Administrative support contract awarded to LIONEL HENDERSON, INC. for over $33.5 million

Contract Overview

Contract Amount: $33,510,948 ($33.5M)

Contractor: Lionel Henderson, Inc

Awarding Agency: Department of Defense

Start Date: 2009-12-29

End Date: 2014-12-28

Contract Duration: 1,825 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Other

Official Description: ADMINISTRATIVE SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.5 million to LIONEL HENDERSON, INC for work described as: ADMINISTRATIVE SUPPORT Key points: 1. Contract value of $33.5 million over a 5-year period suggests a significant need for administrative support services. 2. The contract was awarded through full and open competition, indicating a potentially competitive bidding process. 3. Fixed Price Level of Effort contract type aims to control costs while ensuring a defined scope of work. 4. The duration of 1825 days (5 years) points to a long-term requirement for these services. 5. The North American Industry Classification System (NAICS) code 541611 signifies services related to administrative management and general management consulting. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: fair

The total contract value of $33.5 million over five years averages to approximately $6.7 million per year. Without specific details on the scope of administrative support provided, it is difficult to benchmark against similar contracts. However, the fixed-price nature of the contract suggests an attempt to manage costs. The contract was awarded as a delivery order, which might indicate it was part of a pre-competed larger contract, potentially offering some level of pre-negotiated value. Further analysis would require understanding the specific services rendered and comparing them to industry standards for administrative management and consulting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple companies likely vied for the contract. The number of bidders is not specified, but the open competition is generally a positive sign for price discovery and potentially achieving a fair market price. The agency sought proposals from a wide range of potential contractors, aiming to leverage the competitive landscape.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for the government's investment.

Public Impact

The primary beneficiaries are likely federal agencies requiring administrative management and general management consulting services. The services delivered encompass administrative support, potentially including tasks such as program management, operational support, and consulting. The contract is managed by the Defense Counterintelligence and Security Agency (DCSA), indicating a focus on defense-related administrative needs. The contract is located in Virginia, suggesting a significant impact on the local workforce and economy in that region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the administrative support provided.
The fixed-price contract type, while aiming for cost control, could lead to scope creep issues if not managed carefully.
Without details on the specific consulting services, it's hard to gauge the true value and impact of the management consulting aspect.
The contract's duration of five years requires ongoing monitoring to ensure continued relevance and value for money.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
The contract is managed by a specialized agency (DCSA), implying a focused need for these administrative services.
The long-term nature of the contract indicates a stable and ongoing requirement, providing consistent support.

Sector Analysis

The administrative management and general management consulting services sector is a broad category encompassing a wide range of support functions for government and private organizations. This contract, valued at over $33.5 million, falls within the significant spending in this sector by federal agencies. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the services, but the federal government consistently spends billions annually on consulting and administrative support across various departments. This contract represents a portion of that overall expenditure, likely supporting critical functions within the Department of Defense.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by 'sb: false'. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem through this specific contract is likely minimal, unless LIONEL HENDERSON, INC. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed for a comprehensive assessment.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Defense Counterintelligence and Security Agency (DCSA), the awarding agency. As a delivery order under a larger contract vehicle, there may be established oversight mechanisms from the parent contract. Transparency is generally facilitated through contract award databases, but detailed performance reports and specific oversight activities are not publicly available. The contract type (Fixed Price Level of Effort) implies monitoring of effort expended against the defined scope.

Related Government Programs

Administrative Support Services
Management and Consulting Services
Defense Agency Contracts
General Services Administration (GSA) Schedules
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Potential for scope creep in FPLE contracts.
Lack of detailed performance metrics in summary data.
Need for further investigation into contractor past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.5 million to LIONEL HENDERSON, INC. ADMINISTRATIVE SUPPORT

Who is the contractor on this award?

The obligated recipient is LIONEL HENDERSON, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $33.5 million.

What is the period of performance?

Start: 2009-12-29. End: 2014-12-28.

What specific administrative and management consulting services were provided under this contract?

The contract falls under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. While the specific details of the services rendered are not provided in the summary data, typical services under this code can include program management, operational efficiency improvements, organizational development, strategic planning, and general administrative support functions. Given the awarding agency is the Defense Counterintelligence and Security Agency (DCSA), the services likely supported counterintelligence operations, security clearances, or related administrative functions critical to national security. The fixed-price level of effort contract type suggests a defined scope of work where the contractor is paid for a specific amount of effort, implying tasks that are measurable and require dedicated resources over the contract period.

How does the $33.5 million contract value compare to similar administrative support contracts within the Department of Defense?

Benchmarking the $33.5 million contract value requires comparing it to similar administrative support and management consulting contracts awarded by the Department of Defense (DoD) over comparable timeframes (5 years). Without access to a comprehensive database of all DoD contracts with detailed service descriptions, a precise comparison is challenging. However, the DoD is a massive organization with substantial needs for administrative and consulting services, often awarding large contracts. A $33.5 million contract over five years, averaging $6.7 million annually, is a significant award but not exceptionally large within the context of the vast DoD budget. It suggests a substantial, ongoing requirement for specialized administrative support, likely within a specific directorate or program of the DCSA.

What are the key risks associated with a Fixed Price Level of Effort (FPLE) contract of this magnitude and duration?

A primary risk with FPLE contracts is the potential for scope creep if the 'level of effort' is not precisely defined or if requirements evolve significantly during the contract period. The contractor is paid for the effort expended, so if the effort required exceeds initial estimates due to poorly defined tasks or unforeseen complexities, costs can escalate beyond the initial fixed price, or the government may receive less value if the effort is insufficient. For a $33.5 million contract over five years, ensuring clear task definitions, robust monitoring of contractor effort, and effective change management processes are crucial to mitigate risks. Another risk is that the contractor might incentivize efficiency over quality if the level of effort is too tightly controlled, potentially impacting the effectiveness of the administrative support provided.

What is the track record of LIONEL HENDERSON, INC. in performing government contracts, particularly within the defense sector?

Information regarding the specific track record of LIONEL HENDERSON, INC. for this particular contract is limited in the provided data. To assess their track record, one would typically look at past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract history, and any documented issues or successes on previous government awards. For a contract of this size and duration, especially within the defense sector, a history of successful performance, adherence to schedules, and quality delivery would be expected. Without access to detailed performance data or a broader contract history, it's difficult to definitively evaluate their past performance. Further research into federal procurement databases would be necessary.

How does the competition level (full and open) potentially impact the pricing and quality of services received?

Awarding a contract through 'full and open competition' generally implies that multiple qualified vendors were able to bid, creating a competitive environment. This competition typically drives down prices as vendors strive to offer the most attractive bid to win the contract. It also encourages vendors to differentiate themselves on factors like quality, innovation, and past performance. For taxpayers, this means a higher likelihood of receiving services at a fair market price and potentially higher quality due to the vendors' efforts to stand out. However, the ultimate impact on price and quality also depends on the clarity of the solicitation requirements and the evaluation criteria used by the agency.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Address: 4827 LAGUNA PARK DR STE 3, ELK GROVE, CA, 95758

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $36,251,947

Exercised Options: $33,510,948

Current Obligation: $33,510,948

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS10F0099T

IDV Type: FSS

Timeline