DOJ awards $210M contract for administrative management consulting services to KMRG, LLC

Contract Overview

Contract Amount: $210,349 ($210.3K)

Contractor: Kmrg, LLC

Awarding Agency: Department of Justice

Start Date: 2024-09-30

End Date: 2027-09-29

Contract Duration: 1,094 days

Daily Burn Rate: $192/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FACT WITNESS COORDINATOR, OR EQUIVALENT

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $210,349.11 to KMRG, LLC for work described as: FACT WITNESS COORDINATOR, OR EQUIVALENT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately three years indicates a need for sustained support. 3. Services fall under administrative management and general management consulting, a common area for federal support. 4. The award to KMRG, LLC suggests a potentially strong performance record or competitive pricing. 5. The contract type is Time and Materials, which can pose cost control risks if not managed effectively. 6. The value of the contract is significant, requiring robust oversight to ensure value for taxpayer dollars.

Value Assessment

Rating: good

The contract value of $210.3 million over approximately three years for administrative management consulting services appears within a reasonable range for large-scale federal engagements. Benchmarking against similar contracts for management consulting services within the Department of Justice or other large federal agencies would provide a more precise value-for-money assessment. The Time and Materials pricing structure necessitates careful monitoring to ensure efficient use of resources and prevent cost overruns, as it can be less predictable than fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of three bidders, as suggested by the data, points to a healthy level of competition for this requirement. This competitive environment generally benefits the government by fostering price discovery and encouraging contractors to offer their best terms and pricing.

Taxpayer Impact: The full and open competition ensures that taxpayers receive competitive pricing and that the government has access to a range of qualified contractors, maximizing the potential for cost savings and optimal service delivery.

Public Impact

The Department of Justice benefits from enhanced administrative and management consulting capabilities, potentially improving operational efficiency and effectiveness. Federal agencies receive support in areas such as strategic planning, organizational development, and process improvement. The contract supports the federal government's mission by ensuring robust management practices are in place. The contract may indirectly impact the federal workforce by supporting initiatives that streamline operations or improve employee services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for labor hours and rates.
The significant contract value requires diligent oversight to ensure all deliverables meet expectations and represent good value.
Reliance on a single contractor for a substantial period necessitates performance management to ensure continued quality and responsiveness.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield favorable pricing.
The contract duration suggests a stable, long-term need for these services, allowing for deep integration and understanding of DOJ's requirements.
The specific North American Industry Classification System (NAICS) code 541611 (Management Consulting Services) indicates a focus on specialized expertise.

Sector Analysis

The federal consulting services market is substantial, with agencies frequently outsourcing specialized expertise to improve efficiency and address complex challenges. This contract falls within the administrative and management consulting sector, which is a significant segment of the broader professional services market. Comparable spending benchmarks for management consulting within large federal agencies like the DOJ often run into hundreds of millions of dollars annually, reflecting the ongoing need for strategic and operational support.

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 for small businesses stemming from a small business set-aside. However, the prime contractor, KMRG, LLC, may choose to subcontract portions of this work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the Department of Justice responsible for administrative and management consulting services. Accountability measures will be tied to the performance work statement and delivery schedules. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics may be internal. The Inspector General's office for the DOJ may conduct audits or investigations if concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Department of Justice Management Consulting Services
Federal Administrative Support Contracts
Professional Services Contracts
Time and Materials Contracts
General Services Administration (GSA) Schedule Contracts (potential vehicle)

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust oversight to ensure efficient service delivery and value for money.
Contract duration requires sustained performance management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $210,349.11 to KMRG, LLC. FACT WITNESS COORDINATOR, OR EQUIVALENT

Who is the contractor on this award?

The obligated recipient is KMRG, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $210,349.11.

What is the period of performance?

Start: 2024-09-30. End: 2027-09-29.

What is KMRG, LLC's track record with federal contracts, particularly within the Department of Justice?

Information regarding KMRG, LLC's specific track record with federal contracts, especially within the Department of Justice, would typically be found in federal procurement databases like SAM.gov or FPDS. A review of past performance would assess the number of contracts awarded, their values, the agencies served, and any reported performance issues or successes. For this specific contract, the award itself suggests they met the requirements for full and open competition. Further analysis would involve examining past performance evaluations, if publicly available, to gauge their reliability, quality of service, and adherence to contract terms in previous engagements. A history of successful, on-time, and within-budget contract completions would be a positive indicator.

How does the $210.3 million value compare to similar administrative management consulting contracts awarded by the DOJ or other large federal agencies?

The $210.3 million value for a three-year contract for administrative management consulting services is substantial, reflecting a significant need for support within the Department of Justice. To benchmark this value, one would compare it to similar contracts awarded by agencies of comparable size and complexity, such as the Department of Homeland Security, Department of Defense, or Health and Human Services. Federal procurement data can reveal the average contract values for NAICS code 541611 over similar durations. If this contract's value per year ($~70 million) is significantly higher or lower than the average for comparable services and agencies, it could indicate either exceptional value or potential overpricing/underbidding. The Time and Materials nature of the contract also means the final cost can fluctuate based on actual hours worked.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk with a Time and Materials (T&M) contract of this magnitude is the potential for cost escalation due to uncontrolled labor hours or rates. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, making budget predictability challenging. For a $210.3 million contract over three years, effective oversight is critical. Risks include inefficient task execution, scope creep that isn't adequately managed, or inflated labor rates. To mitigate these risks, the Department of Justice must implement robust monitoring of labor hours, ensure that labor categories and rates are reasonable and competitive, and maintain strict control over any changes in scope. Regular reporting and performance reviews are essential to ensure the contractor is delivering value efficiently.

What specific administrative management and general management consulting services are likely included under this contract?

Under NAICS code 541611, administrative management and general management consulting services typically encompass a broad range of support functions. This could include strategic planning and policy development, organizational structure analysis and redesign, business process improvement, performance management systems implementation, change management initiatives, and operational efficiency studies. For the Department of Justice, these services might be directed towards improving the efficiency of its various divisions, enhancing internal administrative processes, supporting the implementation of new technologies or regulations, or advising on resource allocation and management. The specific services will be detailed in the contract's Performance Work Statement (PWS).

How does the level of competition (3 bidders) impact the potential value for taxpayers on this contract?

Having three bidders for this contract, awarded under full and open competition, generally suggests a healthy level of competition. More bidders typically lead to more competitive pricing as companies vie for the award. While three bidders is a moderate number, it is sufficient to provide a basis for price discovery and encourage contractors to offer their best value. The impact on taxpayers is positive, as it reduces the likelihood of the government paying inflated prices. However, the ultimate value depends on the quality of the proposals submitted and the negotiation process. A thorough evaluation of technical and cost proposals by the DOJ is crucial to ensure the selected offeror provides the best overall value, not just the lowest price.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15JA5724Q00000001

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7856 MARITIME LN, SPRINGFIELD, VA, 22153

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $363,188

Exercised Options: $210,349

Current Obligation: $210,349

Actual Outlays: $82,561

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA24D0003

IDV Type: FSS

Timeline