DoD awards $19.8M for Logistics Support Services to CCI Inc., raising value concerns

Contract Overview

Contract Amount: $12,318,087 ($12.3M)

Contractor: CCI Incorporated (8111)

Awarding Agency: Department of Defense

Start Date: 2000-12-18

End Date: 2006-04-06

Contract Duration: 1,935 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200103!001174!1700!A8122 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042100D0467 !A!N!*!N!0012 !20001218!20011207!198151078!198151078!198151078!N!CCI INCORPORATED !277 SOUTH WASHINGTON ST , !ALEXANDRIA !VA!22314!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000002075000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!*!*!5!B!M!A!*!*!*!B!*!*!A! !A !N!R!2!007!B! !Z!N!Z! ! !N!A!N!N!Z! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to CCI INCORPORATED (8111) for work described as: 200103!001174!1700!A8122 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042100D0467 !A!N!*!N!0012 !20001218!20011207!198151078!198151078!198151078!N!CCI INCORPORATED !277 SOUTH WASHINGTON ST , !ALEXANDRIA !VA!22314!01000!510!51!ALEXANDRIA !ALEXA… Key points: 1. The contract value of $19.8 million for logistics support services is significant. 2. CCI Incorporated, a small business, is the sole awardee. 3. The contract type is Cost Plus Award Fee, which can lead to cost overruns. 4. The sector is Defense, specifically Naval Air Warfare Center. 5. The procurement method was 'Full and Open Competition After Exclusion of Sources'.

Value Assessment

Rating: questionable

The contract value of $19.8 million appears high for logistics support services, especially given the Cost Plus Award Fee structure which offers less price certainty than fixed-price contracts. Benchmarking against similar services is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a limited competition. This method can restrict the pool of potential bidders and may not result in the most competitive pricing.

Taxpayer Impact: The limited competition and Cost Plus Award Fee structure could lead to higher costs for taxpayers compared to a fully competitive, fixed-price contract.

Public Impact

Taxpayers may be paying a premium due to limited competition. The Cost Plus Award Fee contract type warrants close monitoring to ensure cost efficiency. The specific logistics support services provided are not detailed, making public assessment challenging. The award to a single entity, CCI Inc., raises questions about broader market availability and pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost Plus Award Fee contract type
Lack of detailed service description

Positive Signals

Award to a small business (CCI Inc.)

Sector Analysis

This contract falls within the Defense sector, specifically for logistics support services procured by the Naval Air Warfare Center. Spending in this area is critical for military readiness but requires careful oversight to ensure cost-effectiveness.

Small Business Impact

CCI Incorporated, the awardee, is identified as a small business. While supporting small businesses is a government priority, the specific circumstances of this award, including the limited competition, should be reviewed to ensure fair opportunity.

Oversight & Accountability

The 'Full and Open Competition After Exclusion of Sources' method requires justification and documentation. Oversight should focus on the rationale for excluding other sources and the effectiveness of the award fee structure in controlling costs.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for inflated costs due to limited competition.
Cost Plus Award Fee structure may not ensure maximum cost efficiency.
Lack of transparency regarding the exclusion of sources.
Ambiguity in the scope of 'Logistics Support Services'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to CCI INCORPORATED (8111). 200103!001174!1700!A8122 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042100D0467 !A!N!*!N!0012 !20001218!20011207!198151078!198151078!198151078!N!CCI INCORPORATED !277 SOUTH WASHINGTON ST , !ALEXANDRIA !VA!22314!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000002075000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!*!*!5!B!M!A!*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is CCI INCORPORATED (8111).

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2000-12-18. End: 2006-04-06.

What was the justification for excluding other sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did it impact the final price?

The justification for excluding other sources is crucial for understanding the limited competition. If valid reasons existed, such as specialized capabilities or urgent needs, the price might be considered reasonable within those constraints. However, without this justification, the limited competition raises concerns about potential price inflation and missed opportunities for better value.

How effectively does the Cost Plus Award Fee structure incentivize CCI Inc. to control costs for these logistics support services?

The Cost Plus Award Fee (CPAF) structure allows for reimbursement of costs plus a fee that can be adjusted based on performance. Its effectiveness in controlling costs depends heavily on the clearly defined performance metrics and the rigor with which the award fee is determined. If metrics are weak or oversight is lax, it can incentivize cost-plus behavior rather than cost savings.

What is the specific nature of the 'Logistics Support Services' provided, and how does the $19.8 million award align with industry benchmarks for similar services?

The public data lacks specific details on the 'Logistics Support Services.' Without knowing the scope, complexity, and duration, it's impossible to accurately benchmark the $19.8 million award against industry standards. A thorough analysis would require a detailed breakdown of the services rendered and comparison with contracts for comparable support functions within the defense sector.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 7

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 3101 WILSON BLVD STE 700, ARLINGTON, VA, 22201

Business Categories: Category Business, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042100D0467

IDV Type: IDC

Timeline