DoD awards $47.6M contract for Army Medical Materiel Development, raising questions on value
Contract Overview
Contract Amount: $47,550,606 ($47.6M)
Contractor: Allied Technologies and Consulting, LLC
Awarding Agency: Department of Defense
Start Date: 2023-12-18
End Date: 2026-03-28
Contract Duration: 831 days
Daily Burn Rate: $57.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: COMMAND SUPPORT CONTRACT FOR UNITED STATES ARMY MEDICAL MATERIEL DEVELOPMENT ACTIVITY
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21702
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $47.6 million to ALLIED TECHNOLOGIES AND CONSULTING, LLC for work described as: COMMAND SUPPORT CONTRACT FOR UNITED STATES ARMY MEDICAL MATERIEL DEVELOPMENT ACTIVITY Key points: 1. Contract value of $47.6M for administrative management and general management consulting services. 2. Awarded to Allied Technologies and Consulting, LLC. 3. Competition was full and open, but specific price discovery impact is unclear. 4. Sector is Defense, specifically supporting the Army Medical Materiel Development Activity.
Value Assessment
Rating: fair
The contract value of $47.6M for administrative management consulting services appears high compared to benchmarks. Further analysis is needed to determine if the pricing reflects fair market value for the services rendered.
Cost Per Unit: $57,221
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific price discovery mechanisms and their effectiveness in ensuring optimal value are not detailed.
Taxpayer Impact: Taxpayer funds are being utilized for consulting services, and ensuring cost-effectiveness is crucial for responsible fiscal management.
Public Impact
Supports critical Army medical materiel development activities. Potential for improved efficiency in military healthcare logistics. Ensures continued access to essential consulting expertise for defense health initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for cost overruns in Time and Materials contract.
- Limited transparency on specific deliverables and outcomes.
Positive Signals
- Full and open competition utilized.
- Supports a vital defense mission.
Sector Analysis
This contract falls within the professional services sector, specifically management consulting for government agencies. Benchmarks for similar administrative and management consulting contracts within the defense sector are essential for a comprehensive value assessment.
Small Business Impact
The contract was not awarded to a small business. There is an opportunity to increase small business participation in future contracting actions within this domain.
Oversight & Accountability
Oversight will be crucial to ensure Allied Technologies and Consulting, LLC meets performance expectations and adheres to the contract terms. Regular reviews of deliverables and expenditures are necessary.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Time and Materials contract type increases cost risk.
- Lack of specific performance metrics makes effectiveness assessment difficult.
- Potential for scope creep without stringent oversight.
- No indication of small business subcontracting goals.
Tags
administrative-management-and-general-ma, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.6 million to ALLIED TECHNOLOGIES AND CONSULTING, LLC. COMMAND SUPPORT CONTRACT FOR UNITED STATES ARMY MEDICAL MATERIEL DEVELOPMENT ACTIVITY
Who is the contractor on this award?
The obligated recipient is ALLIED TECHNOLOGIES AND CONSULTING, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $47.6 million.
What is the period of performance?
Start: 2023-12-18. End: 2026-03-28.
What specific administrative and management consulting services are being provided under this contract, and how do they directly contribute to the mission of the Army Medical Materiel Development Acti
The contract is for Administrative Management and General Management Consulting Services (NAICS 541611). While the specific services are not detailed, they likely encompass strategic planning, process improvement, organizational development, and operational support tailored to the unique needs of the Army Medical Materiel Development Activity. The direct contribution would be in enhancing the efficiency and effectiveness of the development and acquisition of medical materiel for the military.
Given the Time and Materials contract type, what measures are in place to mitigate the risk of cost overruns and ensure the government receives good value for its investment?
Mitigation strategies for Time and Materials contracts typically include robust oversight, clearly defined labor categories with pre-negotiated rates, strict monitoring of hours worked, and detailed justification for all expenses. The Defense Health Agency should implement regular performance reviews, require detailed progress reports, and establish clear ceiling limits to control costs and ensure value.
How will the effectiveness of the consulting services be measured, and what are the key performance indicators (KPIs) to ensure successful outcomes for the Army Medical Materiel Development Activity?
Effectiveness will be measured through predefined Key Performance Indicators (KPIs) tied to the specific objectives of the Army Medical Materiel Development Activity. These could include metrics related to project completion timelines, cost savings achieved, improvements in process efficiency, successful development milestones, or enhanced stakeholder satisfaction. Regular performance evaluations against these KPIs will determine the overall success of the contract.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HT942523R0013
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 100 TUSCANNY DR, FREDERICK, MD, 21702
Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $89,408,402
Exercised Options: $56,449,707
Current Obligation: $47,550,606
Actual Outlays: $5,472,283
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $25,805,172
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS10F0414Y
IDV Type: FSS
Timeline
Start Date: 2023-12-18
Current End Date: 2026-03-28
Potential End Date: 2027-03-28 00:00:00
Last Modified: 2025-11-06
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