DoD's $31M PKF-CHWALIK-GREEN RAPTR contract awarded to LMI CONSULTING, LLC for administrative services

Contract Overview

Contract Amount: $31,055,820 ($31.1M)

Contractor: LMI Consulting, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2026-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $28.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Other

Official Description: PKF-CHWALIK-GREEN RAPTR SUPPORT FOR SSDP

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to LMI CONSULTING, LLC for work described as: PKF-CHWALIK-GREEN RAPTR SUPPORT FOR SSDP Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The fixed-price level-of-effort contract type may incentivize efficient service delivery. 3. A significant duration of 1095 days suggests a long-term need for these services. 4. The contract's value is substantial, indicating a critical support function. 5. Performance is located in Colorado, potentially impacting the local economy. 6. No small business set-aside was utilized, raising questions about broader economic inclusion.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source administrative services contracts. The fixed-price level-of-effort structure aims to control costs, but the absence of competition means there's no direct market comparison to assess if the $31 million represents optimal value. Further analysis would require understanding the specific services rendered and the contractor's historical performance and pricing on similar engagements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach typically occurs when only one vendor is capable of providing the required services, or for reasons of urgency or national security. The lack of competition limits the government's ability to solicit bids from multiple providers, potentially impacting price discovery and the opportunity for a wider range of vendors to secure the work.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that can arise from a competitive bidding process. The absence of multiple bids means the government cannot be assured it received the lowest possible price for these administrative services.

Public Impact

The Department of the Air Force benefits from essential administrative support services. The contract ensures the continuity of office administrative functions critical to operations. Services are delivered in Colorado, potentially supporting the local workforce and economy. The duration of the contract suggests a stable, long-term need for these specialized administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of small business set-aside may reduce opportunities for smaller firms.
Long contract duration could lead to vendor lock-in if not managed effectively.

Positive Signals

Fixed-price level-of-effort contract type can provide cost certainty for the government.
Award to a single, potentially specialized, contractor may ensure high-quality service delivery.
Clear performance period (nearly 3 years) allows for predictable resource allocation.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on office administrative services. This sector is broad and supports various government functions. While specific market size data for sole-source administrative support is difficult to isolate, the overall government spending on administrative and support services is substantial, often involving fixed-price or cost-reimbursement contracts. The $31 million awarded here represents a significant investment in maintaining operational efficiency within the Department of the Air Force.

Small Business Impact

The contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses based on the provided data. This means that opportunities for small businesses to participate in this significant contract are limited. The absence of a small business focus in this sole-source award could mean that the government is not actively leveraging its purchasing power to foster the growth and development of the small business ecosystem in this particular instance.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Accountability measures are inherent in the fixed-price level-of-effort structure, which obligates the contractor to deliver a defined scope of work within a specified timeframe. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the procurement process less robust. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules
Department of Defense Administrative Support Contracts
Office Management and Administrative Services

Risk Flags

Sole-source award lacks competitive pricing.
Potential for contractor lock-in due to long duration.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to LMI CONSULTING, LLC. PKF-CHWALIK-GREEN RAPTR SUPPORT FOR SSDP

Who is the contractor on this award?

The obligated recipient is LMI CONSULTING, 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 $31.1 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-28.

What specific administrative services are being provided under this contract?

The contract data indicates the services fall under NAICS code 561110, which is Office Administrative Services. This typically includes a range of support functions such as general office management, record keeping, scheduling, correspondence management, and potentially human resources or financial administrative support. Without more detailed contract line item numbers (CLINs) or a statement of work, the precise nature of the services remains general. However, given the substantial value and duration, these are likely critical, ongoing administrative functions essential for the operational readiness and efficiency of the Department of the Air Force unit receiving the support.

What is the justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the abbreviated data. Common reasons for sole-source awards include that the service is only available from a single source, there is a compelling urgency, or the requirement is a follow-on to a previously competed contract where only one contractor has the necessary knowledge or proprietary data. A formal Justification for Other Than Full and Open Competition (JOFOC) would typically be required and documented by the agency in such cases.

How does the fixed-price level-of-effort contract type influence contractor performance and government cost control?

A Fixed-Price Level-of-Effort (FPLE) contract is a hybrid type. The government agrees to pay a fixed price for a specified level of effort (e.g., hours or direct labor dollars). The contractor is obligated to perform the work up to the specified level of effort. If the contractor completes the work in less effort than anticipated, the government pays the fixed price. If more effort is required, the government still pays the fixed price, but the contractor may be incentivized to be efficient. This structure provides the government with cost certainty, as the total price is fixed, while also obligating the contractor to achieve a certain amount of work. It aims to balance cost control with ensuring the necessary effort is expended.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk of a sole-source award, especially for a contract valued at $31 million, is the lack of competitive pressure. This can lead to higher prices than might be achieved in a competitive environment. There's also a risk of complacency from the contractor, as there's no immediate threat of losing the business to a competitor. Furthermore, it limits opportunities for other qualified vendors, potentially stifling innovation and market growth. Dependence on a single provider can also create vulnerability if that provider experiences financial difficulties or operational issues.

What is the historical spending pattern for similar administrative services within the Department of the Air Force?

Analyzing historical spending patterns for similar administrative services within the Department of the Air Force requires access to broader contract databases and spending reports. However, it is common for large military branches like the Air Force to contract out significant portions of their administrative support functions. Spending in this area can fluctuate based on operational tempo, force structure changes, and strategic decisions regarding insourcing versus outsourcing. Contracts for administrative services are often long-term, fixed-price, or level-of-effort arrangements, reflecting the ongoing nature of these support needs. Without specific historical data for this exact service category and contractor, a precise comparison is not possible, but the $31 million award suggests a consistent and substantial requirement.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

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: $55,895,120

Exercised Options: $39,702,231

Current Obligation: $31,055,820

Actual Outlays: $749,512

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA701423D0009

IDV Type: IDC

Timeline