DoD's $29.6M Army Communications Equipment Service Contract with IAP Worldwide Services Raises Questions on Value and Competition

Contract Overview

Contract Amount: $29,608,371 ($29.6M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-07

End Date: 2014-12-31

Contract Duration: 845 days

Daily Burn Rate: $35.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AFGHANISTAN NATIONAL ARMY COMMUNICATIONS EQUIPMENT SERVICE MENTORING, SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE AND TRAINING AND MAINTENANCE RADIO SUSTAINMENT

Plain-Language Summary

Department of Defense obligated $29.6 million to IAP WORLDWIDE SERVICES, INC. for work described as: AFGHANISTAN NATIONAL ARMY COMMUNICATIONS EQUIPMENT SERVICE MENTORING, SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE AND TRAINING AND MAINTENANCE RADIO SUSTAINMENT Key points: 1. Contract awarded for communications equipment services, engineering, and training to the Afghan National Army. 2. IAP Worldwide Services, Inc. is the sole contractor, raising questions about competition. 3. The contract's duration and cost-plus-fixed-fee structure warrant scrutiny for potential cost overruns. 4. Engineering Services sector, NAICS 541330, often involves complex technical requirements.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure, while common for complex services, can lead to higher costs if not managed tightly. Without clear benchmarks for similar services in a conflict zone, assessing value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Despite being listed as 'full and open competition,' the award details suggest a single contractor, IAP Worldwide Services, Inc. This raises concerns about the effectiveness of the competition process and whether the best possible pricing was achieved.

Taxpayer Impact: The significant taxpayer investment in this contract, particularly in a challenging operational environment, necessitates rigorous oversight to ensure funds are used efficiently and effectively.

Public Impact

Taxpayer funds are supporting military capacity building in Afghanistan through equipment and training services. The contract's success is tied to the operational effectiveness of the Afghan National Army's communication systems. Potential for cost overruns exists due to the CPFF contract type and the complex, high-risk environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency in competition effectiveness
Potential for cost overruns with CPFF
Limited visibility into performance metrics

Positive Signals

Supports critical military communications infrastructure
Addresses training and maintenance needs

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related technical assistance and training. Benchmarks for similar international military support contracts are often difficult to establish due to unique operational contexts and security considerations.

Small Business Impact

The provided data does not indicate any subcontracting to small businesses. Further investigation would be needed to determine if small business participation was sought or achieved.

Oversight & Accountability

The contract's duration and complexity suggest a need for robust oversight from the Department of Defense to ensure performance standards are met and costs are controlled. Accountability for service delivery and financial management is crucial.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of detailed performance metrics
Ambiguity in competition effectiveness
Potential for cost overruns (CPFF)
Contract duration in a volatile region
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to IAP WORLDWIDE SERVICES, INC.. AFGHANISTAN NATIONAL ARMY COMMUNICATIONS EQUIPMENT SERVICE MENTORING, SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE AND TRAINING AND MAINTENANCE RADIO SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is IAP WORLDWIDE SERVICES, 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 $29.6 million.

What is the period of performance?

Start: 2012-09-07. End: 2014-12-31.

What specific performance metrics were used to evaluate IAP Worldwide Services, Inc.'s effectiveness in providing communications equipment services, mentoring, and training to the Afghan National Army

The provided data does not detail specific performance metrics. A thorough review of contract documentation, including performance work statements and quality assurance surveillance plans, would be necessary to identify the metrics used. These metrics should ideally cover system uptime, training completion rates, and user satisfaction to gauge the contractor's effectiveness.

How did the Department of Defense ensure that the 'full and open competition' process resulted in the most cost-effective solution for sustaining the Afghan National Army's radio communications equipm

While listed as 'full and open competition,' the award details do not specify the number of bids received or the evaluation process. Further inquiry into the solicitation documents and award decision rationale is needed to confirm if multiple viable proposals were submitted and rigorously evaluated against cost and technical factors to ensure taxpayer value.

What is the projected long-term sustainability and cost-effectiveness of relying on external contractors like IAP Worldwide Services, Inc. for critical military communications infrastructure maintenan

The long-term sustainability and cost-effectiveness depend heavily on the strategic goals for Afghan National Army self-sufficiency and the evolving security landscape. Continuous assessment of the cost-benefit ratio, alongside efforts to build organic Afghan capabilities, is essential to determine if this contracting approach remains the most prudent use of resources over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: IAP Global Services, LLC

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920

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

Financial Breakdown

Contract Ceiling: $37,907,341

Exercised Options: $37,907,341

Current Obligation: $29,608,371

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T10DD416

IDV Type: IDC

Timeline