DoD's BTA Spends $10.4M on Consulting Services, Lacking Competition
Contract Overview
Contract Amount: $10,395,123 ($10.4M)
Contractor: Altarum Institute
Awarding Agency: Department of Defense
Start Date: 2007-09-01
End Date: 2009-02-28
Contract Duration: 546 days
Daily Burn Rate: $19.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Other
Official Description: BUSINESS TRANSFORMATION AGENCY (BTA) AGENCY RESEARCH, DEVELOPMENT, TESTING AND EVALUATION SERVICES AND SUPPORT
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to ALTARUM INSTITUTE for work described as: BUSINESS TRANSFORMATION AGENCY (BTA) AGENCY RESEARCH, DEVELOPMENT, TESTING AND EVALUATION SERVICES AND SUPPORT Key points: 1. Spending of $10.4M on administrative management and general management consulting services. 2. Contract awarded to Altarum Institute without competition. 3. Potential risk due to lack of competitive bidding impacting price discovery. 4. Services fall under administrative management and general management consulting.
Value Assessment
Rating: questionable
The contract value of $10.4M for consulting services appears high given the lack of competition. Without competitive bids, it's difficult to assess if the pricing is fair market value compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: Taxpayers may have overpaid due to the absence of a competitive bidding process, which typically drives down costs.
Public Impact
Citizens may question the fairness of awarding large contracts without competition. Lack of transparency in the procurement process can erode public trust. Potential for inefficient use of taxpayer funds when competition is absent.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency
Positive Signals
- Contract awarded to a specific entity for specialized services
Sector Analysis
This contract falls under administrative management and general management consulting services. Benchmarks for this sector vary widely, but significant spending without competition warrants scrutiny.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses were excluded or if the scope of work was not suitable for them.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential weaknesses in oversight or justification for a sole-source award. Robust oversight is crucial to ensure fair and efficient use of funds.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated costs due to no competition.
- Limited accountability without performance metrics.
- Unclear scope of RDT&E services provided.
- No indication of small business participation.
Tags
administrative-management-and-general-ma, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.4 million to ALTARUM INSTITUTE. BUSINESS TRANSFORMATION AGENCY (BTA) AGENCY RESEARCH, DEVELOPMENT, TESTING AND EVALUATION SERVICES AND SUPPORT
Who is the contractor on this award?
The obligated recipient is ALTARUM INSTITUTE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.4 million.
What is the period of performance?
Start: 2007-09-01. End: 2009-02-28.
What was the justification for not competing this contract?
The provided data does not include the specific justification for not competing this contract. Typically, sole-source awards require a detailed justification, such as a unique capability possessed by the contractor or an urgent need that precludes competition. Without this information, it's impossible to fully assess the necessity of the sole-source award.
What specific research, development, testing, and evaluation services were provided?
The data identifies the contract as 'AGENCY RESEARCH, DEVELOPMENT, TESTING AND EVALUATION SERVICES AND SUPPORT' under NAICS code 541611 (Administrative Management and General Management Consulting Services). However, the specific nature of these RDT&E services is not detailed. Understanding the precise deliverables would be crucial for evaluating the value and necessity of the contract.
Were there any performance metrics or outcomes associated with this contract?
The provided data does not contain information on performance metrics or specific outcomes achieved under this contract. For a contract of this value, especially one awarded without competition, clear performance indicators and documented results are essential for accountability and to demonstrate effective use of taxpayer 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: RESEARCH AND DEVELOPMENT › Community and Regional Development R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Address: 3520 GREEN CT STE 300, ANN ARBOR, MI, 06
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,020,191
Exercised Options: $11,020,191
Current Obligation: $10,395,123
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-01
Current End Date: 2009-02-28
Potential End Date: 2009-02-28 00:00:00
Last Modified: 2010-09-13
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