DoD awards $11.7M consulting task order to PROJECTXYZ, INC. for administrative management services

Contract Overview

Contract Amount: $11,675,587 ($11.7M)

Contractor: Projectxyz, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-01

End Date: 2026-02-28

Contract Duration: 729 days

Daily Burn Rate: $16.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NEW TASK ORDER (TO)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to PROJECTXYZ, INC. for work described as: NEW TASK ORDER (TO) Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract was not competed, raising questions about potential price discovery and value for money. 3. Services are for administrative management and general management consulting, a broad category with varying cost benchmarks. 4. The duration of 729 days (2 years) suggests a significant scope of work. 5. Awarded to a single vendor without competition, potentially limiting opportunities for other qualified firms. 6. The contract is a delivery order under a larger contract, details of which are not provided here.

Value Assessment

Rating: questionable

Benchmarking the value for this specific task order is challenging without knowing the underlying contract's competitive history and the specific deliverables. However, cost-plus-fixed-fee contracts, especially when not competed, warrant scrutiny for potential cost inefficiencies. Comparing the fixed fee component to similar consulting services for administrative management would be a key step in assessing value. The lack of competition suggests that the government may not have secured the most competitive pricing available in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific vendor possesses unique capabilities or when circumstances necessitate a rapid award. However, the lack of competition means that the government did not benefit from a bidding process that could have driven down prices and potentially identified more innovative solutions from a wider pool of contractors.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The Department of the Army is the primary beneficiary of these administrative and management consulting services. The services are intended to improve administrative and general management functions within the agency. The geographic impact is likely concentrated within the Department of the Army's operational areas, potentially nationwide or specific installations. The contract may indirectly impact the federal workforce by influencing management practices and operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for this task order limits price discovery and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contract type can incentivize cost increases if not rigorously monitored.
The broad nature of 'Administrative Management and General Management Consulting Services' makes it difficult to assess specific value without detailed deliverables.
The award is a delivery order, suggesting it's part of a larger, potentially less transparent, contracting vehicle.

Positive Signals

The contract is awarded to a specific entity, PROJECTXYZ, INC., indicating a known vendor.
The fixed fee component provides some level of cost certainty for a portion of the contract.
The contract duration of two years suggests a sustained need for these services.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal procurement landscape, supporting various government functions. This contract falls within the professional services category, which is highly competitive in the broader market. However, within the federal space, specific niches can be dominated by a few key players. Benchmarking requires comparing the fixed fee and estimated costs against similar consulting engagements for government agencies, which can vary widely based on scope and complexity.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided for this specific task order. As it was awarded on a sole-source basis, it is less likely to have been specifically targeted for small business participation unless the prime contractor has a robust small business subcontracting program. Further investigation into the parent contract and PROJECTXYZ, INC.'s subcontracting history would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The cost-plus-fixed-fee structure necessitates diligent oversight to ensure costs are reasonable and allocable, and that the fixed fee is earned. Transparency is limited by the sole-source nature of the award and the lack of publicly available details on the underlying contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Management and Financial Consulting, Acquisition and Technology Services
Professional, Scientific, and Technical Services
Defense-wide Administrative Support Contracts
General Management Consulting Services

Risk Flags

Sole-source award lacks competitive pricing.
Cost-plus-fixed-fee contract type requires robust oversight to manage costs.
Limited transparency on the specific scope of services and deliverables.
Details of the parent contract are not provided, limiting full context.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to PROJECTXYZ, INC.. NEW TASK ORDER (TO)

Who is the contractor on this award?

The obligated recipient is PROJECTXYZ, 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 $11.7 million.

What is the period of performance?

Start: 2024-03-01. End: 2026-02-28.

What is the specific scope of work for these administrative and general management consulting services?

The provided data indicates the contract is for 'Administrative Management and General Management Consulting Services' (NAICS code 541611). However, the specific tasks, deliverables, and objectives are not detailed in the provided information. These services can encompass a wide range of activities, including organizational analysis, process improvement, strategic planning, human capital management, and operational efficiency enhancements. Without a detailed statement of work, it is difficult to assess the precise nature of the services being procured and their expected impact.

What is the total value of the parent contract under which this task order was issued?

The provided data specifies this is a 'NEW TASK ORDER (TO)' with a value of $11,675,586.97 and identifies it as a 'DELIVERY ORDER (AW)'. This implies it is issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of contract vehicle. The total value of the parent contract is not provided in the given data. Understanding the parent contract's value, duration, and competitive history is crucial for a comprehensive analysis of this task order's context and potential long-term implications.

What is the fixed fee amount within the Cost Plus Fixed Fee structure?

The data indicates the contract type is 'COST PLUS FIXED FEE (PT)'. However, the specific amount or percentage allocated to the fixed fee is not detailed in the provided information. In a Cost Plus Fixed Fee (CPFF) contract, the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee. The fixed fee represents the contractor's profit. Without knowing the fixed fee, it's challenging to fully assess the contractor's incentive structure and the government's cost exposure beyond the direct costs.

Has PROJECTXYZ, INC. previously performed similar services for the Department of Defense or other federal agencies?

The provided data identifies the contractor as 'PROJECTXYZ, INC.' and the awarding agency as the 'Department of Defense'. However, it does not contain information about the contractor's past performance, track record, or previous contracts. A thorough analysis would require reviewing federal procurement databases (like SAM.gov or FPDS) to ascertain PROJECTXYZ, INC.'s history with the DoD and other agencies, focusing on the successful completion of similar administrative and management consulting services, client satisfaction, and any past performance issues.

What is the justification for awarding this task order on a sole-source basis?

The data explicitly states the contract type as 'NOT COMPETED (CT)', indicating a sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for competitive acquisitions. Sole-source awards are exceptions and require specific justifications, such as when only one responsible source is available, or in cases of urgent and compelling need. The specific justification for this task order is not provided in the given data. Understanding this justification is critical for assessing the appropriateness of the procurement method and its potential impact on cost and competition.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1500 PERIMETER PKWY NW STE 426, HUNTSVILLE, AL, 35806

Business Categories: Black American Owned Business, Category 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: $11,688,740

Exercised Options: $11,688,740

Current Obligation: $11,675,587

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB24D0017

IDV Type: IDC

Timeline