Transportation contract for CWO Services awarded to The IBEX Group Inc. for over $14.4 million

Contract Overview

Contract Amount: $14,403,742 ($14.4M)

Contractor: THE Ibex Group Inc

Awarding Agency: Department of Transportation

Start Date: 2008-03-05

End Date: 2012-09-30

Contract Duration: 1,670 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY08 - BIG - PR NO. WA-08-01846 CWO SERVICES FOR ALLEN AAF, FT. GREELY, AK REGIS ID 17628315 TAS::69 1301::TAS

Place of Performance

Location: PALM CITY, MARTIN County, FLORIDA, 34990

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $14.4 million to THE IBEX GROUP INC for work described as: FY08 - BIG - PR NO. WA-08-01846 CWO SERVICES FOR ALLEN AAF, FT. GREELY, AK REGIS ID 17628315 TAS::69 1301::TAS Key points: 1. The contract value of $14.4 million over approximately 4.5 years suggests a significant investment in CWO services. 2. The award to The IBEX Group Inc. indicates a specific capability or market position held by this contractor. 3. The contract duration of 1670 days (approx. 4.5 years) implies a need for sustained service delivery. 4. The fixed-price contract type suggests that cost risks are largely borne by the contractor. 5. The absence of small business set-aside flags indicates this was not specifically targeted for small business participation. 6. The contract was awarded under full and open competition, suggesting a broad market solicitation.

Value Assessment

Rating: fair

The contract value of $14.4 million for CWO services over 4.5 years averages to approximately $3.2 million annually. Benchmarking this against similar contracts for CWO services across federal agencies would be necessary to determine if this represents good value. Without specific details on the scope of 'CWO Services' and the performance metrics, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract generally aligns with efforts to control costs by shifting 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 a bid. The data shows 3 bids were received, which is a moderate level of competition for a contract of this size and duration. While 3 bidders suggest some market interest, a higher number of bids could potentially lead to more aggressive pricing and better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to leverage the widest possible market to secure the best price and quality. The presence of multiple bidders, even if limited to three, provides a basis for price comparison and encourages competitive offers.

Public Impact

The primary beneficiaries of this contract are likely the personnel and operations at Allen AAF, Fort Greely, Alaska, who receive the CWO services. The services delivered are categorized under 'All Other Professional, Scientific, and Technical Services,' suggesting a broad range of support functions. The geographic impact is localized to Fort Greely, Alaska, a military installation. The contract supports the operational readiness and efficiency of the military base by providing necessary services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific nature of 'CWO Services' is not detailed, making it difficult to assess the full scope and potential risks associated with performance.
Without performance metrics or quality data, it's hard to gauge the effectiveness and efficiency of the services provided by The IBEX Group Inc.
The contract's long duration could lead to potential cost overruns if not managed effectively, despite the fixed-price structure.

Positive Signals

The contract was awarded through full and open competition, suggesting a fair and transparent procurement process.
The fixed-price contract type helps in budget predictability and cost control for the government.
The IBEX Group Inc. was selected, implying they met the necessary qualifications and offered a competitive proposal.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990. This broad category encompasses a wide array of services not elsewhere classified, including research, consulting, and technical support. The federal government is a significant consumer of these services, with spending often driven by the needs of defense, infrastructure, and regulatory bodies. Benchmarking this contract's value against other federal contracts for similar 'other professional services' would provide context on its relative scale.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win the contract without specific requirements for subcontracting to small businesses. The absence of set-aside provisions suggests that the primary focus of the procurement was on obtaining the best value from the broadest pool of contractors, rather than specifically promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency, the Department of Transportation, and specifically the Federal Aviation Administration. As a fixed-price contract, oversight would focus on ensuring that the contractor meets the defined scope of work and performance standards. Transparency is facilitated by the public nature of contract awards, but detailed performance reports or specific oversight mechanisms are not detailed in the provided data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support Contracts
Professional and Technical Services
Logistics and Support Services
Federal Aviation Administration Contracts

Risk Flags

Contract Duration
Limited Competition
Undefined Service Scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $14.4 million to THE IBEX GROUP INC. FY08 - BIG - PR NO. WA-08-01846 CWO SERVICES FOR ALLEN AAF, FT. GREELY, AK REGIS ID 17628315 TAS::69 1301::TAS

Who is the contractor on this award?

