DoD's $30.5M R&D contract for acquisition support services awarded to Odyssey Systems Consulting Group, Ltd

Contract Overview

Contract Amount: $30,544,667 ($30.5M)

Contractor: Odyssey Systems Consulting Group, Ltd.

Awarding Agency: Department of Defense

Start Date: 2015-08-17

End Date: 2018-11-17

Contract Duration: 1,188 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CT::IGF PROFESSIONAL ACQUISITION SUPPORT SERVICES (PASS II) FMS TASK ORDER FOR HBN AND HBS DIVISIONS

Place of Performance

Location: WAKEFIELD, MIDDLESEX County, MASSACHUSETTS, 01880

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $30.5 million to ODYSSEY SYSTEMS CONSULTING GROUP, LTD. for work described as: IGF::CT::IGF PROFESSIONAL ACQUISITION SUPPORT SERVICES (PASS II) FMS TASK ORDER FOR HBN AND HBS DIVISIONS Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The task order was for acquisition support services, a critical function for defense agencies. 3. The contract duration of nearly four years indicates a significant, long-term need for these services. 4. The award to Odyssey Systems Consulting Group, Ltd. represents a substantial investment in specialized support. 5. The R&D classification for this contract type is unusual for acquisition support services, warranting further investigation. 6. The contract's value of over $30 million highlights the significant resources allocated to this area.

Value Assessment

Rating: fair

Benchmarking the value for acquisition support services can be challenging due to the specialized nature of the work and varying contract types. The $30.5 million awarded over approximately four years suggests a significant investment. Without comparable contracts for similar R&D-focused acquisition support, a precise value-for-money assessment is difficult. However, the cost-plus-fixed-fee structure means that while the contractor's costs are reimbursed, a fixed fee is paid for their efforts, which can incentivize efficiency to some degree.

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.' While this indicates an initial intent for broad competition, the 'exclusion of sources' clause suggests that certain potential bidders may have been disqualified or excluded based on specific criteria. The number of bidders is not provided, making it difficult to fully assess the level of competition. A truly open competition typically involves multiple bidders vying for the contract, which generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The 'full and open' aspect is positive for taxpayers, as it aims to leverage the widest possible market. However, the exclusion of sources could limit the competitive pressure, potentially impacting the final price paid by taxpayers.

Public Impact

The primary beneficiaries are the Department of Defense's HBN and HBS divisions, which receive critical acquisition support. The services delivered are essential for the efficient procurement and management of defense resources. The geographic impact is primarily within the Department of Defense's operational areas, supporting its mission. The contract supports a specialized workforce in acquisition and R&D support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in an otherwise 'full and open' competition raises questions about the breadth of the initial competition and potential limitations on price discovery.
The classification of acquisition support services under R&D (NAICS 541712) is atypical and warrants clarification on the specific nature of the services provided.
The cost-plus-fixed-fee (CPFF) contract type can sometimes lead to cost overruns if not managed diligently, as the contractor is reimbursed for costs incurred.
The contract's duration of nearly four years, while indicating a sustained need, also means a significant financial commitment over an extended period.

Positive Signals

The award was made under 'full and open competition,' indicating an effort to engage a broad range of potential contractors.
The contract addresses a critical need for acquisition support services within the Department of Defense.
The fixed fee component of the CPFF contract provides a degree of cost certainty for the government regarding the contractor's profit.
The contract was awarded to Odyssey Systems Consulting Group, Ltd., a known entity in the government contracting space.

Sector Analysis

The contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541712. This sector is characterized by innovation and specialized expertise. While acquisition support is typically a service-oriented function, classifying this contract under R&D suggests the support provided may be highly technical or involve developing new methodologies for acquisition processes. The overall federal spending in R&D is substantial, with significant portions allocated to defense-related research. This contract represents a portion of that spending dedicated to enhancing the efficiency and effectiveness of defense procurement.

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 for small businesses arising from a small business set-aside. However, the prime contractor, Odyssey Systems Consulting Group, Ltd., may choose to subcontract portions of the work to small businesses as part of their overall business strategy or to meet broader socioeconomic goals, though this is not mandated by the contract terms as presented.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force, the specific agency awarding the task order. The contract type (Cost Plus Fixed Fee) necessitates robust oversight to ensure that costs incurred by the contractor are reasonable and allocable to the contract. The Department of Defense's various Inspector General offices would have jurisdiction to investigate potential fraud, waste, or abuse related to this contract. Transparency would be enhanced through regular reporting requirements from the contractor and periodic reviews by government contracting officers.

Related Government Programs

Defense Acquisition Support Services
Research and Development Support
Federal IT and Professional Services
Department of Defense Procurement

Risk Flags

Unusual NAICS code classification for contract type.
Potential for limited competition due to 'exclusion of sources'.
Cost overrun risk inherent in CPFF contract structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 million to ODYSSEY SYSTEMS CONSULTING GROUP, LTD.. IGF::CT::IGF PROFESSIONAL ACQUISITION SUPPORT SERVICES (PASS II) FMS TASK ORDER FOR HBN AND HBS DIVISIONS

Who is the contractor on this award?

The obligated recipient is ODYSSEY SYSTEMS CONSULTING GROUP, LTD..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $30.5 million.

What is the period of performance?

Start: 2015-08-17. End: 2018-11-17.

What specific R&D activities are encompassed by 'acquisition support services' under this contract, given the NAICS code 541712?

The classification of acquisition support services under NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) is unusual. Typically, acquisition support falls under professional, scientific, and technical services. This suggests that the services provided by Odyssey Systems Consulting Group, Ltd. may involve developing novel acquisition strategies, advanced analytical tools for procurement, or research into optimizing complex defense acquisition processes. It could also imply that the support is directly tied to R&D programs themselves, assisting in the acquisition of specialized research equipment or services. Further clarification from the contracting agency would be needed to pinpoint the exact nature of the R&D component within this acquisition support contract.

How does the 'Full and Open Competition After Exclusion of Sources' process differ from standard full and open competition, and what are its implications?

Standard 'Full and Open Competition' aims to provide all responsible sources an opportunity to compete. 'Full and Open Competition After Exclusion of Sources' implies that while the competition was initially intended to be broad, certain sources were excluded based on specific, documented reasons. These reasons could include national security concerns, specific technical requirements that only a limited number of firms could meet, or prior performance issues. The implication for taxpayers is that while the process aims for fairness, the exclusion of potential bidders might limit the competitive pressure, potentially leading to higher prices than if all possible sources had participated. The justification for excluding sources is critical for ensuring the government received the best value.

What is the typical profit margin or fixed fee for Cost Plus Fixed Fee (CPFF) contracts in the defense R&D sector?

The fixed fee in a CPFF contract is negotiated at the outset and represents the contractor's profit. For defense contracts, particularly those involving R&D or specialized services, the fixed fee is typically negotiated based on factors such as the complexity of the work, the level of risk involved, and prevailing market rates. While there isn't a single 'typical' percentage, government regulations and agency policies often guide the negotiation of fees. Fees can range from a few percent to over 15% of the estimated cost, depending on the contract's specifics. Without knowing the negotiated fee for this specific contract, it's difficult to benchmark against industry standards, but the fee is intended to be fair compensation for the contractor's effort and risk.

Can we compare the per-contract value of this $30.5M award to other similar acquisition support contracts within the Department of Defense?

Comparing the $30.5 million value of this specific task order to other acquisition support contracts within the Department of Defense requires access to a broader dataset of similar procurements. Acquisition support can range from small, specialized consulting engagements to large, multi-year programs. The value of this contract suggests a significant scope of work, potentially encompassing strategic planning, process improvement, or support for major acquisition programs. Without specific details on the services rendered and the duration of comparable contracts, a direct comparison is challenging. However, $30.5 million over nearly four years indicates a substantial, ongoing requirement for specialized expertise in acquisition.

What are the potential risks associated with a CPFF contract structure for acquisition support services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government bears the risk of cost overruns. While the fee is fixed, the contractor is reimbursed for all allowable costs incurred. If the contractor's costs exceed initial estimates, the government pays the actual costs plus the agreed-upon fixed fee. This can lead to the total contract value being higher than initially projected. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate this risk. For acquisition support, inefficient processes or unforeseen complexities could drive up costs, making diligent management by the government contracting officer essential.

What is the track record of Odyssey Systems Consulting Group, Ltd. in performing similar federal contracts?

Odyssey Systems Consulting Group, Ltd. has a history of performing federal contracts, primarily within the Department of Defense and other agencies requiring specialized technical and professional services. Information available through federal procurement databases often details their past awards, contract types, and performance ratings. Their portfolio typically includes support services related to engineering, program management, and information technology. Assessing their track record for similar acquisition support contracts would involve reviewing past performance evaluations and the scope of work on previous awards to gauge their experience and success in delivering comparable services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 201 EDGEWATER DR STE 270, WAKEFIELD, MA, 01880

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

Financial Breakdown

Contract Ceiling: $48,881,915

Exercised Options: $33,682,629

Current Obligation: $30,544,667

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA872113D0002

IDV Type: IDC

Timeline