DoD's $15M Administrative Management Consulting Contract with Premier Enterprise Solutions Faces Scrutiny
Contract Overview
Contract Amount: $15,070,867 ($15.1M)
Contractor: Premier Enterprise Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2025-02-21
End Date: 2026-12-27
Contract Duration: 674 days
Daily Burn Rate: $22.4K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROFESSIONAL, TECHNICAL & ADMINISTRATIVE SUPPORT SERVICES.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $15.1 million to PREMIER ENTERPRISE SOLUTIONS, LLC for work described as: PROFESSIONAL, TECHNICAL & ADMINISTRATIVE SUPPORT SERVICES. Key points: 1. Contract awarded to Premier Enterprise Solutions, LLC for administrative management consulting. 2. The contract is valued at $15,070,867.08 and runs through December 2026. 3. Competition was conducted under SAP, indicating potential limitations in market reach. 4. The sector is Professional, Technical & Administrative Support Services, with a focus on management consulting.
Value Assessment
Rating: fair
The contract's value of $15M for administrative management consulting appears high for a single award, especially given the competition method. Benchmarking against similar contracts for general management consulting services is needed to assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), which typically limits competition to smaller businesses or specific pre-approved vendors. This method may not have achieved the best possible price discovery compared to a full and open competition.
Taxpayer Impact: The use of SAP for a contract of this size may result in higher costs for taxpayers if broader competition could have yielded better pricing.
Public Impact
Taxpayers may be overpaying for administrative management consulting services due to limited competition. The effectiveness of the consulting services provided by Premier Enterprise Solutions needs to be monitored. The Department of Defense's reliance on SAP for significant contracts warrants review for efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition via SAP
- Potentially high cost for services
- Lack of transparency in pricing benchmarks
Positive Signals
- Contract awarded to a single vendor
- Clear end date for service delivery
Sector Analysis
This contract falls within the Professional, Technical & Administrative Support Services sector, specifically general management consulting. Spending in this area can vary widely, but contracts over $10M often undergo more rigorous competition and justification.
Small Business Impact
The contract does not appear to have specific set-asides for small businesses, and the vendor, Premier Enterprise Solutions, LLC, is not identified as a small business in the provided data. Further investigation is needed to confirm if small business participation was considered.
Oversight & Accountability
Oversight should focus on the justification for using SAP for a contract of this magnitude and ensuring performance metrics are met to guarantee value for money. Regular reviews of the contract's necessity and effectiveness are crucial.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Limited competition potentially inflates cost.
- Lack of detailed scope of work.
- SAP usage for a large contract.
- No clear small business participation noted.
- Potential for vendor lock-in.
Tags
administrative-management-and-general-ma, department-of-defense, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.1 million to PREMIER ENTERPRISE SOLUTIONS, LLC. PROFESSIONAL, TECHNICAL & ADMINISTRATIVE SUPPORT SERVICES.
Who is the contractor on this award?
The obligated recipient is PREMIER ENTERPRISE SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $15.1 million.
What is the period of performance?
Start: 2025-02-21. End: 2026-12-27.
What is the specific scope of work for these administrative management consulting services, and how does it justify the $15M price tag?
The provided data lacks specific details on the scope of work. However, administrative management consulting can encompass a wide range of services, including organizational efficiency improvements, process optimization, strategic planning, and policy development. The $15M cost suggests a comprehensive and potentially long-term engagement requiring significant expertise and resources.
Given the use of SAP, what steps were taken to ensure fair pricing and prevent potential overcharging by Premier Enterprise Solutions, LLC?
Using SAP typically involves simplified procedures, which may limit price discovery. To ensure fair pricing, the agency should have conducted thorough market research, obtained quotes from multiple sources within the SAP framework, and established clear performance-based payment terms. Independent cost analysis or comparison with similar government contracts would also be prudent.
How will the effectiveness and impact of Premier Enterprise Solutions' consulting services be measured to ensure they deliver value to the Department of Defense?
Effectiveness should be measured against clearly defined Key Performance Indicators (KPIs) tied to the contract's objectives. This could include metrics related to cost savings achieved, efficiency improvements implemented, successful project completions, or enhanced organizational performance. Regular performance reviews and feedback mechanisms are essential for ongoing assessment and accountability.
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: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: HQ003424R0178
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9701 APOLLO DR STE 410, UPPER MARLBORO, MD, 20774
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $68,346,728
Exercised Options: $15,991,598
Current Obligation: $15,070,867
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ003425A0003
IDV Type: BPA
Timeline
Start Date: 2025-02-21
Current End Date: 2026-12-27
Potential End Date: 2029-12-27 00:00:00
Last Modified: 2025-12-30
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