GSA awards $283M engineering services contract to LMI Consulting, LLC for 3-year duration

Contract Overview

Contract Amount: $282,974,178 ($283.0M)

Contractor: LMI Consulting, LLC

Awarding Agency: General Services Administration

Start Date: 2023-09-28

End Date: 2026-09-27

Contract Duration: 1,095 days

Daily Burn Rate: $258.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: APMTS II AWARD

Place of Performance

Location: SPRINGFIELD, LOUDOUN County, DISTRICT OF COLUMBIA, 20598

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $283.0 million to LMI CONSULTING, LLC for work described as: APMTS II AWARD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but requires careful oversight. 3. The award value of $282.97M over 1095 days indicates a significant investment in engineering services. 4. The North American Industry Classification System (NAICS) code 541330 points to a focus on engineering services. 5. The contract is for delivery orders, implying flexibility in service needs over its term. 6. The contractor, LMI Consulting, LLC, is based in the District of Columbia.

Value Assessment

Rating: good

The contract's value of $282.97M over three years for engineering services appears substantial. Benchmarking against similar large-scale engineering contracts would be necessary for a precise value-for-money assessment. The Cost Plus Award Fee structure allows for performance-based incentives, which can drive efficiency, but also necessitates robust monitoring to ensure costs remain reasonable and aligned with awarded fees. Without specific performance metrics and historical data for LMI Consulting on similar contracts, a definitive value assessment is challenging, but the competitive award process is a positive indicator.

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 offers. The presence of 4 bids (implied by 'no': 4) suggests a moderate level of competition for this significant engineering services contract. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government. However, the specific nature of specialized engineering services can sometimes limit the pool of qualified bidders.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and best value. The presence of multiple bidders suggests that taxpayer funds are being used efficiently by fostering a competitive environment.

Public Impact

The primary beneficiaries are likely federal agencies requiring specialized engineering expertise, potentially across various domains. The services delivered will encompass engineering solutions, contributing to the planning, design, and execution of government projects. The geographic impact is centered in the District of Columbia, where the contractor is located, but services may extend to various project sites. The contract supports a workforce skilled in engineering and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts require diligent oversight to ensure costs are controlled and award fees are justified by performance.
The duration of the contract (1095 days) means long-term commitment and potential for scope creep if not managed effectively.
Specialized engineering services can be complex, increasing the risk of technical challenges or delays.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
The Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
The contract award to LMI Consulting, LLC, a known entity in government contracting, suggests a degree of established capability.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the professional, scientific, and technical services industry. This sector is characterized by specialized expertise and often involves complex projects for government and private clients. The market size for federal engineering services is substantial, driven by infrastructure development, defense needs, and research initiatives. This award represents a significant portion of spending within this niche, contributing to the overall health and activity of engineering firms serving the public sector.

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 mandated by a set-aside. However, the prime contractor, LMI Consulting, LLC, may still engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means opportunities for small businesses are not guaranteed through this specific award.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) through its Federal Acquisition Service. The Cost Plus Award Fee (CPAFF) structure necessitates robust performance monitoring and evaluation to ensure the contractor meets defined objectives and earns award fees appropriately. Transparency will depend on GSA's reporting practices and the public availability of contract performance data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Multiple Award Schedule (MAS) Contracts
Engineering and Technical Services Contracts
Professional Services Contracts
Cost Plus Award Fee Contracts

Risk Flags

Cost Plus Award Fee (CPAFF) structure requires diligent oversight to manage costs and ensure fair award fee determination.
Potential for contractor performance issues impacting project timelines or quality.
The specialized nature of engineering services may limit the pool of qualified bidders in future competitions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $283.0 million to LMI CONSULTING, LLC. APMTS II AWARD

Who is the contractor on this award?

The obligated recipient is LMI CONSULTING, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $283.0 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-09-27.

What is the historical performance record of LMI Consulting, LLC with the GSA and other federal agencies, particularly on similar engineering services contracts?

Assessing LMI Consulting, LLC's historical performance is crucial for understanding their reliability and capability. A review of past federal contracts awarded to LMI Consulting would reveal their track record in terms of on-time delivery, quality of services, and adherence to budget. Specifically, examining their performance on Cost Plus Award Fee contracts would indicate their ability to manage performance incentives effectively. Data from contract performance reports (e.g., CPARS) and past payment histories would provide insights into their success rate and any instances of disputes or contract modifications. Without access to this specific performance data, it is difficult to definitively assess their track record beyond the fact that they were awarded this significant contract.

How does the awarded price of $282.97 million for this 3-year engineering services contract compare to similar contracts awarded by GSA or other agencies for comparable services?

To benchmark the value of this $282.97 million contract, a comparative analysis with similar engineering services contracts is necessary. This would involve identifying contracts with comparable scope, duration (1095 days), and service complexity awarded by GSA or other agencies within the last few years. Factors such as the specific engineering disciplines required, the level of expertise needed, and the geographic scope of services would need to be considered. If this contract's per-diem or per-service cost falls within or below the range of comparable contracts, it suggests good value for money. Conversely, if it significantly exceeds benchmarks, it may indicate potential overpricing or a higher level of service complexity not immediately apparent.

What are the primary risks associated with a Cost Plus Award Fee (CPAFF) contract structure for engineering services, and how are they mitigated in this award?

The primary risk with CPAFF contracts is the potential for cost overruns if the contractor's costs escalate beyond initial estimates, as the government agrees to reimburse allowable costs. Additionally, the 'award fee' component, designed to incentivize performance, can be subjective and lead to disputes if not clearly defined and objectively measured. Mitigation strategies typically involve robust government oversight, clearly defined performance metrics and award fee criteria, and regular performance reviews. For this contract, the General Services Administration (GSA) would be responsible for establishing these criteria and monitoring LMI Consulting's performance closely. The competitive nature of the award also serves as a mitigating factor, as contractors are incentivized to perform well to secure future work.

What is the expected impact of this contract on the federal government's ability to procure engineering services in the future, considering the competition level?

The award of this contract through full and open competition with 4 bidders suggests a healthy, albeit not intensely crowded, market for these specific engineering services. This level of competition indicates that the government has multiple viable options, which generally supports future procurement by providing a benchmark for pricing and service quality. It signals to the market that GSA is actively procuring these services and is willing to engage with a range of qualified contractors. This can encourage other firms to invest in capabilities to compete for future solicitations. However, if the specialized nature of the engineering services limits the pool of potential bidders significantly, future competition might remain constrained.

How does the $282.97 million award value compare to historical federal spending on engineering services under the GSA's Federal Acquisition Service?

The $282.97 million award value represents a significant investment in engineering services procured through GSA's Federal Acquisition Service. To contextualize this, one would need to examine historical spending data for similar engineering services contracts managed by FAS. This includes looking at the total annual spending on engineering services, the average contract size, and the number of contracts awarded over previous fiscal years. If this award is in line with or below the average for large-scale engineering contracts, it suggests consistent spending patterns. If it represents a substantial increase, it might indicate growing demand for these services or a shift in procurement strategy. Understanding this historical context helps assess whether this award is an anomaly or part of a trend.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: 47QFCA23R0048

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 7940 JONES BRANCH DR, TYSONS CORNER, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $604,088,938

Exercised Options: $367,565,756

Current Obligation: $282,974,178

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU141

IDV Type: IDC

Timeline