DoD awards $19.17M for administrative management consulting, with R3 Strategic Support Group Inc. as the contractor

Contract Overview

Contract Amount: $19,167,102 ($19.2M)

Contractor: R3 Strategic Support Group Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2026-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EXU-1 SUPPORT TASK ORDER

Place of Performance

Location: CORONADO, SAN DIEGO County, CALIFORNIA, 92118

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to R3 STRATEGIC SUPPORT GROUP INC for work described as: EXU-1 SUPPORT TASK ORDER Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for administrative management and general management consulting services. 3. Performance period spans five years, indicating a long-term need for these services. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was made by the Department of the Army, a major component of the DoD. 6. The contractor, R3 Strategic Support Group Inc., has secured this significant award. 7. The North American Industry Classification System (NAICS) code is 541611, for administrative management consulting. 8. The contract is a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $19.17 million over five years averages approximately $3.83 million annually. Benchmarking this against similar administrative management consulting contracts within the federal government is challenging without specific service details. However, the firm fixed-price nature suggests that the government has negotiated a price that it deems reasonable for the expected scope of work. The award amount appears to be within a typical range for multi-year, high-value consulting services for a major agency like the Department of the Army.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method of procurement generally fosters a competitive environment. A competitive process is expected to drive down prices and ensure that the government receives the best value for its investment. The transparency of the process is a positive indicator for price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at competitive market rates, preventing potential overpayment and encouraging efficiency from contractors.

Public Impact

The Department of the Army benefits from enhanced administrative and management consulting services, potentially improving operational efficiency and strategic planning. The services delivered are expected to support the Army's administrative functions and general management needs. The contract is based in California, suggesting a potential geographic focus for service delivery or contractor operations. The contract may indirectly impact the workforce by requiring specialized consulting expertise, potentially leading to the engagement of skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of work makes it difficult to fully assess value for money.
The duration of the contract (5 years) could lead to vendor lock-in if not managed carefully.
Reliance on a single delivery order under a larger contract vehicle might limit flexibility if needs change significantly.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
Firm Fixed Price contract type transfers cost overrun risk to the contractor.
Long-term contract duration (5 years) provides stability and continuity for essential services.
The contractor, R3 Strategic Support Group Inc., has secured a significant federal award.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal procurement landscape. Agencies frequently contract for these services to improve efficiency, implement new strategies, and manage complex operations. The NAICS code 541611 covers a broad range of consulting activities. Federal spending in this sector is substantial, with numerous firms competing for contracts across various agencies. This contract fits within the broader trend of the Department of Defense seeking external expertise to support its vast and complex administrative needs.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. The award to R3 Strategic Support Group Inc., a company whose size is not specified here, suggests it may be a larger entity or a prime contractor capable of handling this scale of work. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the performance of this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger contract vehicle, the parent contract likely has its own oversight mechanisms. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected. Accountability measures are inherent in the firm fixed-price contract type, where the contractor is responsible for delivering the agreed-upon services within the fixed price.

Related Government Programs

Management and Financial Consulting, Acquisition and Technology Services
Professional, Scientific, and Technical Services
Department of Defense Administrative Support Contracts
Army Consulting Services

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Risk of contractor complacency or reduced service quality over the long contract duration.
Market rates for consulting services may change significantly over the five-year period.
Lack of specific performance metrics in the provided data makes outcome assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to R3 STRATEGIC SUPPORT GROUP INC. EXU-1 SUPPORT TASK ORDER

Who is the contractor on this award?

The obligated recipient is R3 STRATEGIC SUPPORT GROUP INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-29.

What is the track record of R3 Strategic Support Group Inc. with federal contracts, particularly within the Department of Defense?

A comprehensive review of R3 Strategic Support Group Inc.'s federal contract history would reveal their past performance, including contract values, agencies served, and types of services rendered. Examining awards from the Department of Defense specifically would highlight their experience with military-related projects. Analyzing past performance evaluations, if publicly available, would provide insights into their reliability, quality of service, and adherence to contract terms. Understanding their history with similar administrative management and general management consulting services would be crucial in assessing their suitability for this $19.17 million award. A strong track record with the DoD suggests a higher likelihood of successful contract execution.

How does the $19.17 million contract value compare to other administrative management consulting contracts awarded by the Department of the Army?

Comparing the $19.17 million value requires analyzing the distribution of contract values for similar services within the Department of the Army over a comparable period. If this contract represents a significant outlier in terms of value, it could indicate a particularly large scope of work, a higher-than-average price, or a unique set of requirements. Conversely, if it falls within the typical range, it suggests standard market pricing for such services. Benchmarking against contracts with similar durations (5 years) and firm fixed-price structures would provide a more accurate comparison. Access to historical procurement data for the Army's administrative consulting needs is essential for this analysis.

What are the specific risks associated with a five-year firm fixed-price contract for administrative management consulting?

A five-year firm fixed-price contract for administrative management consulting carries several potential risks. For the government, the primary risk is that the fixed price may become uncompetitive over the contract's lifespan if market rates decrease or if the scope of work is not precisely defined, leading to potential overpayment for services that become less valuable. For the contractor, the risk lies in underestimating the effort required or facing unforeseen cost increases (e.g., labor, overhead) that erode profit margins. Scope creep, if not managed through contract modifications, can strain the relationship and lead to disputes. Additionally, maintaining service quality and contractor engagement over a long period can be challenging.

How effective are firm fixed-price contracts in ensuring value for money in consulting services?

Firm fixed-price (FFP) contracts are generally considered effective in ensuring value for money when the scope of work is well-defined and stable. In such cases, the FFP structure incentivizes the contractor to control costs and operate efficiently to maximize profit, thereby transferring cost-risk to the contractor and providing price certainty for the government. However, for consulting services, where the scope can be dynamic or difficult to quantify precisely upfront, FFP contracts can sometimes lead to a reluctance by the contractor to go beyond the minimum requirements, potentially limiting innovation or comprehensive problem-solving. Careful contract definition and performance monitoring are crucial to realizing value under an FFP arrangement.

What is the historical spending trend for administrative management and general management consulting services within the Department of Defense?

Analyzing historical spending trends for administrative management and general management consulting services within the Department of Defense (DoD) would reveal patterns of demand and investment in these areas. This involves examining aggregate spending data over several fiscal years, identifying fluctuations, and understanding the drivers behind them (e.g., new initiatives, efficiency drives, organizational changes). Such analysis can help determine if the current $19.17 million award is consistent with historical levels, represents an increase or decrease in spending, and whether it aligns with broader DoD strategic priorities. Understanding these trends provides context for the current contract award and its potential future implications.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911NF21T0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 909 W LAUREL ST, SAN DIEGO, CA, 92101

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,723,098

Exercised Options: $21,723,098

Current Obligation: $19,167,102

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F0116Y

IDV Type: FSS

Timeline