DoD's $53.4M contract for MHPI Support Services awarded to RER SOLUTIONS, INC. shows fair value
Contract Overview
Contract Amount: $53,357,087 ($53.4M)
Contractor: RER Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-09-16
End Date: 2022-03-18
Contract Duration: 2,009 days
Daily Burn Rate: $26.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MHPI SUPPORT SERVICES IGF::CL,CT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310
Plain-Language Summary
Department of Defense obligated $53.4 million to RER SOLUTIONS, INC. for work described as: MHPI SUPPORT SERVICES IGF::CL,CT::IGF Key points: 1. The contract's value appears reasonable when benchmarked against similar administrative management consulting services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration and delivery order structure present moderate performance risks. 4. This contract supports essential administrative functions within the Department of the Army. 5. The services fall within the broad category of management consulting, a common area for federal procurement.
Value Assessment
Rating: fair
The total award amount of $53.4 million over approximately six years for administrative management and general management consulting services appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for management consulting services indicates that the pricing is not excessively high, though detailed cost breakdowns would be needed for a definitive value assessment. The firm fixed-price contract type provides cost certainty for the government, which is a positive indicator for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bidders suggests a moderate level of competition. While more bidders would typically lead to more aggressive pricing, full and open competition generally ensures that the government receives offers from a range of qualified sources, promoting price discovery.
Taxpayer Impact: Taxpayers benefit from the competitive process which aims to secure services at the most advantageous prices achievable in the market.
Public Impact
The Department of the Army benefits from the administrative support services provided under this contract. The services delivered are crucial for the efficient functioning of military administrative operations. The contract's impact is primarily within the District of Columbia, where the contractor is located. The contract supports a workforce involved in administrative and management consulting roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of over 5 years could lead to potential scope creep or evolving requirements not fully captured in initial pricing.
- Reliance on a single delivery order structure might limit flexibility in adapting to changing needs without formal modifications.
- The specific nature of 'MHPI Support Services' is not detailed, potentially obscuring the full scope and associated risks.
Positive Signals
- Awarded under full and open competition, indicating a broad search for qualified vendors.
- Firm fixed-price contract type provides budget certainty and shifts cost risk to the contractor.
- The contractor, RER SOLUTIONS, INC., has experience in providing services to the federal government.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is characterized by a wide range of service providers, from large corporations to specialized small businesses. Federal spending in management and administrative consulting is substantial, supporting various agency functions. Comparable spending benchmarks are difficult to establish without specific service details, but the overall market for these services is robust.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside requirement for this award, as the 'ss' (small business set-aside) field is false. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary focus was on obtaining the best value through full and open competition, rather than specifically targeting small business utilization.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Army. Performance monitoring and quality assurance would be key accountability measures. Transparency is facilitated by public contract databases, but detailed internal performance reports are generally not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Professional Services Contracts
- Department of Defense Support Services
- Army Administrative Operations
Risk Flags
- Contract Duration Risk
- Scope Creep Potential
- Performance Monitoring Challenges
Tags
department-of-defense, department-of-the-army, administrative-management, management-consulting, firm-fixed-price, full-and-open-competition, delivery-order, district-of-columbia, professional-services, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.4 million to RER SOLUTIONS, INC.. MHPI SUPPORT SERVICES IGF::CL,CT::IGF
Who is the contractor on this award?
The obligated recipient is RER SOLUTIONS, 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 $53.4 million.
What is the period of performance?
Start: 2016-09-16. End: 2022-03-18.
What is the track record of RER SOLUTIONS, INC. in performing similar federal contracts?
RER SOLUTIONS, INC. has a history of performing federal contracts, primarily within the administrative and management consulting domain. While specific details on past performance metrics for this particular contract are not publicly available, their award suggests they met the government's requirements for this type of service. Analyzing their broader contract portfolio, including past performance evaluations if accessible, would provide a more comprehensive understanding of their reliability and quality of service delivery. Federal procurement databases often contain award histories that can be reviewed for patterns in contract types, agencies served, and overall value.
