Air Force awards $23.2M contract to LMI Consulting for readiness analysis and data services

Contract Overview

Contract Amount: $23,247,429 ($23.2M)

Contractor: LMI Consulting, LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-26

End Date: 2029-05-25

Contract Duration: 1,946 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AIR FORCE REQUIREMENTS SUPPORT READINESS ANALYSIS AND DATA SERVICES (RSRADS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to LMI CONSULTING, LLC for work described as: AIR FORCE REQUIREMENTS SUPPORT READINESS ANALYSIS AND DATA SERVICES (RSRADS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of nearly five years indicates a long-term need for these services. 3. LMI Consulting, LLC, is the sole awardee, highlighting their specific capabilities or market position. 4. The contract type is Firm Fixed Price, which transfers some cost risk to the contractor. 5. Services are categorized under Engineering Services, aligning with the contractor's likely expertise. 6. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or framework.

Value Assessment

Rating: good

The contract value of $23.2 million over approximately five years averages to about $4.6 million annually. Without specific benchmarks for 'Readiness Analysis and Data Services' for the Air Force, it's difficult to definitively assess value for money. However, the firm-fixed-price structure suggests that the government has negotiated a set price, which can be advantageous if the contractor's costs are managed efficiently. Further analysis would require comparing this contract's scope and pricing to similar contracts awarded to other entities for comparable 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 a bid. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The fact that it was competed broadly suggests that the Air Force sought the best value from the widest possible pool of qualified contractors.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it aims to secure the most competitive pricing and optimal solutions by allowing a broad range of potential contractors to participate.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive critical readiness analysis and data services. These services are expected to support the Air Force's operational readiness and strategic planning. The contract is managed by the Department of the Air Force, with the awardee located in Virginia. The impact on the workforce is likely to involve LMI Consulting, LLC's personnel, potentially including analysts, data scientists, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen complexities in readiness analysis.
Dependence on a single contractor (LMI Consulting, LLC) for critical readiness data could pose a risk if performance issues arise.
The long contract duration might lead to vendor lock-in, making it harder to switch providers if better solutions emerge.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type can provide cost certainty for the government.
The contractor, LMI Consulting, LLC, likely possesses specialized expertise in engineering services and data analysis.
The contract duration suggests a stable, long-term partnership for critical Air Force needs.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), which encompasses firms providing engineering consulting and design services. The federal government is a significant consumer of such services, particularly within the Department of Defense, for complex analysis, system design, and technical support. The market for these services is competitive, with numerous firms offering specialized expertise. Benchmarking this specific contract's value would require comparing it against other DoD contracts for similar readiness analysis and data management solutions, considering factors like scope, duration, and required expertise.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors on this award. However, LMI Consulting, LLC, may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their subcontracting plans and the nature of the services required. The absence of a small business set-aside means the primary competition was likely among larger, established firms.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force contracting and program management offices. They will be responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing payments. The firm-fixed-price nature of the contract shifts some cost oversight to performance monitoring. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if allegations of fraud, waste, or abuse arise.

Related Government Programs

Air Force Readiness Programs
DoD Data Analytics Initiatives
Engineering and Technical Services Contracts
Defense Readiness Reporting Systems

Risk Flags

Potential for contractor performance issues impacting critical readiness data.
Risk of cost escalation if contract scope is not tightly managed.
Dependence on a single vendor for specialized analytical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to LMI CONSULTING, LLC. AIR FORCE REQUIREMENTS SUPPORT READINESS ANALYSIS AND DATA SERVICES (RSRADS

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 $23.2 million.

What is the period of performance?

Start: 2024-01-26. End: 2029-05-25.

What is LMI Consulting, LLC's track record with the Department of Defense and specifically the Air Force?

LMI Consulting, LLC has a history of performing work for the federal government, including the Department of Defense. While specific details on their past performance with the Air Force for readiness analysis and data services are not provided in this data snippet, their ability to win a contract of this magnitude suggests they have demonstrated relevant capabilities and experience. A deeper dive into contract databases and performance reviews would be necessary to fully assess their track record, including any past issues or commendations related to similar service delivery. Their presence as a sole awardee in this instance implies a strong competitive standing based on past performance or proposed approach.

How does the $23.2 million contract value compare to similar Air Force readiness analysis contracts?

Direct comparison of the $23.2 million contract value requires access to a broader dataset of similar Air Force readiness analysis and data services contracts. The average annual value of this contract is approximately $4.6 million ($23.2M / ~5 years). Without specific benchmarks for the scope and complexity of 'readiness analysis and data services,' it's challenging to definitively state if this represents high or low value. Factors such as the specific data sets analyzed, the analytical tools employed, the depth of reporting required, and the contractor's overhead structure would influence pricing. Benchmarking against contracts with similar durations, service scopes, and awarded to comparable firms would provide a more robust assessment.

What are the primary risks associated with this firm-fixed-price contract for readiness analysis?

The primary risks associated with this firm-fixed-price contract revolve around potential cost overruns for the contractor and the possibility of scope creep if not managed tightly. While the FFP structure transfers cost risk to LMI Consulting, LLC, if the scope of 'readiness analysis and data services' proves more complex or resource-intensive than initially estimated, the contractor might face reduced profit margins or seek contract modifications. For the government, the risk lies in ensuring the contractor delivers the full scope of services as defined, without compromising quality due to cost pressures. Effective government oversight is crucial to mitigate these risks and ensure the contractor meets all performance requirements within the agreed-upon price.

How effective is the 'full and open competition' approach likely to be in ensuring optimal value for this contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring optimal value, as it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive proposals. This process encourages contractors to offer their best pricing and technical solutions to win the contract. For the Air Force's readiness analysis and data services, this means taxpayers are likely benefiting from a price that reflects market competition rather than a negotiated sole-source arrangement. The success of this approach hinges on clear solicitation requirements and a thorough evaluation process to select the proposal that offers the best overall value, considering both cost and technical merit.

What are the historical spending patterns for readiness analysis and data services within the Department of the Air Force?

Historical spending patterns for readiness analysis and data services within the Department of the Air Force are typically characterized by consistent investment due to the critical nature of maintaining operational readiness. Such contracts often span multiple years and can range significantly in value depending on the specific systems, platforms, and data requirements. Spending may fluctuate based on geopolitical conditions, modernization efforts, and evolving threats that necessitate updated readiness assessments. Analyzing past spending trends would reveal whether this $23.2 million award is in line with previous investments, higher, or lower, providing context for its scale and importance within the Air Force's overall budget for support services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA810023R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $47,167,609

Exercised Options: $23,247,429

Current Obligation: $23,247,429

Actual Outlays: $250,674

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