DoD Awards $16M T&M Contract for Office Admin Services to Binary Group, Inc

Contract Overview

Contract Amount: $16,086,408 ($16.1M)

Contractor: Binary Group, Inc

Awarding Agency: Department of Defense

Start Date: 2008-04-01

End Date: 2009-03-31

Contract Duration: 364 days

Daily Burn Rate: $44.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: T&M OPTION PERIOD 3

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22315

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.1 million to BINARY GROUP, INC for work described as: T&M OPTION PERIOD 3 Key points: 1. Contract awarded for office administrative services, a common government need. 2. Binary Group, Inc. is the sole awardee, raising questions about competition. 3. The Time & Materials (T&M) contract type can pose cost control risks. 4. Spending in the Office Administrative Services sector is substantial across government.

Value Assessment

Rating: questionable

The contract's Time & Materials (T&M) pricing structure, especially for a 364-day option period, can lead to cost overruns if not closely managed. Benchmarking against similar T&M contracts for administrative services is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment. The rationale for not competing is not provided.

Taxpayer Impact: The lack of competition for a $16 million contract means taxpayers may not have received the best possible price for these administrative services.

Public Impact

Citizens may be concerned about the lack of competition for a significant contract. The use of T&M contracts can lead to unpredictable spending. Transparency in government contracting is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
T&M contract type
Lack of competition justification

Positive Signals

Contract supports essential administrative functions
Awarded to a single entity for a defined period

Sector Analysis

Office administrative services are a broad category supporting various government functions. Spending in this sector is consistent, but efficiency and cost-effectiveness vary significantly based on contract type and competition.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation was considered or required.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on the justification for not competing and the mechanisms in place to control costs under the T&M structure.

Related Government Programs

Office Administrative Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns due to T&M structure
Lack of competitive bidding limits price discovery
No clear justification for sole-source award
Limited transparency on cost controls

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to BINARY GROUP, INC. T&M OPTION PERIOD 3

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 $16.1 million.

What is the period of performance?

Start: 2008-04-01. End: 2009-03-31.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The provided data does not include the justification for the sole-source award. Typically, agencies must demonstrate that only one responsible source can provide the required services for reasons such as urgency, unique capabilities, or specific government requirements. Without this documentation, it's impossible to assess the validity of bypassing competition.

What measures are in place to ensure cost control and prevent overruns with this Time & Materials contract?

The data does not specify cost control measures. For T&M contracts, agencies usually implement strict oversight, require detailed timesheets, monitor labor categories and rates, and establish cost ceilings. Regular reviews and performance metrics are essential to manage potential overruns and ensure value for money.

How does the $16 million cost compare to the value and scope of administrative services typically procured through competitive bidding?

Benchmarking this $16 million T&M contract against competitive procurements is challenging without detailed scope and service level information. However, for a 364-day period, this amount suggests a significant scope of services. A competitive process would likely aim to establish a fixed price or more defined cost structure, potentially yielding better value.

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: $16,086,408

Exercised Options: $16,086,408

Current Obligation: $16,086,408

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ05A0015

IDV Type: IDC

Timeline