DoD's $21.9M Administrative Management Consulting Contract with EMCUBE Inc. Lacked Competition
Contract Overview
Contract Amount: $21,927,245 ($21.9M)
Contractor: Emcube Inc
Awarding Agency: Department of Defense
Start Date: 2006-12-22
End Date: 2012-01-31
Contract Duration: 1,866 days
Daily Burn Rate: $11.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ADMINISTRATIVE MANAGEMENT AND GENERAL MANAGEMENT CONSULTING SERVICES
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22311, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.9 million to EMCUBE INC for work described as: ADMINISTRATIVE MANAGEMENT AND GENERAL MANAGEMENT CONSULTING SERVICES Key points: 1. Significant spending on management consulting services by the Department of Defense. 2. EMCUBE INC secured a substantial contract without a competitive bidding process. 3. The contract's duration and cost-plus-fixed-fee structure warrant scrutiny for potential cost overruns. 4. Lack of competition raises concerns about value for taxpayer money.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, while common for complex services, can lead to higher costs if not tightly managed. Without competitive benchmarks, assessing the 'fairness' of the $21.9M price tag is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for the government compared to a competitive scenario.
Taxpayer Impact: The absence of competition means taxpayers may have paid a premium for these management consulting services, as there was no market pressure to drive down costs.
Public Impact
Taxpayers funded nearly $22 million for administrative and management consulting services. The Department of Defense utilized a non-competitive award for these essential services. The contract spanned over 1800 days, indicating a long-term reliance on this specific vendor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost-Plus-Fixed-Fee Structure
- Long Contract Duration
Positive Signals
- Specific NAICS Code (541611) indicates a defined service area.
Sector Analysis
The Department of Defense frequently procures management and administrative consulting services to improve operational efficiency and strategic planning. Benchmarks for similar contracts are highly variable based on scope and duration, but a $21.9M award over 5 years without competition is notable.
Small Business Impact
The data indicates this contract was not awarded to a small business, as 'sb' is false. Further analysis would be needed to determine if small businesses had opportunities to participate in subcontracting roles.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lapse in competitive sourcing strategies. Robust oversight is needed to ensure sole-source awards are justified and that mechanisms for future competition are explored.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost-plus-fixed-fee structure may incentivize higher costs.
- Long contract duration (1866 days) increases risk exposure.
- No indication of small business participation.
- Potential for suboptimal value due to lack of competition.
Tags
administrative-management-and-general-ma, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.9 million to EMCUBE INC. ADMINISTRATIVE MANAGEMENT AND GENERAL MANAGEMENT CONSULTING SERVICES
Who is the contractor on this award?
The obligated recipient is EMCUBE INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $21.9 million.
What is the period of performance?
Start: 2006-12-22. End: 2012-01-31.
What specific administrative and management challenges did EMCUBE INC address for the Department of Defense under this contract?
The contract's description, 'Administrative Management and General Management Consulting Services' (NAICS 541611), suggests EMCUBE INC likely provided expertise in areas such as organizational structure optimization, process improvement, strategic planning, policy development, and potentially human capital management. The specific deliverables and outcomes would be detailed in the contract's statement of work, which is not provided here.
What was the justification for awarding this $21.9M contract on a sole-source basis?
Sole-source awards typically require a justification based on factors like unique capabilities, urgent needs, or lack of available sources. Without the specific justification documentation (e.g., a Justification and Approval document), it's impossible to determine the precise rationale. This lack of competition is a significant risk factor for ensuring the government received the best possible value.
How effective were EMCUBE INC's consulting services in improving the DoD's administrative and management functions?
Assessing the effectiveness requires performance reviews, outcome metrics, and potentially follow-on analyses of the DoD's operational improvements post-contract. The provided data focuses on contract award details and does not include performance evaluations. The long duration and significant cost suggest an expectation of substantial impact, but actual effectiveness remains unverified by this data alone.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1800 N BEAUREGARD ST STE, ALEXANDRIA, VA, 22311
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,801,731
Exercised Options: $23,044,358
Current Obligation: $21,927,245
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2006-12-22
Current End Date: 2012-01-31
Potential End Date: 2012-01-31 00:00:00
Last Modified: 2015-09-14
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