Boston Consulting Group awarded $55M contract for Navy administrative management services

Contract Overview

Contract Amount: $55,001,054 ($55.0M)

Contractor: THE Boston Consulting Group Inc

Awarding Agency: Department of Defense

Start Date: 2018-09-30

End Date: 2019-12-29

Contract Duration: 455 days

Daily Burn Rate: $120.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NAVSUP REFORM SERVICES

Place of Performance

Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17055

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $55.0 million to THE BOSTON CONSULTING GROUP INC for work described as: NAVSUP REFORM SERVICES Key points: 1. Contract provides management consulting services to the Department of the Navy. 2. The contract was awarded using full and open competition. 3. The contract value is $55,001,054. 4. The contract duration is 455 days. 5. The contract was awarded as a delivery order. 6. The contractor, The Boston Consulting Group Inc., is a well-established consulting firm.

Value Assessment

Rating: good

The contract value of $55,001,054 for administrative management and general management consulting services appears reasonable given the contractor's expertise and the scope of services typically provided by firms like The Boston Consulting Group. Benchmarking against similar large-scale consulting engagements within the Department of Defense would provide a more precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the competitive process is expected to drive fair pricing and encourage the selection of the most capable contractor. This approach generally leads to better value for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to lower prices and higher quality services.

Public Impact

The Department of the Navy benefits from improved administrative management and general management strategies. Services delivered are expected to enhance operational efficiency and strategic planning within the Navy. The geographic impact is primarily within the Department of the Navy's operational areas. The contract supports specialized consulting roles, potentially impacting the federal workforce through knowledge transfer and process improvements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly.
Reliance on external consultants may not build long-term internal capacity.
Ensuring clear deliverables and performance metrics is crucial for success.

Positive Signals

Leverages expertise of a leading management consulting firm.
Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The federal government is a significant consumer of these services to improve efficiency, implement new strategies, and manage complex programs. The market for management consulting is large and competitive, with major firms often competing for large government contracts. This specific contract represents a substantial award within this category.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The primary contractor is a large business. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Performance reviews, milestone tracking, and adherence to the contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Management Consulting Services
Navy Strategic Planning Contracts
Federal Administrative Services Contracts
Management and Technical Consulting Services

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of recommendations being difficult to implement within the agency.
Dependency on contractor expertise may limit internal capacity building.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.0 million to THE BOSTON CONSULTING GROUP INC. NAVSUP REFORM SERVICES

Who is the contractor on this award?

The obligated recipient is THE BOSTON CONSULTING GROUP 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 $55.0 million.

What is the period of performance?

Start: 2018-09-30. End: 2019-12-29.

What is the track record of The Boston Consulting Group Inc. with the Department of Defense?

The Boston Consulting Group Inc. (BCG) has a significant history of contracting with the Department of Defense (DoD) and other federal agencies. They are known for providing high-level strategic advice, organizational transformation, and operational improvement services. While specific details of past DoD contracts are not provided in this data snippet, BCG's general reputation suggests they are a frequent and experienced provider of consulting services to government entities. Their work often involves complex challenges requiring deep analytical capabilities and extensive industry knowledge. Past performance reviews and contract databases would offer more granular insights into their specific successes and any challenges encountered on previous DoD engagements.

How does the value of this contract compare to similar administrative management consulting contracts within the federal government?

The contract value of approximately $55 million for administrative management and general management consulting services is substantial, reflecting the scale and complexity often associated with large federal agency needs. To benchmark this value effectively, one would need to compare it against other contracts awarded for similar services to agencies of comparable size and scope, such as other branches of the Department of Defense or large civilian agencies. Factors like contract duration (455 days), the specific deliverables, and the level of expertise required influence pricing. While $55 million is a significant sum, it may be within the expected range for a firm fixed-price contract with a leading consultancy for a project of this nature, especially if it involves strategic transformation or significant operational analysis.

What are the primary risks associated with this type of consulting contract?

Key risks associated with this consulting contract include the potential for scope creep, where the project's objectives expand beyond the initial agreement, leading to increased costs or delays. Another risk is the misalignment of expectations between the government client and the consulting firm regarding deliverables, outcomes, or the practical implementation of recommendations. There's also a risk that the recommendations provided may not be fully actionable or sustainable within the government's existing structure and culture, or that the knowledge transfer to internal staff is insufficient, leading to continued reliance on external consultants. Ensuring clear communication, robust project management, and well-defined success metrics are crucial to mitigating these risks.

What is the expected effectiveness of these administrative management consulting services for the Navy?

The expected effectiveness hinges on the clarity of the Navy's objectives and the quality of BCG's strategic recommendations and implementation support. If the contract focuses on optimizing bureaucratic processes, improving resource allocation, enhancing strategic planning, or modernizing administrative functions, it could lead to significant improvements in efficiency, cost savings, and overall operational effectiveness. The firm fixed-price nature suggests a clear scope, which, if well-defined, should align incentives towards achieving specific, measurable outcomes. The ultimate effectiveness will be determined by the successful adoption and integration of BCG's insights and solutions within the Navy's operational framework.

What are the historical spending patterns for administrative management consulting services within the Department of the Navy?

Historical spending patterns for administrative management consulting services within the Department of the Navy (DoN) are generally substantial, reflecting the vast operational scope and complex administrative needs of a major military branch. The DoN, like other large federal agencies, frequently engages external consultants to address challenges related to organizational efficiency, strategic planning, technological integration, and process improvement. Spending in this category can fluctuate based on specific modernization initiatives, budget cycles, and evolving strategic priorities. While this $55 million contract is a significant single award, it represents a portion of the broader, ongoing investment the DoN makes in professional services to maintain and enhance its administrative and management capabilities.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018918R0103

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BCG Federal Corporation

Address: 4800 HAMPDEN LANE STE 500, BETHESDA, MD, 20814

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

Financial Breakdown

Contract Ceiling: $55,001,054

Exercised Options: $55,001,054

Current Obligation: $55,001,054

Contract Characteristics

Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)

Parent Contract

Parent Award PIID: GS10F0253V

IDV Type: FSS

Timeline