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 ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENTCommunity 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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