DoD awards $36M contract to Mobius Consulting for technical consulting, with 4 bidders

Contract Overview

Contract Amount: $35,958,271 ($36.0M)

Contractor: Mobius Consulting, LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-16

End Date: 2027-07-15

Contract Duration: 2,190 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: DEI LABOR

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22312

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $36.0 million to MOBIUS CONSULTING, LLC for work described as: DEI LABOR Key points: 1. Contract value of $36M over 5 years suggests a significant investment in specialized expertise. 2. The presence of 4 bidders indicates a competitive procurement process for these services. 3. The contract type (Cost Plus Fixed Fee) may lead to cost overruns if not closely managed. 4. Services are categorized under 'Other Scientific and Technical Consulting Services', highlighting a need for specialized knowledge. 5. The contract's duration of 2190 days (6 years) points to a long-term requirement for the services.

Value Assessment

Rating: good

The contract value of $36M over approximately 6 years averages to $6M annually. Benchmarking this against similar 'Other Scientific and Technical Consulting Services' contracts within the Department of Defense is challenging without more specific service details. However, the presence of 4 bidders suggests a reasonable level of competition that should have helped in achieving a fair price. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, requires diligent oversight to ensure costs remain controlled and represent good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four bids received. This level of competition is generally positive, suggesting that multiple capable vendors were aware of and responded to the requirement. A moderate number of bidders like this typically allows for price discovery and encourages competitive pricing, though a higher number could potentially drive prices lower.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of securing services at a competitive market rate, preventing potential overpayment.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Missile Defense Agency, which will receive specialized technical consulting services. The services delivered are expected to support critical functions within the Missile Defense Agency, likely related to scientific and technical advancements. The geographic impact is centered around the agency's operations, primarily within Virginia where the contractor is located. Workforce implications may include the direct employment of consultants by Mobius Consulting, LLC, and potential indirect impacts on government personnel managing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to maximize profit, necessitating robust oversight.
The broad category of 'Other Scientific and Technical Consulting Services' might indicate a lack of specificity in the requirement, potentially leading to scope creep or inefficient service delivery.
Long-term contracts (6 years) can sometimes lead to complacency or a reduced sense of urgency if not actively managed and reviewed.

Positive Signals

Awarding under full and open competition ensures a broad pool of potential contractors is considered, promoting fairness and potentially better pricing.
The presence of 4 bidders indicates sufficient market interest and capability for the required services.
The contract is awarded to a specific entity, Mobius Consulting, LLC, providing a clear point of accountability for service delivery.

Sector Analysis

The 'Other Scientific and Technical Consulting Services' sector is broad, encompassing a wide range of specialized expertise. Within the federal landscape, spending on consulting services is substantial, often supporting complex program management, research, and technical development. This contract fits within the broader defense technology and consulting market, where agencies frequently procure external expertise to augment internal capabilities, particularly for highly specialized or rapidly evolving fields like missile defense.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to Mobius Consulting, LLC, a single entity, does not automatically imply a focus on small business participation. Further analysis would be needed to determine if small business goals were incorporated into the subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Missile Defense Agency. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee remains appropriate. Transparency would be assessed through contract reporting mechanisms and performance reviews. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Missile Defense Systems
Defense Technology Consulting
Scientific and Technical Services
Federal IT Consulting
Government Program Management Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad service category ('Other Scientific and Technical Consulting Services') may lack specificity.
Long contract duration (6 years) necessitates ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.0 million to MOBIUS CONSULTING, LLC. DEI LABOR

Who is the contractor on this award?

The obligated recipient is MOBIUS CONSULTING, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $36.0 million.

What is the period of performance?

Start: 2021-07-16. End: 2027-07-15.

What is the specific nature of the 'Other Scientific and Technical Consulting Services' being provided under this contract?

The provided data categorizes the services under NAICS code 541690, 'Other Scientific and Technical Consulting Services.' However, the specific nature of these services for the Missile Defense Agency is not detailed. Typically, this category can encompass a wide array of expert advice and technical support, potentially including areas like systems engineering, research and development support, cybersecurity consulting, advanced materials analysis, or specialized software development related to missile defense systems. Without further documentation, such as the Performance Work Statement (PWS), the precise deliverables and technical focus remain undefined. This lack of specificity can make it challenging to benchmark performance or assess the true value for money.

How does the $36M contract value compare to historical spending on similar services by the Missile Defense Agency?

Comparing the $36M contract value to historical spending requires access to detailed historical procurement data for the Missile Defense Agency (MDA) and specifically for 'Other Scientific and Technical Consulting Services.' The provided data indicates this is a definitive contract awarded in July 2021 with an end date in July 2027, spanning approximately six years. Averaging $6M per year, this represents a significant but not necessarily extraordinary expenditure for a major defense agency like the MDA, which manages complex, high-technology programs. To provide a precise comparison, one would need to analyze MDA's spending trends for similar NAICS codes (541690) over the past 5-10 years, looking at the number, size, and duration of comparable contracts to establish a benchmark.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this Cost Plus Fixed Fee (CPFF) contract?

For a Cost Plus Fixed Fee (CPFF) contract, key performance indicators (KPIs) typically revolve around meeting technical specifications, adhering to project milestones, and delivering the defined scope of work within the agreed-upon fixed fee. Specific KPIs would be detailed in the contract's Performance Work Statement (PWS). Risk mitigation strategies for CPFF contracts are crucial due to the government bearing the cost risk. These include robust oversight of contractor expenditures, regular audits, clear definition of allowable costs, and strong program management to monitor progress and prevent scope creep. The fixed fee itself acts as a ceiling on the contractor's profit, incentivizing efficiency, but the government must diligently track costs to ensure they remain reasonable and necessary for achieving the contract objectives.

What is the track record of Mobius Consulting, LLC in delivering similar scientific and technical consulting services to the federal government?

Assessing Mobius Consulting, LLC's track record requires examining their past performance on federal contracts, particularly those involving scientific and technical consulting services. This would involve reviewing contract databases (like FPDS or SAM.gov) for previous awards, contract values, performance ratings (if available), and the types of services rendered. Information on past performance, including any past performance questionnaires (PPQs) submitted by previous contracting officers, would provide insights into their reliability, technical competence, and ability to manage costs and schedules. Without access to this specific performance history, it's difficult to definitively evaluate their suitability and past success in delivering comparable services.

How does the competition level (4 bidders) impact the potential for cost savings or innovation in this contract?

A competition level of four bidders for this 'Other Scientific and Technical Consulting Services' contract suggests a healthy market response. This number generally provides sufficient choice to foster competitive pricing, as bidders are motivated to offer attractive terms to win the award. It allows the contracting agency to compare different technical approaches and price points, potentially leading to better value. While more bidders could theoretically drive prices lower, four is often considered a strong number that balances competition with the practicalities of finding qualified vendors. Regarding innovation, the competitive pressure might encourage bidders to propose more efficient or novel solutions, although the specific contract type (CPFF) and the nature of consulting services can influence the extent of innovation driven solely by competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical 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: HQ085820R0007

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: HZE

Contractor Details

Parent Company: Mobius Consulting LLC

Address: 6301 LITTLE RIVER TPK, ALEXANDRIA, VA, 22312

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $64,455,302

Exercised Options: $45,528,580

Current Obligation: $35,958,271

Actual Outlays: $18,434,816

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline