DoD's $25.4M administrative support contract with LLM Placements, LLC awarded under full and open competition

Contract Overview

Contract Amount: $25,376,362 ($25.4M)

Contractor: LLM Placements, LLC

Awarding Agency: Department of Defense

Start Date: 2015-12-29

End Date: 2018-12-31

Contract Duration: 1,098 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 43

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20018

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to LLM PLACEMENTS, LLC for work described as: IGF::OT::IGF ADMINISTRATIVE SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in essential administrative functions for the Department of the Army. 2. The award was made through a full and open competition, suggesting a robust market for these services. 3. The contract duration of nearly three years indicates a need for sustained administrative support. 4. The firm-fixed-price structure aims to provide cost certainty for the government. 5. Analysis of the per-unit cost is crucial to benchmark value against similar administrative support contracts.

Value Assessment

Rating: fair

The total contract value of $25.4 million over approximately three years for administrative support services appears within a reasonable range for a federal contract of this scope. However, without specific details on the services rendered and the number of personnel or hours provided, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for office administrative services within the Department of Defense or other agencies would be necessary to determine if the pricing is competitive. The firm-fixed-price contract type suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the price was set competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The fact that it was competed suggests that the government sought to leverage market competition to obtain the best value. The number of bids received (43) is a strong indicator of a healthy competitive environment for these administrative support services, which likely contributed to price discovery and potentially a more favorable outcome for the government.

Taxpayer Impact: A high level of competition generally benefits taxpayers by driving down prices and encouraging efficiency from contractors vying for the award.

Public Impact

The Department of the Army benefits from consistent and reliable administrative support, enabling its personnel to focus on core mission objectives. Services delivered likely include general office management, clerical support, record keeping, and potentially scheduling and communication assistance. The contract's impact is primarily concentrated within the Washington D.C. metropolitan area, where the Department of the Army has significant operations. The contract supports administrative roles, potentially impacting the civilian workforce employed in these functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service scope makes it difficult to fully assess performance metrics and potential for cost overruns.
The 'after exclusion of sources' clause warrants further investigation to understand if any specific capabilities were intentionally excluded from the initial broad solicitation.
Limited public information on the specific deliverables and performance standards makes it hard to gauge the true effectiveness of the services provided.

Positive Signals

Awarded through full and open competition, indicating a broad market response and potential for competitive pricing.
The firm-fixed-price contract type shifts cost risk to the contractor, encouraging efficient service delivery.
A significant number of bids (43) suggests a healthy competitive landscape for these services.

Sector Analysis

Administrative support services represent a broad category within the professional, scientific, and technical services sector. This sector is characterized by a wide range of companies, from large federal contractors to specialized small businesses. Federal spending in this area is consistent across many agencies, supporting essential day-to-day operations. The market size for administrative support services is substantial, reflecting the ongoing need for these functions across government. This contract fits within the broader trend of agencies outsourcing non-core functions to specialized providers.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this award (ss: false, sb: false). While the contract itself was not set aside for small businesses, the prime contractor, LLM Placements, LLC, may still engage small businesses as subcontractors. Further analysis would be needed to determine the extent of any subcontracting plan and its impact on the small business ecosystem. The absence of a specific small business set-aside suggests the competition was focused on overall best value rather than specific socio-economic goals.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant administrative departments within the Department of the Army. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance or closeout.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for administrative services
Department of Defense administrative and operational support contracts
Office of Management and Budget (OMB) guidance on service contracts

Risk Flags

Potential for scope creep if SOW is not precisely defined.
Risk of service quality degradation if contractor prioritizes profit over performance.
Need for robust performance monitoring to ensure value delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to LLM PLACEMENTS, LLC. IGF::OT::IGF ADMINISTRATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is LLM PLACEMENTS, 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 $25.4 million.

What is the period of performance?

Start: 2015-12-29. End: 2018-12-31.

What specific administrative services were included in this $25.4 million contract?

The provided data indicates the contract is for 'Administrative Support Services' (NAICS code 561110). While the specific deliverables are not detailed in the summary data, typical services under this category can include general office management, clerical support, record keeping, scheduling, communication assistance, mail processing, and potentially human resources or financial administrative tasks. The firm-fixed-price nature of the contract suggests a defined scope of work for which LLM Placements, LLC was compensated a set amount. To understand the precise services, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

How does the number of bidders (43) compare to similar administrative support contracts?

Receiving 43 bids for a federal contract, especially one valued at $25.4 million, generally indicates a robust and competitive market for the services solicited. For administrative support contracts, the number of bidders can vary significantly based on the contract's size, complexity, geographic location, and specific requirements. A higher number of bidders typically suggests that the solicitation was well-publicized and that the requirements were accessible to a wide range of potential offerors. This level of competition is often seen as a positive sign for price discovery and achieving best value for the government, as it provides a broader pool of options and incentivizes contractors to offer competitive pricing and terms.

What is the track record of LLM Placements, LLC in performing federal administrative support contracts?

The provided data identifies LLM Placements, LLC as the contractor for this $25.4 million Department of the Army contract. To assess their track record, a deeper dive into federal procurement databases (such as FPDS or SAM.gov) would be necessary. This would involve examining past contract awards to LLM Placements, LLC, their performance history (including any past performance evaluations or awards/debarments), the types and values of contracts they have previously held, and their experience in delivering administrative support services. Without this additional information, it's difficult to provide a specific assessment of their track record beyond their ability to win this particular contract.

What are the potential risks associated with a firm-fixed-price contract for administrative support?

While firm-fixed-price (FFP) contracts are generally favored for their cost certainty, potential risks exist. For the government, the primary risk is that the contractor may cut corners on quality or service delivery to maximize profit if the initial price was set too high or if performance monitoring is lax. If the scope of work is not clearly defined, the contractor might argue for additional compensation or deliver less than anticipated. For the contractor, the risk is underestimating costs or encountering unforeseen issues that lead to losses, especially if the FFP was based on aggressive pricing. Effective oversight and a well-defined SOW are crucial to mitigate these risks for both parties.

How does the contract duration (1098 days) influence the overall value and risk?

A contract duration of 1098 days (approximately three years) suggests a stable, long-term need for the administrative support services by the Department of the Army. This duration allows the contractor, LLM Placements, LLC, to establish efficient processes and potentially achieve economies of scale, which could translate into better value over time. For the government, a longer duration provides continuity of services, reducing the administrative burden and cost associated with frequent re-competition. However, it also means a longer commitment, increasing the risk if the contractor's performance is subpar or if government needs change significantly during the contract period. The firm-fixed-price nature helps mitigate cost risk over this extended period, assuming the initial pricing was accurate.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W9124D15B0009

Offers Received: 43

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3166 BERRY RD NE, WASHINGTON, DC, 20018

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $25,861,402

Exercised Options: $25,861,402

Current Obligation: $25,376,362

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline