DoD's LOGCAP Support Services contract awarded $19.5M for management consulting, with unclear domestic awardees

Contract Overview

Contract Amount: $19,489,165 ($19.5M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2012-07-31

End Date: 2021-09-30

Contract Duration: 3,348 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LOGCAP SUPPORT SERVICES TO INCLUDE PROGRAM OFFICE SUPPORT, FORWARD OPERATOR SUPPORT, CONTRACTING OFFICE SUPPORT, DPD SUPPORT, OSC-I ANALYST SUPPORT

Plain-Language Summary

Department of Defense obligated $19.5 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: LOGCAP SUPPORT SERVICES TO INCLUDE PROGRAM OFFICE SUPPORT, FORWARD OPERATOR SUPPORT, CONTRACTING OFFICE SUPPORT, DPD SUPPORT, OSC-I ANALYST SUPPORT Key points: 1. The contract focuses on administrative management and general management consulting services, indicating a need for specialized expertise. 2. Awarded under full and open competition after exclusion of sources, suggesting a deliberate but potentially limited bidding process. 3. The contract duration of 3348 days (approximately 9 years) points to a long-term requirement for these support services. 4. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not closely managed. 5. The lack of specific geographic or small business set-aside information limits the assessment of broader economic impact. 6. The undisclosed domestic awardees prevent a direct analysis of contractor performance or market concentration.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the undisclosed awardees and the broad nature of 'support services'. The $19.5 million total award amount over nearly a decade suggests a significant investment in management consulting. However, without comparable contracts or detailed performance metrics, it's difficult to definitively assess value for money. The CPFF structure warrants scrutiny to ensure costs remained controlled and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This specific procurement method implies that while the competition was intended to be open, certain sources were excluded, potentially narrowing the field of bidders. The number of bidders is not specified, making it difficult to fully gauge the level of competition achieved. This approach might be used for specialized services where only a few entities possess the required capabilities.

Taxpayer Impact: The limited competition, even within an 'open' framework, could mean less downward pressure on pricing for taxpayers. It suggests that the government may have had specific requirements that only a select group could meet, potentially leading to higher costs than a broader competition might yield.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various components (Army, specific offices like DPD and OSC-I) that receive program, operational, contracting, and analytical support. Services delivered include program office support, forward operator support, contracting office support, DPD support, and OSC-I analyst support, all crucial for the effective functioning of military operations and administration. The geographic impact is likely widespread, given the nature of DoD operations, though specific locations are not detailed in the provided data. Workforce implications include the potential employment of consultants and analysts, both within the contracting company and potentially through subcontracting, supporting the defense sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Undisclosed awardees make it impossible to assess contractor track record or past performance.
The 'exclusion of sources' in the competition method raises questions about the breadth of market engagement.
Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not rigorously managed.
The long contract duration (over 9 years) increases the risk of scope creep or evolving requirements not being adequately addressed.

Positive Signals

Awarded under a form of open competition, indicating an effort to engage the market.
The contract addresses critical support functions for Department of Defense operations.
The duration suggests a stable, long-term need for these services, providing predictability for the contractor and agency.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS code 541611). This sector is characterized by firms providing expertise in organizational efficiency, strategic planning, and operational management. The total federal spending in this sector can be substantial, supporting various government functions. This specific contract represents a portion of the DoD's investment in specialized support services to enhance its operational and administrative capabilities, likely competing with other large federal contracts for similar consulting expertise.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary award was not targeted towards small businesses, and there is no explicit information on subcontracting plans or achievements. Consequently, the direct impact on the small business ecosystem from this specific contract award appears minimal, though the prime contractor might engage small businesses indirectly.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. The CPFF contract type necessitates close monitoring of costs and performance to ensure adherence to the fixed fee and prevent unnecessary expenditures. Transparency is limited by the undisclosed awardees, but contract actions and modifications would likely be reported in federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

LOGCAP (Logistics Civil Augmentation Program)
DoD Management and Consulting Services
Army Support Contracts
Administrative and Management Consulting
Federal Professional Services Contracts

Risk Flags

Undisclosed Awardee
Limited Competition Transparency
Cost Plus Fixed Fee Risk
Long Contract Duration
Lack of Small Business Focus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to DOMESTIC AWARDEES (UNDISCLOSED). LOGCAP SUPPORT SERVICES TO INCLUDE PROGRAM OFFICE SUPPORT, FORWARD OPERATOR SUPPORT, CONTRACTING OFFICE SUPPORT, DPD SUPPORT, OSC-I ANALYST SUPPORT

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.5 million.

