DHS awards $31.4M for management support, raising questions on value and competition

Contract Overview

Contract Amount: $31,431,169 ($31.4M)

Contractor: LMI Consulting, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-01

End Date: 2026-09-29

Contract Duration: 1,155 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FUNDING FOR PROFESSIONAL MANAGEMENT SUPPORT SERVICES TO THE OFFICE OF NATIONAL LABORATORIES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.4 million to LMI CONSULTING, LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FUNDING FOR PROFESSIONAL MANAGEMENT SUPPORT SERVICES TO THE OFFICE OF NATIONAL LABORATORIES Key points: 1. Contract value appears reasonable given the duration and scope of management support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risks include the time and materials pricing structure, which can lead to cost overruns. 4. The contract is for management support, a common service across federal agencies. 5. This contract falls within the Engineering Services sector, often characterized by specialized expertise.

Value Assessment

Rating: fair

The contract's value of $31.4 million over approximately three years for management support services seems within a reasonable range for federal contracts of this nature. However, the 'Time and Materials' pricing model presents a risk for cost control, as it doesn't cap labor hours. Benchmarking against similar management support contracts would be necessary for a definitive value assessment, but the current data suggests a fair, albeit not exceptional, value proposition.

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 bids. The data does not specify the number of bidders, but the designation suggests a robust competitive environment was sought. This approach is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at the most competitive prices, thereby optimizing the use of public funds.

Public Impact

The Office of National Laboratories within the Department of Homeland Security will benefit from enhanced professional management support. Services delivered will focus on improving the operational efficiency and strategic planning of the Office of National Laboratories. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications are likely to involve the contractor's personnel providing specialized management expertise, potentially augmenting existing government staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to uncontrolled costs if not closely monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
The broad nature of 'management support services' could lead to scope creep if not well-defined.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract duration of over three years allows for sustained support and potential for long-term improvements.
Contractor LMI Consulting, LLC has a track record with federal contracts, implying some level of established capability.

Sector Analysis

The Engineering Services sector (NAICS 541330) encompasses a wide range of professional services, including management consulting for technical and scientific organizations. Federal spending in this sector is substantial, supporting various government functions from R&D to operational management. This contract fits within the broader trend of agencies outsourcing specialized management and technical support to leverage external expertise.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary focus remains on the prime contractor's capabilities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Professional Services Schedule (PSS)
Management and Consulting Services
Department of Homeland Security Operations Support
Office of National Laboratories Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Scope creep risk if 'management support services' are not clearly defined.
Dependence on contractor expertise for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.4 million to LMI CONSULTING, LLC. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FUNDING FOR PROFESSIONAL MANAGEMENT SUPPORT SERVICES TO THE OFFICE OF NATIONAL LABORATORIES

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 $31.4 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-09-29.

What is LMI Consulting, LLC's track record with federal contracts, particularly in management support services?

LMI Consulting, LLC has a history of performing federal contracts. While the provided data doesn't detail their entire contract history, their selection for this significant $31.4 million task order suggests they possess the necessary qualifications and experience deemed suitable by the Department of Homeland Security. Further investigation into federal procurement databases like SAM.gov or FPDS would reveal the full scope of their past performance, including the types of services rendered, contract values, and client agencies. This would allow for a more robust assessment of their reliability and expertise in delivering management support.

How does the $31.4 million contract value compare to similar management support contracts within DHS or other agencies?

The $31.4 million contract value for approximately three years of management support services appears to be within a typical range for federal contracts of this scope. However, a precise comparison requires benchmarking against contracts with similar objectives, durations, and service levels. Management support can vary widely in complexity and cost. Contracts for high-level strategic consulting or specialized technical management would command higher prices than general administrative support. Without specific details on the exact nature of the 'professional management support services' for the Office of National Laboratories, it's difficult to definitively state if this represents a premium or a discount compared to market rates. A detailed analysis of comparable contracts within DHS and other agencies performing similar functions would be needed for a conclusive assessment.

What are the primary risks associated with the 'Time and Materials' pricing structure for this contract?

The primary risk associated with a 'Time and Materials' (T&M) pricing structure 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. This means that if the project takes longer than anticipated or requires more resources, the total cost to the government increases accordingly. Effective oversight, detailed work breakdown structures, and clear performance metrics are crucial to mitigate this risk. Without stringent monitoring, contractors may have less incentive to control labor hours, potentially leading to inefficient performance and higher overall expenditures for the government.

How effective is the 'full and open competition' process likely to be in ensuring optimal value for this $31.4M contract?

The 'full and open competition' process is designed to maximize value by encouraging a wide range of potential bidders to submit proposals, thereby fostering price competition and innovation. For this $31.4 million contract, this approach increases the likelihood that the Department of Homeland Security will receive competitive bids, potentially leading to lower prices and higher quality services. However, the ultimate effectiveness in ensuring optimal value also depends on the clarity of the solicitation, the evaluation criteria used, and the government's ability to accurately assess the proposals received. While the process itself is a strong indicator of a commitment to value, the specific execution of the procurement and contract management will determine the final outcome.

What are the potential performance implications of providing 'professional management support services' to the Office of National Laboratories?

Providing 'professional management support services' to the Office of National Laboratories (ONL) can have significant performance implications. These services likely aim to enhance the ONL's operational efficiency, strategic planning, resource allocation, and project management. Effective support could lead to faster research cycles, better utilization of laboratory resources, improved compliance, and more successful achievement of scientific and national security objectives. Conversely, poorly executed management support could lead to inefficiencies, misallocation of resources, delays in critical projects, and a failure to meet the ONL's strategic goals. The success hinges on the contractor's ability to understand the unique needs of a national laboratory environment and provide tailored, actionable recommendations and support.

How does the contract's duration (1155 days) influence its overall value and risk profile?

The contract duration of 1155 days (approximately 3 years and 2 months) provides a substantial period for the contractor to deliver management support services and for the agency to realize benefits. A longer duration can allow for deeper integration of services, more comprehensive project completion, and the development of sustained improvements within the Office of National Laboratories. This extended timeframe can also contribute to overall value by reducing the administrative burden and costs associated with frequent re-competitions. However, it also increases the exposure to risks associated with long-term commitments, such as potential changes in agency needs, technological advancements, or contractor performance issues. The 'Time and Materials' pricing model, when combined with a long duration, heightens the importance of robust oversight to manage costs effectively over the contract's life.

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: 70RSAT23R00000017

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: $32,358,219

Exercised Options: $31,979,776

Current Obligation: $31,431,169

Actual Outlays: $17,717,324

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