DoD's $18.4M Middleware Interface System contract awarded to GOLDBELT WOLF, LLC shows limited competition

Contract Overview

Contract Amount: $18,409,479 ($18.4M)

Contractor: Goldbelt Wolf, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2013-09-27

Contract Duration: 1,458 days

Daily Burn Rate: $12.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MIDDLEWARE INTERFACE SYSTEM

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to GOLDBELT WOLF, LLC for work described as: MIDDLEWARE INTERFACE SYSTEM Key points: 1. Contract awarded under a 'not available for competition' basis, raising questions about price discovery. 2. The contract duration of 1458 days suggests a significant, long-term need for the services. 3. Administrative Management and General Management Consulting Services are broad, requiring clarity on specific deliverables. 4. The contract's value of $18.4M warrants scrutiny regarding its alignment with market rates for similar services. 5. Limited competition can potentially lead to higher costs for taxpayers. 6. The award to GOLDBELT WOLF, LLC, without a competitive process, means its performance cannot be benchmarked against other potential providers.

Value Assessment

Rating: questionable

Benchmarking the value of this $18.4 million contract is challenging due to the lack of competitive bidding. Without comparison to other offers or market rates for similar middleware interface systems and administrative management consulting, it's difficult to definitively assess if the price paid represents good value for money. The fixed-price nature of the contract suggests the government aimed to control costs, but the absence of competition limits the ability to confirm if the price was truly optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' basis, indicating that a full and open competition was not conducted. This typically occurs when only one source is capable of meeting the requirement, or in specific circumstances like follow-on work to a previous sole-source award. The lack of multiple bidders means there was no direct price comparison or incentive for providers to offer their best pricing.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding processes.

Public Impact

The primary beneficiaries are likely Department of Defense (DoD) components requiring the middleware interface system for their operations. The services delivered are related to administrative management and general management consulting, crucial for supporting complex defense systems. The geographic impact is centered around the Department of the Army's operations, with potential implications for its Virginia-based activities. Workforce implications may include the need for specialized IT and management consultants, both within the contractor's organization and potentially within the government to oversee the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced innovation.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep or misaligned deliverables if not tightly managed.
The contract's significant duration without clear performance metrics makes it difficult to assess ongoing value and contractor performance.
Absence of small business subcontracting data makes it impossible to assess the impact on the small business ecosystem for this specific award.

Positive Signals

The contract is a Firm Fixed Price (FFP) award, which generally provides cost certainty for the government.
The contract was awarded to GOLDBELT WOLF, LLC, suggesting a specific capability or relationship that the DoD deemed necessary.
The contract duration of over 1400 days indicates a sustained need and potential for long-term partnership, which can foster expertise.

Sector Analysis

The contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector is broad and encompasses a wide range of advisory and assistance services. For the Department of Defense, such services are critical for managing complex operations, improving efficiency, and implementing new technologies. Comparable spending in this sector by federal agencies is substantial, often involving strategic planning, organizational development, and IT integration support. The $18.4 million value for a multi-year contract is within the typical range for significant consulting engagements, particularly those supporting large government entities.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not readily available for this contract. The absence of explicit small business participation metrics makes it difficult to assess the impact on the small business ecosystem. Typically, larger sole-source or limited-competition contracts may have less direct subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime contractor.

Oversight & Accountability

Oversight mechanisms for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined by the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the selection and pricing process difficult. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Defense Management Consulting Services
IT Systems Integration Support
Administrative Support Services
Federal Management Consulting Contracts
Department of Defense IT Procurement

Risk Flags

Limited competition
Lack of performance benchmarks
Potential for cost overruns
Opaque award justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to GOLDBELT WOLF, LLC. MIDDLEWARE INTERFACE SYSTEM

Who is the contractor on this award?

The obligated recipient is GOLDBELT WOLF, 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 $18.4 million.

What is the period of performance?

Start: 2009-09-30. End: 2013-09-27.

What specific middleware interface system functionalities were procured under this contract?

The provided data indicates the contract was for 'MIDDLEWARE INTERFACE SYSTEM' and falls under 'Administrative Management and General Management Consulting Services' (NAICS 541611). This suggests the contract likely involved consulting services related to the design, implementation, integration, or management of middleware interfaces rather than the direct procurement of specific software or hardware components. Middleware acts as a bridge between different software applications, databases, and operating systems, enabling seamless data flow and communication. The consulting services could encompass requirements analysis, system architecture, vendor selection, project management, and post-implementation support for these critical integration layers within the Department of Defense's IT infrastructure.

Why was this contract awarded on a 'not available for competition' basis?

The designation 'not available for competition' typically implies that only one responsible source was available to meet the government's needs. This could be due to several reasons, such as the unique capabilities of the contractor (GOLDBELT WOLF, LLC), the need for compatibility with existing systems where only one vendor's solution fits, or specific urgency requirements where a competitive process would cause unacceptable delays. Without further details from the contracting agency (Department of the Army), the precise justification remains unclear. However, such awards are subject to strict justification requirements to ensure fair and reasonable pricing and to prevent unnecessary sole-sourcing.

How does the $18.4 million contract value compare to similar middleware interface system projects?

Directly comparing the $18.4 million value is difficult without knowing the specific scope, duration, and complexity of the middleware interface system and the consulting services provided. However, given the contract's duration of approximately 4 years (1458 days) and its award to the Department of Defense, the value is substantial but not necessarily outside the norm for large-scale government IT projects and associated consulting. Middleware integration projects can be complex and costly, especially within a defense environment requiring high levels of security and interoperability. The lack of competitive bidding, however, prevents a direct benchmark against alternative proposals, making it harder to ascertain if this price represents optimal value for money compared to what a competitive market might yield.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude ($18.4 million) include the potential for inflated pricing due to the absence of competitive pressure, reduced incentive for the contractor to innovate or provide exceptional service, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best possible value for their money. Furthermore, the government becomes heavily reliant on a single contractor, which can create risks if the contractor underperforms, faces financial difficulties, or if their technology becomes obsolete. Effective government oversight and robust contract management are crucial to mitigate these risks.

What is the track record of GOLDBELT WOLF, LLC in performing similar government contracts?

The provided data indicates GOLDBELT WOLF, LLC was awarded this contract. However, it does not offer details on their specific track record, past performance ratings, or previous contract values. To assess their track record, one would need to examine their history of federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or successes on similar projects. Without this information, it's challenging to evaluate their capability and reliability for managing a significant middleware interface system contract.

How has federal spending on 'Administrative Management and General Management Consulting Services' evolved over time?

Federal spending on 'Administrative Management and General Management Consulting Services' (NAICS 541611) has historically been significant, reflecting the government's reliance on external expertise for operational efficiency, strategic planning, and program management. While specific year-over-year trends require detailed analysis of federal procurement data (e.g., from FPDS-NG or USAspending.gov), this sector generally sees consistent demand, particularly within large agencies like the Department of Defense. Spending can fluctuate based on agency priorities, budget cycles, and the need for specialized skills not available in-house. The trend often involves a move towards data-driven insights, digital transformation consulting, and cybersecurity-related management services, alongside traditional administrative 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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Goldbelt, Incorporated (UEI: 096763800)

Address: 5500 CHEROKEE AVE STE 100, ALEXANDRIA, VA, 22312

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,409,479

Exercised Options: $18,409,479

Current Obligation: $18,409,479

Contract Characteristics

Cost or Pricing Data: NO

Timeline