DoD's $35.8M contract for financial analysis and program management support awarded to Western Door Federal, LLC

Contract Overview

Contract Amount: $35,822,130 ($35.8M)

Contractor: Western Door Federal, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-30

End Date: 2026-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $32.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FINANCIAL ANALYSIS, ACCOUNTING, AND PROGRAM MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78230

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to WESTERN DOOR FEDERAL, LLC for work described as: FINANCIAL ANALYSIS, ACCOUNTING, AND PROGRAM MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded for essential financial analysis, accounting, and program management support. 2. Western Door Federal, LLC, a Texas-based firm, secured this definitive contract. 3. The contract has a duration of 1095 days, spanning three years. 4. The award type is Firm Fixed Price, indicating predictable costs for the government. 5. This contract falls under Administrative Management and General Management Consulting Services. 6. The estimated value is over $32.7 million, with a total award of $35.8 million. 7. The contract is not available for competition, raising questions about market engagement.

Value Assessment

Rating: fair

The contract's value of $35.8 million for three years of financial analysis and program management support appears to be within a reasonable range for complex federal services. However, without specific benchmarks for similar, highly specialized support within the Defense Health Agency or comparable agencies, a precise value-for-money assessment is challenging. The Firm Fixed Price structure offers cost certainty, which is a positive indicator. Further analysis would require comparing the scope of services and deliverables against industry standards and other government contracts for similar expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, or when urgency and limited availability necessitate a direct award. The lack of competition means that the government did not benefit from a broader market solicitation, which could potentially lead to higher prices or less innovative solutions compared to a competitive process. The justification for this sole-source award would be critical to understanding its necessity.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses and may result in taxpayers paying a premium due to the absence of competitive pressure to offer the best price.

Public Impact

The primary beneficiaries are the Department of Defense and the Defense Health Agency, receiving critical support for financial operations and program management. Services delivered include financial analysis, accounting, and general management consulting, essential for efficient agency functioning. The geographic impact is primarily within Texas, where the contractor is based, though the services likely support national defense health initiatives. Workforce implications include the employment of professionals skilled in financial management, accounting, and consulting within Western Door Federal, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Sole-source awards can stifle innovation by not engaging a wider pool of potential providers.
Transparency regarding the justification for the sole-source award is crucial for public trust.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Contract supports critical functions within the Defense Health Agency.
Western Door Federal, LLC is a Texas-based entity, potentially supporting local economic activity.

Sector Analysis

The federal sector for Administrative Management and General Management Consulting Services (NAICS 541611) is substantial, with agencies frequently outsourcing specialized expertise. This contract fits within the broader trend of government reliance on contractors for complex analytical and management functions, particularly within large organizations like the Department of Defense. Benchmarking this contract's value would involve comparing it to other large-scale consulting service contracts awarded by DoD or other federal agencies for similar scope and duration, considering the specialized nature of financial and program management support.

Small Business Impact

This contract was not set aside for small businesses, nor is there an indication of significant subcontracting opportunities for small businesses. The award to Western Door Federal, LLC, a single entity, suggests a focus on established capabilities rather than fostering small business participation through set-asides or prime contracting roles. This approach may limit the direct impact on the small business ecosystem within this specific contract's scope.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and program managers within the Defense Health Agency. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency would be enhanced by public availability of the contract details and the justification for the sole-source award. Inspector General jurisdiction may apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Defense Health Agency Financial Management Services
Department of Defense Management Consulting Contracts
Federal Financial Analysis Support Services
Program Management Support Contracts
Administrative and Management Consulting Services

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of detailed performance metrics in provided data hinders full assessment.
Contractor's past performance history not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to WESTERN DOOR FEDERAL, LLC. FINANCIAL ANALYSIS, ACCOUNTING, AND PROGRAM MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is WESTERN DOOR FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $35.8 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-09-29.

What is the specific justification provided by the Department of Defense for awarding this contract on a sole-source basis to Western Door Federal, LLC?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal procurement regulations (e.g., FAR Part 6) allow for sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling requirements. Without the official justification document (often a Justification and Approval, or J&A), it is impossible to ascertain the precise reasons. These justifications typically detail why a competitive process is not feasible or advantageous, citing factors like unique capabilities, proprietary data, or extreme urgency. The lack of competition here means taxpayers did not benefit from a bidding process that could have potentially lowered the price or increased service innovation.

How does the $35.8 million contract value compare to similar financial analysis and program management support contracts within the Department of Defense or the broader federal government?

Comparing the $35.8 million value requires context regarding the scope, duration, and specific services. For a three-year definitive contract (1095 days) providing comprehensive financial analysis, accounting, and program management support, this figure appears substantial but not necessarily excessive for a large agency like the Defense Health Agency. Similar large-scale support contracts within DoD or other federal departments can range from tens to hundreds of millions of dollars, depending on complexity and scale. Benchmarking would ideally involve identifying contracts with comparable NAICS codes (541611), similar service requirements, and contract durations. However, the sole-source nature of this award makes direct comparison to competitively bid contracts more challenging, as competitive processes often drive prices down.

What are the key performance indicators (KPIs) or deliverables expected from Western Door Federal, LLC under this contract, and how will their performance be measured?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. Typically, for financial analysis, accounting, and program management support services, KPIs would relate to the accuracy and timeliness of financial reporting, the effectiveness of program management strategies implemented, adherence to deadlines for deliverables (e.g., reports, analyses, recommendations), and client satisfaction. Performance measurement would likely involve regular reviews by the Contracting Officer's Representative (COR), submission of performance reports, and potentially formal evaluations at contract milestones or upon completion. The Firm Fixed Price nature implies that meeting these defined requirements is paramount for successful contract execution.

What is the track record of Western Door Federal, LLC in performing similar government contracts, particularly those involving financial analysis and program management?

Information regarding Western Door Federal, LLC's specific track record on similar government contracts is not detailed in the provided data. As a federal contractor, their past performance is a critical factor in award decisions, especially for sole-source or limited-competition contracts. Agencies typically review a contractor's history of meeting cost, schedule, and performance requirements on previous awards. A thorough assessment would involve examining contract databases (like SAM.gov or FPDS) for prior awards to Western Door Federal, LLC, looking at their performance evaluations, and understanding the types and scale of services they have previously provided to government entities. Without this historical data, it's difficult to assess their proven capability for this specific requirement.

Given the contract's focus on financial analysis and program management, what are the potential risks associated with this engagement for the Defense Health Agency?

Potential risks associated with this engagement include: 1) Over-reliance on a single contractor (due to sole-source award), which could reduce leverage and flexibility. 2) Potential for cost overruns if the Firm Fixed Price scope is not meticulously managed or if unforeseen complexities arise. 3) Performance deficiencies if the contractor lacks the requisite expertise or resources, impacting critical financial operations or program execution. 4) Security risks related to handling sensitive financial data. 5) Contractor lock-in, making it difficult to transition to a new provider if performance issues emerge. Robust oversight and clear performance metrics are essential to mitigate these risks.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT001123R0104

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14200 PARK MEADOW DR, CHANTILLY, VA, 20151

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,822,130

Exercised Options: $35,822,130

Current Obligation: $35,822,130

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline