VA awards $2.3M contract for management consulting services to Mihalik Group LLC

Contract Overview

Contract Amount: $234,970 ($235.0K)

Contractor: Mihalik Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-01

End Date: 2025-04-30

Contract Duration: 364 days

Daily Burn Rate: $646/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MOCK SURVEY AND CONSULT BASE AND TWO OPTION YEARS

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $234,970 to MIHALIK GROUP LLC for work described as: MOCK SURVEY AND CONSULT BASE AND TWO OPTION YEARS Key points: 1. Contract awarded for administrative management and general management consulting services. 2. The contract has a base period of performance and two option years. 3. Awarded under the Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements. 4. The contract type is Firm Fixed Price (FFP), which shifts cost risk to the contractor. 5. The geographic location for performance is California. 6. The North American Industry Classification System (NAICS) code is 541611, indicating management consulting. 7. The contractor, Mihalik Group LLC, is a new entity in federal contracting. 8. The contract was competed, indicating multiple bids were likely considered.

Value Assessment

Rating: fair

The contract value of $2.3 million over a base year and two option years appears to be within a reasonable range for management consulting services. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for administrative management and general management consulting services would provide a clearer picture of whether the pricing is competitive. The Firm Fixed Price (FFP) contract type is generally favorable for the government as it caps the contractor's potential earnings and encourages cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchase thresholds but may not always involve the same level of extensive outreach as full and open competition for larger contracts. The data indicates there were 4 bids received, suggesting a healthy level of interest and competition for this requirement. The presence of multiple bidders generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competition level, with four bids received, suggests that taxpayers are likely benefiting from a competitive price. The SAP process, while efficient, should still be monitored to ensure it maximizes opportunities for qualified small businesses and avoids any unintended limitations on competition.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving administrative management and general management consulting services. These services are intended to support the VA's operational efficiency and management functions. The contract's performance is located in California, potentially impacting the local economy through contractor employment. The services delivered will likely contribute to the VA's mission of serving veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Mihalik Group LLC is a relatively new entity in federal contracting, which can sometimes present performance risks.
The specific deliverables and performance metrics are not detailed, making it difficult to assess potential performance issues.
The contract was competed under SAP, which may have different oversight requirements compared to larger, more complex procurements.

Positive Signals

The contract was competed, indicating that multiple vendors were considered, which generally leads to better value.
The Firm Fixed Price (FFP) contract type aligns cost risk with the contractor, encouraging efficiency.
The award to Mihalik Group LLC suggests they met the government's requirements and were deemed capable of performing the services.

Sector Analysis

Management consulting services, categorized under NAICS code 541611, represent a significant segment of the federal procurement landscape. This sector encompasses a wide range of advisory services aimed at improving organizational efficiency, strategic planning, and operational management. Federal agencies frequently utilize these services to address complex challenges, implement new policies, or enhance existing processes. Spending in this sector can fluctuate based on agency priorities and the need for specialized expertise not available internally. Comparable spending benchmarks would typically involve analyzing the average contract values and durations for similar consulting services across various federal agencies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The award was made under Simplified Acquisition Procedures (SAP), which can sometimes offer opportunities for small businesses, but the absence of a specific set-aside means larger businesses were also eligible and competed. Further analysis would be needed to determine if Mihalik Group LLC itself is a small business and if they intend to subcontract any portion of the work to other small businesses.

Oversight & Accountability

The contract is a Firm Fixed Price (FFP) award, which inherently provides a level of oversight through the fixed price ceiling. The Department of Veterans Affairs (VA) will be responsible for monitoring contractor performance to ensure deliverables meet the contract's requirements. As the contract was competed under SAP, standard federal acquisition regulations and agency-specific policies will govern oversight. Transparency would be enhanced by public availability of performance reports and any associated Inspector General reviews, though such details are not provided here.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Professional Services
General Management Consulting

Risk Flags

New Contractor Performance Risk
Scope Definition Clarity
SAP Competition Effectiveness

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $234,970 to MIHALIK GROUP LLC. MOCK SURVEY AND CONSULT BASE AND TWO OPTION YEARS

Who is the contractor on this award?

The obligated recipient is MIHALIK GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $234,970.

What is the period of performance?

Start: 2024-05-01. End: 2025-04-30.

What is the track record of Mihalik Group LLC in performing federal contracts?

Based on the provided data, Mihalik Group LLC appears to be a relatively new entity in the federal contracting space. The data does not indicate a history of prior federal contract awards or performance. As such, assessing their track record is challenging. Federal agencies typically conduct due diligence on new contractors, which may include reviewing past performance on commercial contracts or seeking references. For future analysis, it would be beneficial to track Mihalik Group LLC's performance on this contract and any subsequent awards to build a performance history.

How does the contract value of $2.3 million compare to similar management consulting contracts awarded by the VA?

The contract value of $2.3 million for administrative management and general management consulting services over a base year and two option years is a moderate-sized award. To benchmark this effectively, one would need to compare it against a portfolio of similar contracts awarded by the VA or other agencies for comparable services (NAICS 541611). Factors such as the specific scope of work, duration, and required expertise significantly influence contract value. Without detailed scope information, it's difficult to definitively state if $2.3 million is high or low. However, it falls within the typical range for multi-year consulting engagements.

What are the primary risks associated with this contract award?

The primary risks associated with this contract award include potential performance issues due to Mihalik Group LLC being a potentially new contractor in the federal space, lacking a documented federal performance history. There's also a risk related to the scope definition; if the consulting services are not clearly defined, it could lead to scope creep or disputes. Furthermore, the effectiveness of the competition under SAP, while generally robust, needs to be monitored to ensure optimal value for taxpayer dollars. Finally, ensuring the contractor maintains compliance with all federal regulations and reporting requirements is an ongoing risk.

How effective is the competition level in ensuring value for the VA?

The competition level, with four bids received under Simplified Acquisition Procedures (SAP), is generally considered adequate for ensuring value. A competitive environment encourages vendors to offer their best pricing and service offerings to win the contract. The fact that four distinct entities submitted proposals suggests that the requirement was well-defined and attractive to the market. This level of competition typically leads to price discovery and helps the VA secure services at a reasonable cost. However, the ultimate effectiveness depends on the quality of the proposals received and the VA's evaluation process.

What is the historical spending pattern for administrative management and general management consulting services at the VA?

The provided data does not include historical spending patterns for administrative management and general management consulting services at the VA. To analyze this, one would need access to historical contract databases (e.g., FPDS-NG) to review past awards for NAICS code 541611, specifically for the Department of Veterans Affairs. This analysis would reveal trends in contract values, durations, awardees, and the overall volume of spending in this category over several fiscal years, providing context for the current $2.3 million award.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26124Q0217

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2831 N HALSTED ST, CHICAGO, IL, 60657

Business Categories: Category Business, Limited Liability Corporation, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $329,220

Exercised Options: $234,970

Current Obligation: $234,970

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline