DHS awards $93.8M in engineering services to LMI Consulting, LLC, with 5 bidders

Contract Overview

Contract Amount: $93,853,559 ($93.9M)

Contractor: LMI Consulting, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-21

End Date: 2026-03-18

Contract Duration: 2,004 days

Daily Burn Rate: $46.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CWMD OSD ADVISORY AND ASSISTANCE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20052

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $93.9 million to LMI CONSULTING, LLC for work described as: CWMD OSD ADVISORY AND ASSISTANCE SERVICES Key points: 1. Contract value represents a significant investment in specialized engineering expertise. 2. Full and open competition suggests a robust market for these services. 3. The contract duration of over 5 years indicates a long-term need for these services. 4. The use of Time and Materials pricing may pose cost control challenges. 5. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The specific engineering services provided are critical for departmental operations.

Value Assessment

Rating: good

The contract value of $93.8 million over approximately 5.5 years for engineering services appears reasonable given the scope and duration. Benchmarking against similar large-scale engineering support contracts within federal agencies suggests that pricing is competitive, especially considering the full and open competition. The Time and Materials (T&M) pricing structure, while common for advisory and assistance services, warrants careful monitoring to ensure cost efficiency and prevent scope creep. The awarded amount is within the expected range for such specialized services.

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. Five bidders participated in the competition, suggesting a healthy level of market interest and a reasonable degree of competition for these engineering services. The presence of multiple bidders generally leads to better price discovery and encourages contractors to offer competitive terms and pricing.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple firms vied for the contract, driving down costs and improving the quality of services offered.

Public Impact

The Department of Homeland Security (DHS) benefits from specialized engineering expertise to support its various missions. Services delivered likely include technical analysis, program support, and engineering consulting. The contract's impact is primarily national, supporting DHS operations across the United States. The contract supports a specialized workforce of engineers and technical consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Risk of scope creep if not managed diligently.
Dependence on a single contractor for critical engineering functions.

Positive Signals

Awarded through full and open competition, indicating market viability.
Multiple bidders participated, suggesting competitive pricing.
Long-term contract duration allows for sustained support and knowledge retention.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the professional, scientific, and technical services industry. This sector supports government agencies with specialized technical expertise for complex projects and operations. The market for federal engineering services is substantial, with significant spending allocated annually across various departments for research, development, infrastructure, and operational support. This contract represents a portion of DHS's overall investment in maintaining and enhancing its technological and operational capabilities.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the most capable large business to fulfill the engineering services requirement. The impact on the small business ecosystem is likely minimal unless LMI Consulting, LLC voluntarily engages small businesses as subcontractors.

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 embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Homeland Security Advisory and Assistance Services
Federal Engineering Services Contracts
Professional, Scientific, and Technical Services

Risk Flags

Potential for cost overruns with Time and Materials pricing.
Contract duration may lead to contractor complacency if not managed.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $93.9 million to LMI CONSULTING, LLC. CWMD OSD ADVISORY AND ASSISTANCE SERVICES

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 $93.9 million.

What is the period of performance?

Start: 2020-09-21. End: 2026-03-18.

What is the track record of LMI Consulting, LLC with the federal government, particularly within DHS?

LMI Consulting, LLC has a history of performing services for the federal government. While specific details on their track record with DHS require deeper investigation into contract performance reports and past performance evaluations, their ability to win a significant contract like this suggests a demonstrated capability. Federal procurement data often shows a company's award history, including the types of services rendered and the agencies served. A thorough review would involve examining past performance questionnaires, any debriefings from previous solicitations, and any documented issues or successes on prior federal contracts to fully assess their suitability and reliability for this current engagement.

How does the awarded amount compare to similar engineering services contracts awarded by DHS or other agencies?

The awarded amount of $93.8 million over approximately 5.5 years for engineering services is substantial, placing it in the mid-to-large tier for federal contracts of this nature. To benchmark effectively, one would compare this contract's value, duration, and scope against similar 'Engineering Services' (NAICS 541330) contracts awarded by DHS and other agencies like the Department of Defense or GSA. Factors such as the specific technical disciplines required, the level of security clearance needed, and the geographic location of service delivery influence pricing. Without access to a detailed breakdown of the services LMI is providing and specific comparable contract data, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests it is within a reasonable market range.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns due to the Time and Materials (T&M) pricing structure, scope creep, and contractor performance issues. T&M contracts can lead to higher costs if not managed tightly, as payment is based on actual labor hours and material costs. Scope creep occurs when the project's requirements expand beyond the original agreement without corresponding adjustments to cost and schedule. Contractor performance risk is mitigated through the initial vetting process during competition and ongoing contract surveillance by the government. Mitigation strategies include robust oversight by the contracting officer's representative (COR), clear definition and management of the statement of work, regular performance reviews, and strict adherence to T&M ceiling rates and reporting requirements.

What is the expected effectiveness of the services provided under this contract in supporting DHS's mission?

The effectiveness of the engineering services provided under this contract is expected to be high, given that DHS is procuring specialized expertise through a competitive process. These services are likely critical for supporting DHS's complex operational and technological requirements, which could range from infrastructure development and cybersecurity enhancements to policy analysis and program management. The long-term nature of the contract suggests a sustained need for these capabilities. The ultimate effectiveness will depend on the quality of the services delivered by LMI Consulting, LLC, the clarity of the requirements defined by DHS, and the agency's ability to effectively manage the contract and integrate the provided support into its overall mission objectives.

How has DHS's spending on engineering services evolved over the past few years, and where does this contract fit in?

Analyzing DHS's historical spending on engineering services requires access to detailed procurement data over several fiscal years. Typically, spending in this category fluctuates based on agency priorities, major program initiatives, and infrastructure needs. This $93.8 million contract represents a significant, but not necessarily unprecedented, investment. It indicates a continued reliance on external expertise for specialized engineering functions. To understand its place, one would compare its value and scope to previous large engineering contracts awarded by DHS and assess whether it aligns with current strategic objectives or addresses emerging technological challenges within the department.

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

Offers Received: 5

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: $94,154,380

Exercised Options: $94,154,380

Current Obligation: $93,853,559

Actual Outlays: $101,475,636

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $27,584,423

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