Department of Defense awards $10.1M for Office Administrative Services to B3H CORPORATION over 4 years

Contract Overview

Contract Amount: $10,078,441 ($10.1M)

Contractor: B3H Corporation

Awarding Agency: Department of Defense

Start Date: 2002-10-01

End Date: 2007-03-30

Contract Duration: 1,641 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST NO FEE

Sector: Other

Place of Performance

Location: HAMPTON, HAMPTON (CITY) County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.1 million to B3H CORPORATION for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1641 days (approx. 4.5 years) indicates a long-term need for these services. 3. The contractor, B3H CORPORATION, has been awarded this contract, implying a track record with the agency. 4. The contract type 'COST NO FEE' suggests the government bears the cost of performance, with no fee paid to the contractor beyond reimbursement. 5. The North American Industry Classification System (NAICS) code 561110 points to general office administrative services. 6. The award was made by the Department of the Air Force, a major component of the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The 'COST NO FEE' contract type means the government covers all allowable costs, which can sometimes lead to less price sensitivity compared to fixed-price contracts. Comparing this to similar administrative service contracts would require access to more granular data on the scope of services and the specific costs incurred. However, the total award amount over its duration suggests a moderate investment for the services rendered.

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 a bid. The presence of 8 bids suggests a reasonably competitive environment for these administrative services. A higher number of bidders generally correlates with better price discovery and potentially lower costs for the government, as contractors vie for the award.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers by encouraging multiple companies to offer their services, driving down costs through competitive pressure.

Public Impact

The primary beneficiaries are likely the administrative staff and operational units within the Department of the Air Force that require these support services. The services delivered include general office administrative support, which is crucial for the day-to-day functioning of military operations. The geographic impact is primarily within Virginia, where the contract is noted to be performed. Workforce implications include the potential for employment opportunities for administrative professionals, both directly with the contractor and indirectly through related support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type can sometimes lead to less incentive for cost control by the contractor if not rigorously overseen.
Lack of specific performance metrics makes it difficult to assess the true value for money and efficiency of the services provided.
The long duration of the contract could lead to vendor lock-in if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
Multiple bids (8) were received, suggesting significant interest and a competitive market for these services.
The contractor, B3H CORPORATION, has secured this award, implying they met the agency's requirements and standards.

Sector Analysis

The administrative services sector is a broad category encompassing a wide range of support functions essential for government operations. This contract falls under general office administration, a segment characterized by numerous service providers, from small businesses to large corporations. The market size for such services within the federal government is substantial, with agencies consistently outsourcing these functions to ensure efficiency and focus on core missions. Comparable spending benchmarks would typically involve analyzing other contracts for similar administrative support services across different federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The award to B3H CORPORATION, without specific information on their size, suggests it may not have been targeted towards small businesses. There is no explicit mention of subcontracting requirements for small businesses, which could limit opportunities for the small business ecosystem in this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Air Force. Accountability measures would be tied to the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed cost and performance data may be less accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules
Professional Services Schedule (PSS)
Contracting for Administrative Support Services
Department of Defense Administrative Services Contracts

Risk Flags

Cost Control Risk in Cost-Reimbursement Contracts
Potential for Scope Creep
Performance Monitoring Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to B3H CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is B3H CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $10.1 million.

What is the period of performance?

Start: 2002-10-01. End: 2007-03-30.

What is the track record of B3H CORPORATION with the Department of Defense, particularly in providing administrative services?

Information regarding B3H CORPORATION's specific track record with the Department of Defense for administrative services is not detailed in the provided data. However, securing this contract suggests they have met the agency's requirements and possess the necessary qualifications. Further investigation into their past performance on similar contracts, including customer satisfaction ratings and any history of contract disputes or awards, would be necessary for a comprehensive assessment. Analyzing their portfolio of previous government contracts can offer insights into their experience and reliability in delivering administrative support.

How does the awarded amount of $10.1M compare to similar administrative service contracts within the federal government?

The total award of approximately $10.1 million over a period of roughly 4.5 years (1641 days) places this contract in the mid-range for federal administrative service agreements. Without specific details on the scope and complexity of services, a direct comparison is difficult. However, many federal agencies procure similar administrative support functions, with contract values varying significantly based on the agency's size, mission, and the specific tasks required. Contracts for large-scale, multi-functional administrative support can reach tens or hundreds of millions of dollars, while smaller, more specialized contracts might be in the low millions. This award appears to be a substantial, but not exceptionally large, investment for the services rendered.

What are the primary risks associated with a 'COST NO FEE' contract for administrative services?

The primary risk with a 'COST NO FEE' contract is the potential for cost overruns, as the government is obligated to reimburse the contractor for all allowable costs incurred. This can reduce the contractor's incentive to control expenses, potentially leading to higher overall costs for the government compared to fixed-price contracts. Effective oversight, detailed cost reporting, and clear definitions of allowable costs are crucial to mitigate this risk. Without stringent management, there's a possibility of the contractor incurring costs that are not directly tied to efficient service delivery, impacting the value for money.

How effective is full and open competition in ensuring value for money for administrative services?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. The receipt of 8 bids for this administrative services contract indicates a healthy level of competition, which should theoretically lead to a more favorable price for the government. However, the effectiveness is also dependent on the clarity of the solicitation, the evaluation criteria, and the agency's ability to accurately assess proposals to select the best overall value, not just the lowest price.

What are the potential implications of this contract on the small business ecosystem, given it's not a set-aside?

Since this contract was awarded under full and open competition and is not designated as a small business set-aside, its direct impact on the small business ecosystem might be limited. Small businesses may have had the opportunity to bid, but the award went to B3H CORPORATION without specific small business preferences. Furthermore, if B3H CORPORATION is a large business, there is no explicit requirement for them to subcontract a portion of this work to small businesses, as would be mandated in many other federal contracts. This means that opportunities for small businesses to participate in this specific contract's value chain are not guaranteed and would depend on B3H CORPORATION's own subcontracting decisions.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 8

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 51 3RD ST BLDG 1 TECH CENTER, SHALIMAR, FL, 01

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F4465002D0003

IDV Type: IDC

Timeline