DoD's $45.3M contract for administrative support to IGNITE FUELING INNOVATION, INC. shows fair value

Contract Overview

Contract Amount: $45,296,027 ($45.3M)

Contractor: Ignite Fueling Innovation, Inc

Awarding Agency: Department of Defense

Start Date: 2012-10-26

End Date: 2016-06-15

Contract Duration: 1,328 days

Daily Burn Rate: $34.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF DS-01-12, FUNCTIONAL, EXECUTION AND NON-MATRIX ADMINISTRATIVE SUPPORT, FUNCTIONAL CAPABILITY GROUP

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $45.3 million to IGNITE FUELING INNOVATION, INC for work described as: IGF::OT::IGF DS-01-12, FUNCTIONAL, EXECUTION AND NON-MATRIX ADMINISTRATIVE SUPPORT, FUNCTIONAL CAPABILITY GROUP Key points: 1. The contract's value appears reasonable when benchmarked against similar administrative support services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration and delivery order structure indicate a need for ongoing, adaptable support. 4. Performance was managed through a cost-plus-fixed-fee structure, allowing for flexibility but requiring careful oversight. 5. The Missile Defense Agency's reliance on this contract highlights the critical nature of administrative functions in complex defense programs.

Value Assessment

Rating: fair

The contract's total value of $45.3 million over approximately 3.6 years (1328 days) for administrative management and general management consulting services appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for administrative support within the Department of Defense suggests that the pricing structure, while cost-plus-fixed-fee, did not result in excessive costs. The fixed fee component provides a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a moderate level of competition. While not a highly contested award, full and open competition generally promotes price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it aims to secure the best value by allowing a wide range of qualified contractors to compete, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Missile Defense Agency, which received essential administrative and management support. Services delivered included functional, execution, and non-matrix administrative support, crucial for the efficient operation of defense programs. The geographic impact is primarily within Alabama (ST: AL, SN: ALABAMA), where the contractor is located and services were likely performed. Workforce implications include the employment of personnel by IGNITE FUELING INNOVATION, INC. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed diligently.
The duration of the contract (over 3 years) necessitates ongoing monitoring to ensure continued relevance and efficiency.
Reliance on a single delivery order structure might limit flexibility in adapting to rapidly changing administrative needs.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
The contractor, IGNITE FUELING INNOVATION, INC., was selected to provide critical administrative support.
The contract addresses essential administrative functions for a key defense agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is vital for supporting government operations, providing expertise in areas like program management, logistics, and administrative efficiency. Spending in this category is substantial across federal agencies, with contracts often ranging from project-specific support to long-term operational assistance. The Missile Defense Agency's need for such services underscores the complexity and scale of its operations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary focus was on securing the best value through full and open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of Defense. The cost-plus-fixed-fee structure necessitates close monitoring of costs incurred and the fixed fee earned to ensure compliance with contract terms. Transparency is generally maintained through contract reporting mechanisms, and while specific IG jurisdiction isn't detailed here, the Inspector General's office would have oversight capabilities for potential fraud, waste, or abuse.

Related Government Programs

Defense Administrative Support Services
Management and Consulting Services
Missile Defense Agency Operations Support
Federal Administrative Services Contracts

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Contract duration necessitates ongoing performance monitoring.
Limited number of bidders (2) in a full and open competition could indicate potential market concentration or specific qualification requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.3 million to IGNITE FUELING INNOVATION, INC. IGF::OT::IGF DS-01-12, FUNCTIONAL, EXECUTION AND NON-MATRIX ADMINISTRATIVE SUPPORT, FUNCTIONAL CAPABILITY GROUP

Who is the contractor on this award?

The obligated recipient is IGNITE FUELING INNOVATION, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $45.3 million.

What is the period of performance?

Start: 2012-10-26. End: 2016-06-15.

What is the track record of IGNITE FUELING INNOVATION, INC. with federal contracts, particularly within the Department of Defense?

While specific details on IGNITE FUELING INNOVATION, INC.'s broader federal contract history are not provided in this data snippet, this contract with the Missile Defense Agency represents a significant award. Federal contractors often have a portfolio of contracts across various agencies and service types. A comprehensive review would involve examining past performance evaluations (e.g., CPARS), other contract awards, and any history of disputes or corrective actions. The successful execution of this $45.3 million contract suggests a capacity to manage complex administrative support requirements for a major defense program. Further investigation into their contract database and performance history would provide a more complete picture of their reliability and expertise.

How does the $45.3 million total contract value compare to similar administrative support contracts awarded by the DoD?

The $45.3 million total contract value for administrative management and general management consulting services over approximately 3.6 years is a substantial amount, reflecting the critical support needed by the Missile Defense Agency. When compared to similar contracts within the DoD for administrative support, this value appears to be within a typical range for large-scale, multi-year engagements. However, the exact 'fairness' of the value is contingent on the specific scope of services, the complexity of the tasks, the required expertise, and the duration. Contracts for highly specialized or mission-critical administrative functions can command higher prices. Benchmarking against contracts with similar service descriptions, agency types, and contract durations would be necessary for a precise value assessment.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for administrative support?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for administrative support revolve around cost control and potential for scope creep. For the government, the risk is that the contractor may not be incentivized to control costs as rigorously as in a fixed-price contract, as costs are reimbursed. While the fixed fee provides a ceiling on profit, the total expenditure can still escalate if direct costs increase. For the contractor, the risk lies in accurately estimating the costs to perform the work to earn the fixed fee. If costs exceed estimates significantly, the fixed fee might represent a lower profit margin than anticipated. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks for the government.

How effective is full and open competition in ensuring value for money for administrative support services?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for administrative support services. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best pricing and most efficient solutions to win the contract. This broad competition helps drive down prices, improve service quality, and encourage innovation. While this contract had two bidders, indicating a moderate level of competition, the principle of full and open competition itself is designed to maximize taxpayer value by preventing sole-source awards and encouraging market forces to operate.

What is the historical spending trend for administrative management and general management consulting services within the Missile Defense Agency?

Analyzing historical spending trends for administrative management and general management consulting services within the Missile Defense Agency (MDA) would require access to historical contract databases and spending reports. Without that specific data, it's difficult to provide a precise trend. However, agencies like the MDA, involved in complex, long-term defense programs, typically exhibit consistent or increasing spending in administrative and management support services as programs mature and expand. Factors such as budget allocations, program evolution, and strategic priorities influence these trends. This $45.3 million contract represents a significant investment, suggesting a sustained need for such services within the MDA's operational framework over its duration.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ014709R0002

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 650 PRATT AVE STE C, HUNTSVILLE, AL, 35801

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

Financial Breakdown

Contract Ceiling: $48,809,326

Exercised Options: $48,333,730

Current Obligation: $45,296,027

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014710D0002

IDV Type: IDC

Timeline