DoD's $250M Intelligence Support Contract to Buffalo Group LLC: Analysis of Value, Competition, and Risk

Contract Overview

Contract Amount: $24,966,151 ($25.0M)

Contractor: Buffalo Group LLC

Awarding Agency: Department of Defense

Start Date: 2018-01-18

End Date: 2021-03-14

Contract Duration: 1,151 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BIOMETRIC ENABLED INTELLIGENCE SUPPORT SERVICES IN SUPPORT OF THE NATIONAL GROUND INTELLIGENCE CENTER FOR CONUS AND OCONUS LOCATIONS. INCLUDES INTELLIGENCE ANALYSIS AND COLLECTION SERVICES.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.0 million to BUFFALO GROUP LLC for work described as: BIOMETRIC ENABLED INTELLIGENCE SUPPORT SERVICES IN SUPPORT OF THE NATIONAL GROUND INTELLIGENCE CENTER FOR CONUS AND OCONUS LOCATIONS. INCLUDES INTELLIGENCE ANALYSIS AND COLLECTION SERVICES. Key points: 1. The contract's value of approximately $250 million over three years suggests a significant investment in intelligence analysis and collection. 2. The 'Full and Open Competition After Exclusion of Sources' indicates a competitive process, though the exclusion of specific sources warrants further examination. 3. Performance risk appears moderate, given the nature of intelligence support services which can be complex and sensitive. 4. The contract's duration and scope position it as a key component of the National Ground Intelligence Center's operational capabilities. 5. Sector positioning is within professional, scientific, and technical services, a broad category encompassing specialized intelligence functions.

Value Assessment

Rating: good

Benchmarking the value-for-money for this specific contract is challenging without detailed cost breakdowns and performance metrics. However, the $250 million award over roughly three years for specialized intelligence support services suggests a substantial investment. Comparing it to similar contracts for intelligence analysis and collection, the pricing appears within a reasonable range for the scope of work. The fixed-fee component of the Cost Plus Fixed Fee (CPFF) contract structure aims to provide some cost control, but the 'cost plus' element inherently carries some risk of cost overruns if not managed diligently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This implies that while the competition was open to all eligible sources, certain entities or types of sources were specifically excluded from consideration. The exact reasons for this exclusion are not detailed but could relate to security clearances, specific technological capabilities, or past performance issues. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrowed field compared to a truly unrestricted full and open competition.

Taxpayer Impact: The exclusion of sources, even in an otherwise open competition, could potentially limit the breadth of innovative solutions and may impact the final price by reducing the number of competitive offers. Taxpayers benefit from competition, and any limitations on it warrant scrutiny to ensure the best value is achieved.

Public Impact

The primary beneficiaries are the Department of Defense and the National Ground Intelligence Center, receiving critical intelligence analysis and collection services. Services delivered include intelligence analysis and collection, supporting national security objectives. The contract has CONUS and OCONUS locations, indicating a broad geographic impact for intelligence operations. Workforce implications may include the employment of skilled intelligence analysts, collection specialists, and support personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
The 'exclusion of sources' in an otherwise open competition raises questions about the full extent of competitive pressure.
Complexity of intelligence analysis and collection services can lead to performance challenges and require close oversight.

Positive Signals

Awarded under a 'Full and Open Competition' framework, suggesting an effort to solicit a wide range of potential providers.
The contract's substantial value indicates a recognized need for these specialized intelligence services.
The fixed-fee component provides a degree of cost certainty for the government.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on intelligence support. This sector is characterized by specialized expertise and often involves sensitive data and operations. The market size for intelligence support services is substantial, driven by national security needs across various government agencies. This contract represents a significant portion of spending within a niche but critical area of defense contracting, supporting the unique intelligence requirements of the Army and broader DoD.

