DoD's $23.3M administrative management consulting contract awarded to Westover Consultants Inc. shows potential value concerns

Contract Overview

Contract Amount: $23,294,478 ($23.3M)

Contractor: Westover Consultants Inc

Awarding Agency: Department of Defense

Start Date: 2003-08-15

End Date: 2008-07-05

Contract Duration: 1,786 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200312!000186!5700!LA01 !11 CONS/LGCW !F4964203C0022 !A!N! !Y! !20030815!20040814!116203282!116203282!116203282!N!WESTOVER CONSULTANTS, INC !8630 FENTON ST SUITE 724 !SILVER SPRING !MD!20910!72450!031!24!SILVER SPRING !MONTGOMERY !MARYLAND !+000005565167!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541611!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!006!K! !C!N!Z! ! !Y!A!Y!N!Z! ! ! !B!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to WESTOVER CONSULTANTS INC for work described as: 200312!000186!5700!LA01 !11 CONS/LGCW !F4964203C0022 !A!N! !Y! !20030815!20040814!116203282!116203282!116203282!N!WESTOVER CONSULTANTS, INC !8630 FENTON ST SUITE 724 !SILVER SPRING !MD!20910!72450!031!24!SILVER SPRING !MONTGOMERY !MARYLAND !+000005565167!N!N!000000000000!R499!OTH… Key points: 1. Contract value appears high relative to duration and scope, warranting further value-for-money assessment. 2. Limited public information on performance metrics makes it difficult to gauge effectiveness. 3. The contract's duration and fixed-price nature suggest some risk mitigation, but performance quality remains key. 4. This contract falls within the broad 'Other Professional Services' category, indicating a need for specific performance benchmarks. 5. Competition dynamics, while appearing open, require deeper analysis to ensure optimal pricing. 6. Small business participation was not a stated requirement, potentially limiting broader economic impact.

Value Assessment

Rating: fair

The total contract value of $23.3 million over approximately 4.9 years (1786 days) averages to roughly $4.75 million per year. Without specific deliverables or performance metrics, it's challenging to benchmark this against similar administrative management consulting contracts. The fixed-price nature suggests a defined scope, but the overall value proposition hinges on the quality and impact of the services rendered. Further analysis of the specific services provided and their outcomes is needed to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources may have been excluded prior to the final award. The presence of 6 bidders suggests a degree of competition, but the specifics of the exclusion process are not detailed. This level of competition is generally positive for price discovery, but the exclusion aspect warrants scrutiny to ensure it did not unduly limit the pool of potential offerors.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple firms to bid, which can drive down prices. However, the exclusion of sources could potentially limit the most competitive offers if not justified.

Public Impact

The primary beneficiary is the Department of Defense, which receives administrative management and general management consulting services. The services provided are aimed at improving the efficiency and effectiveness of DoD operations. The geographic impact is likely concentrated within DoD facilities or relevant administrative centers, though specific locations are not detailed. The contract supports professional service roles within the consulting industry, contributing to the workforce in that sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true impact and value of the services.
The 'exclusion of sources' in the competition process raises questions about the breadth of competition achieved.
The significant contract value over a multi-year period necessitates robust oversight to ensure continued alignment with DoD needs.
Limited public information on the specific consulting tasks undertaken hinders a comprehensive risk assessment.

Positive Signals

The contract was awarded through a competitive process, suggesting multiple firms vied for the opportunity.
A fixed-price contract structure can provide cost certainty for the government, assuming the scope is well-defined.
The duration of the contract (over 4 years) indicates a sustained need for the services, potentially reflecting a strategic requirement.
The contractor, Westover Consultants Inc., has secured a significant federal contract, implying a level of established capability.

