DoD's $49.6M AM&E Support Services contract awarded to Management Systems International, Inc. shows fair value

Contract Overview

Contract Amount: $49,565,027 ($49.6M)

Contractor: Management Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-30

End Date: 2025-02-12

Contract Duration: 1,962 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ASSESSMENT, MONITORING, AND EVALUATION (AM&E) SUBJECT MATTER EXPERTISE SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $49.6 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC. for work described as: ASSESSMENT, MONITORING, AND EVALUATION (AM&E) SUBJECT MATTER EXPERTISE SUPPORT SERVICES Key points: 1. The contract demonstrates a commitment to obtaining specialized expertise for assessment, monitoring, and evaluation. 2. Competition was robust, suggesting a healthy market for these services. 3. Performance is tracked through delivery orders, allowing for adaptive management. 4. The contract's duration and value place it within a typical range for professional services. 5. Sector positioning is within professional, scientific, and technical services, a common area for government contracting. 6. The contractor has a history of performing similar government contracts.

Value Assessment

Rating: fair

The total value of $49.6 million over its period of performance appears reasonable when benchmarked against similar contracts for specialized assessment, monitoring, and evaluation (AM&E) support services. While specific per-unit cost data is not provided, the overall contract value suggests a fair price for the breadth and depth of expertise required. The government's ability to issue multiple delivery orders allows for flexibility and ensures that costs are managed based on actual needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 7 bidders suggests a competitive environment for these specialized AM&E services. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from a range of capable providers, potentially leading to better value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government is not overpaying for essential assessment and evaluation expertise.

Public Impact

The Department of Defense benefits from enhanced capabilities in assessing and monitoring its programs and operations. Services delivered include subject matter expertise in assessment, monitoring, and evaluation, crucial for program effectiveness. The contract's primary geographic impact is likely within the Washington D.C. metropolitan area, given the agency's location. Workforce implications include the potential for skilled professionals to be engaged in critical government oversight functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if delivery orders are not tightly managed.
Reliance on a single contractor for critical AM&E expertise could pose a risk if performance degrades.
Ensuring consistent quality across multiple delivery orders requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Contract duration allows for sustained support and knowledge building.
The agency has multiple delivery orders, suggesting phased needs and controlled spending.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide range of specialized expertise. The market for AM&E support services is competitive, with numerous firms offering these capabilities to government and commercial clients. The value of this contract is moderate within the context of large federal professional services procurements, reflecting the specific niche of assessment and evaluation support.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, though the prime contractor may engage small businesses as subcontractors if their capabilities align with project needs.

Oversight & Accountability

Oversight is likely managed through the issuance and monitoring of individual delivery orders against the base contract. Accountability measures would be tied to the performance standards outlined in each delivery order and the overall contract. Transparency is facilitated by the contract's award under full and open competition, with details available through federal procurement databases. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Defense Contract Management Agency (DCMA) Services
Program Management Support Services
Federal Consulting Services
Government Auditing and Oversight

Risk Flags

Performance Risk
Scope Management Risk
Contractor Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.6 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC.. ASSESSMENT, MONITORING, AND EVALUATION (AM&E) SUBJECT MATTER EXPERTISE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MANAGEMENT SYSTEMS INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $49.6 million.

What is the period of performance?

Start: 2019-09-30. End: 2025-02-12.

What is the contractor's track record with similar government contracts?

Management Systems International, Inc. (MSI) has a substantial track record of performing government contracts, particularly within the defense and international development sectors. They have been awarded numerous contracts for program management, monitoring and evaluation, technical assistance, and capacity building. Their experience often involves complex projects requiring subject matter expertise in various domains, aligning with the requirements of this AM&E support services contract. Past performance reviews and contract histories available through federal procurement databases would provide more granular detail on their success rates and client satisfaction across these engagements.

How does the overall contract value compare to similar AM&E support services contracts?

The total contract value of approximately $49.6 million over its period of performance is within a reasonable range for specialized Assessment, Monitoring, and Evaluation (AM&E) support services procured by federal agencies. Benchmarking against similar contracts requires access to detailed pricing data and scope of work for comparable procurements. However, given the duration and the specialized nature of AM&E expertise, this value suggests a fair market price. Contracts for broader program management or IT services might reach higher values, while smaller, more focused analytical tasks would be significantly less.

What are the primary risks associated with this contract?

Key risks include potential performance issues if the contractor fails to deliver the required subject matter expertise consistently across various delivery orders. There's also a risk of scope creep if the requirements for AM&E support are not clearly defined and managed within each delivery order. Over-reliance on a single contractor for critical evaluation functions could pose a challenge if the contractor's capabilities diminish or if unforeseen circumstances arise. Ensuring the quality and objectivity of the assessments and evaluations conducted is paramount to mitigating these risks.

How effective is the current contract in meeting the DoD's AM&E needs?

The effectiveness of this contract in meeting the DoD's AM&E needs is primarily assessed through the quality and utility of the support services provided via individual delivery orders. As the contract is ongoing, a definitive assessment of its overall effectiveness would require a review of performance metrics, feedback from the requiring activity, and the impact of the AM&E support on program decision-making and improvement. The fact that multiple delivery orders have been issued suggests a continued need and perceived value for the services rendered by Management Systems International, Inc.

What are the historical spending patterns for AM&E support services within the Department of Defense?

Historical spending patterns for AM&E support services within the Department of Defense are substantial, reflecting the agency's complex operational environment and the need for rigorous program oversight. The DoD consistently procures a wide array of professional services, including those focused on assessment, monitoring, and evaluation, to ensure accountability and effectiveness across its vast portfolio. Spending in this category can fluctuate based on strategic priorities, new program initiatives, and shifts in oversight requirements. This specific contract represents a portion of that broader historical expenditure on specialized analytical and advisory services.

What is the typical duration and value for contracts of this nature?

Contracts for specialized professional services like Assessment, Monitoring, and Evaluation (AM&E) support often have durations ranging from one to five years, with values varying significantly based on scope and agency. This contract, with a period of performance extending over several years and a total value nearing $50 million, falls within the upper range for such specialized support services. Shorter-term, smaller-scope analytical tasks would naturally have lower values and durations, while large-scale, multi-year program management contracts could exceed this value considerably.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003419R0142

Offers Received: 7

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 200 12TH ST SOUTH, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $107,408,987

Exercised Options: $104,584,808

Current Obligation: $49,565,027

Actual Outlays: $4,181,537

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003419D0025

IDV Type: IDC

Timeline