DoD's $35.5M contract for management consulting services awarded to Vecna Technologies, Inc

Contract Overview

Contract Amount: $35,533,533 ($35.5M)

Contractor: Vecna Technologies, Inc

Awarding Agency: Department of Defense

Start Date: 2013-09-27

End Date: 2019-01-31

Contract Duration: 1,952 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BASE PERIOD LABOR (INCL 30 DAY TRANS IN)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.5 million to VECNA TECHNOLOGIES, INC for work described as: BASE PERIOD LABOR (INCL 30 DAY TRANS IN) Key points: 1. The contract's value of $35.5 million over approximately 5.3 years suggests a significant investment in administrative and management consulting. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process, potentially leading to better pricing. 3. The 'Cost Plus Fixed Fee' contract type carries inherent risks of cost overruns, requiring diligent oversight to manage expenses effectively. 4. The contract's duration of 1952 days (approx. 5.3 years) indicates a long-term need for the services provided. 5. Vecna Technologies, Inc. is the sole awardee, highlighting their specific capabilities or market position for this requirement. 6. The North American Industry Classification System (NAICS) code 541611 points to a focus on general management consulting services.

Value Assessment

Rating: fair

Benchmarking the value of this $35.5 million contract for administrative management and general management consulting services is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) pricing structure, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not managed rigorously. The contract's duration of over five years suggests a substantial and ongoing need, but the value-for-money assessment hinges on the effectiveness and efficiency of the services delivered by Vecna Technologies, Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that the Defense Health Agency sought competitive proposals to ensure fair pricing and access to a range of qualified contractors. The number of bidders (5) provides a moderate level of competition, which is generally positive for price discovery and innovation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality, ensuring the government receives good value for its investment.

Public Impact

The primary beneficiaries are likely the Department of Defense and the Defense Health Agency, receiving expert advice and support for administrative and management functions. The services delivered are expected to enhance the efficiency and effectiveness of the agency's operations. The geographic impact is primarily within the Department of Defense's operational sphere, potentially supporting various military health initiatives. Workforce implications could include the augmentation of existing staff with specialized consulting expertise or the potential for knowledge transfer to government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit.
Long contract duration (over 5 years) may lead to complacency or reduced urgency if not actively managed.
Lack of specific performance metrics in the provided data makes it difficult to assess the true value and impact of the services.
Reliance on a single contractor (Vecna Technologies, Inc.) for this duration could limit future flexibility or access to potentially better solutions.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract addresses administrative management and general management consulting, critical functions for organizational efficiency.
The existence of 5 bidders indicates a healthy interest and capability within the market for these services.
The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which can offer flexibility.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for management consulting services is competitive, with numerous firms offering specialized expertise. Federal spending in this area often focuses on improving efficiency, implementing new technologies, and optimizing organizational structures. Comparable spending benchmarks would typically involve analyzing other large-scale consulting contracts awarded by federal agencies for similar services.

Small Business Impact

The provided data indicates that small business set-aside was not utilized for this contract (sb: false). There is no explicit information regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem from this specific award is not detailed, though large prime contractors often have subcontracting goals that may involve small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Defense Health Agency. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring of costs and performance to ensure value for money and prevent overruns. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Management and Consulting Services
Defense Health Program
Administrative Support Services
Professional Services Contracts
Cost-Plus Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight to manage cost risks.
Long contract duration may necessitate proactive management to maintain performance.
Lack of detailed service description limits immediate assessment of value and impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.5 million to VECNA TECHNOLOGIES, INC. BASE PERIOD LABOR (INCL 30 DAY TRANS IN)

Who is the contractor on this award?

The obligated recipient is VECNA TECHNOLOGIES, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $35.5 million.

What is the period of performance?

Start: 2013-09-27. End: 2019-01-31.

What is Vecna Technologies, Inc.'s track record with the Department of Defense and the Defense Health Agency prior to this award?

Assessing Vecna Technologies, Inc.'s prior track record with the Department of Defense (DoD) and the Defense Health Agency (DHA) is crucial for understanding their suitability for this $35.5 million contract. While the provided data focuses on this specific award, a deeper dive into contract databases would reveal previous awards, performance evaluations (if publicly available), and any history of contract modifications or disputes. A positive history of successful project completion, adherence to timelines and budgets, and favorable past performance reviews would indicate a lower risk for this current engagement. Conversely, any documented issues could signal potential risks that require careful management and oversight.

How does the $35.5 million contract value compare to similar management consulting contracts awarded by the DoD or DHA?

The $35.5 million contract value for administrative management and general management consulting services awarded to Vecna Technologies, Inc. needs to be benchmarked against similar procurements. Comparing this figure to the average or median contract values for comparable services within the DoD or DHA, and across the federal government, provides context. If this contract is significantly higher or lower than typical awards of similar scope and duration, it warrants further investigation. Factors such as the specific services required, the complexity of the tasks, the duration of the contract (1952 days), and the number of bidders (5) all influence pricing. A value significantly outside the norm could indicate either exceptional value or potential overpricing.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this engagement?

The Cost Plus Fixed Fee (CPFF) contract type, used for this $35.5 million award, presents specific risks. While it allows for flexibility in scope and provides a fixed profit margin for the contractor (Vecna Technologies, Inc.), it shifts much of the cost risk to the government. The primary risk is that the contractor may have less incentive to control costs, as the government reimburses allowable expenses plus a predetermined fee. This can lead to cost overruns if not meticulously managed. Effective oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure the government receives value for its investment. Regular audits and reviews of expenditures are critical.

What specific administrative and management consulting services are being provided under this contract?

The contract is broadly categorized under NAICS code 541611 (Administrative Management and General Management Consulting Services). However, the specific services delivered are not detailed in the provided data. These services could encompass a wide range of activities, such as organizational analysis, process improvement, strategic planning, policy development, program management support, human capital consulting, or financial management advisory. Understanding the precise nature of these services is vital for assessing their impact, effectiveness, and alignment with the Defense Health Agency's mission. Without this specificity, evaluating the contract's true value and performance is challenging.

How has federal spending on management consulting services evolved over the past five years, and where does this contract fit?

Federal spending on management consulting services has generally seen a steady increase over the past five years, driven by agencies' needs for expertise in areas like digital transformation, cybersecurity, program modernization, and efficiency improvements. This $35.5 million contract with Vecna Technologies, Inc. for the DoD fits within this broader trend. Analyzing historical spending patterns for similar services within the Defense Health Agency and the wider Department of Defense would provide further context. Understanding whether this award represents a typical investment or a significant deviation from past spending levels can help assess its strategic importance and potential value.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W81XWH05R0004

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7500 GREENWAY CENTER DRIVE SUITE 1130, GREENBELT, MD, 20770

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $36,166,594

Exercised Options: $36,166,594

Current Obligation: $35,533,533

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81XWH08D0045

IDV Type: IDC

Timeline