DoD's $52.1M contract for 'TROJAN BOX BUY' awarded to D & S CONSULTANTS INC. raises value questions

Contract Overview

Contract Amount: $52,130,254 ($52.1M)

Contractor: D & S Consultants Inc.

Awarding Agency: Department of Defense

Start Date: 2010-09-28

End Date: 2013-01-05

Contract Duration: 830 days

Daily Burn Rate: $62.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TROJAN BOX BUY

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $52.1 million to D & S CONSULTANTS INC. for work described as: TROJAN BOX BUY Key points: 1. The contract's value appears high relative to its duration and the limited scope suggested by the title. 2. Competition dynamics were favorable, with a full and open process indicating potential for competitive pricing. 3. The fixed-price contract type shifts risk to the contractor, which is generally positive for the government. 4. Performance context is unclear due to the generic nature of the contract title and lack of detailed deliverables. 5. The award falls within the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' NAICS code, suggesting a specific product or service category. 6. The contract's duration of 830 days (approx. 2.3 years) for the stated value warrants scrutiny for efficiency.

Value Assessment

Rating: questionable

Benchmarking this contract's value is challenging without more specific details on the 'TROJAN BOX BUY' deliverables. However, a $52.1 million award over approximately 2.3 years suggests a significant per-year expenditure. Comparing this to similar procurements for specialized communications equipment or services would be necessary to determine if the pricing is competitive. The firm fixed-price nature is a positive, but the overall value proposition needs further investigation to ensure taxpayer funds are being used efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, which is the most desirable scenario for ensuring a wide range of potential bidders and fostering competitive pricing. The presence of 3 bids indicates that the opportunity attracted interest, but the specific number of bidders does not inherently guarantee the best possible price without knowing the nature of the requirement and the capabilities of the bidders.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited solicitations.

Public Impact

The primary beneficiaries are likely entities within the Department of Defense requiring the specific 'TROJAN BOX BUY' equipment or services. The contract supports the acquisition of radio and television broadcasting and wireless communications equipment. The geographic impact is centered in New Jersey, where the contractor is located. Workforce implications may include employment opportunities at D & S CONSULTANTS INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on 'TROJAN BOX BUY' makes it difficult to assess if the awarded amount represents good value for money.
The contract title is vague and does not provide sufficient detail to understand the specific goods or services procured.
Without more information, it's hard to determine if the contractor, D & S CONSULTANTS INC., has a relevant track record for this type of specialized procurement.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type, which generally protects the government from cost overruns.
The contract was awarded to a single entity, D & S CONSULTANTS INC., implying a clear point of accountability.

Sector Analysis

This contract falls under the North American Industry Classification System (NAICS) code 334220, 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.' This sector involves the production of equipment used in broadcasting and wireless communication. Spending in this area is critical for national security and infrastructure. Comparable spending benchmarks would involve analyzing other DoD contracts for similar communication systems or equipment, considering factors like technological sophistication and volume.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The focus would be on whether D & S CONSULTANTS INC. utilizes small businesses in its supply chain, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight structures. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency would depend on the public availability of contract details beyond this summary, such as performance reports or audits, which are not provided here. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Communications Systems
Wireless Communication Equipment Procurement
Broadcasting Technology Contracts
Department of Defense IT and Communications Spending

Risk Flags

Lack of specific deliverable details hinders value assessment.
Contract title is vague, obscuring the procurement's purpose.
Contractor's specific experience with this type of procurement is not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.1 million to D & S CONSULTANTS INC.. TROJAN BOX BUY

Who is the contractor on this award?

The obligated recipient is D & S CONSULTANTS 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 $52.1 million.

What is the period of performance?

Start: 2010-09-28. End: 2013-01-05.

What specific equipment or services does 'TROJAN BOX BUY' entail, and how does this justify the $52.1 million cost?

The provided data offers no specific details regarding the 'TROJAN BOX BUY' deliverables, making it impossible to directly justify the $52.1 million cost. The NAICS code 334220 suggests it relates to radio, television broadcasting, and wireless communications equipment manufacturing. However, the exact nature of the 'box' or the 'buy' remains undefined. To assess value, a detailed breakdown of the procured items or services, their technical specifications, quantities, and intended use within the Department of the Army would be required. Without this, a cost-benefit analysis or comparison to market rates for similar, clearly defined procurements cannot be performed, leaving the justification for the significant expenditure unclear.

What is the track record of D & S CONSULTANTS INC. in fulfilling similar large-scale defense contracts?

Information regarding the specific track record of D & S CONSULTANTS INC. in fulfilling large-scale defense contracts is not provided in the given data snippet. While the company was awarded this $52.1 million contract, its history with similar procurements, its performance on past contracts (especially within the defense sector or related to communications equipment), and its overall financial stability are crucial factors for assessing risk and reliability. A comprehensive review would involve examining past performance evaluations, contract completion history, and any reported issues or successes on previous government contracts. Without this background, it is difficult to gauge the contractor's suitability and likelihood of successful project execution.

How does the $52.1 million expenditure compare to historical spending on similar 'TROJAN BOX BUY' initiatives or related communications equipment by the Department of the Army?

The provided data does not include historical spending figures for 'TROJAN BOX BUY' or comparable communications equipment procurements by the Department of the Army. To establish a benchmark, one would need to access historical contract databases and search for similar items or services, ideally under the same NAICS code (334220) or for related defense communication needs. Analyzing trends in spending, contract values, and quantities over time would reveal whether this $52.1 million award represents an increase, decrease, or stable level of investment. Understanding historical spending patterns is essential for identifying potential cost escalations, efficiency gains, or shifts in procurement priorities.

What are the potential risks associated with a firm fixed-price contract of this magnitude and duration?

While firm fixed-price (FFP) contracts generally shift cost risk to the contractor, risks can still exist, especially for large-scale and long-duration procurements like this $52.1 million 'TROJAN BOX BUY' contract. One primary risk is contractor underestimation of costs, potentially leading to financial distress or a desire to cut corners on quality if the contractor faces unforeseen challenges. Another risk is scope creep, where the government may implicitly or explicitly request modifications that increase costs, potentially leading to disputes if not managed through formal change orders. For the government, the risk lies in potentially overpaying if the initial fixed price was set too high due to incomplete information or aggressive bidding. Furthermore, if the contractor fails to deliver as specified, the government faces delays and potential costs associated with re-procurement or legal action, even with an FFP contract.

Given the 'full and open competition' award, what does the number of bidders (3) suggest about the market for this type of equipment/service?

An award resulting from 'full and open competition' with 3 bidders suggests a moderately competitive market for the 'TROJAN BOX BUY' requirement. While more bidders generally indicate greater competition and potentially better pricing, 3 bidders still represent a reasonable level of market interest. This number implies that the requirement was likely well-defined enough to attract multiple capable vendors, but perhaps not so broad or common as to draw dozens of offers. It could also indicate a specialized niche where only a few companies possess the necessary technology, expertise, or security clearances. The government's ability to secure favorable pricing would depend on the specific capabilities and cost structures of these three bidders, and whether the competition was sufficiently robust to drive down costs effectively.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12 CHRISTOPHER WAY, SUITE, EATONTOWN, NJ, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $118,190,406

Exercised Options: $52,130,254

Current Obligation: $52,130,254

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DL218

IDV Type: IDC

Timeline