DoD's $11.2M contract for administrative management services awarded to a foreign entity raises questions about value and competition

Contract Overview

Contract Amount: $11,221,988 ($11.2M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2007-03-22

End Date: 2008-01-01

Contract Duration: 285 days

Daily Burn Rate: $39.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: {PIIN: W91GY007C0021} SAMARA BRIGADE -PB LOVE INMILVAN CITYIN

Plain-Language Summary

Department of Defense obligated $11.2 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GY007C0021} SAMARA BRIGADE -PB LOVE INMILVAN CITYIN Key points: 1. The contract's value appears high for administrative management consulting services, especially given the awardee's foreign status. 2. Limited information on the specific services rendered makes a direct value-for-money assessment challenging. 3. The 'full and open competition' designation is noted, but the award to a 'miscellaneous foreign awardee' warrants further scrutiny. 4. Performance context is minimal, with no clear indicators of success or failure provided. 5. The contract falls within the professional services sector, a common area for government contracting. 6. Risk indicators are present due to the foreign awardee and lack of detailed performance metrics.

Value Assessment

Rating: questionable

Benchmarking this contract's value is difficult without specific service details. However, an $11.2 million award for administrative management and general management consulting services to a foreign entity, with a relatively short duration, suggests a potentially high per-unit cost or an inflated overall price. Comparing it to similar domestic contracts for comparable services would likely reveal significant discrepancies, raising concerns about whether the government received optimal value for its investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. However, the fact that the award went to a 'miscellaneous foreign awardee' suggests that either foreign entities were specifically targeted or that the competition pool, despite being open, resulted in this specific outcome. The number of bidders is not specified, which limits the ability to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers by fostering lower prices, the award to a foreign entity in this instance may mean that domestic small businesses or specialized firms were not adequately considered or were unable to compete effectively, potentially limiting broader economic benefits.

Public Impact

The primary beneficiaries appear to be the foreign awardee and potentially the Department of the Army through the administrative services provided. Services delivered likely included general management consulting and administrative support, though specifics are not detailed. Geographic impact is unclear, but likely centered around the operational area of the SAMARA BRIGADE in Milvan City. Workforce implications are minimal for the US domestic workforce, as the awardee is foreign.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service description hinders performance evaluation.
Award to a foreign entity may present logistical or communication challenges.
Limited transparency on the competitive process and number of bidders.
Potential for higher costs compared to domestic service providers.

Positive Signals

Contract was awarded through full and open competition, suggesting an attempt at market-based pricing.
Firm fixed-price contract type helps control costs and provides budget certainty.
Awarded by the Department of the Army, a major federal agency with established procurement processes.

Sector Analysis

This contract falls under the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, encompassing a wide range of support services. The market size for such services is substantial, with numerous domestic and international firms competing for government contracts. This particular award, however, stands out due to its foreign recipient.

Small Business Impact

There is no indication that this contract involved small business set-asides, nor is there information on subcontracting plans. Given the award to a foreign entity, the direct impact on the US small business ecosystem is likely negligible, and there is no evidence of subcontracting opportunities being directed towards domestic small businesses.

Oversight & Accountability

Oversight mechanisms for this contract are presumed to be standard within the Department of the Army's procurement processes. However, the limited public information regarding performance metrics and the foreign nature of the awardee could present challenges for robust oversight and accountability. Transparency is moderate, with basic contract details available, but deeper insights into service delivery and value are lacking.

Related Government Programs

Department of Defense Administrative Support Contracts
Foreign Military Support Contracts
Management and Consulting Services

Risk Flags

Foreign Awardee
Lack of Performance Data
High Contract Value for Service Type
Limited Competition Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GY007C0021} SAMARA BRIGADE -PB LOVE INMILVAN CITYIN

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 $11.2 million.

What is the period of performance?

Start: 2007-03-22. End: 2008-01-01.

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

The provided data does not specify the exact services rendered under contract W91GY007C0021. The North American Industry Classification System (NAICS) code 541611, 'Administrative Management and General Management Consulting Services,' is broad and can encompass a wide array of activities. These could range from strategic planning, organizational restructuring, process improvement, human capital management, to general administrative support. Without further details from the contract award or performance reports, it is impossible to ascertain the precise nature and scope of the work performed by the 'MISCELLANEOUS FOREIGN AWARDEES' for the SAMARA BRIGADE.

How does the $11.2 million contract value compare to similar administrative management contracts awarded by the DoD?

Direct comparison of the $11.2 million contract value is challenging without knowing the specific services, duration, and geographic scope. However, for administrative management and general management consulting services, this amount for a contract with a duration of less than a year (March 22, 2007, to January 1, 2008) appears substantial. Benchmarking against similar contracts awarded to domestic firms for comparable services would be necessary to determine if this represents good value. The fact that the awardee is a 'miscellaneous foreign awardee' might also imply different cost structures or overheads compared to domestic contractors, potentially impacting the perceived value.

What are the potential risks associated with awarding a contract of this magnitude to a 'miscellaneous foreign awardee'?

Awarding a contract of $11.2 million to a 'miscellaneous foreign awardee' can introduce several risks. These may include challenges in communication and coordination due to language barriers or time zone differences, potential difficulties in enforcing contract terms or quality standards, and increased scrutiny regarding security and data protection, especially if sensitive information is involved. Furthermore, there could be geopolitical considerations or compliance issues related to operating in a foreign jurisdiction. The lack of specific details about the awardee exacerbates these risks, making it harder to assess their reliability and capability.

What does the 'full and open competition' designation imply for this specific contract, given the foreign awardee?

The 'full and open competition' designation signifies that the solicitation was made available to all eligible responsible sources, and the contract was awarded based on the best value to the government. In this case, it implies that despite being open, the competition resulted in an award to a 'miscellaneous foreign awardee.' This could suggest that foreign entities were either actively encouraged to bid, possessed unique capabilities, or offered a price that was deemed most advantageous. However, it also raises questions about whether the competition effectively included a broad range of domestic providers, particularly small businesses, and if the process truly maximized competitive pressure.

What is the historical spending pattern for administrative management and general management consulting services by the Department of the Army?

Historical spending data for administrative management and general management consulting services by the Department of the Army is extensive. The Army, like other branches of the DoD, frequently procures these services to support its vast operations, strategic planning, and organizational efficiency. Annual spending in this category typically runs into billions of dollars, reflecting the continuous need for external expertise. Contracts vary widely in value, duration, and scope, from small, specialized consulting engagements to large, multi-year support agreements. This particular $11.2 million contract, while significant, represents a fraction of the Army's overall expenditure in this service category.

Are there any specific performance metrics or outcomes documented for this contract?

The provided data does not include any specific performance metrics or documented outcomes for this contract (W91GY007C0021). Typically, contract performance is evaluated against established criteria, and reports are generated to assess the contractor's adherence to requirements, quality of service, and timeliness. The absence of such information in the summary data makes it impossible to evaluate the success or effectiveness of the services provided by the 'MISCELLANEOUS FOREIGN AWARDEES' to the SAMARA BRIGADE. This lack of detail limits transparency and accountability regarding the use of federal funds.

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, 08

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

Financial Breakdown

Contract Ceiling: $11,221,988

Exercised Options: $11,221,988

Current Obligation: $11,221,988

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline