LSINC Corporation awarded $35M for HR consulting, with 4 bidders and a 2129-day duration

Contract Overview

Contract Amount: $35,078,964 ($35.1M)

Contractor: Lsinc Corporation

Awarding Agency: Department of Defense

Start Date: 2018-09-17

End Date: 2024-07-16

Contract Duration: 2,129 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF HR LABOR SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $35.1 million to LSINC CORPORATION for work described as: IGF::OT::IGF HR LABOR SUPPORT Key points: 1. Contract value appears reasonable given the extensive performance period. 2. Competition was robust with four bidders, suggesting fair market pricing. 3. Performance risk appears moderate due to the long contract duration. 4. This contract supports essential human resources functions within the Missile Defense Agency. 5. The services provided are critical for maintaining workforce efficiency and compliance.

Value Assessment

Rating: good

The contract's total value of $35,078,964.25 over 2129 days (approximately 5.8 years) suggests an average annual spend of around $6 million. This is a substantial but not excessive amount for comprehensive HR consulting services supporting a major defense agency. Benchmarking against similar large-scale HR support contracts would be necessary for a definitive value assessment, but the pricing appears within a plausible range for the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while full and open competition was intended, certain sources were excluded prior to the solicitation. With four bidders participating, the competition level suggests a healthy interest in the requirement. This level of competition is generally sufficient to drive competitive pricing, though the exclusion of specific sources might warrant further investigation into the rationale.

Taxpayer Impact: The inclusion of multiple bidders, even with some exclusions, provides a degree of assurance that taxpayer funds were not excessively spent due to a lack of viable alternatives.

Public Impact

Personnel within the Missile Defense Agency benefit from improved HR services. Services include human resources consulting, likely encompassing areas like recruitment, retention, compensation, and employee relations. The geographic impact is primarily within the Department of Defense's operational areas, likely supporting personnel nationwide. Workforce implications include ensuring the agency has the necessary HR support to manage its civilian and potentially military personnel effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2129 days) could lead to potential cost overruns if not managed tightly.
The 'exclusion of sources' clause requires scrutiny to ensure fairness and prevent undue restriction of competition.
Reliance on a single contractor for critical HR functions may pose a risk if performance degrades or the contractor faces financial instability.

Positive Signals

Award to LSINC CORPORATION, a known entity in government contracting, suggests a degree of reliability.
The presence of four bidders indicates market interest and potential for competitive pricing.
The contract's focus on HR consulting addresses a fundamental need for efficient agency operations.

Sector Analysis

Human Resources consulting is a significant segment within the professional services sector, supporting government agencies and private organizations in managing their workforce. The federal government is a major consumer of these services, particularly for specialized needs like those of defense agencies. This contract fits within the broader IT and professional services spending categories, where agencies outsource complex functions to specialized firms. Comparable spending benchmarks would typically be found within the professional services category for large federal agencies.

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 for small businesses stemming from a set-aside provision. However, the prime contractor, LSINC CORPORATION, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. Analysis of LSINC's subcontracting performance would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Missile Defense Agency. The contract type (COST PLUS FIXED FEE) necessitates close monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DoD Human Resources Management
Professional and Management Consulting Services
Defense Agency Support Services
Federal Workforce Management

Risk Flags

Long contract duration may increase risk of cost escalation.
Competition level requires scrutiny due to 'exclusion of sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.1 million to LSINC CORPORATION. IGF::OT::IGF HR LABOR SUPPORT

Who is the contractor on this award?

The obligated recipient is LSINC CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $35.1 million.

What is the period of performance?

Start: 2018-09-17. End: 2024-07-16.

What is LSINC Corporation's track record with the Department of Defense and similar HR consulting contracts?

LSINC Corporation has a history of performing contracts with the Department of Defense and other federal agencies, often in areas related to human resources, training, and program management. Their track record typically involves supporting large-scale government operations. Specific performance metrics and past performance evaluations for this particular contract or similar HR consulting efforts would provide a clearer picture of their reliability and effectiveness. Reviewing past performance questionnaires and any documented issues or commendations would be crucial for a comprehensive assessment. The company's longevity and continued awards suggest a generally satisfactory performance history, but detailed analysis of specific contract outcomes is necessary.

How does the total contract value of $35M compare to similar HR consulting contracts awarded by the DoD?

A total contract value of $35 million over nearly six years represents a significant investment in HR consulting services. To benchmark this effectively, one would need to compare it against contracts of similar scope, duration, and complexity awarded by the Department of Defense or other large federal agencies. Factors such as the number of personnel supported, the specific HR functions covered (e.g., recruitment, compensation, benefits, training, policy development), and the level of expertise required will influence pricing. Without direct comparable data points, it's challenging to definitively state if $35M is high or low. However, given the extensive performance period and the critical nature of HR support for a defense agency, the value appears plausible, assuming competitive pricing was achieved.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

Cost Plus Fixed Fee (CPFF) contracts, while allowing for flexibility, carry inherent risks, especially for large, long-duration awards like this one. The primary risk for the government is that the contractor may have less incentive to control costs rigorously, as the fixed fee is earned regardless of the final cost, provided the scope is met. This can lead to cost overruns if not managed diligently. For the contractor, the risk lies in underestimating the costs required to deliver the fixed fee, potentially leading to reduced profit margins. Effective oversight, detailed cost tracking, and robust performance management are critical to mitigate these risks and ensure the government receives good value. The long duration (2129 days) amplifies these risks, requiring sustained vigilance.

What is the expected impact of these HR consulting services on the Missile Defense Agency's operational effectiveness?

Effective human resources management is fundamental to any organization's operational success, particularly within a complex and critical entity like the Missile Defense Agency (MDA). These consulting services are expected to enhance the MDA's ability to attract, recruit, develop, and retain a skilled workforce. This includes optimizing personnel processes, ensuring compliance with regulations, improving employee morale and productivity, and supporting strategic workforce planning. By providing expert guidance on HR matters, the contractor aims to streamline operations, reduce administrative burdens on agency staff, and ultimately contribute to the MDA's core mission of defending against missile threats. Improved HR functions can lead to a more stable, efficient, and motivated workforce, directly supporting mission readiness.

How has federal spending on HR consulting services evolved over the past five years, and where does this contract fit?

Federal spending on HR consulting services has generally remained robust, reflecting the government's ongoing need for specialized expertise in managing its vast workforce. Agencies frequently outsource HR functions to leverage external knowledge, address specific challenges, or manage fluctuating workloads. Spending in this category can fluctuate based on agency priorities, budget cycles, and the emergence of new workforce challenges (e.g., remote work policies, diversity and inclusion initiatives). This $35 million contract with LSINC CORPORATION for the Missile Defense Agency represents a significant, long-term investment within this sector. It aligns with the trend of agencies utilizing professional services contracts to augment internal capabilities for critical support functions, particularly in high-stakes environments like defense.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ014718R0006

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 490 DISCOVERY DR NW, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $49,613,450

Exercised Options: $43,727,505

Current Obligation: $35,078,964

Actual Outlays: $1,406,017

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline