DOE's $60M Management Consulting Task Order Awarded to Strategic Management Solutions, LLC
Contract Overview
Contract Amount: $60,362,306 ($60.4M)
Contractor: Strategic Management Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2013-07-01
End Date: 2020-03-31
Contract Duration: 2,465 days
Daily Burn Rate: $24.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF PPPO / DUF6 ENGINEERING AND OPERATIONS TECHNICAL SUPPORT TASK ORDER. TIME-AND-MATERIALS (T&M) TASK ORDER AWARDED AGAINST THE GENERAL SERVICES ADMINISTRATION S (GSA) MISSION ORIENTED BUSINESS INTEGRATED SERVICES (MOBIS) MULTIPLE AWARD SCHEDULE.
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40502
State: Kentucky Government Spending
Plain-Language Summary
Department of Energy obligated $60.4 million to STRATEGIC MANAGEMENT SOLUTIONS, LLC for work described as: IGF::OT::IGF PPPO / DUF6 ENGINEERING AND OPERATIONS TECHNICAL SUPPORT TASK ORDER. TIME-AND-MATERIALS (T&M) TASK ORDER AWARDED AGAINST THE GENERAL SERVICES ADMINISTRATION S (GSA) MISSION ORIENTED BUSINESS INTEGRATED SERVICES (MOBIS) MULTIPLE AWARD SCHEDULE. Key points: 1. The contract was awarded under a GSA schedule, indicating a pre-competed framework. 2. The task order was competed full and open, suggesting a competitive award process. 3. The duration of the contract is over 2400 days, spanning multiple years. 4. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 5. The North American Industry Classification System (NAICS) code 541611 points to administrative and management consulting services. 6. The award was made to a single contractor, Strategic Management Solutions, LLC. 7. The contract was awarded by the Department of Energy (DOE). 8. The task order was issued as a delivery order against a Multiple Award Schedule.
Value Assessment
Rating: fair
Benchmarking the value of this specific task order is challenging without more granular data on the services provided and comparable market rates for similar consulting engagements. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not carefully managed and monitored for efficiency. The total award amount of over $60 million over its duration suggests a significant scope of work, but the per-year cost would be more indicative of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through a full and open competition, which typically involves a broad solicitation to all eligible offerors. This suggests that multiple companies had the opportunity to bid on the requirement. The number of bidders (8) indicates a reasonable level of competition for this specific task order, which should have contributed to price discovery and potentially a more favorable outcome for the government.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider range of solutions. The presence of 8 bidders suggests that taxpayer dollars were likely used efficiently through a competitive process.
Public Impact
The Department of Energy benefits from administrative and management consulting services to support its operations. The services delivered likely contribute to the efficiency and effectiveness of DOE's administrative functions. The geographic impact is primarily within Kentucky, where the contract is managed. The contract supports the workforce within the consulting services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely monitored.
- The long duration of the contract may require periodic reviews to ensure continued relevance and value.
- Reliance on a single contractor for a significant duration could limit future flexibility or innovation.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Utilizes a GSA Multiple Award Schedule, suggesting a streamlined and pre-vetted procurement.
- The contract has a clear start and end date, providing a defined period of performance.
Sector Analysis
This contract falls within the administrative management and general management consulting services sector, a broad category encompassing a wide range of advisory services. The federal government is a significant consumer of these services to improve operational efficiency, strategic planning, and program management. Comparable spending benchmarks would typically be found within GSA's MOBIS schedule or through analysis of other large consulting contracts awarded to similar firms.
Small Business Impact
The 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 stemming from a small business set-aside. The primary contractor, Strategic Management Solutions, LLC, is likely a large business, and the contract does not appear to have specific provisions for small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Energy. As a delivery order against a GSA schedule, GSA also provides a layer of oversight. Transparency is facilitated through contract award databases like FPDS. Specific Inspector General jurisdiction would depend on the nature of any potential issues or investigations arising from the contract's performance.
Related Government Programs
- GSA MOBIS Schedule Contracts
- Administrative Management and General Management Consulting Services
- Department of Energy Consulting Contracts
- Time and Materials Contracts
- Delivery Orders
Risk Flags
- Time and Materials Contract Type
- Long Contract Duration
- Potential for Cost Overruns
Tags
department-of-energy, management-consulting, administrative-support, gsa-schedule, mobis, time-and-materials, full-and-open-competition, delivery-order, strategic-management-solutions-llc, kentucky, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $60.4 million to STRATEGIC MANAGEMENT SOLUTIONS, LLC. IGF::OT::IGF PPPO / DUF6 ENGINEERING AND OPERATIONS TECHNICAL SUPPORT TASK ORDER. TIME-AND-MATERIALS (T&M) TASK ORDER AWARDED AGAINST THE GENERAL SERVICES ADMINISTRATION S (GSA) MISSION ORIENTED BUSINESS INTEGRATED SERVICES (MOBIS) MULTIPLE AWARD SCHEDULE.
