DoD's Air Force Awards $11.36M Contract to McKinsey for Space Warfighting Architecture Navigator
Contract Overview
Contract Amount: $11,364,086 ($11.4M)
Contractor: Mckinsey & Company, Inc. Washington D.C.
Awarding Agency: Department of Defense
Start Date: 2025-09-09
End Date: 2026-03-09
Contract Duration: 181 days
Daily Burn Rate: $62.8K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SPACE WARFIGHTING ARCHITECTURE NAVIGATOR (SWAN) NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS): 541611
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036
Plain-Language Summary
Department of Defense obligated $11.4 million to MCKINSEY & COMPANY, INC. WASHINGTON D.C. for work described as: SPACE WARFIGHTING ARCHITECTURE NAVIGATOR (SWAN) NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS): 541611 Key points: 1. McKinsey & Company, a major consulting firm, secured the contract. 2. The contract focuses on administrative and management consulting services. 3. The award is a BPA Call, indicating it's part of a larger agreement. 4. The contract duration is 181 days, ending March 9, 2026.
Value Assessment
Rating: questionable
The contract value of $11.36M for 181 days of consulting services appears high. Benchmarking against similar administrative management consulting contracts is difficult without more specific service details, but the per-day cost is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under SAP and is listed as a BPA Call. This suggests a limited competition environment, potentially impacting price discovery and value for taxpayer dollars.
Taxpayer Impact: The limited competition raises concerns about whether the government received the best possible price for these consulting services.
Public Impact
Taxpayers may be paying a premium due to the lack of full and open competition. The focus on 'Space Warfighting Architecture' suggests a critical national security area. The use of a large consulting firm like McKinsey indicates a need for specialized expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- High per-day cost for consulting services
- Contract awarded via BPA Call, not full competition
Positive Signals
- Contract awarded to a well-known consulting firm
- Focus on a critical defense area (space warfighting)
Sector Analysis
This contract falls under administrative management and general management consulting services. Spending in this sector can vary widely, but large contracts for specialized consulting, especially in defense, often involve significant investment.
Small Business Impact
The contract was awarded to McKinsey & Company, Inc., a large, well-established firm, and there is no indication that small businesses were involved in this specific award.
Oversight & Accountability
The contract is a BPA Call, which implies some level of pre-existing oversight through the parent BPA. However, the limited competition aspect warrants scrutiny to ensure accountability and value.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of full and open competition
- High cost for a short-duration contract
- Potential for contractor lock-in via BPA
- Limited transparency on specific deliverables
Tags
administrative-management-and-general-ma, department-of-defense, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.4 million to MCKINSEY & COMPANY, INC. WASHINGTON D.C.. SPACE WARFIGHTING ARCHITECTURE NAVIGATOR (SWAN) NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS): 541611
Who is the contractor on this award?
The obligated recipient is MCKINSEY & COMPANY, INC. WASHINGTON D.C..
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 $11.4 million.
What is the period of performance?
Start: 2025-09-09. End: 2026-03-09.
What specific deliverables are expected from McKinsey under the SWAN contract, and how do they align with the $11.36M cost?
The contract details do not specify the exact deliverables for the Space Warfighting Architecture Navigator (SWAN). However, given the $11.36M value and the nature of management consulting, it likely involves strategic planning, architectural design, policy development, or system integration analysis for space warfighting capabilities. The cost suggests a comprehensive scope requiring significant expert hours.
What is the justification for not competing this contract more broadly, given its significant value?
The data indicates the contract was 'NOT COMPETED UNDER SAP' and is a 'BPA CALL'. This suggests it might be fulfilling a specific need under an existing Blanket Purchase Agreement (BPA), potentially limiting the scope for further competition. However, the rationale for not seeking broader competition, especially for a substantial amount, needs further justification to ensure fair pricing and access for other qualified firms.
How will the effectiveness of McKinsey's consulting services be measured to ensure the $11.36M investment yields tangible improvements in space warfighting architecture?
Effectiveness will likely be measured through predefined milestones, deliverable acceptance, and performance metrics outlined in the Statement of Work (SOW) associated with the BPA Call. The Department of the Air Force will need to actively monitor progress against these metrics and ensure the delivered architecture solutions demonstrably enhance warfighting capabilities and align with strategic objectives.
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: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1200 19TH ST NW STE 1000, WASHINGTON, DC, 20036
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,494,607
Exercised Options: $11,364,086
Current Obligation: $11,364,086
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: FA880224A0002
IDV Type: BPA
Timeline
Start Date: 2025-09-09
Current End Date: 2026-03-09
Potential End Date: 2026-03-09 00:00:00
Last Modified: 2025-09-09
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