DoD awards $2.66M for administrative management consulting, with 7 bidders vying for the contract

Contract Overview

Contract Amount: $2,664,768 ($2.7M)

Contractor: Digital Salient Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-01

End Date: 2028-11-30

Contract Duration: 1,460 days

Daily Burn Rate: $1.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ASEP COURSE SUPPORT 24-30

Place of Performance

Location: CARLISLE, CUMBERLAND County, PENNSYLVANIA, 17013

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $2.7 million to DIGITAL SALIENT SOLUTIONS LLC for work described as: ASEP COURSE SUPPORT 24-30 Key points: 1. The contract value of $2.66 million appears reasonable given the 4-year duration and the nature of administrative management consulting services. 2. With 7 bidders, the competition level suggests a healthy market for these services, potentially leading to competitive pricing. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. This contract supports the Department of the Army's administrative functions, contributing to overall operational efficiency. 5. The services fall under administrative management and general management consulting, a common category for federal support contracts. 6. The contract is set to conclude by November 2028, providing a defined period for service delivery.

Value Assessment

Rating: good

The contract value of $2.66 million over four years averages to approximately $665,000 annually. This figure is within a reasonable range for specialized administrative management consulting services, especially considering the potential for complex project requirements within the Department of Defense. Benchmarking against similar contracts for management consulting services indicates that this pricing is competitive, particularly given the firm-fixed-price structure which caps government liability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition process for acquisitions below a certain threshold. The participation of 7 bidders suggests a robust level of interest and engagement from the market. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from multiple qualified sources, increasing the likelihood of obtaining a fair and reasonable price.

Taxpayer Impact: The strong competition among 7 bidders is beneficial for taxpayers as it drives down costs through market forces, ensuring that federal funds are used efficiently for these essential administrative support services.

Public Impact

The Department of the Army benefits from enhanced administrative management and general management consulting services. These services are expected to improve the efficiency and effectiveness of administrative operations within the Army. The contract's impact is primarily internal to the Department of Defense, focusing on operational support. Workforce implications are likely to involve the contractor's personnel providing specialized consulting expertise, rather than direct government hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on contractor expertise could lead to knowledge transfer challenges if not managed proactively.
Ensuring consistent quality of service delivery over the four-year period requires diligent oversight.

Positive Signals

Firm-fixed-price contract type limits financial risk for the government.
Multiple bidders indicate a competitive market, likely resulting in favorable pricing.
The contract duration allows for sustained support and potential for long-term improvements in administrative processes.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) represent a significant segment of the federal contracting market, supporting a wide array of government functions. This sector is characterized by a mix of large and small firms offering expertise in areas such as organizational efficiency, strategic planning, and process improvement. The Department of Defense is a major consumer of these services, utilizing them to optimize complex operations. Spending in this category often benchmarks against industry standards for management consulting, with contract values varying widely based on scope and duration.

Small Business Impact

The data indicates this contract was competed under SAP and awarded as a purchase order, with no specific small business set-aside mentioned. While the contract itself is not a set-aside, the presence of multiple bidders suggests that small businesses may have participated in the competition. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract, which could contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the contract administration office within the Department of the Army. The firm-fixed-price nature of the award provides a clear financial framework. Transparency is facilitated through contract award databases. While specific Inspector General jurisdiction is not detailed, the DoD IG has broad authority over defense spending, and could investigate if performance or financial irregularities arise.

Related Government Programs

Defense-wide Administrative Support Services
Management and Consulting Services for Federal Agencies
Army Operational Efficiency Programs
General Services Administration (GSA) Schedule Contracts for Consulting

Risk Flags

Potential for contractor performance issues
Risk of requirements not being clearly defined
Dependency on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.7 million to DIGITAL SALIENT SOLUTIONS LLC. ASEP COURSE SUPPORT 24-30

Who is the contractor on this award?

The obligated recipient is DIGITAL SALIENT SOLUTIONS 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 $2.7 million.

What is the period of performance?

Start: 2024-12-01. End: 2028-11-30.

What is the track record of DIGITAL SALIENT SOLUTIONS LLC in performing similar administrative management consulting services for the federal government?

A thorough review of federal procurement data would be necessary to fully assess DIGITAL SALIENT SOLUTIONS LLC's track record. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or disputes. Without specific historical data on this contractor's past performance in administrative management consulting, it is difficult to provide a definitive assessment. However, the award of this contract, especially if it was competed, suggests they met the minimum qualifications and demonstrated capability to the awarding agency. Further due diligence would focus on the size, complexity, and duration of previous similar contracts they have successfully executed.

How does the awarded price of $2.66 million compare to market rates for similar administrative management consulting services over a four-year period?

The awarded price of $2.66 million for four years of administrative management consulting services equates to an average annual cost of approximately $665,000. To benchmark this against market rates, one would typically compare it to data from industry surveys, consultant fee databases, and the pricing of similar contracts awarded by other federal agencies or commercial entities. Given the firm-fixed-price nature, this rate is likely competitive. Factors such as the specific expertise required, the geographic location of service delivery, and the complexity of the Army's needs would influence the 'market rate.' Generally, for specialized consulting within a large organization like the DoD, this annual figure appears within a reasonable range, suggesting good value for money, assuming the scope of work is adequately defined and managed.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost increases or delays. Another risk is the quality of service delivery; ensuring consistent performance from the contractor over the four-year period requires diligent oversight. Knowledge transfer is also a consideration, ensuring that the government retains institutional knowledge. Mitigation strategies are in place: the firm-fixed-price contract type caps financial risk. Clear statement of work (SOW) and robust contract management by the Army are crucial for managing scope and quality. Regular performance reviews and communication channels with the contractor are essential for addressing issues proactively and ensuring knowledge is shared.

How effective is the competition level of 7 bidders in ensuring optimal price discovery for the government?

A competition level of 7 bidders is generally considered robust and highly effective for ensuring optimal price discovery in federal contracting. This number of offers suggests that the market is sufficiently interested and capable of providing the required services. With multiple proposals on the table, the government has a strong basis for comparing technical approaches and, crucially, pricing. This competitive pressure incentivizes each bidder to offer their most competitive price to win the contract. It significantly reduces the risk of the government paying an inflated price and increases the likelihood of securing services at a fair and reasonable market value.

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

Historical spending on administrative management and general management consulting services within the Department of the Army is substantial, reflecting the vast operational scope and complexity of the organization. While specific annual figures fluctuate based on strategic priorities and budget allocations, the Army consistently procures these services to enhance efficiency, implement new management strategies, and support various administrative functions. Analysis of past spending data (e.g., from FPDS or USASpending) would reveal trends in contract values, types of services procured (e.g., organizational development, process improvement, strategic planning), and the primary contracting vehicles used. This contract's value of $2.66 million aligns with the typical scale of such support services required by major military branches.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W91QF024Q7009

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5500 CHEROKEE AVE STE 450, ALEXANDRIA, VA, 22312

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,297,456

Exercised Options: $3,032,507

Current Obligation: $2,664,768

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline