DoD awards $11.4M T&M contract for administrative services to Binary Group, Inc

Contract Overview

Contract Amount: $11,444,463 ($11.4M)

Contractor: Binary Group, Inc

Awarding Agency: Department of Defense

Start Date: 2007-04-01

End Date: 2008-03-31

Contract Duration: 365 days

Daily Burn Rate: $31.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: T&M OPTION PERIOD 2

Place of Performance

Location: DULLES, LOUDOUN County, VIRGINIA, 20101

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.4 million to BINARY GROUP, INC for work described as: T&M OPTION PERIOD 2 Key points: 1. Contract awarded on a time-and-materials basis, which can pose cost risks if not managed closely. 2. The contract was not competed, raising questions about potential price efficiencies lost. 3. The contractor, Binary Group, Inc., has a track record with federal agencies. 4. Administrative services are crucial for agency operations but often lack easily quantifiable performance metrics. 5. The contract duration of one year suggests a need for ongoing support rather than a one-time project. 6. The award was made by the Department of the Army, indicating a focus on military administrative needs.

Value Assessment

Rating: fair

The contract's time-and-materials (T&M) structure for administrative services warrants careful monitoring. While T&M can offer flexibility, it lacks a fixed ceiling, potentially leading to cost overruns if not managed diligently. Benchmarking the per-hour rates against similar administrative support contracts would be essential to assess value for money. Without specific performance data or comparison points, it's difficult to definitively gauge the value provided for the $11.4 million obligation.

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 among multiple vendors. This approach limits the government's ability to solicit competitive bids and potentially secure lower prices through market forces. The rationale for a sole-source award, such as unique capabilities or urgent need, would need to be thoroughly documented to justify the lack of competition.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not benefit from the price reductions typically achieved through a competitive bidding process.

Public Impact

The Department of the Army benefits from essential administrative support services, enabling its personnel to focus on core military functions. The contract ensures the continuity of office administrative functions, which are vital for the day-to-day operations of military units. The services are likely delivered within the continental United States, supporting the administrative infrastructure of the Army. The contract supports the workforce of Binary Group, Inc., contributing to employment in the administrative services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time-and-materials contract type can lead to cost overruns if not closely monitored.
Lack of competition may result in a higher price than a competed contract.
Administrative services can be difficult to measure for performance and value.
The contract is an option period, suggesting a history that may warrant further review of performance and necessity.

Positive Signals

Contract awarded to a known entity, Binary Group, Inc., which may have established processes.
Administrative services are critical for supporting military operations.
The contract is for a defined period, allowing for reassessment at its conclusion.

Sector Analysis

The administrative services sector is a broad category encompassing a wide range of support functions essential to government operations. This contract falls within the professional, scientific, and technical services industry. Federal spending in this area is substantial, supporting everything from clerical tasks to specialized office management. Benchmarking this contract's value would require comparing its hourly rates and scope against similar administrative support contracts awarded by other federal agencies or within the Department of Defense.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' flag is also false, suggesting it's not a small business prime award. This means that opportunities for small businesses to participate as subcontractors may be limited or dependent on the prime contractor's subcontracting plan, if one exists.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Inspector General's office for the Department of Defense may also conduct audits or investigations into contract performance and spending. Transparency is enhanced through contract award databases, but detailed performance metrics and cost justifications for sole-source awards are often internal.

Related Government Programs

Office Administrative Services
Professional, Scientific, and Technical Services
Department of the Army Contracts
Time and Materials Contracts

Risk Flags

Sole-source award
Time-and-materials contract type
Lack of clear performance metrics in summary data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to BINARY GROUP, INC. T&M OPTION PERIOD 2

Who is the contractor on this award?

The obligated recipient is BINARY GROUP, 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 $11.4 million.

What is the period of performance?

Start: 2007-04-01. End: 2008-03-31.

What is the track record of Binary Group, Inc. with federal contracts, particularly in administrative services?

Binary Group, Inc. has a history of receiving federal contracts, including those related to administrative and professional services. While specific details on their performance for this particular contract (T&M OPTION PERIOD 2) are not provided in the summary data, their continued engagement with agencies like the Department of the Army suggests a level of established capability. A deeper dive into contract performance reports, past performance questionnaires, and any documented issues or commendations would provide a more comprehensive understanding of their track record. Analyzing their award history across different agencies and contract types can also reveal patterns in their service delivery and client satisfaction.

How does the $11.4 million value of this contract compare to similar administrative support contracts?

Directly comparing the $11.4 million value requires understanding the scope, duration, and specific services rendered. This contract is for a one-year period (365 days). To benchmark effectively, one would need to identify comparable contracts for administrative support services awarded by the Department of the Army or other DoD components, ideally with similar service requirements and contract types (e.g., T&M). Analyzing the average hourly rates billed under this contract against market rates for similar administrative roles (e.g., administrative assistants, office managers, program support staff) would provide a more granular assessment of value. Without such comparative data, the $11.4 million figure represents the total obligation, but not necessarily the optimal value achieved.

What are the primary risks associated with a sole-source, time-and-materials contract for administrative services?

The primary risks associated with a sole-source, time-and-materials (T&M) contract for administrative services are twofold. Firstly, the sole-source nature means the government did not benefit from competitive bidding, potentially leading to a higher price than could have been achieved in a competed environment. There's a risk that the contractor is not incentivized to be as cost-efficient as they might be under competitive pressure. Secondly, the T&M structure carries inherent cost-revelation risks. Without a firm fixed price or a cap on hours and rates, the total cost can escalate if work is inefficiently performed or if the scope creeps without adequate oversight. For administrative services, where output can sometimes be less tangible than in other sectors, diligent monitoring of hours and rates is crucial to mitigate these risks and ensure taxpayer funds are used effectively.

What is the historical spending pattern for administrative services by the Department of the Army?

Historical spending on administrative services by the Department of the Army is substantial, reflecting the vast operational scale and personnel requirements of the organization. While this specific contract represents an $11.4 million obligation for one year, the Army procures a wide array of administrative support across numerous contracts annually. Analyzing historical spending data would involve examining trends in contract awards for similar services (NAICS code 561110 - Office Administrative Services), identifying key contractors, and observing fluctuations in spending levels over multiple fiscal years. This analysis could reveal whether spending on administrative support is increasing, decreasing, or remaining stable, and whether it is concentrated with a few large providers or distributed across many.

How effective are administrative services contracts in supporting the Army's mission objectives?

The effectiveness of administrative services contracts in supporting the Army's mission objectives is largely dependent on the clarity of the statement of work, the performance standards set, and the contractor's ability to meet those standards. When well-defined and managed, these services are critical for enabling military personnel to focus on core duties by handling essential but non-combat-related tasks such as scheduling, record-keeping, travel arrangements, and general office management. The effectiveness can be measured by factors like timeliness of support, accuracy of work, and the degree to which the services free up military personnel. However, if the contract lacks clear performance metrics or if oversight is weak, the effectiveness can be diminished, leading to inefficiencies and potential mission delays.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W91QUZ05Q0003

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Address: 4405 EAST WEST HWY STE 109, BETHESDA, MD, 08

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $11,444,463

Exercised Options: $11,444,463

Current Obligation: $11,444,463

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ05A0015

IDV Type: IDC

Timeline