DoD's $18.7M advisory and assistance contract to KT Consulting, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $18,717,702 ($18.7M)

Contractor: KT Consulting, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-05-01

End Date: 2026-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RED FLAG DEBRIEFING ADVISORY AND ASSISTANCE SERVICES

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to KT CONSULTING, INC. for work described as: RED FLAG DEBRIEFING ADVISORY AND ASSISTANCE SERVICES Key points: 1. Contract awarded for advisory and assistance services, indicating a need for specialized expertise. 2. The contract duration of 5 years suggests a long-term requirement for these services. 3. Firm Fixed Price contract type aims to control costs and provide budget certainty. 4. Awarded by the Department of the Air Force, a major component of the DoD. 5. The contract was competed under 'full and open competition after exclusion of sources', suggesting a deliberate process to ensure fair opportunity. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, potentially related to technical or operational support. 7. The contract is not set aside for small businesses, indicating it was open to all eligible large and small businesses.

Value Assessment

Rating: good

The contract's total value is $18.7 million over five years. Without specific benchmarks for 'RED FLAG DEBRIEFING ADVISORY AND ASSISTANCE SERVICES', a direct value-for-money assessment is challenging. However, the firm fixed-price structure suggests an effort to manage costs. Further analysis would require comparing this contract's per-unit costs or scope to similar advisory and assistance contracts within the DoD or Air Force.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources'. This indicates that while the competition was intended to be broad, there might have been specific reasons for excluding certain sources initially, followed by a full and open competition. The presence of 3 bidders suggests a moderate level of competition, which generally aids in price discovery and achieving fair market value.

Taxpayer Impact: The competitive nature of this award, despite the 'exclusion of sources' clause, suggests that taxpayers benefited from multiple proposals being considered, likely leading to a more competitive price than a sole-source award.

Public Impact

The primary beneficiaries are likely the Department of the Air Force personnel who will receive expert advice and assistance. Services delivered are related to 'RED FLAG DEBRIEFING ADVISORY AND ASSISTANCE SERVICES', crucial for improving military operations and training. The contract is geographically located in Nevada, suggesting a focus on operations or training exercises in that region. The contract supports specialized roles, potentially impacting a workforce skilled in advisory and technical assistance within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' aspect of the competition warrants further scrutiny to understand if it limited overall competition unnecessarily.
Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the contractor's performance effectiveness.
The nature of 'advisory and assistance' contracts can sometimes be prone to scope creep if not tightly managed.

Positive Signals

The use of a Firm Fixed Price contract type is a positive signal for cost control and predictability.
Awarding under a competitive process, even with exclusions, is generally preferable to sole-source awards for ensuring fair pricing.
The 5-year duration suggests a stable, long-term need that the contractor is expected to fulfill reliably.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). The defense industry relies heavily on such services for program management, technical support, and operational analysis. The 'RED FLAG' designation points to a specialized area within military training and simulation, a significant sub-sector of defense spending. Benchmarking would involve comparing this contract's value and scope to other advisory and assistance contracts supporting major military exercises or training programs.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses would depend on KT Consulting, Inc.'s subcontracting decisions. Without specific subcontracting plans, the direct impact on the small business ecosystem is not evident from this award alone.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program management office within the Department of the Air Force. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services within the agreed price. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may not be. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Advisory and Assistance Services
Military Training and Simulation Contracts
Air Force Engineering Services
RED FLAG Exercise Support Contracts
Professional, Scientific, and Technical Services

Risk Flags

Competition level may have been impacted by 'exclusion of sources' clause.
Long contract duration (5 years) requires careful performance monitoring.
Nature of advisory services can be subjective; clear deliverables and performance metrics are key.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to KT CONSULTING, INC.. RED FLAG DEBRIEFING ADVISORY AND ASSISTANCE SERVICES

Who is the contractor on this award?

The obligated recipient is KT CONSULTING, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2021-05-01. End: 2026-04-30.

