DoD's $18.2M consulting contract with Kalman & Company, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $18,247,168 ($18.2M)

Contractor: Kalman & Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-12-14

End Date: 2012-05-14

Contract Duration: 1,613 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LABOR (12/14/07 - 12/13/08)

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23502

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to KALMAN & COMPANY, INC. for work described as: LABOR (12/14/07 - 12/13/08) Key points: 1. Contract awarded for administrative management and general management consulting services. 2. The contract duration of 1613 days suggests a significant, long-term need for these services. 3. Awarded as a Delivery Order under a larger contract, indicating a phased approach to service delivery. 4. The firm fixed-price contract type helps manage cost certainty for the government. 5. The contract was awarded to a single vendor, Kalman & Company, Inc. 6. The contract was not set aside for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this $18.2 million contract for administrative management and general management consulting services is challenging without specific deliverables. However, the duration of over four years suggests a substantial engagement. Comparing it to similar large-scale consulting contracts within the Department of Defense would provide better context on whether the pricing reflects market rates for comparable services and expertise. The firm fixed-price nature offers some cost control, but the overall value depends heavily on the quality and impact of the consulting provided.

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 bids. The data does not specify the number of bidders, which is crucial for assessing the level of competition. A robust competition typically leads to better pricing and service offerings. Without knowing the number of bids received, it's difficult to definitively state how effectively price discovery occurred.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The Department of the Army is the primary beneficiary of these consulting services. Services delivered are expected to enhance administrative management and general management operations within the DoD. The geographic impact is likely concentrated within the Department of the Army's operational areas. Workforce implications may include support for internal process improvements and strategic planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and impact of the consulting services.
The absence of the number of bidders in the provided data hinders a full assessment of competitive pressure on pricing.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not tightly managed.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible procurement process.
Firm fixed-price contract type provides cost certainty for the government.
The contract duration indicates a sustained commitment to improving management functions.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a significant sector for government spending, as agencies frequently engage consultants to improve efficiency, implement new strategies, and manage complex projects. The market for these services is competitive, with numerous firms offering specialized expertise. Benchmarking this contract's value would involve comparing its total value and duration against other similar consulting engagements within the federal government, particularly those focused on defense and administrative reform.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means the competition was open to businesses of all sizes. While this ensures the widest possible pool of potential contractors, it also means that opportunities for small business subcontracting may not have been explicitly mandated or prioritized within this specific award. Further analysis would be needed to determine if the prime contractor has a subcontracting plan that includes small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services for an agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, where basic award information is made public. Specific oversight details, such as performance reviews or audits, are usually internal to the agency.

Related Government Programs

Department of Defense Management Consulting Services
Army Administrative Support Contracts
Federal Management Consulting Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Professional Services Schedule (PSS) Contracts

Risk Flags

Potential for scope creep due to broad service category.
Lack of specific performance metrics in summary data.
Number of bidders not specified, limiting competition assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to KALMAN & COMPANY, INC.. LABOR (12/14/07 - 12/13/08)

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 Army).

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2007-12-14. End: 2012-05-14.

What specific types of administrative and management consulting services were provided under this contract?

The contract specifies 'Administrative Management and General Management Consulting Services' (NAICS code 541611). This broad category typically encompasses a wide range of activities, including organizational structure analysis, process improvement, strategic planning, policy development, human capital management consulting, and performance measurement system design. Without access to the detailed statement of work (SOW) or task orders issued under this contract, the precise nature of the services rendered remains unspecified. However, given the Department of the Army as the agency, these services likely aimed at enhancing operational efficiency, supporting major program initiatives, or addressing specific management challenges within the military or its supporting infrastructure.

How does the $18.2 million value compare to similar consulting contracts awarded by the Department of Defense?

The $18.2 million value for a contract spanning over four years (1613 days) is substantial but not extraordinary within the context of large federal agencies like the Department of Defense. DoD frequently awards multi-million dollar contracts for management and consulting services to address complex strategic, operational, and administrative challenges. To provide a precise comparison, one would need to analyze a cohort of similar contracts awarded within the same timeframe and for comparable services (e.g., management consulting, strategic planning, organizational development) to agencies of similar size and scope. Factors such as the specific deliverables, the level of expertise required, and the duration would influence the benchmark. Generally, contracts of this magnitude suggest a significant, long-term need for external expertise.

What is the track record of Kalman & Company, Inc. in performing federal contracts, particularly within the DoD?

Kalman & Company, Inc. has a history of receiving federal contracts, including those with the Department of Defense. Publicly available data indicates they have been awarded various contracts, often related to management consulting, financial management, and program support services. Assessing their overall track record would involve examining the performance history on past contracts, including any reported issues, successes, or contract modifications. A deeper dive into contract performance ratings, if available, and the types of agencies they have served would provide a more comprehensive view of their capabilities and reliability as a federal contractor.

What are the potential risks associated with a long-term, high-value consulting contract like this?

Long-term, high-value consulting contracts carry several potential risks. One primary risk is the potential for cost overruns if the scope of work is not tightly managed or if unforeseen issues arise, although the firm fixed-price structure aims to mitigate this. Another risk is 'scope creep,' where the project's objectives expand beyond the original agreement, leading to increased costs and extended timelines. There's also the risk of vendor lock-in, where the agency becomes overly reliant on the contractor's expertise, hindering internal capacity development. Furthermore, the effectiveness of the consulting services themselves is a risk; if the advice provided is not actionable or does not lead to desired improvements, the investment may yield poor returns. Finally, ensuring continued alignment with evolving agency needs over a multi-year period requires diligent oversight.

How does the 'Administrative Management and General Management Consulting Services' category (NAICS 541611) typically contribute to agency effectiveness?

Consulting services under NAICS 541611 are designed to help government agencies improve their overall operational effectiveness and efficiency. This can involve optimizing organizational structures, streamlining business processes, developing and implementing strategic plans, enhancing performance management systems, and advising on policy matters. By bringing in external expertise, agencies can gain fresh perspectives, access specialized knowledge, and accelerate the implementation of improvements that might be challenging to achieve with internal resources alone. Effective consulting can lead to better resource allocation, improved service delivery to citizens, enhanced compliance, and stronger strategic decision-making, ultimately contributing to the agency's mission accomplishment.

Industry Classification

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

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6350 CENTER DR STE 216, NORFOLK, VA, 23502

Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $18,349,822

Exercised Options: $18,345,101

Current Obligation: $18,247,168

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS10F0289M

IDV Type: FSS

Timeline