How does the value of this contract compare to similar management consulting contracts awarded by the DoD?
The $53.4 million award for MHPI Support Services over approximately six years represents an average annual value of roughly $8.9 million. When compared to other management consulting contracts within the Department of Defense, this falls within a moderate range. Larger, more complex consulting engagements can easily exceed hundreds of millions of dollars, while smaller, more specialized tasks are significantly less. The specific nature of 'MHPI Support Services' is key to a precise comparison; if it involves broad administrative support across multiple departments, the value is reasonable. If it's for a niche function, it might be on the higher side. Without detailed service scope comparisons, it's challenging to definitively benchmark.
What are the primary risks associated with a contract of this duration and type?
Contracts spanning over five years, like this one, carry inherent risks related to requirement evolution and potential cost overruns if not managed meticulously. The 'MHPI Support Services' scope might change significantly over its lifecycle, necessitating contract modifications that could increase costs or alter the original value proposition. Furthermore, a firm fixed-price structure, while offering budget certainty, can become disadvantageous if unforeseen issues arise that significantly increase the contractor's costs, potentially leading to performance issues if the contractor struggles to absorb them. The reliance on delivery orders also means that the government must effectively manage the issuance and scope of each order to ensure alignment with strategic objectives.
How effective is the 'full and open competition' strategy in ensuring optimal value for taxpayer dollars in this case?
The 'full and open competition' strategy is generally considered the most effective method for ensuring optimal value for taxpayer dollars, as it allows the widest possible pool of vendors to compete. In this case, with three bidders, the competition was present, which likely drove the price down compared to a sole-source award. However, the optimal value is also dependent on the number and quality of bidders. If only a few vendors were capable of performing the specialized 'MHPI Support Services,' then three bidders might represent a near-maximal competitive scenario. The firm fixed-price nature further enhances value by capping the government's financial exposure, provided the scope is well-defined.
What are the historical spending patterns for 'Administrative Management and General Management Consulting Services' within the Department of the Army?
Historical spending patterns for 'Administrative Management and General Management Consulting Services' within the Department of the Army are substantial and consistent, reflecting the ongoing need for specialized expertise to support complex military operations and administrative functions. Agencies like the Army frequently procure these services to enhance efficiency, implement new management strategies, and provide support for various programs. Spending in this category often fluctuates based on strategic priorities, budget allocations, and specific project requirements. Analyzing historical data reveals a steady demand, with significant portions allocated to contracts that involve strategic planning, organizational analysis, and process improvement, similar to the likely scope of MHPI Support Services.
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1119 12TH ST NW, WASHINGTON, DC, 20005
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $53,357,087
Exercised Options: $53,357,087
Current Obligation: $53,357,087
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS00F233CA
IDV Type: FSS
Timeline
Start Date: 2016-09-16
Current End Date: 2022-03-18
Potential End Date: 2022-03-18 00:00:00
Last Modified: 2022-04-27
More Contracts from RER Solutions, Inc.
- Data Analysis and Loan Recommendation Services for Covid-19 — $800.0M (Small Business Administration)
- Eidl Sba-Oda Data Analysis and Loan Recommendation Services for Covid-19 — $80.0M (Small Business Administration)
- Asset Management Servicesfor the Mark-To-Market Program — $13.5M (Department of Housing and Urban Development)
- LB&I Requires the Services of an Outside Contractor to Assist With the Valuation of a Conservation Easement for the Syndicated Conservation Easement Campaign — $2.7M (Department of the Treasury)
- This IS an Award to Acquire the Services of an Outside Contractor to Assist With the Valuation of Conservation Easements for the Syndicated Conservation Easement Campaign of Internal Revenue Service (IRS) Large Business and International Division — $2.6M (Department of the Treasury)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)