DoD awards $5.26M engineering services contract to Karthik Consulting LLC for TMD ATMP SERVICES

Contract Overview

Contract Amount: $5,255,432 ($5.3M)

Contractor: Karthik Consulting LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-21

End Date: 2026-08-20

Contract Duration: 1,064 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TMD ATMP SERVICES

Place of Performance

Location: FORT LEAVENWORTH, LEAVENWORTH County, KANSAS, 66027

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to KARTHIK CONSULTING LLC for work described as: TMD ATMP SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. Contract duration of 1064 days provides a long-term engagement for services. 4. The contract is for engineering services, a critical component of defense operations. 5. Awarded by the Department of the Army, highlighting a specific branch's needs. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The contract value of $5.26 million over approximately 3 years for engineering services appears within a reasonable range for specialized defense support. Benchmarking against similar contracts for TMD ATMP services is difficult without more specific service details. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value. The number of bids received (4) provides some basis for comparison, but without knowing the scope and complexity, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed as 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be broad, specific sources were excluded for reasons not detailed in the provided data. Four bids were received, suggesting some level of competition, but the exclusion of certain sources may have limited the overall competitive landscape. This approach can sometimes be used when specific technical capabilities or past performance are critical, but it warrants scrutiny to ensure fair opportunity.

Taxpayer Impact: The limited competition, even after an open process, may result in less aggressive pricing than a truly unrestricted full and open competition. Taxpayers benefit from the selection of qualified vendors, but the potential for higher costs due to restricted bidding should be considered.

Public Impact

The Department of Defense benefits from specialized engineering services crucial for its mission. Services delivered are related to Theater Missile Defense (TMD) Advanced Technology Management Program (ATMP). The contract is geographically located in Kansas (KS), impacting the local economy and workforce. Potential for job creation or utilization of specialized engineering talent within the Kansas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause, which could impact price discovery.
Lack of detailed service scope makes it difficult to fully assess value for money.
Contract duration is substantial, requiring ongoing monitoring for performance and adherence to scope.

Positive Signals

Firm-fixed-price contract aligns incentives and provides cost certainty.
Awarded by the Department of the Army, indicating a critical defense need being met.
Four bids received suggest a degree of market interest and capability.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market supporting defense and other government agencies. The market for specialized engineering services, particularly in areas like missile defense, is highly technical and often dominated by a few key players. The total federal spending on engineering services is substantial, and this contract represents a specific investment in advanced technology management for the Department of the Army.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. However, the prime contractor, Karthik Consulting LLC, may engage small businesses as subcontractors if their capabilities are needed to fulfill the contract requirements, though this is not mandated by the contract type.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer (ACO) within the Department of the Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Missile Defense Agency Contracts
Department of Defense Engineering Services
Army Combat Systems Development
Advanced Technology Development Contracts
Theater Missile Defense Programs

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns if scope is not well-defined for contractor.
Need for detailed performance monitoring due to contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to KARTHIK CONSULTING LLC. TMD ATMP SERVICES

Who is the contractor on this award?

The obligated recipient is KARTHIK 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 $5.3 million.

What is the period of performance?

Start: 2023-09-21. End: 2026-08-20.

What is the specific nature of the 'TMD ATMP SERVICES' and how do they align with the Department of the Army's strategic objectives?

The 'TMD ATMP SERVICES' likely refer to services supporting the Theater Missile Defense Advanced Technology Management Program. This program is crucial for developing and integrating technologies to counter ballistic and cruise missile threats in various theaters of operation. For the Department of the Army, these services would align with strategic objectives related to force protection, power projection, and maintaining technological superiority in missile defense. This could involve research, development, testing, evaluation, systems engineering, and program management support for TMD systems. The specific tasks would dictate the exact alignment, but generally, it supports the Army's role in a layered missile defense architecture.

How does the 'full and open competition after exclusion of sources' process typically impact pricing and contractor selection compared to unrestricted full and open competition?

The 'full and open competition after exclusion of sources' process is a variation of full and open competition where certain potential offerors are excluded from bidding. This exclusion is usually based on specific criteria, such as unique capabilities, past performance, or security requirements, often detailed in a Justification and Approval (J&A) document. While it aims to ensure the best-fit contractor is selected for complex needs, it can limit the pool of bidders compared to unrestricted competition. This reduced competition might lead to less aggressive pricing as the number of viable contenders decreases. Contractor selection focuses on those who meet the stringent, potentially narrowed, criteria, ensuring specialized expertise but potentially at a higher cost than if a wider range of firms competed.

What are the potential risks associated with a firm-fixed-price contract for complex engineering services like those potentially involved in TMD ATMP?

While firm-fixed-price (FFP) contracts offer cost certainty for the government, they can introduce risks for the contractor, especially in complex engineering services. If the scope of work is not perfectly defined or if unforeseen technical challenges arise during the TMD ATMP services, the contractor may incur costs exceeding the contract price. This could lead to financial strain for the contractor, potentially impacting performance or leading to requests for contract modifications or equitable adjustments. For the government, the risk is that a contractor might cut corners on quality or scope to maintain profitability, or that the contractor may struggle to complete the work if they underestimate the complexity, leading to delays or subpar outcomes. Robust performance monitoring is crucial to mitigate these risks.

Can the historical spending patterns for TMD ATMP SERVICES or similar engineering services contracts provide insights into the value and necessity of this award?

Analyzing historical spending patterns for TMD ATMP SERVICES or comparable engineering support contracts can offer valuable insights. Consistent or increasing spending in this area suggests a sustained and potentially growing need for these specialized services, indicating the ongoing importance of missile defense technology. Significant fluctuations or decreases might suggest shifts in strategic priorities, technological advancements rendering previous approaches obsolete, or successful cost-saving measures. Comparing the current award amount ($5.26M) to historical contract values for similar scopes of work can help benchmark whether the pricing is competitive over time. It also helps assess the overall investment the Department of the Army is making in this capability.

What is Karthik Consulting LLC's track record with Department of Defense contracts, particularly in engineering or missile defense-related services?

Assessing Karthik Consulting LLC's track record with the Department of Defense (DoD) is crucial for understanding the risk associated with this award. Information on their past performance, including contract history, types of services rendered, contract values, and any performance issues or accolades, would be found in federal procurement databases (like FPDS). Specifically, looking for prior contracts related to engineering services, missile defense, advanced technology management, or similar complex technical support would provide the most relevant context. A history of successful contract completion, on-time delivery, and within-budget performance would indicate a lower risk. Conversely, a history of performance issues, disputes, or contract terminations would raise concerns about their capability to execute this new $5.26M award effectively.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91QF423R0015

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3120 FAIRVIEW PARK DR STE 800, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,382,389

Exercised Options: $5,255,432

Current Obligation: $5,255,432

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1087

IDV Type: IDC

Timeline