Army's $34.2M LMI Consulting Contract for ART Lacks Competition, Raises Value Concerns

Contract Overview

Contract Amount: $34,233,291 ($34.2M)

Contractor: LMI Consulting, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-01

End Date: 2026-02-28

Contract Duration: 1,276 days

Daily Burn Rate: $26.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SUPPORT CONTRACT FOR THE ARMY RESPONSE TEAM (ART)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $34.2 million to LMI CONSULTING, LLC for work described as: SUPPORT CONTRACT FOR THE ARMY RESPONSE TEAM (ART) Key points: 1. Significant contract value of $34.2 million over 4.5 years. 2. Sole provider, LMI Consulting, LLC, raises questions about competitive pricing. 3. Potential risk of overpayment due to lack of competitive bidding. 4. Services fall under 'Other Computer Related Services' within the IT sector.

Value Assessment

Rating: questionable

The contract's fixed price of $34.2 million for 1276 days of support lacks a clear benchmark due to the absence of competition. Without comparable contracts or bids, assessing value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition on this $34.2M contract means taxpayers may be paying more than necessary for these support services.

Public Impact

Taxpayers may be overpaying for essential Army support services. Lack of transparency in the procurement process. Potential for reduced innovation due to single-vendor reliance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No clear value benchmark

Positive Signals

Firm fixed price contract type
Long-term support for Army Response Team

Sector Analysis

This contract for 'Other Computer Related Services' falls within the broader IT sector. Benchmarking spending in this area is challenging without competitive data, but significant IT support contracts often undergo rigorous competition.

Small Business Impact

The contract was awarded to LMI Consulting, LLC, and there is no indication that small businesses were involved in this sole-source procurement.

Oversight & Accountability

The sole-source nature of this award warrants closer oversight to ensure the price remains fair and reasonable throughout the contract's duration. Accountability for the decision not to compete is crucial.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited oversight on sole-source justification
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.2 million to LMI CONSULTING, LLC. SUPPORT CONTRACT FOR THE ARMY RESPONSE TEAM (ART)

Who is the contractor on this award?

The obligated recipient is LMI CONSULTING, 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 $34.2 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-02-28.

What is the justification for awarding this contract sole-source instead of competing it?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified by unique capabilities, urgent needs, or lack of available alternatives. Further investigation would be required to understand the specific rationale behind this decision and whether it aligns with federal procurement regulations.

How can the government ensure fair pricing without competition?

Even in sole-source situations, agencies can employ techniques like price analysis using historical data, commercial price lists, or cost realism analyses. However, these methods are generally less effective than competitive bidding in securing the best possible price for the government and taxpayers.

What is the potential impact on the Army Response Team's effectiveness if LMI Consulting's performance is subpar?

If LMI Consulting's performance is subpar, the Army Response Team's effectiveness could be significantly impacted, potentially delaying critical responses or operational readiness. The lack of competition means switching providers would be difficult and costly, exacerbating any performance issues.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W91CRB22R0021

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7940 JONES BRANCH DR, TYSONS, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,286,085

Exercised Options: $34,286,085

Current Obligation: $34,233,291

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline