DHS awards $3.6M management consulting contract to Aalis Management Consulting LLC, with no competition

Contract Overview

Contract Amount: $3,605,916 ($3.6M)

Contractor: Aalis Management Consulting LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-03-01

End Date: 2025-09-25

Contract Duration: 1,304 days

Daily Burn Rate: $2.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE AWARD

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.6 million to AALIS MANAGEMENT CONSULTING LLC for work described as: BASE AWARD Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies and market competitiveness. 2. The administrative management and general management consulting services are critical for agency operations. 3. A firm-fixed-price contract type suggests a defined scope and budget, but the lack of competition limits price discovery. 4. The contract duration of over three years indicates a significant, ongoing need for these services. 5. The awardee, Aalis Management Consulting LLC, is a relatively small entity in the federal contracting landscape. 6. The contract is managed by U.S. Customs and Border Protection, a major component of DHS.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bids. The $3.6 million award for management consulting services over approximately three years suggests a significant investment. Without comparable contract data or market analysis, it's difficult to definitively assess if the pricing represents good value for money. The firm-fixed-price structure provides cost certainty, but the absence of competition means taxpayers may not have benefited from the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This indicates that the agency identified a specific need that they determined could only be met by Aalis Management Consulting LLC, or that competition was otherwise deemed impractical or not in the government's best interest. The lack of multiple bidders means there was no opportunity for price negotiation or comparison among different service providers.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible pricing, potentially leading to higher costs for taxpayers.

Public Impact

The primary beneficiary is the Department of Homeland Security, specifically U.S. Customs and Border Protection, which will receive management consulting services. These services are expected to support administrative and general management functions, contributing to the efficiency and effectiveness of agency operations. The geographic impact is primarily within the District of Columbia, where the contractor is located. The contract supports a professional services workforce, likely involving skilled consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises questions about the thoroughness of market research and justification for excluding other potential bidders.
Limited transparency into the selection process due to sole-source nature.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract duration suggests a stable, ongoing need for the services provided.
Award to a specific entity implies a perceived capability to meet the agency's requirements.

Sector Analysis

The federal sector for administrative management and general management consulting services (NAICS code 541611) is a significant market. Agencies frequently procure these services to improve operational efficiency, strategic planning, and organizational effectiveness. Spending in this category can fluctuate based on agency priorities and budget allocations. This contract represents a portion of the broader federal spending on professional services aimed at enhancing government operations.

Small Business Impact

This contract was not awarded as a small business set-aside, and the contractor, Aalis Management Consulting LLC, is not explicitly identified as a small business in the provided data. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The absence of a small business set-aside means that larger, established firms or other entities were not precluded from competing, though in this case, competition was absent.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the relevant program managers within U.S. Customs and Border Protection. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is limited by the sole-source nature of the award. The Department of Homeland Security's Office of Inspector General may conduct audits or investigations if specific concerns arise regarding performance, cost, or compliance.

Related Government Programs

Management and Financial Consulting, Acquisition and Commercialization Services
Professional Services
Administrative Management Services
General Management Consulting Services

Risk Flags

Sole-source award
Lack of competition
Potential for uncompetitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.6 million to AALIS MANAGEMENT CONSULTING LLC. BASE AWARD

Who is the contractor on this award?

The obligated recipient is AALIS MANAGEMENT CONSULTING LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2022-03-01. End: 2025-09-25.

What is the track record of Aalis Management Consulting LLC in securing federal contracts, particularly with DHS?

Information regarding the specific track record of Aalis Management Consulting LLC in securing federal contracts, especially with the Department of Homeland Security (DHS), is not detailed in the provided data. Federal procurement databases would typically offer insights into past awards, contract values, and performance history. Without access to such comprehensive data, it is difficult to assess their experience level and past performance. However, the award of this $3.6 million sole-source contract suggests they have demonstrated capabilities or unique qualifications that led DHS to select them for these specific management consulting services.

How does the $3.6 million award compare to similar management consulting contracts awarded by DHS or CBP?

Comparing the $3.6 million award for management consulting services to similar contracts is challenging without specific benchmarking data for contracts of comparable scope, duration, and service type within DHS or U.S. Customs and Border Protection (CBP). Management consulting costs can vary widely based on the complexity of the issues addressed, the level of expertise required, and the duration of the engagement. Given this is a sole-source award over approximately three years, it represents a significant investment. A thorough comparison would require analyzing the specific deliverables and the market rates for similar specialized consulting services, which are not provided here.

What are the primary risks associated with a sole-source award for management consulting services?

The primary risks associated with a sole-source award for management consulting services include a lack of price competition, which can lead to inflated costs for the government and taxpayers. There's also a risk that the agency may not be exposed to the most innovative solutions or the best-fit expertise available in the broader market. Furthermore, sole-source awards can sometimes indicate insufficient market research or a lack of robust justification for excluding other qualified vendors, potentially undermining fairness and transparency in the procurement process. The agency might also become overly reliant on a single contractor.

How effective are management consulting services in improving agency operations, and what metrics are typically used to assess this?

The effectiveness of management consulting services in improving agency operations can be substantial when aligned with clear objectives and measurable outcomes. These services can lead to process improvements, strategic planning enhancements, organizational restructuring, and technology adoption, ultimately boosting efficiency and effectiveness. Metrics for assessing effectiveness often include improvements in key performance indicators (KPIs) relevant to the agency's mission, such as cost savings, cycle time reduction, increased productivity, enhanced customer satisfaction, or successful implementation of new strategies. The specific metrics would depend on the consulting engagement's goals and the agency's operational context.

What is the historical spending trend for administrative management and general management consulting services at DHS?

Historical spending trends for administrative management and general management consulting services at the Department of Homeland Security (DHS) are not detailed in the provided data. To analyze this, one would need to examine DHS's procurement history over several fiscal years, looking specifically at contracts awarded under NAICS code 541611. Such an analysis would reveal patterns in spending, identify major contractors, and indicate whether spending in this category has been increasing, decreasing, or remaining stable. This context is crucial for understanding the significance of the current $3.6 million award within the agency's overall budget for consulting services.

What is the justification for awarding this contract on a sole-source basis, and was full and open competition considered?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and was awarded on a sole-source basis. This implies that the agency determined that full and open competition was not feasible or not in the government's best interest for this specific requirement. Justifications for sole-source awards typically fall under specific exceptions outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can satisfy the agency's needs. Without the official justification document (e.g., a Justification and Approval - J&A), the precise reasons for bypassing competition remain undisclosed, but it suggests a belief that Aalis Management Consulting LLC possessed unique capabilities or that competition was otherwise impracticable.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3985 WHIPS RUN DR, WOODBRIDGE, VA, 22193

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,923,207

Exercised Options: $3,605,916

Current Obligation: $3,605,916

Actual Outlays: $3,090,386

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline