DoD's $11.8M contract for Marine Corps Systems Command analytic support awarded to Kalman & Company, Inc

Contract Overview

Contract Amount: $11,782,008 ($11.8M)

Contractor: Kalman & Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-30

End Date: 2021-09-29

Contract Duration: 2,191 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THE SCOPE OF THIS EFFORT IS TO PROVIDE COST AND ANALYTIC SUPPORT TO MARINE CORPS SYSTEMS COMMAND (MARCORSYSCOM) AND PROGRAM EXECUTIVE OFFICER (PEO) LAND SYSTEMS (LS) IN SUPPORT OF ACQUISITION CATEGORY (ACAT) I-IV AND ABBREVIATED ACQUISITION PROGRAMS (AAP) WITHIN THE COMMANDS PROGRAM OFFICES (PO).

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23462

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to KALMAN & COMPANY, INC. for work described as: IGF::OT::IGF THE SCOPE OF THIS EFFORT IS TO PROVIDE COST AND ANALYTIC SUPPORT TO MARINE CORPS SYSTEMS COMMAND (MARCORSYSCOM) AND PROGRAM EXECUTIVE OFFICER (PEO) LAND SYSTEMS (LS) IN SUPPORT OF ACQUISITION CATEGORY (ACAT) I-IV AND ABBREVIATED ACQUISITION PROGRAMS (AAP) WITHIN THE … Key points: 1. The contract provides cost and analytic support for acquisition programs within Marine Corps Systems Command. 2. It covers ACAT I-IV programs and Abbreviated Acquisition Programs, indicating a broad scope of support. 3. The contract duration of approximately 6 years suggests a long-term need for these services. 4. The award was made under a full and open competition, implying a robust selection process. 5. The use of a Cost Plus Fixed Fee (CPFF) contract type can incentivize cost control but requires careful oversight. 6. The small business set-aside status is false, meaning it was not specifically targeted for small businesses.

Value Assessment

Rating: good

The total value of $11.8 million over approximately six years suggests a moderate annual spend for specialized analytic support. Benchmarking this against similar contracts for acquisition program support within the Department of Defense would provide a clearer picture of value for money. The CPFF contract type, while common for complex services, necessitates diligent oversight to ensure costs remain reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a reasonable level of competition for this specialized service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Marine Corps Systems Command and Program Executive Officer (PEO) Land Systems, receiving critical analytic and cost support. Services delivered include support for acquisition category programs, aiding in the efficient development and procurement of military systems. The geographic impact is primarily within the Department of Defense's acquisition and program management functions, with potential implications for personnel in Virginia. Workforce implications include the need for skilled analysts and cost professionals to support the Marine Corps' acquisition efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type requires robust oversight to manage costs effectively and prevent potential overruns.
Ensuring the fixed fee remains appropriate throughout the contract lifecycle is crucial for value.
The broad scope of ACAT I-IV programs means the contractor must manage diverse and complex requirements.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The contract duration of nearly six years indicates a stable and ongoing need for the services provided.
The contractor, Kalman & Company, Inc., has experience in providing support to government acquisition programs.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense acquisition programs. The market for such services is driven by government procurement needs for specialized expertise in cost analysis, program management, and acquisition strategy. Comparable spending benchmarks would involve looking at other contracts awarded by DoD agencies for similar analytic and cost support functions, particularly those supporting major acquisition programs.

Small Business Impact

The contract was not awarded as a small business set-aside (ss=false) nor did it indicate specific subcontracting goals for small businesses (sb=false). This means the primary award went to a large business or a business that did not qualify for small business status for this particular contract. The absence of set-aside provisions suggests that the competition was open to all eligible firms, and the focus was on finding the best overall value rather than specifically promoting small business participation through this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy and the Marine Corps Systems Command. As a Cost Plus Fixed Fee contract, rigorous financial oversight is essential to monitor incurred costs against the fixed fee and ensure compliance with contract terms. Transparency is facilitated through contract reporting mechanisms, and the Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Marine Corps Systems Command (MARCORSYSCOM) Support Contracts
Program Executive Officer (PEO) Land Systems Support
Department of Defense Acquisition Support Services
Cost and Analytic Support Contracts
Engineering Services for Defense

