DoD's $17.4M Referral Management Services Contract Awarded to KUHANA-SPECTRUM Joint Venture
Contract Overview
Contract Amount: $17,380,255 ($17.4M)
Contractor: Kuhana-Spectrum Joint Venture, LLC
Awarding Agency: Department of Defense
Start Date: 2011-01-28
End Date: 2015-07-27
Contract Duration: 1,641 days
Daily Burn Rate: $10.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: REFERRAL MANAGEMENT SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.4 million to KUHANA-SPECTRUM JOINT VENTURE, LLC for work described as: REFERRAL MANAGEMENT SERVICES Key points: 1. The contract, valued at $17.4 million, was awarded by the Department of the Air Force. 2. Awarded under full and open competition after exclusion of sources, indicating a specific justification for limited competition. 3. The contract duration was 1641 days, ending in July 2015. 4. The North American Industry Classification System (NAICS) code is 541611 for Administrative Management and General Management Consulting Services. 5. The contract type was Firm Fixed Price, which shifts risk to the contractor.
Value Assessment
Rating: fair
The contract value of $17.4 million over approximately 4.5 years suggests a moderate annual spend. Benchmarking against similar administrative management consulting contracts would be necessary to fully assess pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was sought, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery.
Taxpayer Impact: The $17.4 million expenditure represents taxpayer funds allocated to management consulting services for the Air Force. The effectiveness and efficiency of these services directly influence the value for money.
Public Impact
Taxpayers funded $17.4 million for referral management services, impacting the Department of Defense's operational budget. The exclusion of sources in the competition process raises questions about the breadth of competitive bidding and potential cost savings missed. The contract's focus on administrative management and consulting services highlights the government's reliance on external expertise for operational efficiency. The duration of the contract (over 4 years) suggests a long-term need for these services within the Air Force.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources
- Contract duration and potential for cost overruns
- Lack of clear performance metrics in provided data
Positive Signals
- Firm Fixed Price contract shifts risk to contractor
- Awarded by Department of the Air Force, a major defense entity
Sector Analysis
The contract falls under Administrative Management and General Management Consulting Services (NAICS 541611). Spending in this sector by the DoD can vary significantly based on strategic initiatives and operational needs. Benchmarking against similar consulting contracts within the federal government is crucial for assessing value.
Small Business Impact
The data indicates the awardee is a Joint Venture, KUHANA-SPECTRUM JOINT VENTURE, LLC. It is unclear from the provided data whether this joint venture includes small business participation or if small businesses were subcontracted.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests a specific justification was required and likely reviewed. Further oversight would involve examining the documentation supporting the exclusion of sources and the subsequent price negotiation process.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition due to exclusion of sources
- Potential for higher costs due to reduced competition
- Lack of transparency regarding specific performance metrics
- Contract duration may exceed actual need if requirements change
Tags
administrative-management-and-general-ma, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.4 million to KUHANA-SPECTRUM JOINT VENTURE, LLC. REFERRAL MANAGEMENT SERVICES
Who is the contractor on this award?
The obligated recipient is KUHANA-SPECTRUM JOINT VENTURE, LLC.
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 $17.4 million.
What is the period of performance?
Start: 2011-01-28. End: 2015-07-27.
What was the specific justification for excluding certain sources from the full and open competition?
The justification for excluding sources typically relates to factors such as unique capabilities, proprietary technology, or specific performance requirements that only a limited number of contractors can meet. Without access to the contract file, the precise reasons remain unknown, but such exclusions often warrant scrutiny to ensure they are well-founded and do not unduly restrict competition.
How did the 'exclusion of sources' impact the final contract price compared to a truly open competition?
Excluding sources generally reduces the number of bidders, which can lead to less competitive pricing. If the excluded sources possessed comparable capabilities, the government might have paid a higher price than if a broader range of competitors had been involved. Analyzing the bid prices from the participating contractors and comparing them to market rates would be necessary to quantify this impact.
What were the key performance indicators (KPIs) for this referral management service contract, and how was performance measured?
The provided data does not include specific KPIs or performance metrics. Effective oversight would require understanding how the Air Force measured the contractor's success in managing referrals, ensuring timely processing, maintaining data accuracy, and achieving any defined service level agreements. This information is critical for assessing the overall effectiveness and value delivered.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3375 KOAPAKA STREET, SUITE B-256, HONOLULU, HI, 96819
Business Categories: Category Business, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,385,255
Exercised Options: $17,385,255
Current Obligation: $17,380,255
Contract Characteristics
Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)
Cost or Pricing Data: NO
Timeline
Start Date: 2011-01-28
Current End Date: 2015-07-27
Potential End Date: 2015-07-27 00:00:00
Last Modified: 2021-11-01
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