Department of the Army awarded $38.5M for Garrison Operations Support to Axiom Resource Management, Inc

Contract Overview

Contract Amount: $38,452,170 ($38.5M)

Contractor: Axiom Resource Management, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-28

End Date: 2012-09-30

Contract Duration: 1,098 days

Daily Burn Rate: $35.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GARRISON OPERATION SUPPORT TAS::21 2020::TAS

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.5 million to AXIOM RESOURCE MANAGEMENT, INC. for work described as: GARRISON OPERATION SUPPORT TAS::21 2020::TAS Key points: 1. Contract value of $38.5M over 1098 days suggests a significant investment in operational support. 2. The contract was awarded under full and open competition, indicating a broad market search. 3. The fixed-price contract type aims to control costs by shifting risk to the contractor. 4. The contractor, Axiom Resource Management, Inc., has a track record with federal agencies. 5. The services fall under Administrative Management and General Management Consulting Services, a common category for support functions. 6. The contract duration of nearly three years implies a need for sustained operational assistance.

Value Assessment

Rating: good

The contract value of approximately $38.5 million over nearly three years for garrison operations support appears reasonable given the scope of services. Benchmarking against similar contracts for base operations and management consulting services would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control when requirements are well-defined. Without specific performance metrics or detailed service breakdowns, a definitive value assessment is challenging, but the award to a single entity suggests a competitive process yielded a preferred offer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of two bids indicates that while competition was solicited, the number of actual bidders was limited. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The fact that only two bids were received could suggest potential barriers to entry, a niche market, or that other potential contractors did not find the opportunity sufficiently attractive.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to bid, driving down prices. However, with only two bids, the potential for significant cost savings may have been limited compared to a scenario with numerous competitive offers.

Public Impact

The primary beneficiaries are likely Department of the Army installations requiring garrison operations support. Services delivered include administrative management and general management consulting, crucial for efficient base operations. The geographic impact is centered around the Army installations where these garrison support services are deployed, primarily in Virginia. Workforce implications may include the direct employment of personnel by Axiom Resource Management, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bidders could indicate potential for higher pricing than a more robustly competed contract.
The firm-fixed-price contract type, while good for cost control, can lead to contractor cost overruns if not managed carefully, potentially impacting value.
The specific nature of 'Garrison Operation Support' is broad and could encompass a wide range of services, making precise performance evaluation challenging without further detail.

Positive Signals

Awarded under full and open competition, suggesting an effort to maximize the pool of potential offerors.
The firm-fixed-price contract type aligns with government objectives to control costs and ensure predictable spending.
The contract duration of nearly three years indicates a stable, long-term need for these essential support services.

Sector Analysis

The Administrative Management and General Management Consulting Services sector (NAICS 541611) is a significant segment of the federal contracting market, supporting a wide array of government functions. This contract fits within the broader defense support services industry, which is characterized by long-term relationships and specialized expertise. Comparable spending benchmarks for similar base operations and management support contracts within the Department of Defense can vary widely based on the specific services and installation size, but this $38.5M award over three years represents a substantial commitment.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by a set-aside. The prime contractor, Axiom Resource Management, Inc., is responsible for its own subcontracting decisions, and there is no explicit requirement within this contract's data to ensure small business participation. The impact on the small business ecosystem is therefore indirect, depending on Axiom's own procurement practices.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Army program management office. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and internal oversight processes are not publicly disclosed. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Management and Consulting Services
Defense Logistics Support
Government Administrative Services

Risk Flags

Limited Competition
Potential for Scope Creep
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.5 million to AXIOM RESOURCE MANAGEMENT, INC.. GARRISON OPERATION SUPPORT TAS::21 2020::TAS

Who is the contractor on this award?

The obligated recipient is AXIOM RESOURCE MANAGEMENT, 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 $38.5 million.

What is the period of performance?

Start: 2009-09-28. End: 2012-09-30.

