DoD's $57M DHIMS contract for administrative support awarded to AXIOM RESOURCE MANAGEMENT, INC
Contract Overview
Contract Amount: $56,969,538 ($57.0M)
Contractor: Axiom Resource Management, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-10-01
End Date: 2016-02-29
Contract Duration: 1,246 days
Daily Burn Rate: $45.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BASE PERIOD DHIMS BUS PROCESS SUPT
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $57.0 million to AXIOM RESOURCE MANAGEMENT, INC. for work described as: BASE PERIOD DHIMS BUS PROCESS SUPT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is over 3 years, indicating a significant, long-term need for these services. 4. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 6. The contract was awarded to AXIOM RESOURCE MANAGEMENT, INC., a single entity. 7. The base period obligation was approximately $45.7M, representing the majority of the total award value.
Value Assessment
Rating: fair
The contract's value of $56.97M over approximately 3.5 years for administrative management and general management consulting services appears to be within a reasonable range for large-scale government support contracts. However, without specific benchmarks for DHIMS bus process support, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost escalation, as contractor profit is fixed, incentivizing higher costs to increase the fee base. Further analysis would require comparing the specific deliverables and performance metrics against similar contracts for administrative support within the Department of Defense.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders suggests a reasonably competitive environment for this type of service. A competitive process generally helps in price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition awards. The number of bidders is a positive indicator of market interest and the availability of qualified contractors.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used more efficiently by leveraging market forces to secure competitive pricing for essential administrative support services.
Public Impact
The Department of the Army benefits from the continuity of business process support for the DHIMS system. Services delivered include administrative management and general management consulting, crucial for operational efficiency. The geographic impact is primarily within the Department of Defense, supporting its administrative functions. Workforce implications include the potential for direct and indirect employment by the contractor to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can lead to cost overruns if not closely monitored.
- Lack of specific performance metrics makes it difficult to assess true value for money.
- The contract is a delivery order, implying it might be part of a larger IDIQ with its own set of risks.
- Limited public information on the specific DHIMS business processes supported.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Multiple bidders (6) participated, suggesting a healthy level of market interest.
- The contractor, AXIOM RESOURCE MANAGEMENT, INC., has a track record of performing government contracts.
- The contract duration suggests a stable, long-term need being met.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for such services is competitive, with numerous firms offering expertise in areas like process improvement, organizational development, and administrative support. Benchmarking this contract's value would involve comparing its cost per unit of service or its overall cost against similar large-scale administrative support contracts awarded by agencies like the Department of Defense or other federal entities.
Small Business Impact
The contract was not set aside for small businesses, and the awardee, AXIOM RESOURCE MANAGEMENT, INC., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. This suggests that the primary focus of this contract is not on direct small business participation, although the prime contractor may engage small businesses as subcontractors. Further investigation into subcontracting reports would be needed to determine the extent of small business involvement.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Army. Performance monitoring, financial oversight, and compliance checks are standard mechanisms. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.
Related Government Programs
- DHIMS (Defense Health Information Management System) Support Contracts
- Administrative Management and General Management Consulting Services Contracts
- Department of Defense IT Support Contracts
- Army IT Services Contracts
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
- Lack of specific performance metrics makes objective value assessment difficult.
- Contract is a delivery order, potentially part of a larger IDIQ structure requiring further review.
- Limited public detail on specific business processes supported.
Tags
department-of-defense, department-of-the-army, administrative-management-consulting, full-and-open-competition, cost-plus-fixed-fee, delivery-order, axi-resource-management-inc, virginia, naics-541611, large-contract, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.0 million to AXIOM RESOURCE MANAGEMENT, INC.. BASE PERIOD DHIMS BUS PROCESS SUPT
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 $57.0 million.
What is the period of performance?
Start: 2012-10-01. End: 2016-02-29.
What is the specific nature of the DHIMS business processes supported by this contract?
The provided data indicates the contract supports 'DHIMS BUS PROCESS SUPT,' which stands for Defense Health Information Management System Business Process Support. While the exact nature of these business processes is not detailed in the summary data, it generally refers to the operational workflows, administrative tasks, and management functions related to the Defense Health Information Management System. This could encompass areas such as user support, data management, system administration, process optimization, and policy implementation within the healthcare IT infrastructure managed by the Department of Defense. Understanding these specific processes is crucial for a comprehensive assessment of the contract's value and effectiveness.
How does the Cost Plus Fixed Fee (CPFF) structure impact cost control for this contract?
The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost is variable. This structure can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the total expenditure. Effective cost control under a CPFF contract relies heavily on robust government oversight, detailed cost accounting standards, and stringent auditing of contractor expenses. Without diligent monitoring by the contracting agency, there is a heightened risk of cost overruns compared to fixed-price contract types.
What is the historical spending pattern for DHIMS business process support within the Department of the Army?
The provided data focuses on a single contract award of $56.97M with a base period obligation of $45.72M. To understand historical spending patterns, one would need to analyze a broader dataset encompassing all contracts related to DHIMS business process support awarded by the Department of the Army over several fiscal years. This would involve identifying all relevant contract vehicles, task orders, and their respective values, as well as the contractors involved. Such an analysis would reveal trends in spending, identify key service providers, and highlight any significant fluctuations or increases/decreases in investment in this area over time.
What are the key performance indicators (KPIs) used to measure the success of this contract?
The provided summary data does not include specific Key Performance Indicators (KPIs) or performance metrics for this contract. In a typical government contract, especially for services, KPIs would be defined in the Performance Work Statement (PWS) or Statement of Work (SOW). These might include metrics related to response times for support requests, system uptime, user satisfaction, accuracy of administrative processes, or efficiency improvements achieved. Without these defined KPIs, it is challenging to objectively assess the contractor's performance and the overall effectiveness and value delivered by AXIOM RESOURCE MANAGEMENT, INC. under this award.
How does the competition level (6 bidders) compare to similar administrative support contracts within the DoD?
Having 6 bidders for this administrative support contract awarded under full and open competition suggests a moderately competitive market for these services within the Department of Defense. While not exceptionally high, 6 bidders generally indicates sufficient interest and availability of qualified contractors. To provide a more precise comparison, one would need to analyze the average number of bidders for similar NAICS code contracts (541611) of comparable size and scope within the DoD over a relevant period. Some high-demand or specialized service contracts might see dozens of bidders, while others, particularly those with very specific requirements or limited market pools, might have fewer. Therefore, 6 bidders represents a reasonable, though not intensely competitive, level.
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: 6
Pricing Type: COST PLUS FIXED FEE (U)
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: $71,033,834
Exercised Options: $56,969,538
Current Obligation: $56,969,538
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W81XWH08D0024
IDV Type: IDC
Timeline
Start Date: 2012-10-01
Current End Date: 2016-02-29
Potential End Date: 2016-02-29 00:00:00
Last Modified: 2015-12-31
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