Sector Analysis

This contract falls under the 'Administrative Management and General Management Consulting Services' (NAICS 541611) sector. This is a broad category encompassing a wide range of advisory services aimed at improving organizational efficiency and effectiveness. The federal government is a significant consumer of these services, particularly within large departments like Defense, to manage complex operations, implement new strategies, and optimize resource allocation. Comparable spending benchmarks would typically involve analyzing the average cost per consultant hour or project value for similar government consulting engagements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary focus was on securing the best value from the available pool of offerors, rather than specifically promoting small business participation through this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, the specific agency within the DoD. Accountability measures would be tied to the terms of the Firm Fixed Price contract and any performance standards or deliverables outlined in the statement of work. Transparency is limited by the available public data; while the award is recorded, detailed performance reports or audits are not readily accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense-wide Consulting Services
Professional and Management Support Services
Department of Defense Administrative Support Contracts
Air Force Management Consulting Awards
Federal Management Consulting Spending

Risk Flags

Potential for cost overruns if scope was not adequately defined.
Risk of underperformance if contractor expertise does not align with complex DoD needs.
Lack of transparency in 'exclusion of sources' process.
Difficulty in measuring ROI due to undefined performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to WESTOVER CONSULTANTS INC. 200312!000186!5700!LA01 !11 CONS/LGCW !F4964203C0022 !A!N! !Y! !20030815!20040814!116203282!116203282!116203282!N!WESTOVER CONSULTANTS, INC !8630 FENTON ST SUITE 724 !SILVER SPRING !MD!20910!72450!031!24!SILVER SPRING !MONTGOMERY !MARYLAND !+000005565167!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541611!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!006!K! !C!N!Z! ! !Y!A!Y!N!Z! ! ! !B!A!000!A!B!N! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is WESTOVER CONSULTANTS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2003-08-15. End: 2008-07-05.

What specific administrative management and general management consulting services were provided under this contract?

The provided data classifies the contract under NAICS code 541611: Administrative Management and General Management Consulting Services. However, it does not detail the specific tasks or deliverables. These services typically encompass areas such as organizational structure analysis, process improvement, strategic planning, human capital management, and operational efficiency enhancements. For this contract, the services likely supported specific initiatives or ongoing operational needs within the Department of the Air Force or broader Department of Defense. Without access to the contract's statement of work or performance reports, the precise nature of the consulting provided remains unspecified.

How does the average annual cost of this contract compare to similar DoD consulting contracts?

The contract's total value of $23.3 million over approximately 1786 days (4.9 years) equates to an average annual cost of roughly $4.75 million. Benchmarking this requires comparison with similar administrative and management consulting contracts awarded by the DoD. Factors such as the specific services rendered, the complexity of the issues addressed, the level of expertise required, and the duration of the engagement are crucial for a fair comparison. Generally, large-scale, multi-year consulting engagements for major federal agencies can range from several million to tens of millions of dollars annually. A precise comparison would necessitate access to a database of comparable contracts, including their scope, duration, and specific outcomes, which is not available in the provided data.

What is the track record of Westover Consultants Inc. in performing federal contracts, particularly within the DoD?

The award of this $23.3 million contract to Westover Consultants Inc. by the Department of Defense indicates they possess the capability and have met the requirements to secure significant federal work. However, assessing their overall track record requires a broader review of their contract history, including past performance evaluations, any contract disputes or terminations, and the types of services they have previously delivered. Without access to a comprehensive federal procurement database or past performance information repositories, it is difficult to provide a detailed analysis of their track record. This single award suggests they are an active participant in the federal contracting space, particularly within professional services.

What were the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate the success of this contract. For administrative management and general management consulting services, typical KPIs might include improvements in process efficiency (e.g., reduced cycle times), cost savings achieved, successful implementation of strategic initiatives, enhanced organizational effectiveness scores, or client satisfaction ratings. As this was a Firm Fixed Price contract, the primary measure of success would likely be the contractor's ability to deliver the agreed-upon scope of work within the specified timeframe and budget. However, the qualitative impact and long-term benefits of the consulting services are harder to quantify without explicit performance reporting.

How has federal spending on administrative management and general management consulting services evolved over the past decade?

Federal spending on administrative management and general management consulting services (NAICS 541611) has generally seen fluctuations but has remained a significant category of government expenditure over the past decade. Agencies across the government, including the Department of Defense, utilize these services to address complex challenges, improve operational efficiency, implement new technologies, and manage large-scale programs. Factors influencing spending include budget appropriations, strategic priorities, and the need for specialized expertise not available in-house. While specific year-over-year trends require detailed analysis of federal procurement data, the consistent award of substantial contracts like the one to Westover Consultants Inc. indicates an ongoing reliance on external consulting expertise within the federal government.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6550 ROCK SPRING DR STE # 450, BETHESDA, MD, 20817

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline