Department of Defense awards $118M contract for office administrative services to AL RAHA GROUP FOR TECHNICAL SERVICES

Contract Overview

Contract Amount: $117,995,872 ($118.0M)

Contractor: AL Raha Group for Technical S Ervices

Awarding Agency: Department of Defense

Start Date: 2012-03-30

End Date: 2014-05-31

Contract Duration: 792 days

Daily Burn Rate: $149.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TPL

Plain-Language Summary

Department of Defense obligated $118.0 million to AL RAHA GROUP FOR TECHNICAL S ERVICES for work described as: TPL Key points: 1. Contract awarded on a sole-source basis, limiting potential for competitive pricing. 2. Duration of 792 days suggests a significant, ongoing need for services. 3. Fixed-price contract type shifts performance risk to the contractor. 4. No indication of small business participation or set-asides. 5. Services fall under office administrative support, a common government function.

Value Assessment

Rating: questionable

The contract value of $117.9M over approximately two years for office administrative services appears high when compared to typical contracts for similar services. Without specific details on the scope of work and deliverables, it is difficult to benchmark the value effectively. The sole-source nature of the award also raises concerns about whether the government secured the best possible price.

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. This typically occurs when only one responsible source is available or in cases of urgent need. The lack of competition means that pricing was not tested against market alternatives, potentially leading to a higher cost for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the contractor did not have to contend with other offers to win the award.

Public Impact

The primary beneficiaries are the personnel within the Department of Defense who receive administrative support. Services delivered include general office administrative functions essential for daily operations. Geographic impact is likely concentrated around the duty station of the supported personnel. Workforce implications include the potential for contractor personnel to supplement government staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Sole-source award raises questions about justification and necessity.
Limited transparency into the pricing structure due to non-competitive award.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Contract duration indicates a sustained need for the services.

Sector Analysis

Office administrative services are a fundamental component of government operations, supporting various agencies and departments. The market for these services is broad, encompassing a wide range of support functions. Benchmarking this contract's value is challenging without detailed scope, but government spending on administrative support is substantial across all sectors.

Small Business Impact

There is no indication that this contract included any small business set-asides or subcontracting requirements. The sole-source nature of the award further suggests that opportunities for small businesses to participate were likely limited.

Oversight & Accountability

Oversight would typically be managed by the Defense Contract Management Agency (DCMA) or the contracting officer's representative (COR) within the Department of Defense. Accountability measures would be defined in the contract's terms and conditions. Transparency is limited due to the sole-source award.

Related Government Programs

Department of Defense Administrative Support Contracts
Federal Office Services Contracts
General Services Administration (GSA) Schedules for Administrative Support

Risk Flags

Sole-source award lacks competitive pricing validation.
High contract value for administrative services warrants scrutiny.
Limited public information on contractor's specific capabilities for this scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $118.0 million to AL RAHA GROUP FOR TECHNICAL S ERVICES. TPL

Who is the contractor on this award?

The obligated recipient is AL RAHA GROUP FOR TECHNICAL S ERVICES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $118.0 million.

What is the period of performance?

Start: 2012-03-30. End: 2014-05-31.

What specific administrative services were included in this $118M contract?

The provided data indicates the contract is for 'Office Administrative Services' under NAICS code 561110. However, the specific tasks and deliverables are not detailed. Typically, these services can encompass a wide range of functions such as managing correspondence, scheduling meetings, maintaining records, providing clerical support, travel arrangements, and general office management. The substantial value suggests a broad scope or a significant volume of support required by the Department of Defense.

Why was this contract awarded on a sole-source basis?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The justification for such an award is usually documented by the agency and can include reasons like urgent and compelling needs, the unavailability of other qualified sources, or specific capabilities possessed by only one contractor. Without the agency's justification documentation, the precise reason remains unknown, but it implies that competitive bidding was deemed impractical or impossible in this instance.

What is the typical cost for similar office administrative services contracts within the federal government?

Benchmarking the cost of office administrative services is highly dependent on the scope, duration, location, and specific tasks required. However, an $118 million contract over two years for these services is on the higher end, especially for general administrative support. Many federal agencies utilize GSA Schedules or competitively awarded contracts for similar services, often at significantly lower total values or with more granular task orders. The sole-source nature of this award makes direct comparison difficult, as competitive pressures are absent.

What is the track record of AL RAHA GROUP FOR TECHNICAL SERVICES with federal contracts?

The provided data lists AL RAHA GROUP FOR TECHNICAL SERVICES as the contractor. To assess their track record, a deeper dive into federal procurement databases (like FPDS or SAM.gov) would be necessary to identify other contracts awarded to this entity, their performance history, any past performance issues, and their experience with similar types of services. Without this additional data, their specific track record with the federal government remains unassessed.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude is the potential for overpayment due to the lack of competitive pricing. Without competing offers, the government may not be receiving the best value for its money. Other risks include reduced innovation, as there is less incentive for the contractor to go above and beyond when competition is not a factor, and potential challenges in contract management if the sole provider's capabilities are not as robust as initially assessed.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BUILDING 40 PRINCE FAWWAZ BIN, RIYADH

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $123,027,292

Exercised Options: $123,027,292

Current Obligation: $117,995,872

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA850512D0001

IDV Type: IDC

Timeline