DoD awards $6.45M to LMI Consulting for Human Performance R&D, raising competition concerns

Contract Overview

Contract Amount: $6,453,469 ($6.5M)

Contractor: LMI Consulting, LLC

Awarding Agency: Department of Defense

Start Date: 2025-01-27

End Date: 2027-01-26

Contract Duration: 729 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: HUMAN PERFORMANCE SBIR PHASE III

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to LMI CONSULTING, LLC for work described as: HUMAN PERFORMANCE SBIR PHASE III Key points: 1. Significant award to a single vendor for specialized R&D. 2. Lack of competition may lead to suboptimal pricing. 3. Potential for limited innovation due to sole-source nature. 4. Focus on physical, engineering, and life sciences R&D.

Value Assessment

Rating: questionable

The contract value of $6.45M for a 2-year period is substantial. Without competitive benchmarks, it's difficult to assess if this price is optimal for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces the incentive for the contractor to offer the most competitive pricing.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible value for this significant investment in R&D.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited visibility into the specific human performance research being conducted. Potential for reduced technological advancement if alternative solutions were not explored.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • Potential for overpayment

Positive Signals

  • Supports critical R&D for the Air Force
  • Long-term contract provides stability

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. The award amount is moderate for this sector, but the lack of competition is a notable concern.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained fair and reasonable pricing and that the research objectives are being met effectively.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Sole-source award
  • Lack of competitive bidding
  • Potential for inflated pricing
  • Limited transparency on research specifics
  • No small business participation indicated

Tags

research-and-development-in-the-physical, department-of-defense, al, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to LMI CONSULTING, LLC. HUMAN PERFORMANCE SBIR PHASE III

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 $6.5 million.

What is the period of performance?

Start: 2025-01-27. End: 2027-01-26.

What specific human performance research objectives does this contract aim to achieve, and how do they align with DoD priorities?

The contract focuses on 'HUMAN PERFORMANCE SBIR PHASE III' within the R&D sector. While the specific objectives are not detailed, Phase III SBIR contracts typically aim to commercialize technologies developed in earlier phases. For the DoD, this could involve enhancing soldier capabilities, improving training methodologies, or optimizing operational effectiveness through advancements in human performance.

What are the risks associated with awarding a $6.45M contract on a sole-source basis for R&D?

The primary risk is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. Without competing proposals, the government may not be aware of more cost-effective solutions or novel approaches. There's also a risk that the chosen contractor may not be the most capable or that the scope of work might not be as well-defined as it would be in a competitive environment.

How can the effectiveness of this R&D investment be measured, given the sole-source nature of the contract?

Effectiveness measurement should focus on clearly defined milestones, deliverables, and performance metrics outlined in the contract. Regular progress reviews, technical evaluations of research outcomes, and assessment of the technology's applicability to Air Force operational needs are crucial. Comparing the achieved results against the initial research goals and potential return on investment, even without direct cost comparisons, will be key.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $9,825,166

Exercised Options: $6,453,469

Current Obligation: $6,453,469

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2025-01-27

Current End Date: 2027-01-26

Potential End Date: 2028-01-26 00:00:00

Last Modified: 2025-12-16

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