DHS awards $8M contract for management consulting, with potential for significant growth

Contract Overview

Contract Amount: $8,073,398 ($8.1M)

Contractor: Noblis, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-05-18

End Date: 2026-06-02

Contract Duration: 1,111 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CISRR PROGRAM SUPPORT - SETA III

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8.1 million to NOBLIS, INC. for work described as: CISRR PROGRAM SUPPORT - SETA III Key points: 1. Contract value indicates a need for specialized administrative and management expertise. 2. The contract was awarded using full and open competition, suggesting a competitive market. 3. The 'Time and Materials' pricing structure may lead to cost overruns if not closely managed. 4. The contract duration of over three years allows for sustained support but requires ongoing performance monitoring. 5. The specific NAICS code points to a focus on general management consulting services. 6. The award amount is moderate, suggesting it's not a flagship program but a significant support function.

Value Assessment

Rating: good

The contract value of approximately $8 million over its period of performance is moderate for management consulting services. Benchmarking against similar contracts for administrative management and general management consulting services (NAICS 541611) would be necessary for a precise value-for-money assessment. However, the award amount appears reasonable for specialized support. The 'Time and Materials' pricing model, while flexible, carries inherent risks of cost escalation if not diligently managed and monitored against established benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of three bidders suggests a healthy level of competition for this type of service. This competitive process is generally expected to drive more favorable pricing and better service offerings for the government.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a marketplace where contractors vie for the best price and performance, potentially leading to cost savings and higher quality services.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced administrative and management consulting services. Services delivered likely include strategic planning, process improvement, and organizational management support. The geographic impact is primarily within DHS operations, likely concentrated in areas where the contractor's personnel are deployed. Workforce implications may involve the engagement of skilled management consultants, potentially creating or sustaining jobs in the consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust oversight to ensure performance aligns with contract objectives.
Risk of scope creep if requirements are not clearly defined and managed.

Positive Signals

Awarded through full and open competition, indicating market interest and potential for competitive pricing.
Long contract duration allows for sustained support and relationship building.
Contractor Noblis, Inc. has a track record with government contracts, suggesting familiarity with federal procurement processes.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for these services is large and competitive, with numerous firms offering expertise to government agencies. Spending in this category supports agency operational efficiency and strategic initiatives. Comparable spending benchmarks would depend on the specific scope of services, but $8 million is a moderate award for specialized consulting support.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false, indicating no explicit small business participation requirement was noted in this data snippet. This suggests that larger, established firms were likely the primary bidders. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Noblis, Inc., but are not guaranteed by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Homeland Security. Accountability measures are inherent in the 'Time and Materials' contract type, requiring detailed reporting of hours and costs. Transparency is generally maintained through contract award databases and reporting requirements, though specific internal oversight mechanisms are not detailed here.

Related Government Programs

DHS Program Management Support Contracts
Federal Management Consulting Services
Administrative Support Services
SETA (Systems Engineering and Technical Assistance) Contracts

Risk Flags

Potential for cost escalation due to T&M pricing.
Need for strong contract administration and oversight.
Scope definition and management critical for success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8.1 million to NOBLIS, INC.. CISRR PROGRAM SUPPORT - SETA III

Who is the contractor on this award?

The obligated recipient is NOBLIS, INC..

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 $8.1 million.

What is the period of performance?

Start: 2023-05-18. End: 2026-06-02.

What is Noblis, Inc.'s track record with similar government contracts, particularly within DHS?

Noblis, Inc. has a substantial history of performing work for various U.S. government agencies, including the Department of Homeland Security. Their portfolio often includes technical, engineering, and management support services. Analyzing their past performance on contracts with similar scopes and values within DHS would provide insight into their reliability, quality of service, and ability to manage complex projects. Specific contract performance ratings, if available through federal procurement databases, would offer a more granular view of their past success and any potential areas of concern.

How does the $8 million award compare to typical spending for similar management consulting services at DHS?

The $8 million award for administrative management and general management consulting services is a moderate figure within the broader landscape of federal contracting. To benchmark effectively, one would need to compare it against contracts with similar NAICS codes (541611) and durations awarded by DHS or comparable agencies. Factors such as the specific deliverables, the level of expertise required, and the duration of the contract significantly influence pricing. Without more granular data on the specific tasks and required expertise, it's challenging to definitively state if this represents exceptional value, but it falls within a common range for specialized consulting support.

What are the primary risks associated with the 'Time and Materials' (T&M) contract type for this engagement?

The primary risk with a Time and Materials (T&M) contract type, such as this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not tightly controlled, or if the contractor's efficiency is low, the total cost can escalate beyond initial expectations. This necessitates robust government oversight, including detailed review of timesheets, material invoices, and regular progress monitoring to ensure that costs remain reasonable and aligned with the work performed.

How effective is full and open competition in ensuring value for money for management consulting services?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best pricing and performance to win the contract. For management consulting services, this means agencies can potentially secure higher quality expertise at more competitive rates. The presence of multiple bidders, as indicated by the three bidders in this case, further supports the likelihood of achieving good value, provided the evaluation criteria are well-defined and impartially applied.

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

Analyzing historical spending trends for administrative management and general management consulting services (NAICS 541611) at DHS would provide context for the current $8 million award. If DHS has consistently awarded similar contracts in this range or higher, it suggests a sustained need for these services. Conversely, a significant increase or decrease in spending could indicate shifts in agency priorities, budget allocations, or the effectiveness of internal capabilities. Understanding these trends helps in assessing whether the current contract represents a typical investment or a deviation from past patterns.

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: 70RSAT22R00000043

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2002 EDMUND HALLEY DR, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $17,475,238

Exercised Options: $17,475,238

Current Obligation: $8,073,398

Actual Outlays: $5,405,746

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,800,188

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RSAT19D00000003

IDV Type: IDC

Timeline