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Scope definition for complex analytic support can be challenging.
Market size for specialized defense analytic support may limit competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to KALMAN & COMPANY, INC.. IGF::OT::IGF THE SCOPE OF THIS EFFORT IS TO PROVIDE COST AND ANALYTIC SUPPORT TO MARINE CORPS SYSTEMS COMMAND (MARCORSYSCOM) AND PROGRAM EXECUTIVE OFFICER (PEO) LAND SYSTEMS (LS) IN SUPPORT OF ACQUISITION CATEGORY (ACAT) I-IV AND ABBREVIATED ACQUISITION PROGRAMS (AAP) WITHIN THE COMMANDS PROGRAM OFFICES (PO).

Who is the contractor on this award?

The obligated recipient is KALMAN & COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2015-09-30. End: 2021-09-29.

What is the track record of Kalman & Company, Inc. in supporting defense acquisition programs?

Kalman & Company, Inc. has a history of providing support services to various government agencies, including the Department of Defense. Their expertise often lies in areas such as program management, financial analysis, and acquisition support. Reviewing their past performance on similar contracts, particularly those involving cost analysis and support for ACAT programs, would be crucial. Data on contract awards, performance evaluations, and any past issues or commendations would provide a comprehensive understanding of their capabilities and reliability in fulfilling the requirements of this Marine Corps contract.

How does the annual spending on this contract compare to similar analytic support contracts within the DoD?

The approximate annual spend for this contract, derived from its total value of $11.8 million over roughly 2191 days (approx. 6 years), is around $1.6 million per year. To benchmark this, one would need to compare it with other contracts providing similar cost and analytic support to DoD acquisition programs, especially those managed by PEOs or equivalent commands. Factors such as the complexity of the programs supported (ACAT I-IV vs. lower tiers), the specific services rendered (e.g., modeling, simulation, cost estimating), and the duration of the contracts would need to be considered for a fair comparison. Without specific benchmark data, it's difficult to definitively state if this annual spend represents excellent, fair, or questionable value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for analytic support?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. However, the 'fixed fee' component provides a ceiling on the contractor's profit, which can mitigate some risk. For the government, the key risk lies in ensuring robust oversight to verify that costs are reasonable, allocable, and allowable, and that the fixed fee accurately reflects the effort and risk involved. Inadequate oversight could lead to cost overruns or a fee that is disproportionate to the value delivered. The complexity of analytic support can also introduce risks if the scope is not clearly defined, leading to potential disputes over what is included in the fixed fee.

How effective is the competition level (3 bidders) in ensuring optimal pricing for taxpayers?

A competition with three bidders is generally considered moderate. While it's better than a sole-source or limited competition, it may not be as robust as a scenario with five or more bidders, which typically drives prices down more aggressively. The effectiveness in ensuring optimal pricing depends on several factors: the specificity and clarity of the government's requirements, the perceived market size and profitability, and the barriers to entry for potential bidders. If the market for this specialized analytic support is relatively small, three bidders might represent a significant portion of the capable firms. Therefore, while competition is present and beneficial, it might not have reached the point of maximum price pressure for taxpayers.

What is the historical spending trend for similar analytic support services within the Marine Corps or DoD?

Analyzing historical spending trends for similar analytic support services within the Marine Corps or broader DoD is crucial for context. This involves examining past contract awards for cost and analytic support, program management assistance, and acquisition strategy development over several fiscal years. Key metrics to track would include the number of contracts awarded, the average contract value, the duration of these contracts, and the types of contract vehicles used (e.g., CPFF, FFP). Understanding whether spending in this area has been increasing, decreasing, or remaining stable can indicate shifts in program priorities, acquisition strategies, or the perceived need for external analytic expertise. This historical data also helps in identifying trends in contractor performance and pricing.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002415R3414

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5366 VIRGINIA BEACH BLVD, VIRGINIA BEACH, VA, 23462

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $34,653,304

Exercised Options: $31,037,663

Current Obligation: $11,782,008

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7790

IDV Type: IDC

Timeline