Phoenix Group of Virginia Inc. awarded $5.2M engineering services contract by GSA

Contract Overview

Contract Amount: $5,198,147 ($5.2M)

Contractor: Phoenix Group of Virginia Inc

Awarding Agency: General Services Administration

Start Date: 2024-03-22

End Date: 2026-03-21

Contract Duration: 729 days

Daily Burn Rate: $7.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IFORECAST SBIR III CVN 78 TO1

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $5.2 million to PHOENIX GROUP OF VIRGINIA INC for work described as: IFORECAST SBIR III CVN 78 TO1 Key points: 1. Contract awarded via delivery order under an existing IDIQ. 2. Limited competition due to the nature of the delivery order. 3. Contract duration of approximately two years. 4. Engineering services are critical for government operations. 5. Contractor has a presence in the District of Columbia. 6. Cost Plus Fixed Fee pricing structure requires careful oversight.

Value Assessment

Rating: fair

The contract value of $5.2 million for engineering services over two years appears moderate. Benchmarking against similar contracts for engineering services by the General Services Administration (GSA) is necessary to determine true value for money. The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed diligently, potentially impacting the overall value. Without specific deliverables or performance metrics, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a delivery order under an existing indefinite-delivery indefinite-quantity (IDIQ) contract. The specific competition details for the underlying IDIQ are not provided, but the award of a delivery order typically involves a more limited competition among pre-qualified vendors. The number of bidders for this specific delivery order is not specified, but the limited nature suggests it may not have undergone a full and open competition, potentially impacting price discovery.

Taxpayer Impact: A limited competition for this delivery order may mean taxpayers did not benefit from the lowest possible price achievable through broad market solicitation.

Public Impact

Government agencies requiring specialized engineering expertise will benefit from the services provided. The contract supports the delivery of essential engineering services, likely related to infrastructure or technical projects. The geographic impact is centered in the District of Columbia, where the contractor is located. The contract supports skilled engineering jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can incentivize contractor to increase costs to maximize profit.
Limited competition for delivery orders may result in higher prices than a full and open competition.
Lack of specific performance metrics makes it difficult to assess contractor efficiency and effectiveness.
The contract duration of two years may not be sufficient for long-term project planning or stability.

Positive Signals

Awarded under an existing IDIQ, suggesting the contractor has already met pre-qualification standards.
Engineering services are crucial for government operations and infrastructure.
The contractor is based in the District of Columbia, potentially offering proximity and responsiveness.

Sector Analysis

The engineering services sector is a significant component of government contracting, encompassing a wide range of specialized expertise. This contract falls within the professional, scientific, and technical services industry. Government spending in this sector is driven by the need for design, analysis, and technical support across various agencies and projects, including infrastructure, defense, and IT. Comparable spending benchmarks would depend on the specific type of engineering services rendered.

Small Business Impact

The provided data indicates that small business set-aside (ss) and subcontracting (sb) flags are false. This suggests that the contract was not specifically set aside for small businesses, nor is there an explicit indication of subcontracting requirements for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program office within the General Services Administration (GSA). The Cost Plus Fixed Fee (CPFF) nature of the contract necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency may be limited by the nature of delivery orders under IDIQs, but contract performance and financial reporting should be available through federal procurement databases. Inspector General jurisdiction would apply if fraud or mismanagement is suspected.

Related Government Programs

GSA Federal Acquisition Service Contracts
Engineering Services Contracts
IDIQ Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires rigorous oversight to prevent cost overruns.
Limited competition may lead to suboptimal pricing for taxpayers.
Lack of specific performance metrics hinders objective evaluation of contractor performance.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5.2 million to PHOENIX GROUP OF VIRGINIA INC. IFORECAST SBIR III CVN 78 TO1

Who is the contractor on this award?

The obligated recipient is PHOENIX GROUP OF VIRGINIA INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2024-03-22. End: 2026-03-21.

What is the track record of Phoenix Group of Virginia Inc. with federal contracts, particularly with the GSA?

Phoenix Group of Virginia Inc. has a history of federal contracting, as indicated by its presence in federal procurement databases. To assess their track record specifically with the GSA and for engineering services, a detailed review of their past performance on similar contracts would be necessary. This would involve examining contract values, performance ratings, any past performance issues or awards, and their experience with the Cost Plus Fixed Fee (CPFF) pricing structure. Understanding their history with IDIQ vehicles and delivery orders would also provide insight into their operational capabilities and reliability in fulfilling government requirements. A comprehensive analysis would look for patterns of successful project completion, adherence to schedules and budgets, and overall client satisfaction within the federal space.

How does the $5.2 million contract value compare to similar engineering services contracts awarded by the GSA?

The $5.2 million contract value for engineering services awarded to Phoenix Group of Virginia Inc. by the GSA is a moderate figure within the broader landscape of federal engineering procurements. To benchmark this value effectively, one would need to compare it against contracts with similar scopes of work, service types (e.g., civil, mechanical, electrical engineering), and contract durations. The GSA awards a wide range of engineering contracts, from small, specialized task orders to large, multi-year programs. A direct comparison would involve analyzing the average cost per year or per deliverable for comparable services. Factors such as the specific technical requirements, the level of expertise needed, and the geographic location can influence pricing. Without more detailed information on the specific engineering services required for this contract, a precise comparison is difficult, but it does not appear to be an exceptionally large or small award in the context of federal engineering services.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract like this one?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost escalation. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the total project cost. For the government, this means the final contract price can be significantly higher than initially anticipated if costs are not meticulously controlled and scrutinized. Effective oversight, detailed cost accounting, and clear definitions of allowable costs are crucial to mitigate this risk. The government must ensure that all costs submitted by the contractor are reasonable, allocable, and directly related to the contract's performance. Without stringent management, CPFF contracts can be less cost-effective than fixed-price alternatives.

How does the 'limited competition' aspect of this award potentially impact taxpayer value?

Limited competition, as indicated for this delivery order, can potentially reduce taxpayer value by diminishing price pressures. When a contract is competed among a broad base of qualified vendors (full and open competition), the resulting competition typically drives prices down as contractors vie for the award. In a limited competition scenario, fewer bidders are involved, which may include pre-selected vendors under an IDIQ. This reduced pool of competitors might lead to less aggressive pricing. Consequently, taxpayers may end up paying more than they would have under a more robustly competed contract. The specific impact depends on the number of bidders and the nature of the pre-existing IDIQ, but the general principle is that less competition often correlates with higher costs for the government.

What are the implications of this contract being awarded as a 'Delivery Order' under an existing IDIQ?

Awarding this contract as a Delivery Order under an existing Indefinite Delivery Indefinite Quantity (IDIQ) contract signifies that the basic contract vehicle has already been established and competed. This approach allows agencies to procure services or supplies more rapidly once the IDIQ is in place, streamlining the acquisition process for specific needs. For taxpayers, this can mean faster delivery of necessary services, potentially at pre-negotiated rates from the IDIQ. However, the competition for the specific delivery order itself might be limited to vendors already on the IDIQ, which could affect the final price compared to a standalone, full-and-open competition. The efficiency gained through the IDIQ mechanism needs to be balanced against the potential for less competitive pricing on individual orders.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFCA24R0027

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 630 WOODLAKE DR, CHESAPEAKE, VA, 23320

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,188,562

Exercised Options: $6,007,709

Current Obligation: $5,198,147

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFCA24D0001

IDV Type: IDC

Timeline