What is the period of performance?

Start: 2012-07-31. End: 2021-09-30.

What is the track record of the undisclosed contractor(s) for similar support services?

The provided data does not disclose the identity of the awardee(s) for this LOGCAP Support Services contract. Therefore, it is impossible to assess their specific track record, past performance, or experience with similar large-scale support services for the Department of Defense. Without knowing who received the award, any analysis of their capabilities, previous contract performance metrics, or history of successful project completion remains speculative. Future analysis would require identifying the prime contractor(s) to review their performance history within federal procurement systems like the Contractor Performance Assessment Reporting System (CPARS).

How does the $19.5 million total award compare to similar management consulting contracts within the DoD?

Comparing the $19.5 million total award for LOGCAP Support Services to similar DoD management consulting contracts is challenging without knowing the specific services rendered and the contract duration. However, the nearly decade-long duration (3348 days) suggests a substantial, long-term requirement. Large federal agencies like the DoD often award multi-year, multi-million dollar contracts for program management, strategic planning, and operational support. While $19.5 million over 9 years averages around $2.17 million annually, this figure needs to be contextualized against the scope and complexity of the support provided. Contracts for enterprise-wide IT modernization or large-scale logistics support often run into hundreds of millions or billions, placing this contract in the mid-to-large tier for specialized consulting services.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used here?

The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type is the potential for cost overruns. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost is not. If the contractor's costs exceed initial estimates, the government bears the burden, provided the costs are allowable and reasonable. This can incentivize contractors to be less cost-conscious than in fixed-price contracts. Effective oversight, detailed cost tracking, and robust negotiation are crucial to mitigate these risks and ensure the government receives good value.

How effective are contracts like this in ensuring efficient program office and operational support for the DoD?

The effectiveness of contracts like this hinges significantly on the quality of the contractor's performance and the government's oversight. Contracts for program office and operational support are intended to provide specialized expertise, augment government staff, and improve efficiency. When executed well, they can bring valuable skills, flexibility, and capacity that the government might lack internally. However, effectiveness can be hampered by poorly defined requirements, inadequate performance monitoring, contractor performance issues, or the inherent risks of the contract type (like CPFF). The long duration and broad scope suggest a critical need, but actual effectiveness depends on detailed execution and management.

What are the historical spending patterns for LOGCAP and similar support services within the Department of the Army?

The LOGCAP program itself has a long history and has involved significant spending by the Department of the Army, particularly for large-scale logistical support, often in contingency operations. Spending patterns for LOGCAP have historically been substantial, reflecting the extensive support required for military deployments globally. Beyond LOGCAP, the Army and DoD broadly spend billions annually on various support services, including management consulting, administrative support, and professional services. These patterns indicate a consistent reliance on external contractors to fulfill critical functions, driven by operational demands, specialized skill requirements, and force structure limitations.

What is the significance of 'Administrative Management and General Management Consulting Services' for a contract of this magnitude?

The classification as 'Administrative Management and General Management Consulting Services' (NAICS 541611) signifies that this contract is focused on improving the efficiency and effectiveness of the DoD's administrative processes and overall management structures. This could encompass a wide range of activities, from strategic planning and organizational redesign to process improvement, policy development, and support for contracting and program management offices. For a contract awarded $19.5 million, it suggests a deep and sustained need for expert advice and support in optimizing how the Army operates and manages its programs and resources, rather than direct operational or combat support.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J12R0141

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,489,165

Exercised Options: $19,489,165

Current Obligation: $19,489,165

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline