Department of the Army awards $28.3M contract to DE ASSET OPERATIONS, LLC for consulting services

Contract Overview

Contract Amount: $28,298,495 ($28.3M)

Contractor: DE Asset Operations, LLC

Awarding Agency: Department of Defense

Start Date: 2010-03-01

End Date: 2024-06-30

Contract Duration: 5,235 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FORT MCNAIR AND FORT MYER

Place of Performance

Location: FORT MYER, ARLINGTON County, VIRGINIA, 22211

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to DE ASSET OPERATIONS, LLC for work described as: FORT MCNAIR AND FORT MYER Key points: 1. Contract provides essential consulting services for facilities management and operations. 2. The contract duration spans over 14 years, indicating a long-term need. 3. Services are categorized under 'Other Scientific and Technical Consulting Services'. 4. The contract was awarded using full and open competition. 5. The firm fixed price contract type suggests predictable costs for the government. 6. The contract is managed by the Department of the Army, a major DoD component.

Value Assessment

Rating: good

The contract value of $28.3 million over 14 years averages approximately $2 million per year. Benchmarking this against similar consulting contracts for large-scale facilities management and operational support within the Department of Defense suggests this is a reasonable investment. The firm fixed price structure helps control costs, and the long duration indicates a sustained need for these specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the use of full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by allowing the government to select the best value offer from a wide pool of qualified contractors, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, ensuring efficient operations at Fort McNair and Fort Myer. Services delivered include critical consulting for asset operations and management. The geographic impact is focused on the facilities at Fort McNair and Fort Myer, likely in Virginia. The contract supports specialized consulting roles, potentially impacting the workforce in technical and operational support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (14 years) could lead to vendor lock-in or reduced agility if market conditions change significantly.
Lack of specific performance metrics or outcome-based evaluations in the provided data makes it difficult to assess the true effectiveness of the services.
Reliance on a single contractor for such an extended period might limit opportunities for innovation from other market players.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
Firm fixed price contract type provides cost certainty for the government, mitigating budget risks.
The contract addresses a long-standing operational need for the Department of the Army, indicating essential service provision.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on consulting for facilities and asset operations. This is a broad category that supports various government functions. Comparable spending in this sector often involves significant investments in areas like logistics, engineering, and management consulting to ensure the smooth operation of government infrastructure and programs.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside or requirement for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, DE ASSET OPERATIONS, LLC, may engage small businesses as subcontractors, though this information is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm fixed price structure, requiring delivery of specified services. Transparency is generally facilitated through contract award databases, though detailed performance reports may not be publicly available.

Related Government Programs

Department of Defense Facilities Management
Army Base Operations Support
Consulting Services for Government Infrastructure
Asset Management Contracts
Professional Services for Military Installations

Risk Flags

Long contract duration may reduce flexibility and innovation.
Lack of detailed performance metrics in provided data hinders effectiveness assessment.
Potential for vendor lock-in over the 14-year period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to DE ASSET OPERATIONS, LLC. FORT MCNAIR AND FORT MYER

Who is the contractor on this award?

The obligated recipient is DE ASSET OPERATIONS, 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 $28.3 million.

What is the period of performance?

Start: 2010-03-01. End: 2024-06-30.

What is the track record of DE ASSET OPERATIONS, LLC in performing similar government contracts?

Information regarding the specific track record of DE ASSET OPERATIONS, LLC in performing similar government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous awards. Without this, it's difficult to definitively gauge their experience and reliability for this specific $28.3 million, 14-year contract. Further investigation into federal procurement databases and past performance questionnaires would be necessary to build a complete picture of the contractor's capabilities and history.

How does the annual cost of this contract compare to industry benchmarks for similar services?

The contract's total value of $28.3 million over approximately 14 years equates to an average annual cost of roughly $2 million. To benchmark this against industry standards for facilities and asset operations consulting, one would need to consider the specific scope of services, the complexity of the facilities (Fort McNair and Fort Myer), and the geographic location. Generally, large-scale government facilities management consulting can range significantly, but an average of $2 million annually for comprehensive support services at major installations is often considered within a reasonable range, especially given the long-term nature of the contract which can sometimes offer economies of scale.

What are the primary risks associated with a contract of this duration and value?

A contract spanning 14 years and valued at $28.3 million carries several inherent risks. Firstly, there's the risk of scope creep or evolving requirements that may not be adequately addressed by the original firm fixed price structure, potentially leading to cost overruns or disputes. Secondly, the long duration increases the risk of contractor performance degradation over time or the contractor becoming less responsive to changing needs. Market risks, such as significant shifts in technology or operational best practices, could also render the contracted services less effective or efficient. Finally, there's the risk of vendor lock-in, where the government becomes heavily reliant on a single provider, potentially limiting future flexibility and innovation.

How effective are firm fixed price contracts in ensuring value for money in long-term service agreements?

Firm fixed price (FFP) contracts are generally favored for ensuring value for money when requirements are well-defined and unlikely to change significantly. For long-term service agreements like this one, FFP provides cost certainty for the government, protecting against unexpected cost increases by the contractor. However, the 'value for money' aspect hinges on the initial pricing being competitive and the contractor maintaining efficiency throughout the contract's life. If the initial price was set too high, or if the contractor finds ways to cut corners without violating the contract terms, the government might not receive optimal value. Regular performance monitoring is crucial to ensure the contractor is delivering the agreed-upon services effectively.

What is the historical spending pattern for 'Other Scientific and Technical Consulting Services' by the Department of the Army?

Historical spending patterns for 'Other Scientific and Technical Consulting Services' by the Department of the Army are typically substantial, reflecting the diverse operational and strategic needs of the service branch. This category often encompasses a wide array of specialized support, from logistical analysis and engineering consulting to cybersecurity strategy and environmental assessments. While specific aggregate figures for this NAICS code (541690) by the Army are not provided here, it's common for major defense agencies to allocate billions annually across various consulting services to maintain readiness, modernize infrastructure, and support complex missions. This particular $28.3 million contract represents a segment within that broader spending landscape.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › Energy R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5001 FORBES BLVD STE H, LANHAM, MD, 20706

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

Financial Breakdown

Contract Ceiling: $28,298,495

Exercised Options: $28,298,495

Current Obligation: $28,298,495

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP060099D8003

IDV Type: IDC

Timeline