DHS awards $7.46M for general management consulting, with a 914-day duration

Contract Overview

Contract Amount: $7,458,080 ($7.5M)

Contractor: Java Productions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-28

End Date: 2026-02-27

Contract Duration: 914 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GENERAL MANAGEMENT CONSULTING SERVICES

Place of Performance

Location: BLACKSBURG, MONTGOMERY County, VIRGINIA, 24060

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.5 million to JAVA PRODUCTIONS, INC. for work described as: GENERAL MANAGEMENT CONSULTING SERVICES Key points: 1. The contract value of $7.46 million over 914 days suggests a moderate daily expenditure for consulting services. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing. 3. The fixed-price contract type offers cost certainty for the government. 4. The services fall under administrative management and general management consulting, a broad category. 5. The contract is a BPA Call, indicating it's an order against a previously established Blanket Purchase Agreement. 6. The duration of nearly 2.5 years allows for sustained support but requires careful performance monitoring.

Value Assessment

Rating: good

The contract value of $7.46 million for approximately 2.5 years of general management consulting services appears reasonable. Benchmarking against similar contracts for administrative management consulting services is challenging without more specific service details. However, the daily rate implied by the contract value and duration is approximately $8,160 per day, which falls within a typical range for senior-level consulting engagements. The firm fixed-price nature of the contract helps control costs.

Cost Per Unit: Approximately $8,160 per day (based on total contract value and duration).

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but a full and open competition generally fosters a competitive environment. This process allows the government to solicit proposals from a wide range of qualified contractors, increasing the likelihood of receiving competitive pricing and innovative solutions.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and ensures that the government is obtaining services at market-based rates.

Public Impact

The U.S. Coast Guard, a component of the Department of Homeland Security, will benefit from these management consulting services. Services are expected to enhance administrative and general management functions within the Coast Guard. The geographic impact is likely focused on the operational areas and administrative centers of the U.S. Coast Guard. The contract may indirectly impact the federal workforce by providing support for management initiatives and process improvements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of work makes it difficult to fully assess value for money.
Performance metrics and deliverables are not detailed in the provided data, hindering performance evaluation.
The BPA Call mechanism, while efficient, could potentially limit the depth of competition for individual task orders if not managed carefully.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost certainty.
The contractor, JAVA PRODUCTIONS, INC., has secured a contract with a significant federal agency, indicating a level of established capability.

Sector Analysis

The federal spending on management consulting services is substantial, supporting a wide array of government functions. This contract falls within the Administrative Management and General Management Consulting Services (NAICS 541611) sector, which includes services like strategic planning, organizational analysis, and process improvement. The market for these services is competitive, with numerous firms offering expertise to federal agencies. This specific contract contributes to the overall spending in this category, supporting the operational efficiency and strategic goals of the U.S. Coast Guard.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, JAVA PRODUCTIONS, INC., will be responsible for delivering the services. While not a set-aside, larger contracts can sometimes offer opportunities for small businesses to participate as subcontractors if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Coast Guard contracting officers and program managers. As a BPA Call, the underlying BPA likely has its own oversight mechanisms. Transparency is facilitated by public contract databases where award details are recorded. Accountability will be driven by the firm fixed-price terms and the performance expectations outlined in the task order. The Inspector General for the Department of Homeland Security may have jurisdiction for audits and investigations if any concerns arise regarding fraud, waste, or abuse.

Related Government Programs

General Management Consulting Services
Administrative Management Services
Department of Homeland Security Contracts
U.S. Coast Guard Procurement
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for scope creep given the long contract duration.
Need for robust performance monitoring to ensure value for money.
Risk of contractor underestimation of costs in a fixed-price environment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.5 million to JAVA PRODUCTIONS, INC.. GENERAL MANAGEMENT CONSULTING SERVICES

Who is the contractor on this award?

The obligated recipient is JAVA PRODUCTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

Start: 2023-08-28. End: 2026-02-27.

What is the specific scope of work for JAVA PRODUCTIONS, INC. under this contract?

The provided data identifies the contract as being for 'GENERAL MANAGEMENT CONSULTING SERVICES' under NAICS code 541611 (Administrative Management and General Management Consulting Services). However, the specific tasks, deliverables, and objectives are not detailed in the summary data. These details would typically be found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the BPA Call. Such services often include strategic planning, organizational analysis, process improvement, policy development, and program management support. Without the SOW, it's impossible to ascertain the precise nature of the consulting provided.

How does the daily rate of approximately $8,160 compare to industry benchmarks for similar consulting services?

The estimated daily rate of $8,160 is derived from the total contract value ($7,458,080) divided by the contract duration in days (914). This rate falls within a plausible range for senior-level management consulting services, especially those provided to federal agencies. However, a precise benchmark comparison requires detailed knowledge of the specific services rendered, the seniority of the consultants, the geographic location, and the specific market conditions for management consulting. General industry benchmarks can vary widely, but rates for experienced consultants can range from $1,000 to $5,000+ per day, with specialized expertise or very senior roles potentially exceeding this. The $8,160 figure suggests a potentially high level of expertise or a comprehensive service package.

What are the potential risks associated with a firm fixed-price contract of this duration?

A firm fixed-price (FFP) contract provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. However, for a contract of this duration (914 days), potential risks include the contractor underestimating costs, leading to reduced profit or potential quality issues if they try to cut corners. Conversely, if the contractor accurately estimates or overestimates costs, the government might pay a premium. Scope creep is another risk; if the requirements evolve significantly, managing changes under an FFP contract can be challenging and may lead to costly modifications or disputes. The long duration also increases the risk of the contractor's proposed solution becoming outdated or less relevant over time if not actively managed and adapted.

What is the significance of this contract being a BPA Call?

A BPA Call signifies that this contract is an order placed against a pre-existing Blanket Purchase Agreement (BPA). BPAs are simplified acquisition vehicles that agencies can use to streamline the procurement of recurring goods or services from approved vendors. A BPA Call means that the U.S. Coast Guard has already established a master agreement with JAVA PRODUCTIONS, INC. (or potentially a larger pool of vendors under a single BPA), and this specific award is a task order issued under that agreement. This method is often used for efficiency and to leverage pre-negotiated terms and pricing, potentially reducing administrative burden and lead times for individual procurements.

How does the contractor's track record influence the award of this contract?

While the provided data does not include specific details about JAVA PRODUCTIONS, INC.'s past performance or track record, federal agencies are required to consider past performance as a significant evaluation factor in source selection, especially for competitive procurements. The fact that this contract was awarded under full and open competition suggests that JAVA PRODUCTIONS, INC. was deemed qualified and likely demonstrated acceptable or superior past performance, along with a competitive price and technical approach, to win the award. Agencies typically review performance evaluations from previous contracts to assess a contractor's reliability, quality of work, and ability to meet contractual requirements.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12235 GRAPEFIELD RD UNIT 5, BASTIAN, VA, 24314

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

Financial Breakdown

Contract Ceiling: $8,517,646

Exercised Options: $8,517,646

Current Obligation: $7,458,080

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70Z02323A50000001

IDV Type: BPA

Timeline