DoD's $16.8M consulting contract for NAVSUP HQ/WSS awarded to NFB Management Consultants, LLC

Contract Overview

Contract Amount: $16,877,071 ($16.9M)

Contractor: NFB Management Consultants, LLC

Awarding Agency: Department of Defense

Start Date: 2025-01-06

End Date: 2025-07-06

Contract Duration: 181 days

Daily Burn Rate: $93.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICES IN SUPPORT OF NAVSUP HQ/WSS

Place of Performance

Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17050

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to NFB MANAGEMENT CONSULTANTS, LLC for work described as: SERVICES IN SUPPORT OF NAVSUP HQ/WSS Key points: 1. The contract value of $16.8M for administrative and general management consulting services appears to be a significant investment for NAVSUP HQ/WSS. 2. Awarded on a sole-source basis, the lack of competition may limit price discovery and potentially lead to higher costs. 3. The short performance period of 181 days suggests a focused, short-term need for consulting expertise. 4. The contractor, NFB Management Consultants, LLC, has been awarded this contract, indicating a specific capability or relationship. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor but requires precise scope definition. 6. The absence of small business set-aside provisions means opportunities for smaller firms in this procurement are not explicitly prioritized.

Value Assessment

Rating: fair

Benchmarking the value of this $16.8M contract is challenging without detailed scope and deliverables. However, the average award for similar administrative and general management consulting services (NAICS 541611) can range significantly. Given it was not competed, there's a risk that the price may not reflect the most competitive market rate. Further analysis would require comparing the specific services rendered against industry benchmarks and the contractor's historical pricing for similar engagements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor, NFB Management Consultants, LLC, was solicited. This approach bypasses the competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they inherently limit price competition and may not yield the best value for the government.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from a competitive bidding process, potentially leading to a higher overall expenditure for the services.

Public Impact

The primary beneficiaries are the Naval Supply Systems Command (NAVSUP) Headquarters and its Washington Support Services (WSS), receiving expert consulting. The services delivered are expected to enhance administrative and general management functions within NAVSUP. The geographic impact is primarily focused on the operations and strategic direction of NAVSUP, likely centered around its headquarters. Workforce implications may include support for existing staff, process improvements, or strategic planning initiatives that affect NAVSUP personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and suboptimal value for taxpayer funds.
The sole-source nature limits transparency into the selection process and justification for choosing this specific contractor.
Short contract duration might indicate a reactive need rather than strategic, long-term planning, potentially leading to recurring, unoptimized engagements.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government, assuming the scope is well-defined.
Award to a specific contractor suggests they possess specialized knowledge or capabilities deemed essential by the agency.
The contract supports critical functions within NAVSUP, indicating alignment with organizational objectives.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a broad sector encompassing a wide range of advisory services aimed at improving organizational efficiency and effectiveness. The federal government is a significant consumer of these services, particularly within defense and civilian agencies for strategic planning, process improvement, and operational support. The market includes large consulting firms as well as specialized small businesses. This contract fits within the defense sector's need for specialized management support to optimize complex supply chain and administrative operations.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to NFB Management Consultants, LLC, a single entity, does not provide direct subcontracting opportunities for small businesses through a set-aside mechanism. The overall impact on the small business ecosystem depends on whether NFB Management Consultants, LLC, voluntarily engages small businesses as subcontractors, which is not specified in the provided data.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Navy and NAVSUP's internal contracting and program management offices. Accountability measures are typically embedded within the contract's performance work statement and reporting requirements. Transparency is limited due to the sole-source nature of the award. The Inspector General for the Department of Defense may have jurisdiction for audits or investigations if specific concerns arise regarding fraud, waste, or abuse.

Related Government Programs

NAVSUP Logistics Support Services
DoD Management Consulting Contracts
Naval Operations Support
Defense Agency Administrative Services

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in contractor selection.
Short contract duration may indicate reactive rather than strategic procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to NFB MANAGEMENT CONSULTANTS, LLC. SERVICES IN SUPPORT OF NAVSUP HQ/WSS

Who is the contractor on this award?

The obligated recipient is NFB MANAGEMENT CONSULTANTS, 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 $16.9 million.

What is the period of performance?

Start: 2025-01-06. End: 2025-07-06.

What is the specific justification for awarding this contract on a sole-source basis to NFB Management Consultants, LLC?

The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'SOLE SOURCE'. A formal justification for this sole-source award would typically be documented by the Department of the Navy, outlining reasons such as unique capabilities, urgent and compelling needs, or lack of adequate competition from other sources. Without access to this justification document (often found in sources like SAM.gov's contract award notices or agency justifications for other than full and open competition), the precise rationale remains unknown. However, common reasons include the contractor possessing proprietary knowledge, having a unique technical solution, or being the only source capable of meeting an immediate requirement within the specified timeframe and scope.

How does the $16.8M contract value compare to similar administrative and general management consulting services procured by the Department of Defense?

Comparing the $16.8M value requires context regarding the scope and duration. For NAICS code 541611 (Administrative Management and General Management Consulting Services), contract values can vary widely, from tens of thousands to hundreds of millions of dollars, depending on the complexity and scale of services. A $16.8M contract for a 181-day period suggests a high daily rate or a very intensive scope of work. Benchmarking against similar sole-source awards for management consulting within the Navy or DoD would be more relevant than comparing to fully competed, longer-term contracts. Without specific details on deliverables and performance metrics, it's difficult to definitively assess if this represents a competitive market rate, but the lack of competition inherently raises questions about optimal value.

What are the potential risks associated with a sole-source award for management consulting services?

The primary risk of a sole-source award is the lack of price competition, which can lead to the government paying a premium compared to what might be achieved through a competitive process. This can result in inefficient use of taxpayer funds. Additionally, without multiple bidders, there's less incentive for the selected contractor to offer the absolute best value or innovative solutions. There's also a potential risk of vendor lock-in if the agency becomes overly reliant on a single provider. Transparency is reduced, making it harder for external observers to assess the fairness and effectiveness of the procurement process. Agencies must provide a strong justification for sole-source awards to mitigate these risks and ensure public trust.

What is the expected impact of these consulting services on NAVSUP's operational efficiency?

The expected impact of these consulting services on NAVSUP's operational efficiency hinges on the specific objectives outlined in the contract's Statement of Work (SOW). As the contract falls under 'Administrative Management and General Management Consulting Services,' it likely aims to improve internal processes, streamline workflows, enhance strategic planning, optimize resource allocation, or address specific management challenges within NAVSUP HQ/WSS. If the consultants successfully identify and implement improvements in areas such as supply chain management, personnel administration, or financial oversight, NAVSUP could see benefits like reduced operational costs, faster response times, improved decision-making, and better overall performance. The effectiveness will depend on the quality of the consulting advice and the agency's commitment to implementing the recommendations.

What is the historical spending pattern for similar consulting services by the Department of the Navy or NAVSUP?

Historical spending data for similar consulting services by the Department of the Navy or NAVSUP would provide valuable context for this $16.8M award. Analyzing past contracts under NAICS 541611, particularly those awarded to NFB Management Consultants, LLC or for similar administrative and management support functions within naval commands, could reveal trends in contract values, durations, and competition levels. For instance, if NAVSUP has consistently awarded large sole-source contracts for these services, it might indicate a long-standing reliance on specific expertise or a recurring need. Conversely, if most historical contracts were competed, this sole-source award might warrant closer scrutiny. Without access to historical procurement databases or specific spending reports, a detailed analysis of past patterns is not possible from the provided data.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0018925RZ017

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 251 18TH ST S STE 1005, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,877,071

Exercised Options: $16,877,071

Current Obligation: $16,877,071

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline