DoD's $25M Consulting Contract with Kalman & Company Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $24,978,779 ($25.0M)
Contractor: Kalman & Company, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-09-08
End Date: 2014-02-15
Contract Duration: 891 days
Daily Burn Rate: $28.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE PERIOD
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $25.0 million to KALMAN & COMPANY, INC. for work described as: BASE PERIOD Key points: 1. The contract awarded to Kalman & Company, Inc. for administrative management consulting services is for a significant amount, raising questions about its value. 2. While listed as 'Full and Open Competition', the limited duration and specific nature of the services may have restricted true market participation. 3. The contract's fixed-price nature provides some cost certainty, but the overall effectiveness and necessity of these services require further examination. 4. The sector is dominated by large, established consulting firms, making it difficult for smaller players to compete on such contracts.
Value Assessment
Rating: questionable
The contract's value of approximately $25 million over its base period is substantial for administrative management consulting. Without detailed performance metrics or comparison to similar contracts, it's difficult to definitively assess if this represents excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a broad solicitation. However, the specific nature of 'Administrative Management and General Management Consulting Services' can sometimes lead to a limited pool of highly specialized bidders, potentially impacting price discovery.
Taxpayer Impact: The significant expenditure on consulting services necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively for essential government functions.
Public Impact
Taxpayers are funding extensive management consulting services for the Department of the Army. The effectiveness of these consulting services in improving administrative efficiency is not immediately apparent. The contract's duration and value raise questions about long-term necessity and potential for cost savings through alternative methods.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear performance metrics
- Potential for limited effective competition despite 'full and open' status
- High contract value for consulting services
Positive Signals
- Awarded under full and open competition
- Firm fixed-price contract provides cost certainty
Sector Analysis
Administrative Management and General Management Consulting Services is a broad category often utilized by government agencies to improve operational efficiency. Benchmarks for this sector vary widely based on the specific services rendered and the agency's needs.
Small Business Impact
The contract data indicates the awardee is Kalman & Company, Inc., and it does not specify if they are a small business. The 'full and open competition' clause suggests opportunities for various sizes of businesses, but the nature of consulting can favor larger, established firms.
Oversight & Accountability
Oversight of this contract would involve monitoring the contractor's performance against defined objectives and ensuring that the services provided are necessary and deliver tangible benefits to the Department of the Army. Accountability rests with the contracting officer and agency program managers.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High contract value
- Potential for limited effective competition
- Lack of transparency on performance metrics
- Consulting services can be prone to scope creep
Tags
administrative-management-and-general-ma, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.0 million to KALMAN & COMPANY, INC.. BASE PERIOD
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 $25.0 million.
What is the period of performance?
Start: 2011-09-08. End: 2014-02-15.
What specific administrative management improvements were achieved through this $25 million contract, and how were these improvements measured?
The contract's effectiveness hinges on quantifiable improvements in administrative processes, cost reductions, or enhanced operational efficiency within the Department of the Army. Without detailed performance reports or independent evaluations, it is challenging to ascertain the tangible benefits derived from this significant expenditure. Future contracts should mandate clear, measurable outcomes tied to specific agency goals.
Given the 'full and open competition' designation, what was the range of bids received, and how did Kalman & Company's proposal stand out?
While designated as 'full and open,' the actual competitive landscape for specialized management consulting can be narrow. Understanding the number of bidders and the evaluation criteria used is crucial to confirm genuine price discovery. If only a few firms participated, or if the scope was highly specific, the 'full and open' status might not have translated into optimal pricing for the government.
What is the long-term strategy for administrative management consulting within the Department of the Army, and does this contract align with it?
This contract represents a significant investment in external expertise. It's important to understand if this is a one-off need or part of a sustained strategy. Aligning such contracts with a clear, long-term vision for administrative improvement ensures that spending is strategic and contributes to enduring organizational effectiveness, rather than addressing isolated issues.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6350 CENTER DR STE 216, NORFOLK, VA, 03
Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $25,053,677
Exercised Options: $25,053,677
Current Obligation: $24,978,779
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS10F0289M
IDV Type: FSS
Timeline
Start Date: 2011-09-08
Current End Date: 2014-02-15
Potential End Date: 2014-02-15 00:00:00
Last Modified: 2014-09-04
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