DoD's $164.6M contract for administrative management consulting services awarded to foreign entities

Contract Overview

Contract Amount: $16,464,585 ($16.5M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2006-11-21

End Date: 2009-02-11

Contract Duration: 813 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: {PIIN: W91GET07C0002} CONTRACTING SUPPORT FOR JCCI

Plain-Language Summary

Department of Defense obligated $16.5 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GET07C0002} CONTRACTING SUPPORT FOR JCCI Key points: 1. Contract awarded to miscellaneous foreign awardees, raising questions about domestic economic benefit. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. A firm-fixed-price contract type indicates that the price was set at the time of award. 4. The contract duration of 813 days suggests a significant, medium-term engagement. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 6. The contract was awarded by the Department of the Army, a component of the DoD. 7. No small business set-asides were utilized for this contract.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The award to 'miscellaneous foreign awardees' for administrative management consulting services at over $164 million raises questions about whether domestic firms could have provided similar services at a comparable or better value. The firm-fixed-price structure suggests cost certainty, but the overall value proposition is unclear without more context on the services rendered and their impact.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the full and open nature suggests a potentially robust competition. This approach is generally favored to ensure the government receives the best possible value by allowing a wide range of qualified contractors to participate.

Taxpayer Impact: Full and open competition is intended to drive down prices through market forces, potentially benefiting taxpayers by securing services at competitive rates. However, the ultimate benefit depends on the actual number of bids received and the pricing strategies employed by the bidders.

Public Impact

The primary beneficiaries are likely the foreign entities awarded the contract, providing them with significant revenue. The services delivered are related to administrative management and general management consulting, supporting DoD operations. The geographic impact is primarily international, given the award to foreign entities, with potential indirect impacts on U.S. military readiness. Workforce implications are unclear, but the award to foreign entities may mean fewer opportunities for U.S.-based consultants in this specific contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Award to foreign entities may limit direct economic benefits to the U.S. economy.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the consulting services.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not tightly managed.
The PIIN is for a definitive contract, which can sometimes be less transparent than other contract types regarding specific task orders and their costs.

Positive Signals

Full and open competition suggests a commitment to leveraging market competition for best value.
Firm-fixed-price contract type provides cost certainty for the government.
The contract supports the Department of the Army, indicating a focus on essential governmental functions.
The contract duration of over two years suggests a stable, ongoing need for these services.

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 firms, from large multinational corporations to specialized boutiques. The U.S. government is a significant consumer of management consulting services to improve efficiency, strategy, and operations across various agencies. Benchmarking this specific contract's value is difficult without detailed service descriptions, but the overall federal spending on management consulting is substantial.

Small Business Impact

This contract does not appear to have involved small business set-asides, as indicated by the 'sb' field being false. The award to 'miscellaneous foreign awardees' further suggests that small businesses, particularly U.S.-based ones, were unlikely to be direct recipients of this prime contract funding. Subcontracting opportunities for U.S. small businesses are not explicitly detailed but would depend on the prime contractors' procurement strategies.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Army. Transparency is limited by the available data; while the contract was competed, details on specific task orders, performance reviews, and final deliverables are not publicly accessible through this summary. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Administrative Support Contracts
Management and Consulting Services for Federal Agencies
Foreign Military Support Contracts
Army Operational Support Services

Risk Flags

Award to foreign entities
Lack of specific performance metrics
Broad service description

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GET07C0002} CONTRACTING SUPPORT FOR JCCI

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.5 million.

What is the period of performance?

Start: 2006-11-21. End: 2009-02-11.

What specific administrative management and general management consulting services were provided under this contract?

The provided data does not specify the exact nature of the administrative management and general management consulting services rendered under PIIN W91GET07C0002. The NAICS code 541611 covers a broad spectrum of activities, including organizational efficiency, strategic planning, process improvement, and general management advice. Without access to the contract's statement of work or task orders, it is impossible to detail the specific services. These services could range from high-level strategic advice to more operational support functions aimed at enhancing the efficiency and effectiveness of Department of the Army operations.

How does the $164.6 million contract value compare to similar administrative consulting contracts awarded by the Department of the Army?

Comparing the $164.6 million value requires context on the duration and scope of similar contracts. This contract, awarded in 2006 and ending in 2009 (813 days), represents a significant investment. However, without knowing the specific deliverables and the number of personnel or hours involved, a direct comparison is difficult. The Department of the Army frequently procures management and administrative support services, with contract values varying widely based on complexity and duration. Larger, multi-year contracts for comprehensive support can easily reach or exceed this amount, while smaller, specialized consulting engagements would be considerably less.

What are the potential risks associated with awarding a large administrative consulting contract to 'miscellaneous foreign awardees'?

Awarding a contract of this magnitude to 'miscellaneous foreign awardees' presents several potential risks. Firstly, there's a risk of reduced direct economic benefit to the U.S. economy, as funds may not circulate domestically through employment or investment. Secondly, oversight and communication can be more challenging due to geographical distance, time zone differences, and potentially different regulatory or business practices. Thirdly, ensuring compliance with U.S. security protocols and data handling standards might require additional scrutiny. Lastly, reliance on foreign entities for critical administrative functions could pose geopolitical or supply chain risks, although this is less likely for general consulting services compared to critical infrastructure or technology.

What was the rationale for awarding this contract to foreign entities rather than domestic U.S. companies?

The provided data does not explicitly state the rationale for awarding this contract to 'miscellaneous foreign awardees.' However, under full and open competition, the award is typically made to the offeror that represents the best value to the government, considering factors like price, technical approach, past performance, and other evaluation criteria. It's possible that foreign entities submitted the most competitive proposals based on these criteria, perhaps offering specialized expertise, a more advantageous cost structure, or fulfilling specific requirements that domestic firms could not meet as effectively or affordably at the time of award. The 'miscellaneous' designation suggests these might be multiple, smaller foreign entities rather than one large one.

How has federal spending on administrative management and general management consulting services evolved since this contract was awarded?

Federal spending on administrative management and general management consulting services has generally increased significantly since this contract (2006-2009). Factors contributing to this trend include growing complexity in government operations, increased emphasis on efficiency and performance improvement, and the need for specialized expertise in areas like cybersecurity, data analytics, and strategic planning. Agencies across the government, including the Department of Defense, continue to rely heavily on external consultants to address evolving challenges and implement new initiatives. While specific figures fluctuate annually, the overall trajectory indicates a sustained and often growing demand for these professional 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: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $17,121,031

Exercised Options: $17,121,031

Current Obligation: $16,464,585

Contract Characteristics

Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline