Dynamic-Pro Inc. awarded $3.5M bridge contract for acquisition support by Millennium Challenge Corporation

Contract Overview

Contract Amount: $3,483,818 ($3.5M)

Contractor: Dynamic-Pro Inc.

Awarding Agency: Millennium Challenge Corporation

Start Date: 2025-03-01

End Date: 2026-05-29

Contract Duration: 454 days

Daily Burn Rate: $7.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ACQUISITION SUPPORT SERVICES BRIDGE CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Millennium Challenge Corporation obligated $3.5 million to DYNAMIC-PRO INC. for work described as: ACQUISITION SUPPORT SERVICES BRIDGE CONTRACT Key points: 1. Contract provides essential acquisition support services, ensuring continuity for critical functions. 2. The award was made on a sole-source basis, raising questions about potential cost efficiencies. 3. A bridge contract structure suggests a need for immediate support while a more permanent solution is sought. 4. The duration of the contract extends over a year, indicating a significant, ongoing need. 5. The services fall under administrative management and general management consulting, a common area for federal contracting.

Value Assessment

Rating: questionable

The contract's value of $3.5 million for acquisition support services over approximately 1.5 years needs careful benchmarking. Without competitive bidding, it is difficult to assess if this represents a fair market price. The 'time and materials' pricing structure can also lead to cost overruns if not closely monitored. Comparing this to similar acquisition support contracts, especially those that were competitively procured, would be crucial to determine value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This limits the opportunity for multiple vendors to offer their services and potentially drive down costs through competition. The lack of competition means the Millennium Challenge Corporation relied on a single vendor, Dynamic-Pro Inc., without exploring other market options. This approach is typically justified by urgency or unique capabilities, but it bypasses the standard competitive process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefit of competitive pricing is lost. It also reduces transparency in the procurement process.

Public Impact

The Millennium Challenge Corporation benefits from continued acquisition support, ensuring smooth operations. Federal acquisition processes are supported, enabling the agency to procure necessary goods and services. The contract's impact is primarily internal to the MCC, supporting its administrative and management functions. Workforce implications are likely minimal, as this contract appears to support existing functions rather than create new roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Time and materials pricing structure carries inherent risk of cost escalation.
Bridge contract nature suggests potential planning gaps or unforeseen needs.

Positive Signals

Ensures continuity of essential acquisition support services.
Award to a single vendor may indicate a specific, necessary expertise.
Contract duration provides stability for critical agency functions.

Sector Analysis

Acquisition support services are a critical component of federal agency operations, encompassing a wide range of administrative and management consulting functions. The market for these services is substantial, with numerous firms offering expertise in procurement, contract management, and strategic planning. This contract fits within the broader professional services sector, where agencies rely on external expertise to supplement internal capabilities. Benchmarking spending in this area often involves comparing contract values and pricing structures across different agencies for similar service categories.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Dynamic-Pro Inc., a single entity, does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. Further analysis would be needed to determine if Dynamic-Pro Inc. itself is a small business or if there are any indirect impacts.

Oversight & Accountability

Oversight for this contract would typically fall under the Millennium Challenge Corporation's internal procurement and financial management offices. As a definitive contract, it is subject to standard federal acquisition regulations. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Acquisition Management Support
Professional Services Contracts
Administrative Management Consulting
General Management Consulting Services

Risk Flags

Sole-source award
Time and materials pricing
Bridge contract

Frequently Asked Questions

What is this federal contract paying for?

Millennium Challenge Corporation awarded $3.5 million to DYNAMIC-PRO INC.. ACQUISITION SUPPORT SERVICES BRIDGE CONTRACT

Who is the contractor on this award?

The obligated recipient is DYNAMIC-PRO INC..

Which agency awarded this contract?

Awarding agency: Millennium Challenge Corporation (Millennium Challenge Corporation).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-05-29.

What is the track record of Dynamic-Pro Inc. with federal contracts, particularly with the Millennium Challenge Corporation?

A review of federal contract databases would be necessary to fully assess Dynamic-Pro Inc.'s track record. Information on past performance, contract values, and agencies served would provide insight into their experience and reliability. Specifically, understanding their history with the Millennium Challenge Corporation, including the types of services previously provided and their performance ratings, would be crucial. Without this specific data, it's difficult to gauge their suitability beyond the immediate need addressed by this bridge contract. A history of successful, on-time, and within-budget contract completions would be a positive indicator, while a pattern of issues could raise concerns about the current sole-source award.

How does the pricing structure of this 'time and materials' contract compare to market rates for similar acquisition support services?

The 'time and materials' (T&M) pricing structure means the government pays for the direct labor hours at specified hourly rates, plus the actual cost of materials. To assess its value, one would need to benchmark these hourly rates against industry standards for acquisition support consultants with comparable experience and qualifications. Additionally, the 'other direct costs' (ODCs) associated with materials and travel should be scrutinized for reasonableness. Without competitive bids, it's challenging to establish a definitive market rate. However, comparing the proposed T&M rates to publicly available salary data for similar roles, or to rates from competitively awarded T&M contracts for comparable services, can provide a benchmark. The absence of a ceiling price on this contract also increases the risk of cost overruns if not managed diligently.

What are the specific risks associated with using a sole-source, time-and-materials bridge contract for acquisition support?

The primary risks associated with this contract are multifaceted. Firstly, the sole-source nature eliminates the benefit of competition, potentially leading to a higher price than if multiple vendors had bid. This reduces price discovery and leverage for the government. Secondly, the 'time and materials' (T&M) pricing model, especially without a firm ceiling or robust oversight, carries a significant risk of cost escalation. Contractors may have less incentive to control labor hours or material costs, as the government bears these expenses. Thirdly, the 'bridge' designation implies a temporary solution, which can sometimes indicate a lack of strategic planning or an unforeseen gap in services, potentially leading to inefficiencies or a rushed, less optimal long-term solution. Finally, the lack of competition can also reduce the incentive for the contractor to innovate or provide exceptional service beyond the basic requirements.

What is the Millennium Challenge Corporation's historical spending on acquisition support services, and how does this contract fit into that pattern?

Analyzing the Millennium Challenge Corporation's historical spending on acquisition support services is crucial for context. This involves examining past contract awards for similar services, including their values, durations, and procurement methods (competed vs. sole-source). If the agency typically relies on competitive bidding for these services and this is an anomaly, it warrants further investigation into the justification for the sole-source award. Conversely, if sole-source awards or bridge contracts are common for this function, it might indicate systemic issues or a consistent reliance on specific vendors. Understanding the historical spending patterns can reveal trends in cost, vendor reliance, and the agency's approach to acquiring these essential support services, helping to determine if this $3.5 million award is an outlier or part of a larger trend.

What are the potential long-term implications of relying on bridge contracts for essential acquisition support functions?

Relying on bridge contracts for essential functions like acquisition support can have several long-term implications. It may signal a recurring issue with strategic sourcing or procurement planning within the agency, leading to a cycle of short-term, often more expensive, solutions. This can disrupt the continuity of services and hinder the development of long-term strategic partnerships with vendors who can offer consistent, high-quality support. Furthermore, frequent use of bridge contracts, especially if sole-sourced, can erode the competitive landscape for these services, potentially leading to higher overall costs for the government in the long run. It can also divert resources and attention from developing more sustainable and cost-effective procurement strategies.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7435 MASON LN, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,199,176

Exercised Options: $4,199,176

Current Obligation: $3,483,818

Actual Outlays: $2,077,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline