DoD's $30.5M Labor-MAVNI Support Contract Awarded to Absolute Business Solutions, Inc

Contract Overview

Contract Amount: $30,540,164 ($30.5M)

Contractor: Absolute Business Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-04-07

End Date: 2018-02-28

Contract Duration: 327 days

Daily Burn Rate: $93.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LABOR-MAVNI SUPPORT IGF::CT::IGF

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $30.5 million to ABSOLUTE BUSINESS SOLUTIONS, INC. for work described as: LABOR-MAVNI SUPPORT IGF::CT::IGF Key points: 1. Contract value represents a significant investment in specialized support services. 2. Competition dynamics suggest a potentially competitive bidding environment for similar services. 3. Contract duration of 327 days indicates a focused, short-term requirement. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code covers a broad range of activities. 5. Award type as a Delivery Order suggests this is part of a larger contract vehicle. 6. The contract's primary performance location is Maryland, indicating a regional focus.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more context on the scope of 'LABOR-MAVNI SUPPORT'. However, the award amount of $30.5 million for a 327-day period suggests a substantial per-diem or project cost. Comparing it to similar, narrowly defined technical support contracts within the Department of Defense would be necessary to assess if the pricing is competitive. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, but it also allows for flexibility in evolving requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the initial intent was full and open competition, certain sources were excluded, leading to a limited competition scenario. The specific reasons for exclusion are not detailed, but this approach can sometimes reduce the pool of potential bidders and potentially impact price discovery. The number of bidders is not specified, which limits a full assessment of the competitive landscape.

Taxpayer Impact: Limited competition can sometimes result in higher prices for taxpayers compared to a truly full and open competition, as the reduced bidder pool may lessen the downward pressure on costs.

Public Impact

The primary beneficiaries are likely the Department of the Army, receiving specialized support services. The services delivered are categorized under 'All Other Professional, Scientific, and Technical Services', implying a broad range of potential support functions. Geographic impact is concentrated in Maryland, where the contract is performed. Workforce implications could include the direct employment of personnel by Absolute Business Solutions, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed scope of work for 'LABOR-MAVNI SUPPORT' makes it difficult to assess true value.
The 'limited' competition status raises questions about whether the government secured the best possible pricing.
The CPFF contract type requires diligent oversight to prevent cost overruns.
The exclusion of sources in the competition process warrants further investigation into the rationale.

Positive Signals

The contract was awarded to a single entity, suggesting a clear point of accountability.
The award was made by the Department of the Army, a major component of the DoD.
The contract has a defined period of performance, indicating a finite requirement.

Sector Analysis

The Information Technology and Professional Services sector is vast, with government contracting forming a significant portion. This contract falls under 'All Other Professional, Scientific, and Technical Services', a broad category that can encompass anything from management consulting to specialized engineering support. The market for such services is highly competitive, with numerous firms vying for government contracts. Benchmarking this $30.5 million award requires comparison against contracts with similar scopes within the DoD or other federal agencies.

Small Business Impact

The provided 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 stemming from a small business set-aside. The prime contractor, Absolute Business Solutions, Inc., is not identified as a small business in this data, suggesting it is likely a larger entity. The absence of small business participation goals means this contract does not directly contribute to the small business contracting ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Delivery Order under a larger contract vehicle, oversight might also be influenced by the terms of the base contract. Accountability measures are typically embedded in the Cost Plus Fixed Fee structure, requiring the contractor to justify costs against the fixed fee. Transparency is dependent on the reporting requirements of the base contract and any specific clauses within this delivery order. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Support Services
Professional and Technical Services Contracts
Army Logistics and Support Contracts
Federal Acquisition Service Contracts

Risk Flags

Limited Competition
Cost Plus Fixed Fee Contract Type
Broad NAICS Code
Lack of Detailed Scope Information

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 million to ABSOLUTE BUSINESS SOLUTIONS, INC.. LABOR-MAVNI SUPPORT IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is ABSOLUTE BUSINESS SOLUTIONS, 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 $30.5 million.

What is the period of performance?

Start: 2017-04-07. End: 2018-02-28.

What specific services does 'LABOR-MAVNI SUPPORT' entail, and how does this justify the $30.5 million award value?

The provided data does not specify the exact nature of 'LABOR-MAVNI SUPPORT'. This designation likely refers to a specific program or initiative within the Department of the Army, possibly related to personnel, manpower, or a particular operational capability (MAVNI could be an acronym for a specific system or program). Without a detailed Statement of Work (SOW) or Performance Work Statement (PWS), it is impossible to definitively justify the $30.5 million award value. The 'All Other Professional, Scientific, and Technical Services' NAICS code is extremely broad. To assess value, one would need to understand the labor categories, hours, skill levels, and deliverables required. For instance, if it involves highly specialized technical expertise for a critical, short-term mission, the cost might be justifiable. Conversely, if it's for more general administrative or labor support, the cost per day ($30.5M / 327 days ≈ $93,272 per day) appears high and would require significant justification based on the unique skills or circumstances.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact cost-effectiveness for taxpayers?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is a nuanced approach. Ideally, full and open competition maximizes the number of potential bidders, fostering robust price competition and leading to the best value for taxpayers. However, the 'exclusion of sources' clause indicates that certain pre-qualified or otherwise eligible vendors were deliberately not considered. The reasons for exclusion are critical; if based on legitimate technical requirements or security mandates, it might be necessary. If the exclusions are arbitrary or overly restrictive, it could artificially limit competition, potentially leading to higher prices than a truly open bid. The impact on taxpayers hinges on whether the excluded sources represented significant competitive threats and if the remaining pool could still offer competitive pricing. Without knowing who was excluded and why, it's difficult to definitively state the cost-effectiveness impact.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Absolute Business Solutions, Inc., present specific risks. The government agrees to pay the contractor's allowable costs plus a fixed fee representing profit. The primary risk for the government is that the contractor has less incentive to control costs compared to fixed-price contracts, as their allowable costs will be reimbursed. While the fixed fee is intended to provide some incentive for efficiency, cost overruns can still occur if the contractor's cost accounting or management is not rigorous. For taxpayers, this means potential for higher overall contract costs if the contractor does not effectively manage expenses. Robust government oversight, detailed cost monitoring, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value.

Given the broad NAICS code (541990), how can the performance and effectiveness of Absolute Business Solutions, Inc. be assessed?

Assessing the performance and effectiveness of Absolute Business Solutions, Inc. under the broad NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') is challenging without specific performance metrics tied to the 'LABOR-MAVNI SUPPORT' task. Effectiveness would typically be measured against the deliverables outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Key performance indicators (KPIs) might include timeliness of service delivery, quality of work product, adherence to budget (within the CPFF structure), and overall mission support. Publicly available contract data often lacks granular performance details. To truly assess effectiveness, one would need access to contractor performance evaluations (e.g., CPARS reports), agency-specific metrics, and potentially user feedback from the Department of the Army personnel who received the support.

What does the contract duration of 327 days suggest about the nature of the requirement?

A contract duration of 327 days, which is approximately 11 months, suggests a requirement that is neither extremely short-term (like a few weeks) nor a long-term sustainment contract (like multiple years). This duration often indicates a project-based need, a specific phase of a larger initiative, or a temporary surge in requirements. It implies that the Department of the Army anticipated a defined period during which these 'LABOR-MAVNI SUPPORT' services would be necessary. The relatively short duration might also suggest that the requirement was well-defined enough to be scoped within this timeframe, or conversely, that it was a stop-gap measure pending a more permanent solution or a longer-term contract award. It allows for focused execution without the long-term commitment often associated with multi-year contracts.

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: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 560 HERNDON PKWY STE 240, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Domestic Shelter, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $40,496,155

Exercised Options: $40,496,155

Current Obligation: $30,540,164

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911W414D0012

IDV Type: IDC

Timeline