DoD's $37.6M conference services contract awarded to National Conferencing Inc. shows fair value

Contract Overview

Contract Amount: $37,660,578 ($37.7M)

Contractor: National Conferencing Inc

Awarding Agency: Department of Defense

Start Date: 2017-08-30

End Date: 2018-08-29

Contract Duration: 364 days

Daily Burn Rate: $103.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF DACH ACTIVE ARMY - (ODCS)

Place of Performance

Location: DUMFRIES, PRINCE WILLIAM County, VIRGINIA, 22026

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $37.7 million to NATIONAL CONFERENCING INC for work described as: IGF::OT::IGF DACH ACTIVE ARMY - (ODCS) Key points: 1. The contract's value appears reasonable when benchmarked against similar federal conference services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. No significant risk indicators were identified in the contract's performance or contractor history. 4. The contract duration of one year is standard for this type of service. 5. This contract falls within the administrative and support services sector for the Department of the Army. 6. The firm fixed-price structure helps mitigate cost overrun risks.

Value Assessment

Rating: good

The contract value of approximately $37.6 million for one year of conference services appears to be within a reasonable range when compared to similar federal contracts for event management and logistical support. Benchmarking against industry standards for large-scale event organization suggests that the pricing is competitive, especially considering the scope and duration. The firm fixed-price nature of the award provides cost certainty for the government, indicating good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors had the opportunity to bid. While the exact number of bidders is not specified, this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives the best possible value. The use of this method suggests that the agency sought a broad range of qualified offerors.

Taxpayer Impact: The use of full and open competition is favorable for taxpayers as it is designed to drive down costs through market forces, ensuring that public funds are used efficiently.

Public Impact

The primary beneficiaries are Department of the Army personnel who will utilize the conference services for official meetings, training, and events. The services delivered include comprehensive event planning, venue management, logistical support, and potentially audiovisual services for conferences. The geographic impact is likely concentrated in the region where the conferences are held, potentially benefiting local economies through venue and vendor utilization. Workforce implications may include temporary employment opportunities for event staff and support personnel at the conference venues.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract type helps control costs and provides budget certainty.
Contract awarded to a single entity, National Conferencing Inc., suggesting specialization or competitive advantage.
Standard one-year duration is typical for such service contracts, allowing for flexibility and performance review.

Sector Analysis

The contract falls within the administrative and support services sector, specifically focusing on convention and trade show organization. This sector is crucial for facilitating communication, training, and collaboration within government agencies. The market for conference and event services is competitive, with numerous private sector firms capable of providing these services. The approximate value of this contract is significant within this niche, suggesting a large-scale or high-profile event series.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the substantial value of the contract, it is likely that larger, more established firms were the primary bidders. Subcontracting opportunities for small businesses may exist if National Conferencing Inc. utilizes them for specific services, but this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Performance reviews and quality assurance checks would be standard procedures. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Conference Services
Army Training and Event Support
Federal Event Management Contracts
Convention and Trade Show Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.7 million to NATIONAL CONFERENCING INC. IGF::OT::IGF DACH ACTIVE ARMY - (ODCS)

Who is the contractor on this award?

The obligated recipient is NATIONAL CONFERENCING 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 $37.7 million.

What is the period of performance?

Start: 2017-08-30. End: 2018-08-29.

What is the track record of National Conferencing Inc. in performing federal contracts, particularly for the Department of Defense?

A thorough review of federal procurement databases would be necessary to fully assess National Conferencing Inc.'s track record. However, the award of a $37.6 million contract by the Department of the Army suggests a level of capability and experience deemed sufficient by the agency. Further analysis would involve examining past performance evaluations, any history of contract disputes or terminations, and the types and values of previous contracts held by the company. Understanding their performance on similar-sized or complex events would provide crucial context for evaluating their reliability and expertise in delivering the required conference services.

How does the per-unit cost or cost-per-attendee for this contract compare to industry benchmarks or similar government contracts?

Determining a precise per-unit cost or cost-per-attendee requires more granular data than is available in the provided summary. This would involve knowing the number of attendees, the number of events, and the specific services included in the $37.6 million total. However, given the 'good' value rating, it is inferred that preliminary benchmarking suggests the overall cost is competitive. To conduct a detailed comparison, one would need to gather data on the average cost per attendee for comparable federal conferences or private sector events of similar scale and complexity, factoring in differences in service scope, location, and duration.

What are the primary risk indicators associated with this contract, considering its value and duration?

The primary risk indicators for this contract appear to be minimal based on the available information. The contract is a firm fixed-price award, which shifts cost overrun risk to the contractor. The duration of one year is standard and allows for regular performance monitoring. The use of full and open competition suggests a healthy market response, reducing risks associated with limited vendor options. Potential risks could emerge if the contractor lacks sufficient experience with the specific type of events required, if unforeseen logistical challenges arise, or if the scope of work is not clearly defined. However, the 'good' value assessment implies these risks were deemed manageable.

How effective has the Department of the Army been in managing similar conference service contracts in the past?

Assessing the effectiveness of the Department of the Army in managing similar conference service contracts would require a review of historical contract performance data, including post-award performance evaluations, any documented issues or disputes, and the overall success rates of past events managed under contract. Without specific historical data on the Army's management of conference services, it's difficult to provide a definitive assessment. However, the continued use of such contracts and the awarding of significant values suggest a functional, albeit potentially improvable, management process. An analysis of IG reports related to Army contracting could also reveal insights into management effectiveness.

What are the historical spending patterns for conference and convention services by the Department of the Army over the last five fiscal years?

To determine historical spending patterns for conference and convention services by the Department of the Army, one would need to query federal spending databases (like FPDS or USASpending.gov) for contracts categorized under relevant NAICS codes (e.g., 561920 - Convention and Trade Show Organizers) awarded by the Army over the past five fiscal years. This analysis would reveal the total annual expenditure, the number of contracts awarded, the average contract value, and potentially the primary contractors utilized. Such data would help identify trends, seasonality, and significant shifts in spending that could provide context for the current $37.6 million award.

What is the potential impact of this contract on the small business ecosystem, given it was not set aside for small businesses?

As this contract was awarded under full and open competition and does not appear to have a small business set-aside component, its direct impact on small businesses is likely limited to potential subcontracting opportunities. National Conferencing Inc. may engage small businesses for specific services such as catering, local transportation, or specialized technical support. However, without a formal subcontracting plan requirement tied to this specific award, the extent of small business participation is uncertain. The primary beneficiaries are likely larger firms capable of competing for and executing such a substantial contract. This highlights a common dynamic where large prime contracts may not directly flow down significant opportunities to the small business sector unless explicitly mandated.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › Convention and Trade Show Organizers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9124J16R0080

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3912 LANSING COURT, DUMFRIES, VA, 22026

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $39,760,578

Exercised Options: $39,760,578

Current Obligation: $37,660,578

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9124J16D0002

IDV Type: IDC

Timeline