What is the track record of Axiom Resource Management, Inc. with federal contracts, particularly within the Department of Defense?

Axiom Resource Management, Inc. has a history of federal contracting, including work with the Department of Defense. While this specific contract is for $38.5 million over approximately three years for Garrison Operation Support, their broader portfolio may include various administrative, management, and consulting services. Analyzing past performance ratings, contract modifications, and any past performance issues or awards would provide a more comprehensive understanding of their reliability and effectiveness as a federal contractor. Their experience in similar service areas is crucial for assessing their capability to fulfill the requirements of this current award.

How does the awarded amount of $38.5 million compare to similar garrison operations support contracts?

The awarded amount of $38.5 million over a period of roughly 1098 days (approximately three years) for garrison operations support requires context for a precise comparison. Garrison support can encompass a wide range of services, from facilities maintenance and logistics to administrative functions and security. To benchmark effectively, one would need to identify contracts with similar scopes of work, service levels, and geographic locations within the Department of Defense or other federal agencies. Factors such as the size and complexity of the installation being supported, the specific services included, and the prevailing market rates for such services are critical. Without these comparative data points, it's challenging to definitively state whether $38.5 million represents a high, low, or average value.

What are the primary risks associated with this firm-fixed-price contract for garrison operations support?

The primary risks associated with this firm-fixed-price contract revolve around potential cost overruns for the contractor and the possibility of scope creep if requirements are not clearly defined. For the government, the risk lies in the contractor potentially cutting corners on service quality to maintain profitability if oversight is insufficient. If Axiom Resource Management, Inc. underestimates the cost or complexity of the services, they could face financial strain, potentially impacting performance. Conversely, if the government's needs evolve significantly beyond the initial scope, managing changes and associated costs under a fixed-price contract can become contentious. Robust performance monitoring and clear contract administration are key to mitigating these risks.

How effective is the 'full and open competition' approach when only two bids are received?

The effectiveness of 'full and open competition' when only two bids are received is debatable. While the process itself is designed to solicit the widest possible participation, the outcome of only two bidders suggests potential limitations. This could indicate that the market for these specific services is relatively small, that the barriers to entry (e.g., technical expertise, bonding requirements) are high, or that the solicitation itself may not have reached a broader audience effectively. From a taxpayer perspective, two bids offer some level of price competition, but it's less likely to drive prices down as aggressively as a scenario with five or more competing offers. It raises questions about whether the government secured the best possible value or if a more competitive environment could have yielded better results.

What are the implications of the 'Administrative Management and General Management Consulting Services' classification for the services provided?

The classification 'Administrative Management and General Management Consulting Services' (NAICS 541611) indicates that the contract likely involves providing expertise to improve the efficiency and effectiveness of organizational operations. This could include strategic planning, process improvement, organizational design, human resource management consulting, and general administrative support. For garrison operations, this suggests the contractor is tasked with optimizing how the base functions administratively and operationally. It implies a focus on management practices, policy implementation, and potentially advising military leadership on operational improvements, rather than direct provision of physical services like construction or maintenance, although it could include managing those services.

What is the significance of the contract being awarded in Virginia (VA)?

The contract being awarded with a primary location or performance site in Virginia (VA) signifies that the garrison operations support services are likely being provided to a Department of the Army installation within that state. Virginia hosts numerous significant Army installations, including Fort Belvoir, Fort Lee, and Langley Air Force Base (which also supports Army functions). This geographic focus means the economic impact, such as job creation and local spending by the contractor, will be concentrated in Virginia. It also implies that the specific needs and operational context are related to the Army's presence and activities within that particular region.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Solicitation ID: W81XWH05R0004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5203 LEESBURG PIKE STE 300, FALLS CHURCH, VA, 22041

Business Categories: 8(a) Program Participant, Category Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $40,530,761

Exercised Options: $38,452,170

Current Obligation: $38,452,170

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81XWH08D0024

IDV Type: IDC

Timeline