DOD's $22.4M environmental consulting contract with AGEISS INC shows fair value despite limited competition

Contract Overview

Contract Amount: $22,445,018 ($22.4M)

Contractor: Ageiss Inc

Awarding Agency: Department of Defense

Start Date: 2014-12-24

End Date: 2019-12-31

Contract Duration: 1,833 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL,CT::IGF ENVIRONMENTAL QUALITY (EQ) PROGRAM SERVICES JOINT BASE LEWIS-MCCHORD, WASHINGTON

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $22.4 million to AGEISS INC for work described as: IGF::CL,CT::IGF ENVIRONMENTAL QUALITY (EQ) PROGRAM SERVICES JOINT BASE LEWIS-MCCHORD, WASHINGTON Key points: 1. The contract's value appears reasonable when benchmarked against similar environmental consulting services. 2. While AGEISS INC is the sole awardee, the contract was competed, suggesting some level of market engagement. 3. The fixed-price nature of the contract helps mitigate cost overrun risks. 4. Performance was delivered over a five-year period, indicating sustained service provision. 5. This contract falls within the broader environmental services sector for the Department of Defense. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: fair

The contract's total value of $22.4 million over five years averages to approximately $4.5 million annually. Benchmarking against similar environmental consulting contracts awarded by the Department of Defense suggests this pricing is within a reasonable range. The firm-fixed-price contract type provides cost certainty, which is a positive indicator for value. However, without more granular data on the specific services rendered and their unit costs, a definitive assessment of 'excellent' value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. This suggests a potentially limited pool of bidders compared to unrestricted full and open competition. The specific reasons for excluding sources are not detailed, which could impact price discovery. The presence of 4 bidders, as indicated by 'no': 4, is a moderate level of competition.

Taxpayer Impact: The limited competition may have resulted in a higher price than could have been achieved in a fully unrestricted bidding process. Taxpayers may have paid a premium due to the restricted nature of the competition.

Public Impact

The Department of the Army benefits from essential environmental quality program services at Joint Base Lewis-McChord. Services include environmental consulting, crucial for regulatory compliance and base operations. The contract directly supports operations in Washington state. The contract likely supports a workforce of environmental consultants and related technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
Lack of transparency regarding source exclusion criteria.
Potential for vendor lock-in if AGEISS INC becomes the sole provider of these specialized services.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded to a single contractor, potentially simplifying management.
Long-term contract (5 years) allows for consistent service delivery.

Sector Analysis

The environmental consulting services sector is a critical component of government contracting, particularly for agencies managing large facilities like military bases. This contract falls under the broader professional, scientific, and technical services industry. The market for environmental consulting is competitive, with numerous firms offering specialized expertise. The Department of Defense is a significant client in this sector, awarding numerous contracts for environmental remediation, compliance, and management services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to bid and potentially win. There is no explicit information on subcontracting plans or performance. Without a small business set-aside, the direct impact on the small business ecosystem is minimal unless AGEISS INC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the total cost. Transparency regarding the specific services rendered and performance metrics would be available through contract reporting systems. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Base Operations Support Contracts
Environmental Compliance Consulting
Department of Defense Environmental Programs

Risk Flags

Limited competition may impact price.
Potential lack of transparency in source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.4 million to AGEISS INC. IGF::CL,CT::IGF ENVIRONMENTAL QUALITY (EQ) PROGRAM SERVICES JOINT BASE LEWIS-MCCHORD, WASHINGTON

Who is the contractor on this award?

The obligated recipient is AGEISS 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 $22.4 million.

What is the period of performance?

Start: 2014-12-24. End: 2019-12-31.

What specific environmental consulting services were provided under this contract?

The contract, identified by NAICS code 541620, specifies 'Environmental Consulting Services.' While the exact deliverables are not detailed in the provided data, typical services under such contracts for a military base like Joint Base Lewis-McChord include environmental assessments, compliance monitoring (e.g., air, water, waste), hazardous materials management, natural resource management, environmental planning, and support for regulatory agency interactions. The 'Environmental Quality (EQ) Program Services' designation suggests a broad scope covering various aspects of environmental stewardship and compliance required for the base's operations and long-term sustainability.

How does the contractor, AGEISS INC, perform on other federal contracts?

Assessing AGEISS INC's overall federal contract performance requires access to a broader database of their awards and performance reviews. However, the fact that they were awarded this significant five-year contract by the Department of the Army suggests a level of capability and past performance deemed acceptable by the contracting agency. Without specific performance ratings or past performance questionnaires from this or other contracts, it's difficult to provide a detailed track record. A deeper dive into federal procurement data systems like SAM.gov or FPDS would be necessary to analyze their history, including any awards, terminations, or disputes.

What is the historical spending trend for environmental consulting services at Joint Base Lewis-McChord?

The provided data represents a single contract award of $22.4 million spanning from 2014 to 2019. To understand historical spending trends, one would need to analyze all environmental consulting contracts awarded to Joint Base Lewis-McChord over a longer period, perhaps the last 10-15 years. This would involve identifying all relevant contracts, their values, durations, and the contractors involved. Trends could then be analyzed for overall spending levels, fluctuations, major shifts in service providers, and the average contract values. This specific contract appears to be a significant investment in environmental services for the base during its period of performance.

Were there any performance issues or contract disputes associated with this AGEISS INC contract?

The provided data does not contain information regarding performance issues, disputes, or contract modifications for this specific contract. Typically, such details would be found in contract performance reports, award modification histories, or agency inspection general reports. The absence of readily available negative information does not guarantee flawless performance, but it suggests no major, publicly documented issues arose during the contract's lifecycle. A comprehensive review would require accessing more detailed contract administration records.

How does the competition level for this contract compare to similar environmental consulting contracts awarded by the DoD?

This contract was awarded under 'Full and Open Competition After Exclusion of Sources' with 4 bidders. This indicates a moderate level of competition. Compared to other DoD environmental consulting contracts, the level of competition can vary significantly. Some large-scale, high-value contracts might attract a dozen or more bidders in a truly unrestricted competition, while niche or specialized services might see fewer. The exclusion of sources suggests a deliberate narrowing of the bidder pool, which is less competitive than unrestricted full and open competition. Therefore, while not a sole-source award, it represents a less robust competitive environment than might be ideal for maximizing price discovery.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DW15T0001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 848 CUSTER ST, CHEYENNE, WY, 82009

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

Financial Breakdown

Contract Ceiling: $22,525,018

Exercised Options: $22,445,018

Current Obligation: $22,445,018

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $4,198,063

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F14D0018

IDV Type: IDC

Timeline