DoD's $24.5M litigation support contract with Pragmatics, LLC shows fair value despite limited competition

Contract Overview

Contract Amount: $24,567,910 ($24.6M)

Contractor: Pragmatics, LLC

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2026-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LITIGATION SUPPORT SERVICES - BASE

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.6 million to PRAGMATICS, LLC for work described as: LITIGATION SUPPORT SERVICES - BASE Key points: 1. The contract's value appears reasonable when benchmarked against similar administrative and management consulting services. 2. While awarded under full and open competition, the number of bids suggests potential for enhanced price discovery. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. This contract supports essential administrative functions within the Department of the Navy, contributing to operational readiness. 5. The services fall within the broad category of management consulting, a common area for federal procurement. 6. The contract duration of five years allows for sustained support but also necessitates ongoing performance monitoring.

Value Assessment

Rating: fair

The contract's total value of approximately $24.5 million over five years averages to about $4.9 million annually. Benchmarking against similar administrative and management consulting services procured by the federal government suggests this pricing is within a reasonable range. The firm-fixed-price contract type helps control costs, indicating a degree of value for money. However, a more precise value assessment would require detailed comparison of the specific services rendered against market rates for comparable litigation support expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which is the preferred method for ensuring broad market participation. However, with only three bids received, the level of competition might be considered moderate rather than robust. This suggests that while the process was open, the market for this specific type of litigation support may be concentrated, potentially limiting the downward pressure on pricing that a larger number of bidders could exert.

Taxpayer Impact: While full and open competition was utilized, the limited number of bidders means taxpayers may not have benefited from the most aggressive pricing possible. Further competition could have potentially driven down costs.

Public Impact

The Department of Defense, specifically the Department of the Navy, benefits from enhanced litigation support capabilities. Essential services include legal research, document management, and case preparation to support ongoing legal proceedings. The contract's impact is primarily administrative and operational within the Navy's legal and support functions. Workforce implications are likely internal to the contractor, Pragmatics, LLC, rather than direct federal hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (3) may indicate concentrated market or insufficient outreach.
Contract duration of 5 years requires sustained oversight to ensure continued value.
Specific performance metrics and quality controls need rigorous monitoring to ensure effectiveness.

Positive Signals

Awarded under full and open competition, adhering to best practices.
Firm-fixed-price contract type mitigates financial risk for the government.
Contractor, Pragmatics, LLC, has a track record of performing federal contracts.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, encompassing a wide range of support services. Litigation support is a specialized niche within this broader category, often requiring specific expertise and security clearances. Comparable spending benchmarks for similar consulting services can vary widely based on the complexity and duration of the engagement.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary contractor, Pragmatics, LLC, is responsible for its own staffing and resource allocation. Analysis of Pragmatics, LLC's overall subcontracting plan would be necessary to determine broader small business utilization.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a definitive contract awarded by the Department of the Navy, it falls under the purview of the agency's contracting officers and potentially the Department of Defense Inspector General for audits and investigations. Transparency is facilitated through contract databases like FPDS. Accountability is maintained through performance reviews and adherence to the firm-fixed-price terms.

Related Government Programs

Legal Services
Management and Consulting Services
Administrative Support Services
Department of Defense Procurement

Risk Flags

Moderate competition level (3 bidders) may limit price discovery.
Contract duration requires sustained oversight for performance and value.
Potential for scope creep if not tightly managed, despite FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to PRAGMATICS, LLC. LITIGATION SUPPORT SERVICES - BASE

Who is the contractor on this award?

The obligated recipient is PRAGMATICS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-09-30.

What is Pragmatics, LLC's track record with federal contracts, particularly in litigation support?

Pragmatics, LLC has a history of performing federal contracts, as indicated by its presence in federal procurement databases. While the provided data doesn't detail specific past performance on litigation support, their award of this significant contract by the Department of the Navy suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance reviews and any reported issues on previous engagements, would provide a more comprehensive understanding of their reliability and expertise in this specialized area. Federal procurement systems often contain ratings and award histories that can shed light on contractor performance.

How does the pricing of this contract compare to similar litigation support services procured by the government?

The contract's total value of approximately $24.5 million over five years, averaging around $4.9 million annually, appears to be within a fair range for specialized litigation support services. However, a precise benchmark is challenging without detailed service scope comparisons. Factors such as the complexity of cases, required security clearances, and the specific expertise of the personnel provided by Pragmatics, LLC significantly influence pricing. Comparing this contract to others with identical or highly similar Statement of Work (SOW) requirements, procured by agencies like the Department of Justice or other branches of the DoD, would offer a more robust value assessment. The firm-fixed-price nature helps control costs, suggesting a degree of value certainty.

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

Key risks include potential underperformance by the contractor, leading to delays or inadequate support in legal proceedings, and the risk of cost increases if the firm-fixed-price contract has poorly defined scope or change order provisions. Additionally, the moderate competition level (3 bidders) presents a risk that the government may not have secured the most competitive pricing. These risks are managed through the firm-fixed-price structure, which shifts cost overrun risk to the contractor, and through ongoing contract oversight by the Department of the Navy. Clear performance metrics, regular progress reviews, and adherence to the contract's terms and conditions are crucial for mitigating performance risks.

How effective is the competition level (3 bidders) in ensuring price discovery and value for taxpayers?

A competition level of three bidders, while meeting the threshold for full and open competition, is generally considered moderate. Ideally, a larger number of bids would foster more robust price discovery and potentially lead to more competitive pricing for taxpayers. With only three offers, there is a possibility that the market is somewhat concentrated, or that outreach efforts did not attract a wider range of qualified vendors. While the government likely negotiated the best possible price under these conditions, taxpayers might have achieved greater savings with a more competitive bidding process. Continued monitoring of future procurements in this space could reveal trends in competition.

What is the historical spending pattern for litigation support services within the Department of the Navy?

Historical spending data for litigation support within the Department of the Navy would reveal trends in contract values, types of services procured, and the contractors most frequently utilized. Analyzing this specific contract against historical spending would indicate whether the $24.5 million award is consistent with past investments, higher, or lower. Understanding these patterns can help assess if spending is increasing, decreasing, or remaining stable, and whether the current procurement represents a strategic shift or a continuation of established practices. Such analysis requires access to historical contract databases and spending reports specific to the Navy's legal and administrative support functions.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018921RZ057

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Integral Federal, Inc.

Address: 1761 BUSINESS CENTER DR, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $24,567,910

Exercised Options: $24,567,910

Current Obligation: $24,567,910

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $620,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline