DoD's $28.8M consulting contract with Integrated Resource Technologies Inc. shows fair value despite limited competition

Contract Overview

Contract Amount: $28,800,448 ($28.8M)

Contractor: Integrated Resource Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-23

End Date: 2014-03-25

Contract Duration: 2,009 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ODC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20593

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $28.8 million to INTEGRATED RESOURCE TECHNOLOGIES INC for work described as: ODC Key points: 1. The contract's value appears reasonable when benchmarked against similar management consulting services. 2. Competition was limited, raising questions about optimal price discovery and potential cost efficiencies. 3. Performance risks were moderate, with contract duration and type suggesting a need for ongoing oversight. 4. The contract falls within a common spending category for administrative and management consulting. 5. This spending represents a small fraction of the overall Department of Defense budget for consulting services.

Value Assessment

Rating: fair

The total award amount of $28.8 million for administrative management and general management consulting services appears to be within a reasonable range when compared to industry benchmarks for similar contracts. The pricing structure, based on labor hours, allows for flexibility but necessitates careful monitoring to ensure efficiency. Without more granular data on specific services rendered and hours billed, a precise value-for-money assessment is challenging, but the overall expenditure does not immediately suggest overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded, leading to a limited pool of bidders. The exact number of bidders is not specified, but the designation suggests that the initial competition may have been narrowed down. Limited competition can sometimes lead to higher prices than a truly open market, as the number of potential offerors is restricted.

Taxpayer Impact: The limited competition may have resulted in taxpayers not benefiting from the most competitive pricing achievable through a broader bidding process.

Public Impact

The Department of Defense benefits from enhanced administrative and management consulting services. Services provided likely support strategic planning, operational efficiency, and program management within the agency. The geographic impact is primarily within the District of Columbia, where the contractor is based. Workforce implications include the utilization of specialized consulting expertise to augment government capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Lack of specific performance metrics makes assessing effectiveness difficult.
Contract duration and type (labor hours) may increase cost uncertainty if not managed closely.

Positive Signals

Contract awarded to a firm with experience in management consulting.
The contract falls within a standard service category for government agencies.
The award amount is not excessively large for a multi-year consulting engagement.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. Comparable spending benchmarks for management consulting services vary widely based on scope and duration, but this contract's value is consistent with medium-to-large scale engagements.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of significant subcontracting opportunities for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific contract is likely minimal.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, program managers, and potentially an Inspector General's office within the Department of Defense. Accountability is managed through contract performance reviews and adherence to the terms of service. Transparency is facilitated by federal contract databases, though detailed performance data may be limited.

Related Government Programs

Management and Consulting Services
Professional Services Contracts
Department of Defense Administrative Support

Risk Flags

Limited competition may impact cost-effectiveness.
Labor hour contracts require diligent oversight to control costs.
Justification for exclusion of sources in competition needs review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.8 million to INTEGRATED RESOURCE TECHNOLOGIES INC. ODC

Who is the contractor on this award?

The obligated recipient is INTEGRATED RESOURCE TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Security Cooperation Agency).

What is the total obligated amount?

The obligated amount is $28.8 million.

What is the period of performance?

Start: 2008-09-23. End: 2014-03-25.

What was the specific nature of the administrative management and general management consulting services provided under this contract?

The contract, NAICS code 541611, specifies 'Administrative Management and General Management Consulting Services.' While the data does not detail the exact services, this typically encompasses strategic planning, organizational analysis, process improvement, policy development, and general management advice. For a contract of this size and duration with the Department of Defense, it likely supported high-level initiatives, program management, or organizational restructuring efforts aimed at improving efficiency and effectiveness within the agency.

How does the total award amount of $28.8 million compare to similar federal contracts for management consulting services?

The total award of $28.8 million over its period of performance (approximately 5.5 years) averages around $5.2 million per year. This figure is within the typical range for significant federal consulting contracts, especially those supporting large agencies like the Department of Defense. Benchmarking requires detailed comparison of scope, duration, and specific services, but this amount is not an outlier and suggests a substantial, but not unprecedented, investment in consulting expertise.

What are the potential risks associated with a 'Full and Open Competition After Exclusion of Sources' award type?

This award type, 'CT: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicates that the agency initially intended full and open competition but later excluded certain sources. This can introduce risks such as a reduced number of qualified bidders, potentially leading to less competitive pricing and fewer innovative solutions. It may also raise questions about the justification for excluding sources, which could impact fairness and transparency in the procurement process. The agency must have a documented rationale for such exclusions.

What was the contractor's track record with the Department of Defense prior to or during this contract?

Integrated Resource Technologies Inc. (co) has a history of contracting with the federal government, including the Department of Defense. The data indicates this specific contract (aw) was a definitive contract awarded in 2008 and ending in 2014. Without access to performance reviews or past performance databases, a detailed assessment of their track record specifically for this contract is not possible from the provided data alone. However, the award of a multi-year contract suggests a level of confidence from the agency.

What is the significance of the contract being awarded on a 'Labor Hours' basis?

Awarding a contract on a 'Labor Hours' (pt: LABOR HOURS) basis means that payment is based on the actual hours worked by the contractor's personnel at pre-negotiated rates. This provides flexibility, especially for services where the exact amount of effort is difficult to predict upfront, such as consulting. However, it also shifts some risk to the government, as costs can escalate if more hours are required than initially anticipated. Effective oversight and clear task orders are crucial to manage costs under this type of contract.

How does this contract fit into the broader spending patterns for administrative and management consulting services within the federal government?

Spending on administrative management and general management consulting services (NAICS 541611) is a consistent and significant category within federal procurement. Agencies across the government utilize these services to improve operations, develop strategies, and manage complex programs. This $28.8 million contract, while substantial for a single award, represents a typical investment for a large agency like the DoD seeking specialized expertise. It aligns with broader trends of federal agencies outsourcing certain functions to gain efficiency and access specialized knowledge.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ001308R0005

Offers Received: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4401 FORD AVE STE 308, ALEXANDRIA, VA, 22302

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $28,800,448

Exercised Options: $28,800,448

Current Obligation: $28,800,448

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline