Spectrum Group LLC awarded $23.7M for administrative management consulting, with a significant portion for NGYCP and Starbase programs
Contract Overview
Contract Amount: $23,669,494 ($23.7M)
Contractor: THE Spectrum Group Members LLC
Awarding Agency: Department of Defense
Start Date: 2019-09-27
End Date: 2025-10-26
Contract Duration: 2,221 days
Daily Burn Rate: $10.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NGYCP AND STARBASE PROGRAM
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $23.7 million to THE SPECTRUM GROUP MEMBERS LLC for work described as: NGYCP AND STARBASE PROGRAM Key points: 1. Contract value represents a substantial investment in specialized administrative and management consulting services. 2. The firm fixed-price contract type suggests predictable costs for the government. 3. A long performance period indicates a sustained need for these services. 4. The contract was awarded under full and open competition, implying a robust bidding process. 5. The specific programs (NGYCP and Starbase) suggest a focus on program management and support within the Department of Defense. 6. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services.
Value Assessment
Rating: good
The contract value of $23.7 million for administrative management consulting appears reasonable given the multi-year duration and the scope of services likely supporting critical defense programs like NGYCP and Starbase. Benchmarking against similar large-scale consulting contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was broad, specific exclusions were applied. This suggests a competitive process that aimed to solicit bids from a wide range of qualified contractors. The number of bids received (3) is moderate, which could indicate a specialized service or a market with a limited number of highly capable providers.
Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and service proposals, potentially leading to cost savings.
Public Impact
The Department of Defense benefits from enhanced administrative and management support, crucial for program execution. The NGYCP and Starbase programs receive dedicated consulting services, aiming to improve their operational efficiency and effectiveness. Personnel within the supported programs may experience improved management practices and resource allocation. The contract supports the defense sector's administrative infrastructure, indirectly contributing to national security objectives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if program requirements evolve significantly beyond initial definitions.
- Reliance on a single contractor for critical management functions could pose a risk if performance falters.
- The 'after exclusion of sources' aspect of the competition warrants scrutiny to ensure fairness and broad opportunity.
Positive Signals
- The firm fixed-price contract type provides cost certainty for the government.
- Awarding under full and open competition suggests a deliberate effort to secure competitive pricing.
- The long contract duration allows for sustained support and potential for deep program integration.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The federal government is a major consumer of these services, particularly within defense agencies, to manage complex programs, improve efficiency, and provide specialized expertise. The market for such services is competitive, with numerous firms vying for government contracts. The value of this contract, approximately $23.7 million, is significant but not extraordinary within the context of large federal consulting engagements.
Small Business Impact
The data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often have subcontracting goals that could indirectly benefit small businesses if implemented.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Defense's Washington Headquarters Services. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Specific performance monitoring and accountability measures would be detailed in the contract's statement of work and performance standards.
Related Government Programs
- Department of Defense Management Consulting Services
- NGYCP Program Support
- Starbase Program Support
- Administrative and General Management Services
- Federal IT and Management Consulting Contracts
Risk Flags
- Competition level moderate (3 bidders) for contract value.
- Justification for 'exclusion of sources' requires review.
- Long contract duration necessitates ongoing performance monitoring.
Tags
department-of-defense, administrative-management-consulting, washington-headquarters-services, definitive-contract, firm-fixed-price, full-and-open-competition, ngycp-program, starbase-program, virginia, professional-services, management-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.7 million to THE SPECTRUM GROUP MEMBERS LLC. NGYCP AND STARBASE PROGRAM
Who is the contractor on this award?
The obligated recipient is THE SPECTRUM GROUP MEMBERS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $23.7 million.
What is the period of performance?
Start: 2019-09-27. End: 2025-10-26.
What is the historical spending trend for administrative management consulting services within the Washington Headquarters Services?
Analyzing historical spending for administrative management consulting services within Washington Headquarters Services (WHS) is crucial for context. While specific historical data for this exact contract is not provided, WHS, as a major support entity within the Department of Defense (DoD), consistently procures a wide array of professional services. Trends often show an increasing reliance on external expertise for specialized functions, program management, and administrative support, especially during periods of evolving defense strategies or complex program implementations. Fluctuations in spending can be influenced by budget allocations, specific program needs, and the competitive landscape of service providers. Understanding past spending patterns for similar NAICS codes (like 541611) within WHS can help benchmark the current $23.7 million award and identify any significant deviations or sustained investments in this service category.
How does the number of bidders (3) compare to typical competition levels for similar DoD consulting contracts?
A competition level of 3 bidders for a $23.7 million Department of Defense (DoD) administrative management consulting contract is moderate. For large-value federal contracts, especially those requiring specialized expertise or operating under specific regulatory frameworks, the number of bidders can vary significantly. While 'full and open competition' aims for the broadest possible participation, the actual number of responsive and qualified bidders often depends on the complexity of the requirement, the availability of capable firms, and the specific solicitation details. Some highly specialized or niche service contracts might naturally attract fewer bidders. Conversely, broader service categories could see dozens of offers. Therefore, 3 bidders suggests a market that is neither overly concentrated nor exceptionally broad for this particular type of service and contract value within the DoD.
What are the key performance indicators (KPIs) likely used to evaluate The Spectrum Group Members LLC's performance on this contract?
Key Performance Indicators (KPIs) for a contract focused on administrative management consulting, such as this one for The Spectrum Group Members LLC supporting NGYCP and Starbase programs, would likely revolve around efficiency, effectiveness, and adherence to project timelines and budgets. Common KPIs could include: timely delivery of reports and analyses, accuracy of financial or programmatic data provided, successful implementation of recommended process improvements, client satisfaction ratings from DoD stakeholders, achievement of specific program milestones, and adherence to the firm fixed-price budget. The contract's statement of work would detail these specific metrics, often tied to deliverables and service level agreements. Regular performance reviews would assess the contractor's progress against these KPIs.
What is the potential impact of the 'after exclusion of sources' clause on the overall competitiveness and taxpayer value?
The 'after exclusion of sources' clause in a 'full and open competition' award indicates that while the competition was broadly solicited, certain potential sources were intentionally excluded from bidding. The impact on competitiveness and taxpayer value depends heavily on the justification for these exclusions. If the exclusions were based on legitimate, well-documented reasons such as specific security clearances, unique technical capabilities, or prior performance issues with certain entities, then the competition might still be robust among the remaining qualified bidders, potentially yielding good value. However, if the exclusions were arbitrary or overly restrictive, they could limit competition, potentially leading to higher prices and reduced innovation, thereby diminishing taxpayer value. Transparency regarding the rationale for exclusions is key to assessing this impact.
How does the contract's duration (2221 days) influence risk assessment for the government?
A contract duration of 2221 days (approximately 6 years) significantly influences risk assessment for the government. On the positive side, a long duration allows for continuity of services, deep integration of the contractor into program operations, and potential for economies of scale and learning curve efficiencies, which can lead to better performance and value over time. However, it also introduces risks. Market conditions, technology, and program requirements can change substantially over six years, potentially making the contracted services or pricing less optimal. There's also the risk of contractor performance degradation over time, or the contractor becoming entrenched, making future transitions more difficult or costly. Government oversight must be robust throughout the contract's life to mitigate these long-term risks and ensure continued alignment with evolving needs.
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: HQ003419R0280
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 99 CANAL CENTER PLZ STE 450, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,008,657
Exercised Options: $23,672,794
Current Obligation: $23,669,494
Actual Outlays: $750,952
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-27
Current End Date: 2025-10-26
Potential End Date: 2025-11-26 00:00:00
Last Modified: 2025-09-26
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