DoD's $69.9M contract for administrative management and general management consulting services awarded to SRI INTERNATIONAL

Contract Overview

Contract Amount: $69,868,957 ($69.9M)

Contractor: SRI International

Awarding Agency: Department of Defense

Start Date: 2019-03-26

End Date: 2024-01-31

Contract Duration: 1,772 days

Daily Burn Rate: $39.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8506396549! CONTRACT, PROCUREMENT, AND ACQ SPT SVCS

Place of Performance

Location: PRINCETON, MERCER County, NEW JERSEY, 08540

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $69.9 million to SRI INTERNATIONAL for work described as: 8506396549! CONTRACT, PROCUREMENT, AND ACQ SPT SVCS Key points: 1. The contract value of $69.9M over its period of performance suggests a significant investment in consulting services. 2. Awarded on a sole-source basis, the lack of competition may limit price discovery and potentially increase costs. 3. The contract's duration of 1772 days indicates a long-term need for these services. 4. The firm-fixed-price contract type shifts some risk to the contractor, but the overall value warrants close monitoring. 5. SRI INTERNATIONAL's role in providing these services highlights the reliance on specialized external expertise for administrative and management functions. 6. The 'Administrative Management and General Management Consulting Services' NAICS code points to a broad scope of potential support.

Value Assessment

Rating: fair

Benchmarking the value of this $69.9M contract is challenging without specific deliverables and performance metrics. However, given the sole-source award, there's a risk that the pricing may not reflect competitive market rates. Comparing it to similar large-scale management consulting contracts within the Department of Defense or other federal agencies would be necessary to assess value for money. The firm-fixed-price nature provides some cost certainty, but the absence of competition raises concerns about optimal resource utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service. The lack of a competitive bidding process means that the government did not benefit from the price reductions and innovation that can arise from a competitive environment. This raises questions about whether alternative solutions or more cost-effective providers were overlooked.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a bidding process, there is less assurance that the negotiated price represents the best possible value.

Public Impact

The Department of Defense benefits from specialized expertise in administrative and management functions, potentially improving operational efficiency. Services delivered likely encompass strategic planning, organizational analysis, process improvement, and general management support. The geographic impact is primarily within the Department of Defense's operational areas, though the contractor's location in New Jersey is noted. Workforce implications could include the augmentation of government staff with external consultants, or the potential for knowledge transfer.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for innovation.
Lack of transparency in the procurement process due to non-competition.
Potential for cost overruns if not closely managed due to lack of market checks.
Long contract duration may lead to vendor lock-in and reduced flexibility.

Positive Signals

Firm-fixed-price contract shifts some performance risk to the contractor.
SRI INTERNATIONAL is a known entity, suggesting some level of established capability.
Contract duration indicates a sustained need and potential for long-term strategic support.

Sector Analysis

The federal consulting services market is substantial, with agencies frequently outsourcing specialized expertise. This contract falls within the 'Administrative Management and General Management Consulting Services' sector, which supports core government functions. Comparable spending in this sector across federal agencies can range from millions to billions annually, depending on the scope and duration of services. This specific contract represents a significant, albeit sole-source, investment within this broad category.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit information regarding subcontracting plans for small businesses. The sole-source nature of the award further reduces the likelihood of direct small business participation through this specific procurement vehicle. The impact on the small business ecosystem is therefore minimal from this contract directly, though SRI INTERNATIONAL may engage small businesses in its broader operations.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Defense Contract Management Agency (DCMA) and the contracting officer's representative (COR) within the Defense Logistics Agency. Accountability measures would be tied to the performance work statement and deliverables outlined in the contract. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Management Consulting Services
Federal Administrative Support Contracts
General Management Consulting Services
Defense Logistics Agency Procurement

Risk Flags

Sole-source award
Lack of competition
Significant contract value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.9 million to SRI INTERNATIONAL. 8506396549! CONTRACT, PROCUREMENT, AND ACQ SPT SVCS

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $69.9 million.

What is the period of performance?

Start: 2019-03-26. End: 2024-01-31.

What specific management and administrative consulting services are being provided under this contract?

The contract falls under the NAICS code 541611 for Administrative Management and General Management Consulting Services. While the specific deliverables are not detailed in the provided data, these services typically encompass a wide range of support functions. This can include strategic planning, organizational structure analysis, business process re-engineering, performance management system development, change management, and general operational efficiency improvements. The Defense Logistics Agency likely utilizes these services to enhance its internal administrative processes, optimize resource allocation, and support its broader mission objectives within the Department of Defense. The exact nature of the services would be detailed in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract.

How does the $69.9M contract value compare to similar sole-source consulting awards within the DoD?

Comparing the $69.9M value of this sole-source contract to similar awards within the DoD requires access to a comprehensive database of federal contracts, including details on competition levels and specific service categories. However, $69.9M represents a substantial investment for consulting services. Sole-source awards, by their nature, often involve higher price points than competed contracts because they bypass the cost-saving pressures of competition. Without specific benchmarks for sole-source administrative and management consulting services of comparable scope and duration within the DoD, it's difficult to definitively state if this represents a premium. However, the absence of competition inherently raises a flag regarding potential value for money compared to a competitively bid scenario.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude ($69.9M) are centered around cost and performance. Firstly, the lack of competition means the government may not be achieving the best possible price, potentially leading to overspending. Secondly, without market validation through bids, there's a risk that the chosen contractor's proposed solution or pricing is not as efficient or effective as alternatives that might have emerged in a competitive process. Thirdly, there's a potential for complacency from the contractor, as they face no direct competitive threat during the contract's performance period. Finally, transparency is reduced, making it harder for external stakeholders to assess the fairness and value of the procurement.

What is SRI INTERNATIONAL's track record with the Department of Defense and similar consulting contracts?

SRI INTERNATIONAL is a well-established research institute and technology development company that has a history of working with government agencies, including the Department of Defense. While the provided data indicates they are the contractor for this specific $69.9M award, a comprehensive assessment of their track record would require examining their past performance on similar contracts. This would involve looking at contract history, past performance reviews (if publicly available), and any documented successes or failures in delivering administrative and management consulting services. Their longevity and the award of this significant contract suggest a level of capability and trust from the DoD, but a deeper dive into specific past performance metrics would be needed for a full evaluation.

How does the duration of this contract (1772 days) impact its overall value and risk?

The contract duration of 1772 days (approximately 4.85 years) is substantial and has several implications for value and risk. On the positive side, a longer duration can allow for deeper integration of services, more significant strategic impact, and potentially lower administrative overhead compared to multiple short-term contracts. It also provides stability for both the government and the contractor. However, a long duration also increases the risk of scope creep, potential misalignment with evolving government needs, and vendor lock-in. For a sole-source contract, the extended period amplifies the risk of paying above-market rates for an extended time. It also means that if performance issues arise, resolving them over such a long period can be more complex and costly.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: PIPE, TUBING, HOSE, AND FITTINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025

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

Financial Breakdown

Contract Ceiling: $69,868,957

Exercised Options: $69,868,957

Current Obligation: $69,868,957

Actual Outlays: $17,199,280

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $912,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPE7MX19D0025

IDV Type: IDC

Timeline