Who is the contractor on this award?
The obligated recipient is STRATEGIC MANAGEMENT SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $60.4 million.
What is the period of performance?
Start: 2013-07-01. End: 2020-03-31.
What specific consulting services were provided under this task order, and how did they align with the Department of Energy's mission?
The task order falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' While the data does not specify the exact services, these typically include areas such as organizational planning, process improvement, management analysis, and administrative support. For the Department of Energy, such services could range from supporting strategic planning and policy development to improving internal operational efficiencies, managing complex projects, or providing expert advice on administrative functions. The 'DUF6 ENGINEERING AND OPERATIONS TECHNICAL SUPPORT' in the description suggests a focus on technical and operational aspects within DOE's purview, likely related to specific engineering or scientific programs requiring management and administrative expertise.
How does the total contract value of approximately $60.4 million compare to other similar management consulting contracts awarded by the Department of Energy or other federal agencies?
A total contract value of $60.4 million over a period of approximately 2.75 years (July 2013 to March 2020) equates to an average annual value of roughly $21.96 million. This is a substantial amount for a single task order, placing it in the upper tier of consulting contracts. Many federal agencies, particularly large ones like the Department of Energy, Defense, or HHS, award multi-million dollar consulting contracts annually. However, the specific value needs to be contextualized by the scope and duration. For instance, large-scale strategic transformation or program management support contracts can easily exceed this figure. Without direct comparisons of task orders with identical scopes and durations, it's difficult to definitively label it as high or low, but it represents a significant investment in consulting services.
What are the potential risks associated with a Time and Materials (T&M) contract of this magnitude and duration?
Time and Materials contracts, while offering flexibility, carry inherent risks, especially for large, long-duration awards like this one. The primary risk is cost escalation, as the government pays for the time and materials used by the contractor without a fixed ceiling on the total cost. This necessitates robust oversight to ensure that labor hours are reasonable and necessary, and that material costs are fair and reasonable. For a $60 million contract spanning nearly three years, the potential for cost overruns is significant if contractor performance is inefficient or if scope creep occurs without proper change order management. Effective monitoring by the contracting officer's representative (COR) is crucial to mitigate these risks and ensure value for taxpayer money.
Given the 'full and open competition' and 8 bidders, what does this suggest about the market for administrative and management consulting services for the Department of Energy?
The fact that this task order was competed 'full and open' and attracted 8 bidders suggests a healthy and competitive market for administrative and management consulting services relevant to the Department of Energy's needs. 'Full and open competition' implies that the solicitation was widely advertised, allowing any responsible source to submit an offer. The presence of 8 bidders indicates that there are multiple firms capable of providing these specialized services and willing to compete for government contracts. This level of competition is generally favorable for the government, as it increases the likelihood of receiving competitive pricing, innovative solutions, and high-quality service delivery. It also suggests that the market is not overly concentrated among a few dominant players for this type of work.
What is the track record of Strategic Management Solutions, LLC in performing federal contracts, particularly those of a similar size and scope?
Strategic Management Solutions, LLC (SMS) has a history of performing federal contracts. While the provided data does not detail their entire contract history, the award of this $60 million task order indicates they possess the capability and capacity to manage significant government engagements. To fully assess their track record, one would need to examine their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), review other contracts they have held with the Department of Energy and other agencies, and look for any past performance issues or successes. A $60 million task order suggests a level of experience and reliability, but a deeper dive into their specific performance on prior contracts would be necessary for a comprehensive assessment.
How does the use of a GSA Multiple Award Schedule (MAS) impact the procurement process and potential value for this contract?
Using a GSA Multiple Award Schedule (MAS) like MOBIS (Mission Oriented Business Integrated Services) streamlines the procurement process for agencies like the Department of Energy. MAS contracts are pre-competed by GSA, meaning the underlying contract vehicles have already undergone a rigorous vetting process, including price reasonableness and contractor responsibility. This allows agencies to issue task orders or delivery orders more quickly and efficiently than starting a full procurement from scratch. For taxpayers, this can lead to cost savings through reduced acquisition lead times and administrative burden. The 'full and open competition' mentioned likely refers to the competition among MAS holders for this specific task order, which still ensures a competitive environment for the task order itself.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DE-SOL-0004937
Offers Received: 8
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Strategic Mgmt Solutions Inc (UEI: 101242787)
Address: 6301 INDIAN SCHOOL RD NE STE 215, ALBUQUERQUE, NM, 87110
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $66,655,589
Exercised Options: $66,655,589
Current Obligation: $60,362,306
Actual Outlays: $6,046,050
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS10F0061R
IDV Type: FSS
Timeline
Start Date: 2013-07-01
Current End Date: 2020-03-31
Potential End Date: 2021-05-11 00:00:00
Last Modified: 2021-05-25
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