DoD's $33M contract for statistical analysis support awarded to Kennell & Associates Inc

Contract Overview

Contract Amount: $33,080,874 ($33.1M)

Contractor: Kennell & Associates Inc

Awarding Agency: Department of Defense

Start Date: 2022-04-18

End Date: 2026-12-17

Contract Duration: 1,704 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUPPORT FOR STATISTICAL ANALYSIS IN THE AREAS OF (1) BUDGETING, PRICING AND FINANCIAL ANALYSIS (2) POLICY ANALYSIS (3) LIFECYCLE CONTRACT MANAGEMENT (4) CONTRACT COST ADJUSTMENT AND (5) REIMBURSEMENT SUPPORT.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.1 million to KENNELL & ASSOCIATES INC for work described as: SUPPORT FOR STATISTICAL ANALYSIS IN THE AREAS OF (1) BUDGETING, PRICING AND FINANCIAL ANALYSIS (2) POLICY ANALYSIS (3) LIFECYCLE CONTRACT MANAGEMENT (4) CONTRACT COST ADJUSTMENT AND (5) REIMBURSEMENT SUPPORT. Key points: 1. Contract provides critical support for budgeting, pricing, policy analysis, and contract management. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of over 4 years indicates a long-term need for these services. 4. Fixed-price contract type may offer cost certainty for the government. 5. The services align with essential functions for effective federal financial management. 6. The specific NAICS code (541690) points to specialized consulting services.

Value Assessment

Rating: good

The contract value of $33.1 million over approximately 4.5 years averages to about $7.35 million annually. Benchmarking this against similar contracts for broad statistical and policy analysis support is challenging without more specific service details. However, the fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if the scope is well-defined. The award amount appears reasonable for comprehensive analytical support to a major agency like the Defense Health Agency.

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 typically leads to a more robust selection of qualified contractors and potentially better pricing due to market forces. The presence of multiple bidders, though not explicitly stated in the provided data, is generally expected in such scenarios, fostering price discovery and innovation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a wide range of offers and competitive pricing, reducing the likelihood of overpayment.

Public Impact

The primary beneficiaries are the Department of Defense and the Defense Health Agency, receiving enhanced capabilities in financial analysis and policy development. Services delivered include support for budgeting, pricing, policy analysis, lifecycle contract management, and cost adjustment/reimbursement. The geographic impact is primarily within the Department of Defense's operational sphere, supporting national defense initiatives. Workforce implications include the potential for specialized analytical roles within the contractor organization and improved decision-making for government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'support' is not tightly defined, leading to cost increases.
Reliance on a single contractor for critical analytical functions could pose a risk if performance falters.
Ensuring the contractor's methodologies and data analysis are robust and unbiased is crucial.

Positive Signals

Awarded through full and open competition, suggesting a competitive and fair process.
Fixed-price contract type provides cost predictability for the government.
The contractor, Kennell & Associates Inc., is selected to provide essential analytical support, indicating confidence in their capabilities.
Long contract duration suggests a stable and ongoing need for these specialized services.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on management and technical consulting. This sector is vital for government operations, providing expertise that agencies may lack internally. The market size for such services is substantial, with numerous firms competing to support federal agencies in areas like financial analysis, policy development, and program management. This contract represents a portion of the broader federal spending on consulting and analytical support services.

Small Business Impact

The data indicates that small business participation (ss and sb fields) was not a specific set-aside criterion for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Kennell & Associates Inc., may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or equivalent within the Department of Defense. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated through contract award databases and reporting requirements, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Budgeting and Financial Management Services
Defense Contract Management Support
Policy Analysis and Development Services
Lifecycle Contract Management
Statistical Consulting Services

Risk Flags

Potential for performance issues if contractor expertise is insufficient.
Risk of undefined scope leading to inefficiencies.
Dependency on contractor for critical analytical functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to KENNELL & ASSOCIATES INC. SUPPORT FOR STATISTICAL ANALYSIS IN THE AREAS OF (1) BUDGETING, PRICING AND FINANCIAL ANALYSIS (2) POLICY ANALYSIS (3) LIFECYCLE CONTRACT MANAGEMENT (4) CONTRACT COST ADJUSTMENT AND (5) REIMBURSEMENT SUPPORT.