Small Business Impact

The data indicates that small business participation (sb: false) was not a primary focus or requirement for this specific contract, nor was it set aside for small businesses (ss: false). This suggests that the prime contractor, Buffalo Group LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting critical intelligence functions.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army and the National Ground Intelligence Center. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is often limited in intelligence-related contracts due to national security sensitivities. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Intelligence Analysis Services
Collection Support Services
National Intelligence Program
Department of Defense Intelligence Agencies
Specialized Technical Services

Risk Flags

Potential for limited competition due to source exclusion.
Cost control challenges inherent in CPFF contracts.
Security risks associated with handling sensitive intelligence data.
Performance variability in complex intelligence analysis and collection.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.0 million to BUFFALO GROUP LLC. BIOMETRIC ENABLED INTELLIGENCE SUPPORT SERVICES IN SUPPORT OF THE NATIONAL GROUND INTELLIGENCE CENTER FOR CONUS AND OCONUS LOCATIONS. INCLUDES INTELLIGENCE ANALYSIS AND COLLECTION SERVICES.

Who is the contractor on this award?

The obligated recipient is BUFFALO GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.0 million.

What is the period of performance?

Start: 2018-01-18. End: 2021-03-14.

What is the track record of Buffalo Group LLC in delivering intelligence support services to the government?

Buffalo Group LLC has a history of providing intelligence analysis and support services to various government agencies, including the Department of Defense. Their experience often involves leveraging technology and data analytics to support intelligence operations. While specific performance details for this contract are not publicly available, their continued awards in this specialized field suggest a capacity to meet client requirements. Further investigation into past performance reviews and any documented issues or successes would provide a more comprehensive understanding of their track record.

How does the pricing of this contract compare to similar intelligence support services?

Directly comparing the pricing of this $250 million contract to similar intelligence support services is difficult without access to detailed cost breakdowns and specific service level agreements. However, the Cost Plus Fixed Fee (CPFF) structure indicates that the government pays for allowable costs plus a predetermined fixed fee. This structure aims to incentivize efficiency while providing a defined profit margin. Benchmarking would require analyzing the labor categories, hours, overhead rates, and the fixed fee percentage against industry standards for comparable intelligence analysis and collection contracts, which are often not publicly disclosed in detail.

What are the primary risks associated with this intelligence support contract?

The primary risks associated with this contract include performance risk, where the contractor may fail to deliver the required intelligence analysis and collection services to the satisfaction of the National Ground Intelligence Center. There's also a risk of cost overruns, common in CPFF contracts, if project scope expands or unforeseen challenges arise. Security risks are paramount, given the sensitive nature of intelligence data, requiring robust cybersecurity and personnel vetting. Finally, there's a risk related to the 'exclusion of sources' in the competition, potentially limiting the best value outcome if highly capable providers were inadvertently excluded.

How effective has Buffalo Group LLC been in fulfilling the objectives of this contract?

Assessing the effectiveness of Buffalo Group LLC in fulfilling the objectives of this specific contract requires access to performance reports, mission success metrics, and feedback from the National Ground Intelligence Center. Publicly available information typically does not detail the effectiveness of intelligence support contracts due to their sensitive nature. However, the renewal or continuation of such contracts often implies a level of satisfaction with the contractor's performance. A thorough evaluation would necessitate reviewing internal government assessments and performance evaluations.

What are the historical spending patterns for intelligence support services by the Department of the Army?

Historical spending patterns for intelligence support services by the Department of the Army are substantial and have generally trended upwards, reflecting the increasing importance of intelligence in modern warfare and national security. The Army procures a wide range of intelligence-related services, from data analysis and collection to technical support and training. This spending is often distributed across numerous contracts, with varying scopes and values, awarded to a mix of large and small businesses. Analyzing specific budget allocations and contract awards over several fiscal years would reveal trends in demand for different types of intelligence support.

What is the significance of the 'exclusion of sources' clause in this contract's competition?

The 'exclusion of sources' clause in this contract's 'Full and Open Competition After Exclusion of Sources' award signifies that while the competition was open to all eligible entities, specific pre-identified sources were deliberately excluded from bidding. The reasons for such exclusions are typically proprietary or based on specific government requirements, such as security clearances, specialized technology access, or past performance issues with certain entities. This approach can be used to ensure that only highly qualified or specialized vendors participate, but it also narrows the competitive pool, potentially impacting price discovery and the range of innovative solutions available to the government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911W413R0005

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1851 ALEXANDER BELL DR STE 300, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $74,172,155

Exercised Options: $24,966,151

Current Obligation: $24,966,151

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911W414D0021

IDV Type: IDC

Timeline