DoD's $35.7M consulting contract with Mid Atlantic Technical awarded without competition raises value questions

Contract Overview

Contract Amount: $35,696,549 ($35.7M)

Contractor: MID Atlantic Technical and Executive Consulting, LLC

Awarding Agency: Department of Defense

Start Date: 2021-03-23

End Date: 2025-09-26

Contract Duration: 1,648 days

Daily Burn Rate: $21.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRICING, ANALYSIS, & NEGOTIATION SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.7 million to MID ATLANTIC TECHNICAL AND EXECUTIVE CONSULTING, LLC for work described as: PRICING, ANALYSIS, & NEGOTIATION SUPPORT Key points: 1. The contract's value for money is unclear due to the lack of competitive bidding. 2. Limited competition suggests potential for overpayment and reduced innovation. 3. The contract's duration and fixed-price nature may not fully account for evolving needs. 4. Performance context is limited without clear benchmarks or comparison points. 5. This contract falls within the administrative and management consulting sector. 6. The absence of small business set-asides is noted.

Value Assessment

Rating: questionable

The $35.7 million price tag for administrative and management consulting services, awarded on a firm-fixed-price basis, warrants scrutiny given the lack of competition. Without a competitive process, it is difficult to benchmark this pricing against market rates or similar contracts. The absence of a competitive bidding process means that the government may not have secured the best possible value, as there was no pressure from competing offers to drive down costs or improve service offerings. The long duration of the contract (over 4 years) further complicates value assessment, as needs may change significantly over time.

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. This significantly limits the opportunity for multiple vendors to bid, which typically drives down prices and encourages innovation. The lack of competition means that the Department of the Navy selected a single contractor without exploring alternatives or leveraging the market's full potential. This approach can be justified in specific circumstances, but it raises concerns about whether the government obtained the most advantageous terms possible.

Taxpayer Impact: Sole-source awards mean taxpayers may be paying a premium, as there was no competitive pressure to ensure the lowest possible price. This lack of competition limits transparency in pricing and makes it harder to verify if the awarded amount represents fair market value.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Navy, which receives administrative and management consulting support. The services delivered are focused on general management and administrative consulting, aiming to improve operational efficiency and strategic planning. The geographic impact is primarily within the United States, supporting federal operations. Workforce implications are indirect, potentially influencing how government personnel are managed and directed, but not directly creating new federal jobs through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal value for taxpayer funds.
The sole-source nature limits transparency and makes it difficult to assess fair market value.
The long contract duration may lead to inflexibility if needs evolve.
Absence of small business participation could limit broader economic impact.

Positive Signals

The contract is firm-fixed-price, providing cost certainty for the government once awarded.
The contractor is established, potentially bringing specific expertise to the Navy's needs.
The contract duration suggests a long-term need for these services.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal contracting landscape, supporting various government functions. This contract, valued at over $35 million, represents a substantial investment within this sector. Comparable spending benchmarks are difficult to establish precisely due to the sole-source nature of this award, but the overall market for management consulting services to the federal government is robust, with numerous firms competing for various task orders and contracts. The specific NAICS code 541611 covers a broad range of consulting activities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' flag is also false, suggesting no specific small business subcontracting goals were mandated within the contract terms. This means that opportunities for small businesses to participate in this significant contract, either as prime contractors or subcontractors, are limited. The absence of set-asides or explicit subcontracting requirements may reduce the direct economic benefit to the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a sole-source award, scrutiny might be heightened to ensure justification and fair pricing. Transparency is limited due to the lack of a competitive process. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance. Specific oversight mechanisms beyond standard contract management are not detailed in the provided data.

Related Government Programs

Management and Consulting Services
Department of the Navy Contracts
Administrative Support Services
Federal Consulting Contracts
Sole-Source Contract Awards

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpricing due to lack of competition.
Long contract duration may not align with evolving needs.
Limited transparency in pricing and value assessment.
Absence of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.7 million to MID ATLANTIC TECHNICAL AND EXECUTIVE CONSULTING, LLC. PRICING, ANALYSIS, & NEGOTIATION SUPPORT

Who is the contractor on this award?

The obligated recipient is MID ATLANTIC TECHNICAL AND EXECUTIVE CONSULTING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $35.7 million.

What is the period of performance?

Start: 2021-03-23. End: 2025-09-26.

What is the justification for awarding this significant contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of providing the required services, or in cases of urgent and compelling need. Without this justification, it is difficult to assess whether the lack of competition was truly necessary or if alternative competitive strategies could have been employed. This information is crucial for understanding the rationale behind bypassing the standard competitive procurement process and for evaluating the potential impact on cost and value for the taxpayer.

How does the pricing of this contract compare to similar administrative and management consulting services procured competitively by the DoD?

Direct comparison of pricing is challenging without access to detailed cost breakdowns and competitive benchmark data. However, sole-source awards are inherently at a higher risk of being less cost-effective than competitively procured contracts. The absence of competing bids means there was no market pressure to drive down prices. To assess value, one would need to analyze the contractor's proposed costs against industry standards for similar services, considering the scope, duration, and complexity. Benchmarking against publicly available data for competitively awarded contracts for similar services, adjusted for scope and duration, would be necessary for a thorough analysis.

What are the potential risks associated with a long-term, sole-source contract for consulting services?

A primary risk is the potential for cost escalation or overpayment due to the lack of competitive pressure, as the contractor may have less incentive to offer the most competitive pricing. Another risk is vendor lock-in, where the government becomes dependent on a single provider, making it difficult and costly to switch even if performance or pricing becomes unsatisfactory. Furthermore, the long duration (over 4 years) increases the risk that the services may become outdated or misaligned with evolving government needs, potentially leading to reduced effectiveness or the need for costly modifications. Innovation may also be stifled as there is no competitive drive to introduce new approaches or technologies.

What performance metrics or deliverables are associated with this contract, and how is performance being monitored?

The provided data does not specify the performance metrics, deliverables, or monitoring mechanisms for this contract. For a contract of this size and duration, robust performance management is critical. Standard practice would involve defining clear Key Performance Indicators (KPIs), regular progress reports, and potentially independent evaluations. The effectiveness of the consulting services in achieving the Department of the Navy's objectives would need to be rigorously assessed. Without this information, it's difficult to gauge the actual value and impact of the services rendered beyond the contractual obligation.

What is the historical spending pattern for administrative and management consulting services by the Department of the Navy, and how does this contract fit within that pattern?

The provided data focuses on a single contract and does not offer historical spending patterns for the Department of the Navy in this category. However, federal agencies, including the Department of the Navy, frequently utilize consulting services to support various strategic and operational initiatives. The $35.7 million value of this contract suggests a significant, long-term engagement. To understand its place in the broader pattern, one would need to examine historical contract awards for similar services, looking at total annual spending, the prevalence of sole-source versus competitive awards, and average contract values within the administrative and management consulting domain.

What is the track record of MID ATLANTIC TECHNICAL AND EXECUTIVE CONSULTING, LLC in performing similar federal contracts?

Information regarding the specific track record of MID ATLANTIC TECHNICAL AND EXECUTIVE CONSULTING, LLC in performing similar federal contracts is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government engagements. Understanding their experience with large-scale, sole-source awards and their performance in administrative and management consulting is crucial for evaluating the risk associated with this contract. Without this background, it's difficult to ascertain their capability and reliability for this specific requirement.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001921R0022

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9 EQUESTRIAN CT, DERWOOD, MD, 20855

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,696,549

Exercised Options: $35,696,549

Current Obligation: $35,696,549

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline