DoD's $11M Irregular Warfare Center contract awarded to Morgan 6, LLC raises questions about competition and value

Contract Overview

Contract Amount: $11,087,141 ($11.1M)

Contractor: Morgan 6, LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-01

End Date: 2025-08-31

Contract Duration: 456 days

Daily Burn Rate: $24.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IRREGULAR WARFARE CENTER PROGRAM SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to MORGAN 6, LLC for work described as: IRREGULAR WARFARE CENTER PROGRAM SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of 456 days suggests a need for ongoing support services. 3. The administrative management and general management consulting services category is broad and requires scrutiny for specific deliverables. 4. Lack of competition is a key risk indicator for potential overpayment. 5. The contract's value, while significant, needs benchmarking against similar support services. 6. The firm fixed-price contract type offers some cost certainty but doesn't guarantee value for money without competition.

Value Assessment

Rating: questionable

The contract value of $11,087,141.4 for approximately 15 months of support is substantial. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The firm fixed-price nature provides some cost control, but the absence of competition raises concerns about whether the government is receiving the best possible value for these management consulting services. Further analysis of the specific services rendered and their impact would be needed for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Morgan 6, LLC, was solicited. This approach bypasses the standard competitive procurement process, which typically involves multiple bidders vying for the contract. While sole-source awards can be justified under specific circumstances (e.g., urgency, unique capabilities), they inherently limit price discovery and can reduce the incentive for contractors to offer their most competitive pricing. The lack of competition here means taxpayers may not benefit from the cost savings typically achieved through a robust bidding process.

Taxpayer Impact: The absence of competition means taxpayers are not benefiting from potential cost reductions that could arise from multiple companies bidding for the contract. This could lead to higher overall spending for the services provided.

Public Impact

The primary beneficiary is the Irregular Warfare Center, which receives essential administrative and management support. Services delivered include general management consulting, likely aimed at enhancing the operational efficiency and strategic planning of the center. The geographic impact is primarily within the Washington D.C. metropolitan area, where the Washington Headquarters Services is located. Workforce implications may involve specialized consultants contributing to the center's mission, though direct job creation is not explicitly detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Broad scope of 'Administrative Management and General Management Consulting Services' could lead to scope creep or inefficient resource allocation.
Lack of transparency in the selection process due to sole-source nature.
Potential for higher costs compared to a competitively bid contract.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a single contractor can ensure continuity of services if they possess unique qualifications.
The contract supports a critical defense function (Irregular Warfare Center).

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically management and general management consulting. This sector is characterized by a wide range of service providers, from large corporations to specialized small businesses. The market size for government consulting services is substantial, with agencies frequently outsourcing expertise for strategic planning, operational improvements, and administrative support. Benchmarking this contract's value would require comparing it to other sole-source or competitively awarded contracts for similar management consulting services within the Department of Defense or other federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Morgan 6, LLC, a single entity, does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. Further investigation into Morgan 6, LLC's size and its own subcontracting practices would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and financial management offices, as well as the Washington Headquarters Services. The Inspector General of the Department of Defense may have jurisdiction for audits and investigations if concerns arise regarding waste, fraud, or abuse. Transparency is limited due to the sole-source nature of the award, making public oversight more challenging.

Related Government Programs

Department of Defense Administrative Support Contracts
Management and Consulting Services for Federal Agencies
Irregular Warfare Support Programs
Washington Headquarters Services Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to MORGAN 6, LLC. IRREGULAR WARFARE CENTER PROGRAM SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MORGAN 6, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2024-06-01. End: 2025-08-31.

What specific services are included under 'Administrative Management and General Management Consulting Services' for the Irregular Warfare Center?

The provided data does not detail the specific services. However, 'Administrative Management and General Management Consulting Services' (NAICS code 541611) typically encompass a broad range of activities. These can include organizational planning, business process improvement, strategic planning, management analysis, and general administrative support. For the Irregular Warfare Center, these services likely aim to enhance its operational effectiveness, strategic decision-making, and overall management efficiency. Without a detailed statement of work, it's difficult to ascertain the precise deliverables, but it suggests support for the center's core functions and administrative operations.

What is the track record of Morgan 6, LLC in providing similar services to the federal government?

Information regarding the specific track record of Morgan 6, LLC in providing similar services is not detailed in the provided data. As this is a sole-source award, a thorough review of the contractor's past performance, relevant experience, and technical capabilities would typically be part of the justification for such an award. Federal procurement databases and past performance reviews would be the primary sources for assessing their track record. Without access to these, it's challenging to evaluate their suitability and past success in delivering comparable management consulting services, especially in a defense context.

How does the $11 million contract value compare to similar support services for defense centers?

Benchmarking the $11 million contract value for approximately 15 months of support is difficult without more specific details on the services rendered and the contractor's qualifications. However, for specialized management and administrative consulting services within the Department of Defense, this value is substantial but not necessarily outside the norm for complex support requirements. The key concern here is the lack of competition. If this contract had been competitively bid, it might have resulted in a lower price. Comparing it to similar sole-source awards for comparable services would be the most relevant benchmark, but such data is not readily available.

What are the potential risks associated with a sole-source award for these services?

The primary risk associated with a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced value for money. Taxpayers may end up paying more than necessary for the services. Additionally, sole-source awards can limit the government's access to innovative solutions or specialized expertise that might be offered by other qualified contractors. There's also a potential for reduced transparency in the procurement process and a perception of favoritism, although justifications for sole-source awards are typically required to mitigate these concerns. Ensuring the contractor has unique capabilities is crucial to justify bypassing competition.

What is the historical spending pattern for Irregular Warfare Center program support services?

The provided data only includes information for this specific contract award. To understand historical spending patterns for Irregular Warfare Center program support services, one would need to analyze past contracts awarded to this center or for similar functions within the Department of Defense. This would involve querying federal procurement databases for historical awards, identifying trends in spending, contract types, durations, and the contractors involved. Without this historical data, it's impossible to assess if this $11 million award represents an increase, decrease, or continuation of previous spending levels for such support.

Are there any specific performance metrics or deliverables tied to this contract?

The provided data does not specify the performance metrics or deliverables associated with this contract. Typically, a contract of this nature, especially a firm fixed-price one, would include a detailed Statement of Work (SOW) outlining specific tasks, objectives, and measurable outcomes. Performance standards and metrics are crucial for ensuring the contractor meets expectations and delivers value. Without access to the SOW or contract clauses related to performance, it is difficult to assess how the effectiveness and quality of the services provided by Morgan 6, LLC will be measured and ensured.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ003424R0266

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 997 MORRISON DR, CHARLESTON, SC, 29403

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,087,141

Exercised Options: $11,087,141

Current Obligation: $11,087,141

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline