DoD Awards $8.8M Engineering Services Contract to PCI Strategic Management LLC, Not Competed

Contract Overview

Contract Amount: $8,845,733 ($8.8M)

Contractor: PCI Strategic Management LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-10

End Date: 2026-05-31

Contract Duration: 1,724 days

Daily Burn Rate: $5.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ENGINEERING SERVICES

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $8.8 million to PCI STRATEGIC MANAGEMENT LLC for work described as: ENGINEERING SERVICES Key points: 1. Significant award value for engineering services. 2. Lack of competition raises concerns about potential overpricing. 3. Contract duration extends over multiple years, impacting long-term value. 4. Focus on engineering services within the defense sector.

Value Assessment

Rating: questionable

The contract value of $8.8M for engineering services is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to determine if the pricing is fair and reasonable.

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 may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $8.8M contract means taxpayers may not be receiving the best possible value, potentially leading to increased costs.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock in potentially inflated prices. Limited transparency into the justification for a sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of price competition

Positive Signals

Specific engineering services for U.S. Cyber Command

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for defense operations. The award value is moderate for this type of service, but the lack of competition is a key concern.

Small Business Impact

The data indicates this contract was not awarded to a small business, as 'sb' is false. Further analysis would be needed to determine if small businesses were excluded from potential subcontracting opportunities.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the services are necessary and the pricing is justified. Accountability for the decision not to compete is essential.

Related Government Programs

Engineering Services
Department of Defense Contracting
U.S. Cyber Command Programs

Risk Flags

Potential for overpayment due to lack of competition.
Risk of vendor lock-in with a sole-source provider.
Limited transparency into the procurement process.
Extended contract duration may not align with evolving needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.8 million to PCI STRATEGIC MANAGEMENT LLC. ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is PCI STRATEGIC MANAGEMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Cyber Command).

What is the total obligated amount?

The obligated amount is $8.8 million.

What is the period of performance?

Start: 2021-09-10. End: 2026-05-31.

What was the justification for awarding this contract on a sole-source basis instead of competing it?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific documentation from the Department of Defense, it's impossible to ascertain the precise reason. However, the absence of competition raises questions about whether alternative sources were thoroughly explored or if market research was inadequate.

How can the government ensure fair pricing for this sole-source engineering services contract?

Ensuring fair pricing for sole-source contracts requires robust government oversight. This includes detailed cost analysis, independent government cost estimates, and potentially negotiating specific performance metrics tied to payment. Regular reviews of the contractor's performance and costs throughout the contract's duration are also critical to mitigate risks of overpayment.

What is the potential impact of this long-term, non-competed contract on future defense engineering service procurement?

A long-term, non-competed contract can set a precedent and potentially reduce future competition if not carefully managed. It may signal to the market that sole-source awards are acceptable, discouraging new entrants. This could lead to higher overall costs for the government in the long run and limit access to innovative solutions from a broader range of providers.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

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: 6811 BENJAMIN FRANKLIN DR STE 200, COLUMBIA, MD, 21046

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: $9,415,860

Exercised Options: $9,415,860

Current Obligation: $8,845,733

Actual Outlays: $160,916

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: YES

Timeline