DHS awards $48.1M for management consulting, with 3 bidders competing

Contract Overview

Contract Amount: $48,118,736 ($48.1M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2009-08-13

End Date: 2012-11-12

Contract Duration: 1,187 days

Daily Burn Rate: $40.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BSC SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $48.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: BSC SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Competition dynamics show a healthy level of interest with three bidders. 3. Risk indicators are moderate, with a firm-fixed-price contract type mitigating cost overruns. 4. Performance context is within administrative management and general management consulting. 5. Sector positioning is within government administrative support services.

Value Assessment

Rating: good

The contract value of $48.1 million over approximately three years suggests a moderate annual spend for management consulting services. Benchmarking against similar contracts for administrative management and general management consulting services is challenging without more specific service details. However, the firm-fixed-price contract type generally indicates a commitment to a defined scope at a set price, which can be advantageous for value if the scope is well-defined and managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader contract vehicle. Three bidders participated in this specific order, suggesting a reasonable level of competition for this particular task. The presence of multiple bidders generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: With three bidders, taxpayers benefit from a competitive environment that likely drove down the price compared to a sole-source award. This level of competition helps ensure that federal funds are used efficiently.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, receiving administrative and management consulting support. Services delivered include general management and administrative consulting, aimed at improving operational efficiency. The geographic impact is primarily within the agency's operational areas, likely supporting federal employees. Workforce implications may involve support for internal DHS personnel and potentially external consultants contributing to project delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly under the firm-fixed-price structure.
Dependence on contractor expertise for critical administrative functions.
Ensuring continued alignment with evolving DHS strategic objectives throughout the contract period.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Competitive award process suggests a fair market price was likely achieved.
Contract duration of approximately three years allows for sustained support and knowledge transfer.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on management and general management consulting. This sector is a significant component of federal spending, supporting various agencies in optimizing their operations, strategy, and administrative functions. Comparable spending benchmarks for management consulting can vary widely based on the specific services and agency needs, but this award represents a moderate investment within this category.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside. The prime contractor, BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC., is a large business, suggesting that any subcontracting opportunities would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Homeland Security's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver defined services. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Professional Services Contracts
Department of Homeland Security Contracts

Risk Flags

Potential for scope creep
Contractor performance risk
Alignment with evolving agency needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $48.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. BSC SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $48.1 million.

What is the period of performance?

Start: 2009-08-13. End: 2012-11-12.

What is the track record of BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. with the Department of Homeland Security for similar services?

BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. has a significant history of contracting with various U.S. federal agencies, including the Department of Homeland Security (DHS). While this specific contract focuses on administrative management and general management consulting, the company's broader portfolio often includes complex technology solutions, engineering, and support services. Analyzing their past performance with DHS for similar consulting engagements would involve reviewing past performance evaluations, any documented issues or successes, and the overall value of previously awarded contracts. A deeper dive would require accessing specific contract performance reports (CPARS) or agency-specific procurement data to ascertain their reliability and effectiveness in delivering on administrative and management consulting objectives for DHS.

How does the awarded price of $48.1 million compare to market rates for similar management consulting services?

Directly comparing the $48.1 million total award to precise market rates for 'Administrative Management and General Management Consulting Services' is complex without granular details on the specific tasks, duration, and seniority of personnel involved. However, the contract was awarded competitively with three bidders, suggesting that the price achieved was likely within a reasonable range of what the market would bear for the defined scope. Government consulting rates can sometimes differ from private sector rates due to procurement regulations and overhead structures. To benchmark effectively, one would typically compare the average hourly rates or total project costs against government-wide acquisition contracts (GWACs) or other competitively awarded IDIQs (Indefinite Delivery/Indefinite Quantity contracts) for similar professional services, considering factors like labor categories, geographic location, and required expertise.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost overruns or schedule delays. Another risk is the contractor's ability to deliver the promised expertise and value, ensuring that the consulting services genuinely improve DHS operations. Mitigation strategies are primarily embedded in the contract structure. The firm-fixed-price (FFP) nature of the contract shifts much of the cost risk to the contractor, incentivizing them to manage scope and resources efficiently. Clear performance work statements (PWS), regular progress reviews, and defined deliverables also serve as mitigation tools. Furthermore, the competitive award process itself helps mitigate the risk of selecting a non-performant contractor.

What is the historical spending pattern for administrative management and general management consulting services at DHS?

Historical spending patterns for administrative management and general management consulting services at DHS can be analyzed by examining procurement data over several fiscal years. This would involve identifying contracts with NAICS code 541611 (Administrative Management and General Management Consulting Services) awarded by DHS. Trends might reveal an increasing or decreasing reliance on external consultants for these services, fluctuations in average contract values, and the dominant contractors in this space. Understanding these patterns helps contextualize the $48.1 million award, indicating whether it represents a typical investment, an increase, or a decrease in spending for such services. It also highlights the agency's ongoing needs and priorities in operational efficiency and management.

How does the number of bidders (3) impact the government's ability to secure favorable pricing?

Having three bidders for this competitive delivery order generally has a positive impact on the government's ability to secure favorable pricing. A higher number of bidders typically increases market pressure, encouraging each participant to offer their most competitive price and terms to win the contract. With three bidders, there is a sufficient level of competition to foster price discovery and reduce the likelihood of collusion or excessively high bids. While more bidders could theoretically lead to even lower prices, three is often considered a healthy number that balances competitive pressure with the administrative effort required to evaluate proposals. This level of competition suggests that the government likely received a fair market price for the services rendered.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SEALED BID

Solicitation ID: HSHQVT-08-Q-00030

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 2525 NETWORK PL, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $159,220,892

Exercised Options: $48,118,736

Current Obligation: $48,118,736

Parent Contract

Parent Award PIID: GS10F0007P

IDV Type: FSS

Timeline