this contract.

Oversight & Accountability

Oversight would involve monitoring the contractor's performance against contract requirements, particularly regarding the effectiveness of daily operations and management support. The CPFF structure necessitates robust financial oversight to ensure costs are reasonable and allocable.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Defense Contracting
Missile Defense Agency Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure.
Potential for limited competition due to 'exclusion of sources'.
Lack of specific performance metrics in award data.
Significant contract value ($40M) for consulting services.
Long contract duration (over 3 years).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.0 million to HARLAN LEE & ASSOCIATES LLC. STRATEGIC PLANNING, PROGRAMMATIC AND COMMUNICATION SUPPORT - DS-04-13 - THIS COVERS DAILY OPERATIONS AND MANAGEMENT SUPPORT FOR AGENCY EXECUTIVES AND SENIOR LEADERSHIP, ORGANIZATIONAL SYNCHRONIZATION, EXECUTIVE BOARDS PROCESSES, AND LEGAL ADMINISTRATION/PARALEGAL.

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 $40.0 million.

What is the period of performance?

Start: 2013-03-18. End: 2016-11-28.

What specific metrics are used to evaluate the effectiveness of the programmatic and communication support provided to agency executives?

The provided data does not specify the performance metrics used to evaluate the effectiveness of the support. A thorough review of the contract's statement of work and performance work statement would be necessary to identify these metrics. Without them, assessing the true value and impact of the $40 million expenditure on executive support and operational synchronization is challenging.

How does the 'exclusion of sources' in the full and open competition impact the overall cost-effectiveness of this $40 million contract?

The 'exclusion of sources' clause implies that certain potential bidders were not considered, which could limit the competitive landscape. While the contract was still 'full and open,' this exclusion might have reduced the number of viable offers, potentially impacting price discovery and negotiation leverage. A detailed justification for the exclusion is needed to determine if it was necessary and did not lead to inflated costs.

What is the long-term strategy for reducing reliance on external management consulting services like this for core agency functions?

The data does not provide insight into the agency's long-term strategy for reducing reliance on external consulting. Continued spending on such services suggests either a persistent need for specialized expertise or a potential gap in internal capacity. Agencies typically aim to build internal capabilities over time, but the specific plans for this contract's scope are not detailed here.

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: 1

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: $50,200,459

Exercised Options: $46,810,300

Current Obligation: $40,005,651

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014710D0030

IDV Type: IDC

Timeline