What is the specific nature of the 'RED FLAG DEBRIEFING ADVISORY AND ASSISTANCE SERVICES' and how do they contribute to Air Force operations?

The 'RED FLAG DEBRIEFING ADVISORY AND ASSISTANCE SERVICES' likely pertain to providing expert analysis, feedback, and recommendations following the large-scale, complex aerial combat training exercises known as RED FLAG. These services are critical for enhancing pilot proficiency, improving tactics, identifying lessons learned, and refining operational procedures. The advisory component involves subject matter experts who observe training scenarios, analyze performance data, and offer insights to commanders and participants. The assistance aspect could involve logistical support, data management, or facilitating debriefing sessions. Ultimately, these services directly contribute to the Air Force's readiness and effectiveness by ensuring that lessons from high-fidelity training translate into improved real-world mission capabilities.

How does the 'full and open competition after exclusion of sources' process differ from standard full and open competition, and what are its implications?

The 'full and open competition after exclusion of sources' is a specific procurement method where, initially, certain potential sources might be excluded based on predefined criteria (e.g., specific capabilities, past performance issues, or national security concerns). Following this initial exclusion, the remaining pool of potential offerors is subjected to a standard full and open competition. This differs from a typical full and open competition where all responsible sources are generally considered from the outset. The implications are that while competition is still sought, the initial exclusion might narrow the field, potentially impacting the number of bidders and the ultimate price achieved. It suggests a deliberate decision by the agency to limit the initial pool, which requires justification and adherence to procurement regulations to ensure fairness and prevent undue restriction of competition.

What is the typical cost range for similar advisory and assistance contracts within the Department of Defense, and how does this contract compare?

Determining a precise 'typical cost range' for advisory and assistance (A&AS) contracts within the DoD is complex due to the vast variability in scope, duration, required expertise, and agency. A&AS contracts can range from a few hundred thousand dollars for short-term, specialized support to billions for large, multi-year programs. For engineering and technical advisory services supporting major training exercises like RED FLAG, contracts can often run into the tens or hundreds of millions of dollars over several years. This $18.7 million contract over five years ($3.74 million annually) appears to be within a moderate range for specialized A&AS support for a significant program. A more accurate comparison would require analyzing contracts with similar NAICS codes (541330), similar agencies (Air Force), and comparable service descriptions.

What are the potential risks associated with a 5-year Firm Fixed Price contract for advisory services?

A significant risk with a 5-year Firm Fixed Price (FFP) contract for advisory services is the potential for the contractor to become complacent or for the scope of services to become misaligned with evolving needs over such a long period. If the initial pricing was based on assumptions that prove inaccurate or if unforeseen complexities arise, the contractor might struggle to deliver value without incurring losses, or conversely, the government might overpay if the contractor finds efficiencies not anticipated. Another risk is that the fixed price might disincentivize the contractor from proactively identifying and suggesting innovative solutions beyond the explicitly defined scope, as such efforts might not be compensated. Effective contract management, including regular performance reviews and clear communication channels, is crucial to mitigate these risks and ensure the government continues to receive optimal value throughout the contract's life.

How does the geographic location in Nevada influence the nature or cost of these advisory services?

The contract's location in Nevada is highly relevant given that Nevada is home to Nellis Air Force Base, the primary venue for RED FLAG exercises. This proximity likely reduces travel and logistical costs for the contractor's personnel, potentially contributing to a more competitive bid. It also suggests that the advisory and assistance services are directly tied to the on-site operations and debriefings conducted during these exercises. The cost implications are generally positive for the government due to reduced contractor overhead related to travel and accommodation. Furthermore, having personnel physically present in Nevada allows for more immediate and integrated support during the intensive training periods, enhancing the effectiveness of the advisory services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4435 E CHANDLER BLVD STE 130, PHOENIX, AZ, 85048

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,305,346

Exercised Options: $20,126,667

Current Obligation: $18,717,702

Actual Outlays: $6,534,215

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS123

IDV Type: IDC

Timeline