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 $33.1 million.

What is the period of performance?

Start: 2022-04-18. End: 2026-12-17.

What is the track record of Kennell & Associates Inc. in performing similar federal contracts?

Assessing the track record of Kennell & Associates Inc. requires a review of their past performance on federal contracts, particularly those involving statistical analysis, budgeting, pricing, and lifecycle contract management. Publicly available data, such as the Federal Procurement Data System (FPDS) or contract award databases, can provide insights into their previous awards, contract types, agencies served, and performance ratings if available. A positive history of successful contract completion, adherence to timelines, and meeting performance standards would indicate a lower risk for this current contract. Conversely, any history of performance issues, disputes, or contract terminations would raise concerns and warrant closer scrutiny of their capabilities and management approach for this $33 million award.

How does the awarded amount compare to similar government contracts for statistical analysis support?

Directly comparing the $33.1 million award to similar contracts is complex without precise definitions of the scope of services and the duration. However, the average annual value of approximately $7.35 million suggests a significant engagement. Contracts for high-level policy analysis, complex financial modeling, and comprehensive lifecycle management often command substantial budgets. Benchmarking against contracts awarded by agencies like the Office of Management and Budget (OMB) or other large defense components for similar analytical support could provide context. The fixed-price nature of this contract also influences its comparability; cost-plus contracts for similar services might have higher nominal values but carry different risk profiles for the government. The number of bidders in the full and open competition also plays a role; a highly competitive field often drives prices down.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential scope creep, where the definition of 'support' might expand beyond initial intentions, leading to cost overruns or schedule delays, although the fixed-price nature mitigates direct cost overrun risk. Another risk is the contractor's ability to deliver high-quality, unbiased analysis consistently over the contract's duration. Mitigation strategies likely involve robust performance work statements, clear deliverables, regular progress reviews, and strong government oversight. The contractor's past performance record and the competitive nature of the award also serve as risk-reduction factors. Ensuring the contractor maintains adequate staffing with the necessary expertise is also critical. The fixed-price structure inherently places the risk of cost overruns on the contractor, incentivizing efficient performance.

How effective is the Defense Health Agency likely to be in leveraging the services provided under this contract?

The effectiveness of the Defense Health Agency (DHA) in leveraging these services depends heavily on the clarity of their requirements and their internal capacity to utilize the analytical output. The contract aims to bolster DHA's capabilities in budgeting, pricing, policy analysis, and contract management, which are fundamental to efficient operations and resource allocation. If the DHA clearly defines its analytical needs and actively engages with Kennell & Associates Inc. throughout the contract lifecycle, the insights gained can significantly improve decision-making, optimize spending, and enhance program effectiveness. Conversely, if the DHA's internal stakeholders are not fully aligned or lack the capacity to interpret and act upon the contractor's findings, the potential benefits may not be fully realized. Strong program management and clear communication channels are essential.

What are the historical spending patterns for similar analytical support services within the Department of Defense?

Historical spending patterns for analytical support services within the Department of Defense (DoD) are substantial, reflecting the complexity of its operations and the critical need for informed decision-making. The DoD consistently awards billions of dollars annually for a wide array of professional, scientific, and technical services, including policy analysis, financial management, and strategic planning. Spending in this category often fluctuates based on evolving geopolitical landscapes, technological advancements, and specific program requirements. Contracts for specialized consulting, like that awarded to Kennell & Associates Inc., are a recurring component of the DoD's budget. Analyzing past spending on similar NAICS codes (e.g., 541690) and contract types (e.g., fixed-price) can provide benchmarks for evaluating the current contract's value and necessity within the broader context of DoD's procurement history.

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: HT001120R0020

Offers Received: 3

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: $33,097,914

Exercised Options: $33,080,874

Current Obligation: $33,080,874

Actual Outlays: $1,107,798

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline