DoD awards $3.5M administrative management consulting contract to QUALX, LLC, with a 5-year performance period

Contract Overview

Contract Amount: $3,504,796 ($3.5M)

Contractor: Qualx, LLC

Awarding Agency: Department of Defense

Start Date: 2022-02-17

End Date: 2027-01-16

Contract Duration: 1,794 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOIA/ PRIVACY ACT SPPT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $3.5 million to QUALX, LLC for work described as: FOIA/ PRIVACY ACT SPPT Key points: 1. Contract value appears reasonable for a 5-year administrative management consulting engagement. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. Contract performance period extends over 5 years, indicating a long-term need. 4. The contract falls under administrative management and general management consulting services. 5. This contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The firm fixed price contract type helps mitigate cost overrun risks.

Value Assessment

Rating: good

The contract value of $3.5 million over nearly 5 years averages to approximately $700,000 per year. This figure seems within a reasonable range for specialized administrative management and general management consulting services provided to a federal agency like the Department of Defense. Benchmarking against similar contracts for management consulting services would provide a more precise value-for-money assessment, but initial indications suggest fair pricing given the scope and duration.

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 offers. This method typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The specific number of bidders is not provided, but the method itself suggests a robust competition was intended and likely achieved, which is beneficial for price discovery.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Department of Defense is the primary beneficiary, receiving administrative management and general management consulting services. Services delivered are expected to enhance the operational efficiency and management practices within the DoD. The contract is geographically located in Virginia, impacting the local economy and workforce. Potential workforce implications include support roles and specialized consulting positions within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the consulting services.
The long performance period could lead to vendor lock-in if not managed carefully.
Details on the specific scope of work are limited, raising questions about potential scope creep.

Positive Signals

The use of full and open competition suggests a commitment to achieving competitive pricing.
A firm fixed price contract type helps control costs and provides budget certainty.
The contract is a delivery order under an IDIQ, which can streamline future procurements for similar services.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal procurement landscape, supporting various government functions. This contract, valued at $3.5 million over five years, represents a modest investment within this sector. Comparable spending benchmarks for management consulting services within the Department of Defense can vary widely based on the specific expertise required, but this contract appears to be of moderate size.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus was on full and open competition, which may include small businesses if they were capable of meeting the requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of Defense's Washington Headquarters Services. Accountability measures are inherent in the firm fixed price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance details may be less public.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Department of Defense Operations Support

Risk Flags

Long contract duration may not align with evolving needs.
Lack of specific performance metrics could hinder value assessment.
Potential for vendor lock-in over the contract's lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.5 million to QUALX, LLC. FOIA/ PRIVACY ACT SPPT

Who is the contractor on this award?

The obligated recipient is QUALX, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2022-02-17. End: 2027-01-16.

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

The contract falls under the North American Industry Classification System (NAICS) code 541611, which covers Administrative Management and General Management Consulting Services. This typically includes services such as organizational planning, performance management, administrative process improvement, and general management consulting. While the specific tasks are not detailed in the provided data, these services are intended to support the operational and strategic objectives of the Washington Headquarters Services within the Department of Defense. The firm fixed price nature suggests a defined scope of deliverables is expected.

How does the contract value of $3.5 million compare to similar administrative consulting contracts within the DoD?

The contract value of $3.5 million over nearly five years, averaging around $700,000 annually, is a moderate investment for administrative management consulting within a large agency like the Department of Defense. Without access to a comprehensive database of all DoD consulting contracts, a precise comparison is difficult. However, consulting engagements can range from tens of thousands to tens of millions of dollars depending on the complexity, duration, and criticality of the services. This contract appears to be within a typical range for specialized, long-term support rather than a large-scale transformation project.

What are the potential risks associated with a five-year contract for consulting services?

A significant risk with a five-year contract for consulting services is the potential for the scope of work to become outdated or misaligned with evolving agency needs, leading to reduced value or the need for costly modifications. There's also a risk of 'vendor lock-in,' where the agency becomes overly reliant on the incumbent contractor, making it difficult to switch providers or bring services in-house. Furthermore, if performance metrics are not clearly defined and monitored, the effectiveness of the consulting services may be difficult to ascertain, potentially leading to wasted resources. The firm fixed price structure mitigates some financial risk, but performance risk remains.

What does the 'delivery order' designation imply for this contract?

The designation 'DELIVERY ORDER' indicates that this contract is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQ contracts allow agencies to procure a range of supplies or services over a set period, with specific quantities and delivery dates defined by individual delivery or task orders. This approach streamlines the procurement process for recurring or anticipated needs, as the foundational contract has already been awarded through a competitive process. This specific delivery order represents a defined portion of the work under that overarching IDIQ.

What is the significance of the contract being awarded under 'FULL AND OPEN COMPETITION'?

Awarding the contract under 'FULL AND OPEN COMPETITION' signifies that the Department of Defense solicited proposals from all eligible and responsible sources without restrictions. This is generally considered the preferred method of government contracting as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. It implies that the agency did not limit the competition to specific small businesses or use other restrictive practices. This approach is intended to ensure the government obtains the best value by leveraging the widest possible market.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003421R0155

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6564 LOISDALE CT STE 305, SPRINGFIELD, VA, 22150

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

Financial Breakdown

Contract Ceiling: $4,194,947

Exercised Options: $4,194,947

Current Obligation: $3,504,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003422D0004

IDV Type: IDC

Timeline