DHS awarded $11.6M for management consulting, with VSE Corp. delivering services over 5 years

Contract Overview

Contract Amount: $11,561,463 ($11.6M)

Contractor: VSE Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2007-11-06

End Date: 2012-10-11

Contract Duration: 1,801 days

Daily Burn Rate: $6.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: INFRASTRUCTURE PROGRAM OFFICE STUDIES & ANALYSES SUPPORT PARTNERSHIP INFORMATION SHARING STUDIES & ANALYSES SUPPORT FOR THE INFRASTRUCTURE PROGRAM OFFICE, PARTNERSHIP AND OUTREACH DIVISION.

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22303

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.6 million to VSE CORPORATION for work described as: INFRASTRUCTURE PROGRAM OFFICE STUDIES & ANALYSES SUPPORT PARTNERSHIP INFORMATION SHARING STUDIES & ANALYSES SUPPORT FOR THE INFRASTRUCTURE PROGRAM OFFICE, PARTNERSHIP AND OUTREACH DIVISION. Key points: 1. The contract focused on administrative management and general management consulting, indicating a need for expert support in these areas. 2. Awarded as a competitive delivery order, suggesting multiple vendors were considered, though specific competition details are limited. 3. The contract duration of 1801 days (nearly 5 years) points to a long-term need for the services provided. 4. The use of a Time and Materials contract type can sometimes lead to cost overruns if not closely managed. 5. The services were delivered to the Office of Procurement Operations, highlighting the internal operational focus of this contract. 6. The North American Industry Classification System (NAICS) code 541611 categorizes this as Administrative Management and General Management Consulting Services.

Value Assessment

Rating: fair

The total award of $11.6 million over approximately five years averages to about $2.3 million annually. Benchmarking this against similar administrative management and general management consulting contracts is challenging without more specific service details. However, the duration and scope suggest a significant investment in consulting expertise. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost escalation if not meticulously monitored against established labor rates and ceilings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER' with 3 offers received. While competitive, the specifics of the bidding process and the number of actual bidders are not detailed. A competitive award generally implies a better opportunity for price discovery and value compared to sole-source contracts, but the ultimate value depends on the rigor of the competition and the evaluation criteria used.

Taxpayer Impact: A competitive award suggests that taxpayers likely benefited from a more efficient pricing structure than might have been achieved through a sole-source procurement, though the exact savings are not quantifiable from the provided data.

Public Impact

The primary beneficiaries are the Department of Homeland Security's Office of Procurement Operations, which received support for its administrative and management functions. The services delivered likely improved the efficiency and effectiveness of procurement processes and general management within the agency. The geographic impact is centered within the Department of Homeland Security's operational footprint, primarily in Virginia where VSE Corporation is located. Workforce implications may include the augmentation of agency staff with specialized consulting expertise, potentially leading to enhanced project management and strategic planning capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials contract type can lead to unpredictable costs if not managed tightly.
Lack of detailed competition metrics makes it difficult to fully assess the degree of price pressure achieved.
The broad NAICS code for consulting services makes it hard to pinpoint the exact nature and value of the specific services rendered.

Positive Signals

Awarded through a competitive process, indicating multiple vendors were considered.
The long contract duration suggests a sustained need and potentially a successful, ongoing relationship.
The contract was awarded to VSE Corporation, a known entity in government contracting, implying a level of established capability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is crucial for government agencies seeking specialized expertise to improve operations, strategy, and efficiency. The market for such services is large and competitive, with numerous firms offering a wide range of capabilities. This particular contract's focus on administrative and general management consulting aligns with a common need across federal agencies for optimizing internal processes and strategic planning.

Small Business Impact

The provided 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 small business set-aside. The prime contractor, VSE Corporation, is a large business, and any subcontracting would likely be at their discretion, potentially involving small businesses if deemed beneficial for specific tasks.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Homeland Security's contracting officers and program managers. As a delivery order under a larger contract vehicle, it would be subject to the oversight mechanisms of that vehicle. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Procurement Operations Support
Federal IT Consulting
Strategic Planning Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited detail on the specific outcomes and effectiveness of the consulting services provided.
Competition level, while stated as competitive, lacks granular data on bidder engagement and price negotiation effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.6 million to VSE CORPORATION. INFRASTRUCTURE PROGRAM OFFICE STUDIES & ANALYSES SUPPORT PARTNERSHIP INFORMATION SHARING STUDIES & ANALYSES SUPPORT FOR THE INFRASTRUCTURE PROGRAM OFFICE, PARTNERSHIP AND OUTREACH DIVISION.

