DoD's $20.8M Management Consulting Contract Awarded to LMI Consulting, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $20,832,544 ($20.8M)

Contractor: LMI Consulting, LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-15

End Date: 2026-02-14

Contract Duration: 1,766 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DEFENSE PRICING AND CONTRACTING - POLICY DEVELOPMENT SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to LMI CONSULTING, LLC for work described as: DEFENSE PRICING AND CONTRACTING - POLICY DEVELOPMENT SUPPORT Key points: 1. Contract awarded for administrative management and general management consulting services. 2. LMI Consulting, LLC, based in Virginia, secured the contract. 3. The contract has a duration of 1766 days, spanning from April 2021 to February 2026. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. This award was made under a full and open competition. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: good

The contract's value of approximately $20.8 million over nearly five years suggests a substantial engagement for consulting services. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure provides cost certainty for the Department of Defense. Benchmarking against similar large-scale management consulting contracts within the federal government would be necessary for a more precise evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings. The data does not specify the number of bidders, which would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider pool of qualified contractors to bid, driving efficiency.

Public Impact

The Department of Defense is the primary beneficiary, receiving policy development support. The services delivered are expected to enhance administrative management and general management practices within the DoD. The contractor, LMI Consulting, LLC, is based in Virginia, suggesting potential local economic impact. The contract's duration implies a sustained need for these consulting services, potentially impacting workforce planning and resource allocation within the DoD.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to gauge the effectiveness and ultimate value derived from the consulting services.
The broad nature of 'policy development support' could lead to scope creep if not clearly defined and managed.
Reliance on a single delivery order under a potentially larger contract vehicle may limit visibility into the overall cost and performance trends of the underlying IDIQ.

Positive Signals

The firm-fixed-price contract type offers cost predictability for the government.
Awarding under full and open competition suggests a robust procurement process that considered multiple potential offerors.
The long-term nature of the contract (nearly 5 years) indicates a stable and ongoing requirement, suggesting the services are valued and necessary.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, supporting various agencies in areas like strategy, operations, and policy. The market for federal management consulting is competitive, with numerous firms vying for contracts across different agencies. The size of this contract is moderate within the context of large federal consulting engagements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, LMI Consulting, LLC, is not identified as a small business in this context. Opportunities for small businesses would likely arise if LMI Consulting, LLC chooses to subcontract portions of this work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Defense's Washington Headquarters Services. Performance monitoring, deliverable acceptance, and invoice approval are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

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

Risk Flags

Potential for scope creep if policy development objectives are not clearly defined.
Risk of contractor performance not meeting DoD's strategic policy needs.
Dependency on contractor's ability to maintain qualified personnel over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to LMI CONSULTING, LLC. DEFENSE PRICING AND CONTRACTING - POLICY DEVELOPMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is LMI CONSULTING, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.8 million.

What is the period of performance?

Start: 2021-04-15. End: 2026-02-14.

What is the track record of LMI Consulting, LLC with the Department of Defense?

LMI Consulting, LLC has a history of performing work for the federal government, including the Department of Defense. While this specific contract is for policy development support, LMI's broader portfolio often includes areas like logistics, advanced technology, and digital transformation. Their experience typically spans various federal agencies, indicating a capacity to handle complex government requirements. A deeper dive into their past performance ratings on similar DoD contracts would provide more specific insights into their reliability and effectiveness in delivering on government objectives. Their presence in Virginia also suggests a proximity that can be advantageous for on-site support.

How does the pricing of this contract compare to similar management consulting engagements within the DoD?

Directly comparing the pricing of this $20.8 million contract without detailed knowledge of the specific services rendered, deliverables, and the labor mix involved is challenging. Federal management consulting rates can vary significantly based on the complexity of the task, the level of expertise required, and the duration of the engagement. However, given the firm-fixed-price nature, the DoD has established a ceiling cost. To benchmark effectively, one would need to compare the average daily rates or project costs for similar policy development or management consulting services procured by the DoD or other large federal agencies over the same period. The number of bidders in the full and open competition would also offer indirect clues about the competitiveness of the proposed pricing.

What are the primary risks associated with this contract for the Department of Defense?

Key risks for the Department of Defense (DoD) in this contract include potential scope creep if the policy development support is not precisely defined, leading to cost overruns or delays, although the firm-fixed-price structure mitigates direct cost overruns. Another risk is the contractor's ability to deliver high-quality, actionable policy recommendations that align with the DoD's strategic objectives. Performance risk also exists if LMI Consulting, LLC faces challenges in retaining key personnel or adapting to evolving DoD requirements. Finally, there's a risk related to the effective integration of the consultant's advice into the DoD's existing structures and processes, ensuring the recommendations are practical and sustainable.

How effective is the full and open competition process in ensuring value for this specific contract?

The full and open competition process is designed to maximize value by encouraging a wide range of qualified contractors to bid, thereby fostering price competition and innovation. For this $20.8 million contract, this process likely resulted in a competitive landscape that helped the DoD secure services at a reasonable price point. However, the ultimate effectiveness in ensuring value is also dependent on the clarity of the solicitation's requirements, the evaluation criteria used, and the contractor's subsequent performance. Without knowing the number of bids received, it's difficult to definitively state how intense the competition was, but the process itself provides a strong foundation for achieving value.

What is the historical spending trend for administrative management and general management consulting services within the Department of Defense?

The Department of Defense is a significant consumer of administrative management and general management consulting services, reflecting its vast and complex operational needs. Historical spending in this category has generally been substantial, often fluctuating based on strategic priorities, budget cycles, and specific program requirements. Agencies like the DoD frequently engage consultants to assist with organizational efficiency, strategic planning, process improvement, and policy development, similar to the services under this contract. Analyzing past years' spending data for NAICS code 541611 within the DoD would reveal trends, identify peak spending periods, and highlight major contract awards, providing context for the $20.8 million awarded to LMI Consulting, LLC.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003421R0040

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7940 JONES BRANCH DR, TYSONS CORNER, VA, 22102

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: $21,309,340

Exercised Options: $21,249,340

Current Obligation: $20,832,544

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F041GA

IDV Type: FSS

Timeline