DHS awards $27M to LMI Consulting for program management and technical support, raising value-for-money questions

Contract Overview

Contract Amount: $27,026,233 ($27.0M)

Contractor: LMI Consulting, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-03-25

End Date: 2022-07-31

Contract Duration: 1,224 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CT::IGF LABORATORIES PROGRAM MANAGEMENT&TECHNICAL SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.0 million to LMI CONSULTING, LLC for work described as: IGF::CT::IGF LABORATORIES PROGRAM MANAGEMENT&TECHNICAL SUPPORT Key points: 1. Contract value appears high relative to duration and scope, suggesting potential for cost efficiencies. 2. Full and open competition was utilized, which typically fosters competitive pricing. 3. The contract's time and materials pricing model introduces inherent risk of cost overruns. 4. Performance context is limited, making it difficult to assess the true value delivered. 5. This contract falls within the broader professional services sector for government support. 6. The lack of small business set-aside or subcontracting requirements may limit broader economic impact.

Value Assessment

Rating: fair

The contract's total value of $27 million over approximately three years (1224 days) for program management and technical support warrants scrutiny. While LMI Consulting is a known entity, the absence of detailed performance metrics or comparable contract data makes a definitive value assessment challenging. The time and materials pricing structure, while common, can lead to higher costs if not closely managed, suggesting a 'fair' value rating until further performance data is available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method is generally preferred for ensuring fair pricing and access to a wide range of capabilities. However, the number of actual bidders is not specified, which would provide further insight into the intensity of the competition and its impact on price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a competitive environment, potentially leading to lower prices and better service quality compared to sole-source or limited competition awards.

Public Impact

The Department of Homeland Security (DHS) benefits from this contract through enhanced program management and technical support capabilities. Services delivered are crucial for the effective execution and oversight of various DHS programs. The primary geographic impact is within the District of Columbia, where the contractor is based. Workforce implications are likely concentrated within LMI Consulting's professional staff, with potential indirect impacts on DHS program personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials pricing can lead to cost escalation if not rigorously monitored.
Lack of specific performance metrics makes it difficult to gauge contractor efficiency.
Limited information on the competitive landscape beyond 'full and open' competition.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contractor (LMI Consulting) is a recognized provider of government services.
Contract duration provides a stable period for program support.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on engineering services (NAICS 541330). This sector is a significant component of federal spending, supporting a wide array of government functions. Comparable spending benchmarks would involve analyzing other contracts for program management and technical support within DHS and across other federal agencies, considering factors like contract duration, scope, and pricing models.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses to participate in this specific contract may be limited unless LMI Consulting voluntarily engages them. Further investigation into LMI's subcontracting practices would be needed to assess the full impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside within the contracting office at DHS (Office of Procurement Operations) and the program managers overseeing the supported initiatives. Accountability measures are usually tied to contract deliverables and performance standards, though these are not detailed in the provided data. Transparency is facilitated through contract databases, but specific operational oversight details are often internal to the agency.

Related Government Programs

DHS Program Management Support Contracts
Federal IT and Engineering Services
Professional Services Contracts
Government Technical Support Awards

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of specific performance metrics hinders value assessment.
Limited information on the number of bidders in the competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.0 million to LMI CONSULTING, LLC. IGF::CT::IGF LABORATORIES PROGRAM MANAGEMENT&TECHNICAL SUPPORT

Who is the contractor on this award?

The obligated recipient is LMI CONSULTING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2019-03-25. End: 2022-07-31.

What is LMI Consulting's track record with federal contracts, particularly within DHS?

LMI Consulting, LLC has a history of securing federal contracts across various agencies, including significant work with the Department of Homeland Security. Their expertise often lies in program management, logistics, and technical support. While specific performance details for this $27 million contract are not publicly detailed, LMI's general profile suggests they are an established provider capable of handling complex government requirements. A deeper dive into past performance reviews and any documented issues on prior DHS contracts would provide a more comprehensive understanding of their reliability and effectiveness in delivering services similar to those outlined in this award.

How does the value of this contract compare to similar program management and technical support contracts awarded by DHS?

Comparing the $27 million value of this contract to similar DHS procurements requires access to a broader dataset of federal contracts. However, for a duration of approximately three years, this value is substantial and suggests a significant scope of work. Contracts for program management and technical support can vary widely based on the complexity of the programs supported, the level of expertise required, and the specific deliverables. Without detailed scope comparisons, it's difficult to definitively benchmark this contract. However, the time and materials (T&M) pricing model, coupled with the total value, indicates a need for close monitoring to ensure cost-effectiveness against the achieved outcomes.

What are the primary risks associated with a Time and Materials (T&M) contract for program management and technical support?

The primary risk with a Time and Materials (T&M) contract, like the one awarded to LMI Consulting, is the potential for cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred, plus a fee or profit margin. If project scope creeps, inefficiencies arise, or labor rates are higher than anticipated, the total cost can significantly exceed initial estimates. For program management and technical support, this risk is managed through robust oversight, detailed tracking of hours and expenses, and clear definition of tasks and objectives to prevent scope creep. The government must actively manage the contractor's effort to ensure value for money.

How effective has LMI Consulting been in delivering program management and technical support services in past engagements?

Assessing the effectiveness of LMI Consulting requires examining past performance data, which is not fully detailed in the provided contract information. Generally, LMI is recognized as a capable provider in the government contracting space. However, effectiveness is highly dependent on the specific contract, the agency's needs, and the metrics used for evaluation. Without access to specific performance reports, contractor performance evaluations (CPEs), or data from the Federal Awardee Performance and Integrity Information System (FAPIIS) related to this specific contract or similar ones, a definitive statement on their effectiveness is speculative. Agencies typically use performance metrics and feedback to manage contractor performance throughout the contract lifecycle.

What are the historical spending patterns for program management and technical support within DHS?

Historical spending patterns for program management and technical support within DHS are substantial and reflect the agency's broad mission. DHS procures a wide range of services to manage its numerous programs, from security operations to infrastructure management. Spending in this category often fluctuates based on agency priorities, budget allocations, and the initiation of new programs or initiatives. Analyzing historical data would reveal trends in contract types (e.g., T&M vs. fixed-price), dominant service providers, and the overall investment in support functions. This specific $27 million contract represents a portion of that broader historical expenditure, contributing to the agency's operational capacity.

Does the 'full and open competition' designation guarantee the best possible price for taxpayers?

While 'full and open competition' is designed to foster a competitive environment that *should* lead to the best possible prices for taxpayers, it does not offer an absolute guarantee. The effectiveness of competition depends on several factors, including the number of capable bidders, the clarity and realism of the solicitation requirements, and the evaluation criteria used. If only a few companies can realistically bid, or if the solicitation is poorly defined, the resulting price may not be as competitive as anticipated. Furthermore, the chosen contract type (e.g., Time and Materials) can influence the final cost, even under full competition. Therefore, while it's a strong mechanism for price discovery, diligent oversight and realistic requirements are crucial to ensure optimal taxpayer value.

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: 70RSAT18R00000043

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $27,026,233

Exercised Options: $27,026,233

Current Obligation: $27,026,233

Actual Outlays: $3,453,818

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $11,257,934

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