The obligated recipient is THE IBEX GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2008-03-05. End: 2012-09-30.

What specific 'CWO Services' were provided under this contract, and what was the scope of work?

The provided data identifies the contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' and refers to 'CWO SERVICES.' Without further documentation, the precise nature of 'CWO Services' remains undefined. This could potentially encompass a wide range of activities, such as custodial, operational, or specialized support functions critical to the functioning of Allen AAF at Fort Greely, Alaska. A detailed statement of work (SOW) or contract line item numbers (CLINs) would be necessary to understand the specific deliverables, performance standards, and the overall scope of the services rendered by The IBEX Group Inc. under this $14.4 million award.

How does the $14.4 million contract value compare to similar CWO service contracts awarded by the Department of Transportation or other federal agencies?

To benchmark the $14.4 million contract value, a comparative analysis with similar contracts for 'CWO Services' or equivalent professional/technical support services would be required. This would involve searching federal procurement databases (like FPDS or USASpending) for contracts with comparable NAICS codes, agencies, and service descriptions. Factors such as contract duration (1670 days), geographic location (Alaska), and contract type (firm fixed price) should be considered. Without this comparative data, it is difficult to definitively state whether $14.4 million represents a high, low, or average expenditure for the services rendered. The IBEX Group Inc.'s award suggests they were competitive within the market for these services at the time of procurement.

What was the track record of The IBEX Group Inc. prior to winning this contract, particularly with the Department of Transportation or similar agencies?

The provided data identifies The IBEX Group Inc. as the contractor but does not offer details on their prior track record. To assess their performance history, one would need to examine their contract awards and performance evaluations across federal agencies. This would include looking at previous contracts with the Department of Transportation or the Federal Aviation Administration, as well as contracts for similar services. A review of past performance could reveal their experience in managing large federal contracts, their history of on-time delivery, quality of service, and any past performance issues or commendations. This information is crucial for understanding the reliability and capability of the contractor.

What are the potential risks associated with a firm fixed-price contract of this duration (4.5 years)?

While firm fixed-price (FFP) contracts are designed to provide cost certainty for the government, a long duration of 4.5 years introduces specific risks. The primary risk is that the contractor, The IBEX Group Inc., may face unforeseen cost increases in labor, materials, or operational expenses over the contract period. If these increases are significant and not adequately accounted for in their initial bid, the contractor could experience reduced profitability or even financial distress, potentially impacting service delivery. Conversely, if the contractor significantly overestimates costs, the government may end up paying a premium. Effective contract management and monitoring by the Federal Aviation Administration are essential to ensure the contractor remains viable and delivers the required services within the agreed-upon price.

How does the competition level (3 bidders) for this contract potentially impact pricing and value for the government?

The award resulted from a 'FULL AND OPEN COMPETITION' with 3 bids submitted. While competition is generally beneficial, having only three bidders for a contract of this magnitude ($14.4 million over 4.5 years) suggests a moderately competitive market. A higher number of bidders (e.g., 5 or more) typically exerts greater downward pressure on prices as companies vie more intensely for the award. With only three competitors, there is a possibility that the pricing may not reflect the absolute lowest achievable cost. However, the government still benefits from the comparison between these three offers to select the best value, which includes not just price but also technical merit and past performance.

What is the significance of the NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') in understanding this contract's purpose?

The NAICS code 541990 signifies that the services procured under this contract do not fit neatly into more specific categories of professional, scientific, or technical services. This broad classification implies that the 'CWO SERVICES' could encompass a diverse range of support functions essential for the operation of Allen AAF, Fort Greely, Alaska. Examples might include specialized technical consulting, research support, environmental services, or other unique operational assistance. The wide scope indicated by this code means that understanding the contract's specific objectives requires delving into the detailed statement of work rather than relying solely on the general service category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1113 SW MARTIN DOWNS BLVD, PALM CITY, FL, 21

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,440,475

Exercised Options: $14,403,742

Current Obligation: $14,403,742

Contract Characteristics

Cost or Pricing Data: NO

Timeline