DHS ICE Awards $22.8M for Management Consulting to McKinsey, Full Competition
Contract Overview
Contract Amount: $22,766,550 ($22.8M)
Contractor: Mckinsey & Company, Inc. Washington D.C.
Awarding Agency: Department of Homeland Security
Start Date: 2016-12-27
End Date: 2018-07-13
Contract Duration: 563 days
Daily Burn Rate: $40.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: INTEGRATED MANAGEMENT CONSULTING SERVICES IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036
Plain-Language Summary
Department of Homeland Security obligated $22.8 million to MCKINSEY & COMPANY, INC. WASHINGTON D.C. for work described as: INTEGRATED MANAGEMENT CONSULTING SERVICES IGF::OT::IGF Key points: 1. McKinsey & Company secured a significant contract for administrative and general management consulting. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The firm fixed price contract type suggests cost certainty for the government. 4. The duration of 563 days implies a substantial project scope.
Value Assessment
Rating: good
The contract value of $22.8 million for management consulting services appears reasonable given the scope and duration. Benchmarking against similar large-scale consulting engagements for federal agencies suggests this pricing is within expected ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. This method allows all eligible vendors to bid, driving down costs and improving service quality.
Taxpayer Impact: The competitive nature of the award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.
Public Impact
Improved administrative and management processes within U.S. Immigration and Customs Enforcement. Potential for enhanced operational efficiency and effectiveness in critical immigration and customs functions. Application of expert consulting knowledge to complex governmental challenges.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term consulting engagements.
- Dependency on external expertise for internal management functions.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract type provides cost predictability.
- Experienced contractor selected.
Sector Analysis
This contract falls within the professional services sector, specifically administrative and general management consulting. Spending in this area often supports agency-wide strategic initiatives, process improvements, and organizational restructuring. Benchmarks vary widely based on the specific services and agency needs.
Small Business Impact
The contract was awarded to a large, established firm (McKinsey & Company) and there is no indication of small business participation in this specific award. Future solicitations could explore opportunities for small businesses to subcontract or lead specific components.
Oversight & Accountability
The use of full and open competition and a firm fixed price contract suggests a degree of oversight. However, ongoing monitoring of deliverables and performance will be crucial to ensure accountability and taxpayer value throughout the contract's life.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- Contract duration is substantial.
- Potential for vendor lock-in.
- Reliance on external consultants for core management functions.
- Need for robust performance monitoring.
Tags
administrative-management-and-general-ma, department-of-homeland-security, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $22.8 million to MCKINSEY & COMPANY, INC. WASHINGTON D.C.. INTEGRATED MANAGEMENT CONSULTING SERVICES IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is MCKINSEY & COMPANY, INC. WASHINGTON D.C..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).
What is the total obligated amount?
The obligated amount is $22.8 million.
What is the period of performance?
Start: 2016-12-27. End: 2018-07-13.
What specific management challenges was ICE seeking to address with this consulting engagement?
The contract aimed to address broad administrative and general management challenges within ICE. This could encompass areas such as strategic planning, organizational efficiency, process optimization, and the implementation of new management frameworks to improve overall agency operations and service delivery.
How will the effectiveness of McKinsey's consulting services be measured and evaluated by ICE?
Effectiveness is typically measured through predefined key performance indicators (KPIs) and milestones outlined in the contract. ICE would likely evaluate the successful implementation of recommendations, demonstrable improvements in efficiency or cost savings, and the achievement of strategic objectives set forth at the contract's inception.
What is the potential long-term impact of these consulting services on ICE's internal capabilities?
The long-term impact depends on the knowledge transfer and integration of recommendations. Ideally, the consulting engagement should enhance ICE's internal capabilities by embedding new processes, improving decision-making frameworks, and fostering a culture of continuous improvement, reducing future reliance on external consultants.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Mckinsey & Company, Inc. (UEI: 001673920)
Address: 1200 19TH ST NW STE 1100, WASHINGTON, DC, 20036
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,840,965
Exercised Options: $22,766,553
Current Obligation: $22,766,550
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS10F0118S
IDV Type: FSS
Timeline
Start Date: 2016-12-27
Current End Date: 2018-07-13
Potential End Date: 2019-05-04 00:00:00
Last Modified: 2019-04-04
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