Who is the contractor on this award?

The obligated recipient is VSE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2007-11-06. End: 2012-10-11.

What is the track record of VSE Corporation in delivering similar management consulting services to federal agencies?

VSE Corporation has a significant history of providing services to the federal government, including management and technical consulting. Their portfolio often includes support for defense, aerospace, and civilian agencies. For management consulting specifically, their experience would likely encompass areas such as strategic planning, process improvement, organizational analysis, and administrative support. Assessing their track record would involve reviewing past performance evaluations, contract awards, and any reported issues on contracts of similar scope and complexity. Without specific performance data for this particular contract, a general assessment suggests VSE is an established contractor capable of undertaking such work, but detailed project-specific performance would require further investigation into past performance reports and client feedback.

How does the $11.6 million award compare to typical spending on similar consulting services by the Department of Homeland Security?

The $11.6 million award for five years of administrative management and general management consulting services represents an average annual expenditure of approximately $2.3 million. This figure needs to be contextualized within DHS's overall budget and its specific spending on professional services. DHS, being a large cabinet-level agency, often engages in substantial consulting contracts to address complex operational, security, and administrative challenges. While $2.3 million annually for specialized consulting is not exceptionally high for an agency of DHS's size, it signifies a notable investment. Comparable spending would depend on the specific sub-agency and the criticality of the functions being supported. Benchmarking against other DHS contracts for similar NAICS codes (541611) would provide a more precise comparison, but generally, this amount reflects a significant, long-term engagement for targeted support.

What are the primary risks associated with a Time and Materials (T&M) contract for consulting services?

The primary risk with a Time and Materials (T&M) contract, like the one awarded to VSE Corporation, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize contractors to extend project timelines or increase labor hours if not rigorously monitored. For consulting services, this means the total cost can exceed initial estimates if the scope is not well-defined or if project management is lax. Effective oversight, including detailed tracking of hours, verification of work performed, and comparison against established ceilings or milestones, is crucial to mitigate these risks and ensure value for taxpayer money.

How effective was the competition for this delivery order, and what does it imply for price discovery?

This contract was awarded as a competitive delivery order with 3 offers received. While 'competitive' indicates that more than one offer was solicited and considered, the term itself doesn't specify the intensity of the competition. Three offers suggest a moderate level of competition. A higher number of bidders typically leads to more robust price discovery, as contractors are compelled to offer more competitive pricing to win the contract. With three offers, there is a reasonable expectation that pricing was evaluated against alternatives, likely resulting in a more favorable outcome for the government than a sole-source award. However, without knowing the specific evaluation criteria, the technical aspects of the proposals, and the final negotiated prices, it's difficult to definitively quantify the effectiveness of the competition in achieving optimal price discovery.

What is the historical spending pattern for administrative management and general management consulting services at DHS?

Analyzing historical spending patterns for administrative management and general management consulting services at DHS requires access to comprehensive federal procurement data over multiple fiscal years. Generally, large federal agencies like DHS consistently allocate significant funds to professional services, including management consulting, to support their vast operations and strategic initiatives. Spending in this category can fluctuate based on agency priorities, budget allocations, and the initiation of new programs or reforms. For DHS, historical data would likely show a steady demand for such services, potentially increasing during periods of organizational change or when addressing complex policy implementation. The $11.6 million awarded over five years to VSE Corporation should be viewed within this broader context of ongoing federal investment in expert advisory services.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSHQDC-07-Q-00302

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2550 HUNTINGTON AVE, ALEXANDRIA, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,175,346

Exercised Options: $11,561,463

Current Obligation: $11,561,463

Parent Contract

Parent Award PIID: GS10F0103J

IDV Type: FSS

Timeline