DoD Spent $13.7M on Office Admin Services with Sierra Management & Technologies Inc. via Full and Open Competition

Contract Overview

Contract Amount: $13,762,726 ($13.8M)

Contractor: Sierra Management & Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2002-08-07

End Date: 2008-07-01

Contract Duration: 2,155 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: FORT EUSTIS, NEWPORT NEWS (CITY) County, VIRGINIA, 23604

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to SIERRA MANAGEMENT & TECHNOLOGIES INC for work described as: Key points: 1. The contract awarded to Sierra Management & Technologies Inc. totaled $13.7 million. 2. The contract was awarded under 'Full and Open Competition After Exclusion of Sources', indicating a competitive process with specific source exclusions. 3. The contract type was 'Cost Plus Award Fee', which incentivizes contractor performance. 4. The contract duration was 2155 days, spanning from August 2002 to July 2008. 5. The North American Industry Classification System (NAICS) code 561110 signifies Office Administrative Services.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure suggests an attempt to balance cost control with performance incentives. Without specific award fee criteria and outcomes, a precise value assessment is difficult. However, the total award amount of $13.7M over approximately six years for administrative services warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition After Exclusion of Sources' method implies a competitive bidding process, but with specific limitations on eligible bidders. This approach can still yield competitive pricing if the exclusion criteria are justified and the pool of eligible sources is sufficiently large.

Taxpayer Impact: While competition was utilized, the specific exclusion of sources may have limited the full potential for cost savings. The final price reflects the negotiated outcome of this specific competitive environment.

Public Impact

Taxpayers funded administrative services for the Department of the Army over a six-year period. The contract supported the operational needs of the Department of Defense. The use of a Cost Plus Award Fee contract aimed to ensure quality service delivery while managing costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for limited competition due to source exclusion.
  • Cost Plus Award Fee contracts can sometimes lead to higher costs if not managed tightly.
  • Lack of transparency on award fee payouts makes full value assessment challenging.

Positive Signals

  • Awarded through a competitive process.
  • Contract structure incentivizes contractor performance.
  • Long-term contract provided stable administrative support.

Sector Analysis

Office Administrative Services (NAICS 561110) is a broad category encompassing support functions crucial for government operations. Spending in this sector can vary significantly based on agency size and mission requirements. Benchmarks are difficult without specific service details, but government administrative support contracts are common.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms. However, the effectiveness of oversight for this specific contract, particularly regarding the award fee component, is not detailed in the provided data.

Related Government Programs

  • Office Administrative Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for limited competition.
  • Cost Plus Award Fee structure risks higher overall costs.
  • Lack of detailed performance and cost data hinders full analysis.
  • Unclear justification for source exclusion.

Tags

office-administrative-services, department-of-defense, va, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to SIERRA MANAGEMENT & TECHNOLOGIES INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SIERRA MANAGEMENT & TECHNOLOGIES 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 $13.8 million.

What is the period of performance?

Start: 2002-08-07. End: 2008-07-01.

What were the specific award fee criteria and how did Sierra Management & Technologies Inc. perform against them?

The provided data does not detail the specific award fee criteria or the contractor's performance against them. Understanding these criteria and the resulting fee payouts is essential for a comprehensive assessment of the contract's value and effectiveness. Without this information, it's difficult to determine if the 'award fee' aspect truly optimized performance or simply increased costs.

What was the rationale for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The rationale for excluding specific sources is not provided. This exclusion method suggests that while the competition was open, it was not entirely unrestricted. Understanding the justification for these exclusions is crucial to assess whether the competition was truly maximized or if potential cost-saving opportunities from a broader bidder pool were forgone.

How did the actual costs incurred by Sierra Management & Technologies Inc. compare to the initial estimates or benchmarks for similar administrative services?

The data does not provide a breakdown of actual costs incurred versus initial estimates or industry benchmarks for similar services. The 'Cost Plus Award Fee' structure implies costs are reimbursed plus an incentive fee. A detailed cost analysis would be needed to determine if the final expenditure of $13.7 million represented good value for the administrative services rendered.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesOffice Administrative ServicesOffice Administrative Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 44427 AIRPORT ROAD, CALIFORNIA, MD, 05

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2002-08-07

Current End Date: 2008-07-01

Potential End Date: 2008-07-01 00:00:00

Last Modified: 2013-04-01

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