DoD's $26.1M consulting contract with Kennell & Associates Inc. shows fair value with 2 bidders
Contract Overview
Contract Amount: $26,124,371 ($26.1M)
Contractor: Kennell & Associates Inc
Awarding Agency: Department of Defense
Start Date: 2014-09-30
End Date: 2020-03-15
Contract Duration: 1,993 days
Daily Burn Rate: $13.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CL,CT::IGF POLICY AND STATISTICAL ANALYSIS SERVICES
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $26.1 million to KENNELL & ASSOCIATES INC for work described as: IGF::CL,CT::IGF POLICY AND STATISTICAL ANALYSIS SERVICES Key points: 1. The contract's value appears reasonable given the duration and scope of administrative management consulting services. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance occurred over a significant period, allowing for evaluation of sustained service quality. 5. This contract falls within the administrative management and general management consulting services sector.
Value Assessment
Rating: fair
The contract's total value of approximately $26.1 million over nearly 6 years suggests a moderate annual spend. Benchmarking against similar administrative management consulting contracts is challenging without more specific service details. However, the fixed-price nature of the award provides a degree of cost certainty. The number of bids received (2) indicates some level of interest, but not a highly competitive market.
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 offers. With two bids received, the competition level was moderate. This suggests that while multiple firms were aware of and interested in the opportunity, the market may not be saturated with providers for this specific type of administrative management consulting.
Taxpayer Impact: A competitive process, even with two bidders, generally benefits taxpayers by encouraging more favorable pricing and service terms compared to sole-source awards.
Public Impact
The Department of Defense, specifically the Defense Health Agency, is the primary beneficiary of these administrative management consulting services. Services likely supported the agency's operational efficiency, strategic planning, and management functions. The geographic impact is centered around the Defense Health Agency's operations, primarily in Virginia. The contract supported professional services roles, contributing to the federal workforce in administrative and management consulting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition (2 bidders) could indicate potential for higher prices than a more robustly competed contract.
- The long contract duration (nearly 6 years) increases the risk of service relevance diminishing over time if not actively managed.
- Lack of specific performance metrics makes it difficult to assess the true value and impact of the consulting services.
Positive Signals
- Awarded under full and open competition, ensuring a broad search for qualified contractors.
- Firm Fixed Price contract type helps control costs and shifts risk to the contractor.
- The contractor, Kennell & Associates Inc., has a track record of performing federal contracts, suggesting some level of established capability.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a broad category encompassing a wide range of support services for government agencies. The market for these services is generally large and diverse, with many firms capable of providing such expertise. The annual value of this contract, averaging around $4.5 million, is moderate within the context of large federal consulting awards.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits to the small business ecosystem stemming from a set-aside provision. The prime contractor, Kennell & Associates Inc., is likely a mid-to-large-sized firm if it was competing for a contract of this value.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Defense Health Agency. As a definitive contract, it would be subject to standard federal procurement regulations and oversight. Transparency is generally provided through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Health Agency Operations Support
- Management and Consulting Services
- Federal Administrative Support Contracts
- Department of Defense Professional Services
Risk Flags
- Limited Competition
- Long Contract Duration
- Lack of Specific Performance Metrics
Tags
defense, department-of-defense, defense-health-agency, consulting-services, administrative-management, general-management, definitive-contract, firm-fixed-price, full-and-open-competition, virginia, professional-services, naics-541611
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.1 million to KENNELL & ASSOCIATES INC. IGF::CL,CT::IGF POLICY AND STATISTICAL ANALYSIS SERVICES
Who is the contractor on this award?
The obligated recipient is KENNELL & ASSOCIATES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $26.1 million.
What is the period of performance?
Start: 2014-09-30. End: 2020-03-15.
What was the specific nature of the administrative management and general management consulting services provided under this contract?
The provided data classifies the contract under NAICS code 541611 (Administrative Management and General Management Consulting Services). While the specific tasks are not detailed, these services typically encompass areas such as organizational structure review, process improvement, strategic planning support, policy development assistance, and general management advisory functions. For the Defense Health Agency, this could have involved optimizing healthcare delivery processes, improving administrative workflows, supporting strategic initiatives, or enhancing overall operational efficiency within the agency.
How does the contract's value compare to similar consulting contracts awarded by the DoD or other federal agencies?
The total contract value of $26.1 million over approximately 6 years equates to an average annual value of roughly $4.5 million. This is a moderate-sized contract for consulting services within the federal government. Larger, more complex consulting engagements can reach tens or hundreds of millions of dollars. Smaller, more specialized consulting tasks might be in the hundreds of thousands or low millions. Without knowing the precise scope and deliverables, a direct comparison is difficult, but it appears to be within a common range for significant, multi-year administrative support contracts.
What is the track record of Kennell & Associates Inc. in performing federal contracts, particularly with the Department of Defense?
Kennell & Associates Inc. has a history of performing federal contracts, as indicated by this award. While the provided data doesn't detail their entire contract history, the fact that they were awarded this significant contract by the Defense Health Agency suggests they possess the necessary qualifications and experience. Further investigation into their past performance ratings, other awarded contracts, and client feedback would provide a more comprehensive understanding of their track record.
What were the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?
The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate the success of this contract. Typically, for consulting services, KPIs might include adherence to project timelines, quality of deliverables, client satisfaction, achievement of specific process improvement targets, or successful implementation of strategic recommendations. The absence of this information in the summary data makes a definitive assessment of the contract's effectiveness challenging.
What is the historical spending trend for administrative management and general management consulting services within the Defense Health Agency?
The provided data focuses on a single contract and does not offer historical spending trends for the Defense Health Agency (DHA) in this category. To assess trends, one would need to analyze DHA's spending on NAICS code 541611 and similar codes over multiple fiscal years. This would involve examining contract databases to identify the volume, value, and types of consulting services procured by the DHA over time, looking for patterns of increase, decrease, or stability in spending.
Given the contract's duration and fixed-price nature, what are the potential risks and benefits for the government?
The primary benefit of the Firm Fixed Price (FFP) contract type is cost certainty for the government; the price is set regardless of the contractor's actual costs. This mitigates the risk of cost overruns. A potential risk, however, is that the contractor might be incentivized to cut corners on quality or scope to maximize profit if the fixed price is too low relative to the effort required. The long duration (nearly 6 years) also presents a risk that the services may become less relevant or that the contractor's approach may become outdated if not actively managed and adapted.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HT001114R0018
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3130 FAIRVIEW PARK DR STE 505, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,179,946
Exercised Options: $26,124,371
Current Obligation: $26,124,371
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2014-09-30
Current End Date: 2020-03-15
Potential End Date: 2020-03-29 00:00:00
Last Modified: 2025-04-22
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