DoD's $20.5M contract for research and business process support awarded to LMI Consulting, LLC

Contract Overview

Contract Amount: $20,529,867 ($20.5M)

Contractor: LMI Consulting, LLC

Awarding Agency: Department of Defense

Start Date: 2025-07-23

End Date: 2026-07-22

Contract Duration: 364 days

Daily Burn Rate: $56.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESEARCH AND BUSINESS PROCESS ANALYTICAL SUPPORT SERVICES TO THE OFFICE OF THE UNDERSECRETARY OF DEFENSE FOR ACQUISITION AND SUSTAINMENT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to LMI CONSULTING, LLC for work described as: RESEARCH AND BUSINESS PROCESS ANALYTICAL SUPPORT SERVICES TO THE OFFICE OF THE UNDERSECRETARY OF DEFENSE FOR ACQUISITION AND SUSTAINMENT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for administrative management and general management consulting services. 3. The duration of the contract is one year, ending July 2026. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award is a delivery order under a larger contract. 6. The primary place of performance is Washington D.C.

Value Assessment

Rating: good

The contract value of $20.5 million for a one-year period of performance for administrative management and general management consulting services appears to be within a reasonable range for specialized support to a high-level office like the Undersecretary of Defense for Acquisition and Sustainment. Benchmarking against similar large-scale consulting contracts within the federal government for strategic support would be necessary for a more precise assessment. However, the firm fixed-price nature of the contract suggests that the government has negotiated a set price, which can be advantageous if the contractor's costs are managed efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows two bids were received. While the number of bidders is relatively low for a full and open competition, it still suggests that multiple companies had the opportunity to compete for this work. The level of competition can influence pricing, with more bidders generally leading to more competitive pricing for the government.

Taxpayer Impact: A full and open competition, even with a limited number of bids, provides taxpayers with assurance that the government sought the best possible value by allowing any qualified vendor to participate. This process helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

The Office of the Undersecretary of Defense for Acquisition and Sustainment will benefit from enhanced research and business process analytical support. Services delivered will focus on improving administrative management and general management consulting. The geographic impact is primarily within Washington D.C., where the performance is located. The contract supports specialized analytical functions within the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bids (2) in a full and open competition could indicate potential barriers to entry or a niche market.
The specific nature of 'research and business process analytical support' may require highly specialized expertise, potentially limiting the pool of qualified bidders.

Positive Signals

Awarded through full and open competition, maximizing the opportunity for diverse vendors to participate.
Firm Fixed Price contract type aligns incentives for contractor efficiency and cost control.
The contract supports a critical function within the Department of Defense's acquisition and sustainment oversight.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting various government functions from policy analysis to operational efficiency. The market for such services is competitive, with numerous firms offering specialized expertise. The value of this contract, approximately $20.5 million for one year, is substantial and reflects the complexity and importance of the support required by a high-level defense office.

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. However, the prime contractor, LMI Consulting, LLC, may engage small businesses as subcontractors if it aligns with their business strategy and the contract's requirements, though this is not mandated by the award terms.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Defense's contracting officers and program managers within the Office of the Undersecretary of Defense for Acquisition and Sustainment. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements, although the specific details of the analytical support provided may be sensitive.

Related Government Programs

Defense-wide Consulting Services
Acquisition and Sustainment Support
Management and Business Process Improvement Services
Federal Professional Services Contracts

Risk Flags

Potential for limited competition despite full and open award.
Risk of contractor not possessing highly specialized analytical expertise.
Scope definition clarity for research and business process support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to LMI CONSULTING, LLC. RESEARCH AND BUSINESS PROCESS ANALYTICAL SUPPORT SERVICES TO THE OFFICE OF THE UNDERSECRETARY OF DEFENSE FOR ACQUISITION AND SUSTAINMENT

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 $20.5 million.

What is the period of performance?

Start: 2025-07-23. End: 2026-07-22.

What is the track record of LMI Consulting, LLC in performing similar federal contracts, particularly within the Department of Defense?

LMI Consulting, LLC has a significant history of performing federal contracts, including numerous awards from the Department of Defense. Their expertise often lies in areas such as logistics, advanced technology, and management consulting. Analyzing their past performance on similar contracts, especially those involving research, business process analysis, and support to high-level acquisition and sustainment offices, would reveal their ability to meet the requirements of this specific award. Past performance reviews and contract close-out data from federal procurement databases would provide insights into their reliability, quality of service, and adherence to schedules and budgets on previous engagements.

How does the $20.5 million value for one year of consulting services compare to similar contracts for administrative and management support within the DoD?

The $20.5 million value for one year of administrative management and general management consulting services for the Office of the Undersecretary of Defense for Acquisition and Sustainment is substantial. To benchmark this value, one would compare it to other contracts awarded for similar high-level advisory and analytical support within the DoD or other large federal agencies. Factors such as the specific scope of work, the seniority of the personnel required, and the complexity of the issues addressed would influence pricing. If comparable contracts for similar strategic support services are in the range of $15-25 million annually, then this award appears to be within a reasonable market range. Conversely, if similar services are consistently procured for significantly less, it might warrant further investigation into the pricing structure.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract could include scope creep, where the requirements expand beyond the initial agreement, potentially leading to cost overruns or schedule delays, although the Firm Fixed Price (FFP) contract type mitigates direct cost overrun risk for the government. Another risk is the potential for the contractor to lack the specific, nuanced expertise required for highly specialized research and business process analysis within the DoD's complex acquisition and sustainment environment. Contractor performance failure is also a risk. Mitigation strategies typically involve robust contract management, clear definition of deliverables and performance standards, regular progress reviews, and the government's ability to exercise contract remedies if performance is deficient. The FFP structure itself is a risk mitigation tool by placing cost control responsibility on the contractor.

How effective is the Firm Fixed Price (FFP) contract type in ensuring value for money for this specific type of consulting service?

The Firm Fixed Price (FFP) contract type is generally effective in ensuring value for money for well-defined services, as it incentivizes the contractor to manage costs efficiently to maximize profit. For consulting services like research and business process analysis, FFP works best when the scope of work is clearly delineated and unlikely to change significantly. If the nature of 'research and business process analytical support' is inherently dynamic or subject to evolving requirements, an FFP contract could potentially lead to the contractor being less flexible in adapting to new information or directions, or conversely, the government may need to issue modifications if significant changes arise. However, for a one-year duration, the risk of major scope shifts might be manageable, making FFP a suitable choice for cost certainty.

What is the historical spending trend for similar administrative and management consulting services within the Department of Defense over the past five years?

Analyzing historical spending trends for similar administrative and management consulting services within the Department of Defense over the past five years would provide valuable context. This would involve examining aggregate spending data for NAICS code 541611 (Administrative Management and General Management Consulting Services) and potentially related codes, specifically for the DoD. Trends might reveal an increasing, decreasing, or stable demand for such services. Understanding this trend can help assess whether the current $20.5 million award is consistent with historical investment levels, indicative of a growing need, or an outlier. It also helps in forecasting future budgetary needs and identifying potential areas for cost savings or consolidation.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003425QE006

Offers Received: 2

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: $110,876,538

Exercised Options: $21,596,782

Current Obligation: $20,529,867

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F041GA

IDV Type: FSS

Timeline