Department of Defense contract awarded to BearingPoint, Inc. for $28.65 million over 4 years

Contract Overview

Contract Amount: $28,651,691 ($28.7M)

Contractor: Bearingpoint, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-01

End Date: 2009-09-03

Contract Duration: 1,463 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to BEARINGPOINT, INC. for work described as: Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type may limit cost overruns for the government. 4. Contract duration of over 4 years indicates a significant, long-term need. 5. Awarded to a large business, with no explicit small business set-aside. 6. Services likely support critical defense operations, given the agency and sector.

Value Assessment

Rating: good

The contract value of approximately $28.65 million over four years, averaging around $7.16 million annually, seems within a reasonable range for complex IT or professional services supporting a major agency like the Department of Defense. Without specific details on the services rendered, direct comparison is challenging. However, for large-scale IT support or consulting engagements, this level of spending is not unusual. The firm fixed-price nature of the contract suggests that the government aimed to control costs by shifting some risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection process and potentially better pricing due to market forces. The presence of multiple bidders, implied by 'full and open competition,' suggests that the government had options and could select the offer that best met its technical and cost requirements.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down prices and ensuring that the government receives the best value for its investment. It reduces the likelihood of inflated costs that can occur with less competitive or sole-source procurements.

Public Impact

The primary beneficiaries are likely Department of Defense personnel and operations requiring the specific services provided by BearingPoint. Services delivered could range from IT modernization, system integration, or strategic consulting to support defense readiness and efficiency. Geographic impact is likely concentrated within the operational areas of the Department of the Army, potentially nationwide or even global. Workforce implications may include the direct employment of BearingPoint staff and potential indirect impacts on government personnel managing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if contract requirements are not tightly managed.
Reliance on a single large contractor could create vendor lock-in.
Ensuring continued innovation and adaptation by the contractor over the contract's lifespan.

Positive Signals

Firm fixed-price contract helps manage budget predictability.
Full and open competition suggests a strong market evaluation.
Award to an established firm like BearingPoint may indicate a track record of successful delivery.

Sector Analysis

This contract falls within the broad IT and professional services sector, a significant area of federal spending. The Department of Defense is a major consumer of these services, utilizing them for everything from cybersecurity and data management to strategic planning and system implementation. The market for such services is large and competitive, with numerous large and small businesses vying for government contracts. This specific award represents a portion of the overall federal IT and services budget allocated to defense modernization and operational support.

Small Business Impact

The contract was awarded to BearingPoint, Inc., a large business. There is no indication of a small business set-aside for this particular award. While BearingPoint may have its own subcontracting plans, the primary award does not directly benefit small businesses through a set-aside. The government's overall small business utilization goals would need to be met through other contract vehicles or by BearingPoint's own subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Performance reviews, regular reporting, and adherence to the contract's terms and conditions would be key oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, though specific performance metrics are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Modernization Programs
Army Enterprise Systems
Defense-wide Information Systems Support
Professional Services Contracts
IT Consulting Services

Risk Flags

Contract duration exceeds 4 years, potentially increasing risk of performance degradation or obsolescence.
No explicit small business participation noted, may not align with broader federal small business goals.
Firm Fixed Price contracts can sometimes lead to reduced contractor flexibility for innovation.
Specific services not detailed, making direct value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to BEARINGPOINT, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is BEARINGPOINT, 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 $28.7 million.

What is the period of performance?

Start: 2005-09-01. End: 2009-09-03.

What specific services did BearingPoint, Inc. provide under this contract?

The provided data does not specify the exact services rendered by BearingPoint, Inc. under this contract. However, given the award to the Department of the Army and the contract type (firm fixed price), it likely involved IT support, system integration, software development, or professional consulting services crucial for defense operations. These could range from maintaining existing systems to implementing new technological solutions, managing large datasets, or providing strategic advice on defense modernization efforts. Further details would typically be found in the contract's statement of work (SOW) or performance work statement (PWS).

How does the $28.65 million value compare to similar IT services contracts for the Department of Defense?

The $28.65 million contract value over approximately four years, averaging about $7.16 million annually, is a substantial but not extraordinary amount for the Department of Defense. Large federal agencies, particularly the DoD, frequently award IT and professional services contracts in the multi-million dollar range due to the complexity and scale of their operations. Benchmarking requires comparing it to contracts with similar scope, duration, and service types. For instance, contracts for enterprise resource planning (ERP) system support, cybersecurity solutions, or large-scale network infrastructure management within the DoD often fall within or exceed this spending bracket. Without more specific service details, it's difficult to provide a precise comparison, but it aligns with typical large-scale IT procurements for major federal entities.

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

A primary risk with firm fixed-price (FFP) contracts, especially those spanning multiple years like this one (over 4 years), is the potential for the contractor to underperform if the price is set too low, leading to quality issues or contractor default. Conversely, if the price is set too high, the government may overpay. For the government, the risk lies in the contractor's potential lack of incentive to innovate or improve efficiency beyond what is contractually required, as their profit is fixed. Scope creep, where the government requests additional work not originally envisioned, can also become a point of contention or lead to costly change orders if not managed meticulously. Contractor viability over a long period is another consideration; financial instability or changes in the company's strategic direction could impact performance.

What does the 'full and open competition' designation imply about the contractor selection process?

The 'full and open competition' designation signifies that the Department of the Army actively sought bids from all responsible sources capable of meeting the contract requirements. This process is designed to maximize competition, ensuring a wide range of potential contractors can participate. It implies that the agency did not restrict the bidding pool through set-asides for small businesses or other preferences. The selection process likely involved evaluating multiple proposals based on predefined criteria, such as technical approach, past performance, and price. This method is generally favored as it promotes price discovery and allows the government to select the best value offer, theoretically leading to more efficient use of taxpayer funds.

How has federal spending on IT services for the Department of Defense evolved historically?

Federal spending on IT services for the Department of Defense has seen a significant and generally upward trend over the past few decades, driven by technological advancements, evolving geopolitical threats, and the increasing digitization of military operations. Early spending focused on basic infrastructure and communication systems. In recent years, there has been a pronounced shift towards cybersecurity, cloud computing, artificial intelligence, data analytics, and advanced network capabilities to maintain a technological edge. While specific figures fluctuate annually based on budget appropriations and strategic priorities, the DoD consistently represents one of the largest federal government segments for IT expenditures. This contract, awarded in 2005, falls within a period of increasing reliance on IT for mission support and modernization efforts.

What is BearingPoint, Inc.'s general track record with federal government contracts?

BearingPoint, Inc. has a significant history of contracting with the U.S. federal government across various agencies, including defense, civilian, and intelligence sectors. Their contract portfolio typically includes a wide range of professional services, such as IT consulting, systems integration, management consulting, and financial management support. While specific performance details for individual contracts are not provided here, their continued success in winning federal awards suggests a generally positive track record. However, like any large contractor, they may have faced challenges or criticisms on specific projects. A comprehensive assessment would require reviewing performance evaluations and past performance data for numerous contracts.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DR, MC LEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: DAAB1501A1023

IDV Type: IDC

Timeline