DoD's $15.9M consulting contract with AXIOM RESOURCE MANAGEMENT, INC. awarded under full and open competition

Contract Overview

Contract Amount: $15,914,935 ($15.9M)

Contractor: Axiom Resource Management, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-12

End Date: 2014-05-31

Contract Duration: 1,722 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: C &CS SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to AXIOM RESOURCE MANAGEMENT, INC. for work described as: C &CS SERVICES Key points: 1. Contract value represents a moderate investment in administrative management consulting services. 2. Full and open competition suggests a potentially competitive bidding environment. 3. Contract duration of 1722 days (approx. 4.7 years) indicates a long-term need. 4. Firm Fixed Price contract type shifts risk to the contractor. 5. Awarded by the Defense Contract Management Agency, indicating a focus on defense sector support. 6. The North American Industry Classification System (NAICS) code 541611 points to general management consulting.

Value Assessment

Rating: fair

Benchmarking the value of this $15.9 million contract for administrative management and general management consulting services is challenging without specific deliverables. However, the duration of nearly five years suggests a sustained need for these services within the Department of Defense. The firm fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined. Without comparable contract data or detailed performance metrics, a definitive value-for-money assessment remains difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This 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 reasonable level of competition for this requirement. A competitive bidding process generally helps in price discovery and can lead to more favorable pricing for the government. The fact that multiple firms vied for this contract implies that the market for these services is robust enough to support several potential providers.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes a competitive environment, which can drive down costs and ensure the government receives services at market-competitive rates.

Public Impact

The Department of Defense benefits from expert administrative and management consulting services. Services likely support operational efficiency, strategic planning, and organizational improvements within the DoD. The geographic impact is primarily within the purview of the Defense Contract Management Agency's operations. Workforce implications may include support for government personnel in management and administrative roles.

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 contract duration could lead to potential complacency or a decrease in innovation if not actively managed.
  • Without detailed scope of work, it's hard to ascertain if the fixed price adequately covers all necessary services or if there's a risk of scope creep.

Positive Signals

  • Awarded under full and open competition, suggesting a fair and transparent procurement process.
  • Firm Fixed Price contract type transfers cost overrun risk to the contractor.
  • The contract was awarded to AXIOM RESOURCE MANAGEMENT, INC., a known entity in the contracting space.
  • The contract was managed by the Defense Contract Management Agency, indicating established oversight structures.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and general management consulting. This sector is crucial for government operations, providing expertise to improve efficiency, strategy, and management practices. The market for such services is large and competitive, with numerous firms offering specialized consulting. The DoD is a significant consumer of these services, often requiring specialized knowledge related to defense operations and procurement.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside provision. The primary contractor, AXIOM RESOURCE MANAGEMENT, INC., is likely a mid-to-large-sized firm, and the contract's value and duration suggest it is not targeted towards small business capabilities.

Oversight & Accountability

The contract was awarded by the Defense Contract Management Agency (DCMA), which implies oversight by a specialized agency focused on contract administration and performance monitoring. The firm fixed-price nature of the contract shifts some risk to the contractor, but ongoing oversight would be necessary to ensure deliverables meet requirements. Transparency is generally facilitated through contract award databases, but specific oversight mechanisms and Inspector General jurisdiction would depend on the detailed contract terms and agency policies.

Related Government Programs

  • Defense Contract Management Agency Operations Support
  • Management and Consulting Services for Federal Agencies
  • Professional Services Contracts
  • Administrative Support Services

Risk Flags

  • Long contract duration may lead to scope misalignment over time.
  • Lack of specific performance metrics in summary data hinders value assessment.
  • Potential for contractor performance degradation over extended period.

Tags

sector-other, agency-department-of-defense, agency-defense-contract-management-agency, contract-type-firm-fixed-price, competition-full-and-open, size-category-unknown, service-consulting, service-administrative-management, service-general-management, geography-virginia, naics-541611

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to AXIOM RESOURCE MANAGEMENT, INC.. C &CS SERVICES

Who is the contractor on this award?

The obligated recipient is AXIOM RESOURCE MANAGEMENT, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $15.9 million.

What is the period of performance?

Start: 2009-09-12. End: 2014-05-31.

What specific types of administrative and general management consulting services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541611 (Administrative Management and General Management Consulting Services). While the specific deliverables are not detailed, such services typically encompass areas like organizational structure analysis, process improvement, strategic planning support, human capital management consulting, and operational efficiency assessments. Given the awarding agency is the Defense Contract Management Agency (DCMA), the consulting likely focused on improving DCMA's internal operations, management practices, or support functions related to its mission of ensuring contractor performance and compliance.

How does the $15.9 million contract value compare to similar consulting contracts within the DoD or federal government?

The $15.9 million value over approximately 4.7 years places this contract in the mid-tier range for federal consulting engagements. Larger federal agencies, including the Department of Defense, frequently award consulting contracts ranging from a few million to tens or even hundreds of millions of dollars, depending on the scope and duration. For instance, major strategic initiatives, IT modernization efforts, or large-scale organizational overhauls can command significantly higher values. This contract's value suggests a focused scope, likely supporting specific functions or programs within the DCMA rather than a broad, agency-wide transformation.

What are the key risks associated with a nearly five-year firm fixed-price consulting contract?

A primary risk with a long-term, firm fixed-price contract is the potential for the scope of work to become misaligned with evolving needs over its 1722-day duration. If the initial scope is too narrowly defined, the government might not receive the full benefit of updated best practices or changing requirements. Conversely, if the scope is too broad and poorly defined, the contractor might struggle to deliver effectively within the fixed price, or the government might pay for services that are not optimally aligned with current objectives. Contractor performance degradation over time is another risk, necessitating robust monitoring and quality assurance processes.

What does the presence of 5 bidders signify about the market for administrative management consulting services for the DoD?

The fact that 5 bids were received for this contract suggests a healthy and competitive market for administrative management and general management consulting services relevant to the Department of Defense. It indicates that multiple firms possess the necessary expertise and capacity to undertake such work and were willing to compete for the opportunity. This level of competition generally benefits the government by providing a range of options and potentially driving down prices through the bidding process. It also suggests that the contract requirements were likely clear enough to attract a reasonable number of qualified bidders.

What is the historical spending trend for administrative management consulting services by the Defense Contract Management Agency?

Analyzing historical spending trends for administrative management consulting services by the Defense Contract Management Agency (DCMA) would require access to historical contract databases and spending reports. Without that specific data, it's difficult to ascertain if this $15.9 million contract represents an increase, decrease, or steady level of investment compared to previous periods. Generally, federal agencies' spending on consulting services can fluctuate based on budget allocations, strategic priorities, and the perceived need for external expertise to address specific challenges or implement new initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W81XWH05R0004

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5203 LEESBURG PIKE STE 300, FALLS CHURCH, VA, 08

Business Categories: 8(a) Program Participant, Category Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $17,356,338

Exercised Options: $15,914,935

Current Obligation: $15,914,935

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81XWH08D0024

IDV Type: IDC

Timeline

Start Date: 2009-09-12

Current End Date: 2014-05-31

Potential End Date: 2014-05-31 00:00:00

Last Modified: 2014-05-05

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