DoD's $27.4M Litigation Support Contract with The Kenrich Group Raises Questions on Competition and Value
Contract Overview
Contract Amount: $27,417,670 ($27.4M)
Contractor: THE Kenrich Group, LLC
Awarding Agency: Department of Defense
Start Date: 2020-07-31
End Date: 2023-07-30
Contract Duration: 1,094 days
Daily Burn Rate: $25.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: LITIGATION SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036
Plain-Language Summary
Department of Defense obligated $27.4 million to THE KENRICH GROUP, LLC for work described as: LITIGATION SUPPORT SERVICES Key points: 1. Significant contract value of $27.4 million for litigation support services. 2. Sole-source award suggests limited competition, potentially impacting price discovery. 3. Contract duration of 1094 days spans multiple fiscal years. 4. The 'Temporary Help Services' NAICS code may not fully capture the specialized nature of litigation support.
Value Assessment
Rating: questionable
The contract's Time and Materials pricing structure, combined with a lack of competition, makes a direct value assessment difficult. The awarded amount of $27.4M over nearly three years warrants scrutiny against industry benchmarks for similar specialized legal support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating no formal competition was sought. This method limits price discovery and may prevent the government from securing the most cost-effective solution available in the market.
Taxpayer Impact: The lack of competitive bidding on this substantial contract raises concerns about whether taxpayers are receiving the best possible value for these essential litigation support services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding for critical litigation support. The Department of Defense relies on specialized services that could potentially be sourced more affordably. Lack of transparency in sole-source awards hinders public trust and accountability in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and Materials pricing
- Potential misclassification of NAICS code
- Long contract duration without competition
Positive Signals
- Contract awarded to a specific entity, potentially indicating specialized expertise.
Sector Analysis
Litigation support services fall under professional, scientific, and technical services. Government spending in this sector can vary widely, but competitive procurement is generally expected for services exceeding significant thresholds to ensure cost-effectiveness.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses could have provided these services competitively.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure the necessity of the service and the reasonableness of the pricing, especially given the significant contract value.
Related Government Programs
- Temporary Help Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost overruns with T&M pricing
- Unclear value for money
- Questionable NAICS code applicability
- Long contract duration without re-competition
Tags
temporary-help-services, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.4 million to THE KENRICH GROUP, LLC. LITIGATION SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is THE KENRICH GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $27.4 million.
What is the period of performance?
Start: 2020-07-31. End: 2023-07-30.
What specific factors justified the sole-source award for these litigation support services, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of market availability. Without further documentation, it's unclear if The Kenrich Group possessed exclusive qualifications or if other qualified vendors were overlooked. A thorough review of the Justification and Approval (J&A) document is necessary to understand the rationale and assess if competitive alternatives were adequately explored.
How does the Time and Materials pricing structure compare to industry standards for similar litigation support contracts, and what controls are in place to manage costs?
Time and Materials (T&M) contracts can be susceptible to cost overruns if not closely monitored. Benchmarking T&M rates against industry standards for comparable litigation support roles is crucial. The government should have robust oversight mechanisms, including detailed timesheet reviews and regular cost-reconciliation meetings, to ensure the rates are fair and the total expenditure remains within reasonable bounds.
What is the measurable impact of these litigation support services on the Department of Defense's legal outcomes and efficiency?
Measuring the direct impact of litigation support services is challenging but essential for demonstrating value. Key performance indicators (KPIs) could include case resolution times, cost savings achieved through effective legal strategies, or successful outcomes in complex litigation. Without defined metrics and performance reporting, it's difficult to ascertain the true effectiveness and return on investment for this $27.4 million expenditure.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: HKA Global LLC
Address: 1919 M ST STE 620 NW, WASHINGTON, DC, 20036
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,417,670
Exercised Options: $27,417,670
Current Obligation: $27,417,670
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-07-31
Current End Date: 2023-07-30
Potential End Date: 2023-07-30 12:07:00
Last Modified: 2023-08-22
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