Transportation's $41.1M contract with The IBEX Group Inc. for technical services shows fair value with a 13% below-market unit cost

Contract Overview

Contract Amount: $41,113,321 ($41.1M)

Contractor: THE Ibex Group Inc

Awarding Agency: Department of Transportation

Start Date: 2013-11-14

End Date: 2022-06-30

Contract Duration: 3,150 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CWO - IBEX WEATHER IGF::CT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $41.1 million to THE IBEX GROUP INC for work described as: CWO - IBEX WEATHER IGF::CT::IGF Key points: 1. The contract demonstrates fair value, with a per-unit cost benchmarked significantly below market rates. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The contract duration of 3150 days (over 8 years) indicates a long-term need for these services. 4. The firm fixed-price contract type helps manage cost certainty for the government. 5. The contractor, The IBEX Group Inc., has a track record with federal agencies. 6. The services provided fall under 'All Other Professional, Scientific, and Technical Services', a broad category.

Value Assessment

Rating: fair

The contract's value appears fair, especially considering the per-unit cost is approximately 13% below market benchmarks. The long duration suggests a stable, ongoing requirement for the services. While the total award amount is substantial, the pricing structure seems reasonable in comparison to similar professional and technical services contracts. The firm fixed-price nature provides cost predictability, which is a positive aspect for government spending.

Cost Per Unit: $13,052 per unit (benchmark comparison indicates 13% below market)

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded prior to the final award. The presence of 3 bidders suggests a moderate level of competition. This approach aims to ensure fair pricing and access to a range of qualified contractors, though the exclusion of sources warrants further investigation into the rationale.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. The fact that multiple bidders participated helps ensure that the selected contractor's pricing is not excessively high.

Public Impact

The Federal Aviation Administration (FAA) benefits from specialized technical services essential for its operations. The contract supports the delivery of professional, scientific, and technical services critical to the agency's mission. Services are likely concentrated in the Washington D.C. metropolitan area, given the contractor's location. The contract supports a workforce skilled in technical analysis and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The rationale for excluding specific sources in a 'Full and Open Competition After Exclusion of Sources' award needs clarification to ensure maximum competition.
The long contract duration (over 8 years) could potentially lead to scope creep or reduced flexibility if requirements change significantly over time.
The broad 'All Other Professional, Scientific, and Technical Services' category makes it difficult to assess the specificity and necessity of the services without further detail.

Positive Signals

The use of firm fixed-price contract type provides cost certainty and reduces the government's financial risk.
The contract was awarded through a competitive process, indicating that multiple vendors were considered.
The per-unit cost is benchmarked favorably against market rates, suggesting good value for money.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a significant area of federal spending. This sector encompasses a wide range of support services, from research and development to specialized consulting and technical assistance. The Federal Aviation Administration's need for such services is typical for agencies managing complex infrastructure and regulatory environments. Comparable spending in this sector often involves long-term engagements for specialized expertise.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) or subcontracting plan (sb: false). This indicates that the primary award was not specifically targeted towards small businesses, and there is no explicit requirement for the prime contractor to engage small businesses for subcontracting. Consequently, the direct impact on the small business ecosystem from this specific contract is likely minimal, though the prime contractor may still utilize small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officers and program managers. The firm fixed-price nature inherently provides some level of cost oversight by fixing the price. Transparency is facilitated by the contract's public availability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration Operations Support
Professional and Technical Services Contracts
Department of Transportation IT and Support Services
Long-Term Government Service Contracts

Risk Flags

Potential for uncompetitive pricing due to source exclusion.
Risk of cost escalation for contractor on long-term FFP contract.
Lack of specific detail on services provided under broad NAICS code.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $41.1 million to THE IBEX GROUP INC. CWO - IBEX WEATHER IGF::CT::IGF

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 $41.1 million.

What is the period of performance?

Start: 2013-11-14. End: 2022-06-30.

What is the specific nature of the 'All Other Professional, Scientific, and Technical Services' provided under this contract?

The contract data indicates the North American Industry Classification System (NAICS) code is 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category that can encompass a wide array of services not specified elsewhere. Without further details from the contract's statement of work, it is difficult to ascertain the precise services. However, given the agency (FAA) and the nature of federal technical services, these could range from specialized engineering support, data analysis, research, environmental consulting, or program management support. The long duration and firm fixed-price structure suggest a consistent, well-defined need for these services over an extended period.

How does The IBEX Group Inc.'s performance on this contract compare to its other federal contracts?

Assessing The IBEX Group Inc.'s performance on this specific $41.1 million contract requires access to performance reviews and past performance information, which are not detailed in the provided data. Generally, federal agencies evaluate contractor performance through mechanisms like the Contractor Performance Assessment Reporting System (CPARS). A review of CPARS data, if available, would reveal ratings on factors such as technical quality, timeliness, cost control, and management. Without this specific performance data, a direct comparison is not possible. However, the contract's long duration (2013-2022) and its award under full and open competition suggest that the agency found the contractor's past performance satisfactory enough to warrant such a significant and lengthy engagement.

What is the historical spending trend for 'All Other Professional, Scientific, and Technical Services' by the Federal Aviation Administration?

Historical spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) by the Federal Aviation Administration (FAA) can be analyzed through federal procurement databases. While specific historical figures for this exact contract are not provided, the FAA, like many large federal agencies, consistently procures a wide range of professional and technical services. Spending in this category often fluctuates based on agency priorities, project lifecycles, and budget allocations. The $41.1 million awarded to The IBEX Group Inc. over approximately nine years represents a significant, but not necessarily anomalous, investment in such services. Trends would likely show a steady demand for specialized expertise to support aviation safety, infrastructure, and regulatory functions.

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

Firm fixed-price (FFP) contracts, while offering cost certainty, carry specific risks, especially for long durations like this 9-year contract (2013-2022). A primary risk is that the contractor may face unforeseen cost increases (e.g., labor, materials) over the contract period, potentially leading to reduced profit margins or, in extreme cases, contractor default if the fixed price becomes unsustainable. Conversely, if costs decrease significantly, the contractor could realize unexpectedly high profits. For the government, the risk lies in the potential for the fixed price to become uncompetitive if market rates change substantially over the long term. Additionally, if the scope of work is not precisely defined and evolves, managing changes under an FFP contract can be complex and may lead to disputes or require costly contract modifications.

How does the 'Full and Open Competition After Exclusion of Sources' process impact price discovery and taxpayer value?

The 'Full and Open Competition After Exclusion of Sources' (FించిAS) process aims to balance broad competition with specific agency needs. While 'full and open' implies the solicitation was widely advertised, the 'exclusion of sources' means that certain potential offerors were not permitted to bid. The impact on price discovery depends heavily on the justification for these exclusions. If the exclusions were based on legitimate, objective criteria (e.g., specific technical capabilities, security clearances, past performance issues), then the remaining pool of bidders could still be sufficiently competitive to drive reasonable prices. However, if the exclusions were arbitrary or overly restrictive, they could limit competition, potentially leading to higher prices for taxpayers. The fact that three bidders participated suggests some level of competition was maintained, but the degree to which it optimized price discovery is contingent on the nature of the excluded sources.

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 AFTER EXCLUSION OF SOURCES

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, 34990

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

Financial Breakdown

Contract Ceiling: $53,051,284

Exercised Options: $41,113,321

Current Obligation: $41,113,321

Actual Outlays: $9,966,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline