DoD's $54.5M MTIO Support Services Contract Awarded to D7, LLC Raises Competition Concerns
Contract Overview
Contract Amount: $54,550,592 ($54.6M)
Contractor: D7, LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-29
End Date: 2024-07-31
Contract Duration: 1,036 days
Daily Burn Rate: $52.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ANNUAL MARKET TRANSITION INTEGRATED OFFICE (MTIO) SUPPORT SERVICES.
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $54.6 million to D7, LLC for work described as: ANNUAL MARKET TRANSITION INTEGRATED OFFICE (MTIO) SUPPORT SERVICES. Key points: 1. The contract is for administrative and management consulting services. 2. D7, LLC is the sole awardee, raising questions about competition. 3. The contract value is substantial at $54.5 million. 4. The award was made under a definitive contract type. 5. The contract duration is over 1000 days.
Value Assessment
Rating: questionable
The contract value of $54.5M for administrative and management consulting services appears high without clear competitive benchmarking. The lack of available contract award data makes it difficult to assess pricing against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited competition approach. This lack of open competition may have impacted price discovery and potentially led to a higher cost for taxpayers.
Taxpayer Impact: The absence of full and open competition for a $54.5M contract suggests potential overspending and reduced value for taxpayer funds.
Public Impact
Taxpayers may be overpaying due to limited competition. The Defense Health Agency relies on these services for critical operations. Lack of transparency in the award process hinders public trust. Potential for improved service delivery if competition were encouraged.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of award data
- High contract value
Positive Signals
- Definitive contract awarded
- Firm fixed price contract
Sector Analysis
This contract falls under administrative and general management consulting services, a sector often characterized by a mix of large and small firms. Benchmarking spending in this area is challenging without more specific service details.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the services precluded their involvement.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure that competitive opportunities were genuinely exhausted or that the limited competition was fully justified. Accountability for the pricing and performance rests with the Defense Health Agency.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Lack of competition
- High contract value
- Limited transparency
- Potential for cost overruns
- Unclear service specifics
Tags
administrative-management-and-general-ma, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.6 million to D7, LLC. ANNUAL MARKET TRANSITION INTEGRATED OFFICE (MTIO) SUPPORT SERVICES.
Who is the contractor on this award?
The obligated recipient is D7, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $54.6 million.
What is the period of performance?
Start: 2021-09-29. End: 2024-07-31.
What specific administrative and management consulting services are being provided under this contract, and how do they align with the Defense Health Agency's core mission?
The contract is for Annual Market Transition Integrated Office (MTIO) Support Services. While the specific services are not detailed, they likely involve strategic planning, operational support, and management consulting to facilitate transitions within the MTIO. These services are crucial for ensuring the efficient functioning and modernization of the Defense Health Agency's IT infrastructure and operational processes.
Given the limited competition, what measures were taken to ensure the $54.5M contract represents fair and reasonable pricing for the services rendered?
The 'NOT AVAILABLE FOR COMPETITION' designation suggests that a full justification for other than full and open competition was likely required and approved. However, without access to the justification document or detailed pricing breakdowns, it's impossible to assess the fairness and reasonableness of the $54.5M price. Standard government procurement practices would typically involve cost analysis or price comparisons, but the limited data prevents verification.
What is the expected impact of these support services on the Defense Health Agency's operational effectiveness and long-term strategic goals?
These support services are intended to enhance the operational effectiveness of the Defense Health Agency by providing expert management and administrative guidance for market transitions. The MTIO's role suggests a focus on modernizing systems and processes. Successful execution of this contract should lead to improved efficiency, better resource allocation, and alignment with the agency's strategic objectives for healthcare delivery and technological advancement.
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) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HT001121R0066
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1755 TELSTAR DR STE 500, COLORADO SPRINGS, CO, 80920
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $82,253,054
Exercised Options: $54,550,592
Current Obligation: $54,550,592
Actual Outlays: $1,274,106
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-29
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 00:00:00
Last Modified: 2024-07-31
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