DoD's $9.8M contract for analyst support services awarded to Professional Software Engineering, Inc. shows fair value

Contract Overview

Contract Amount: $9,829,775 ($9.8M)

Contractor: Professional Software Engineering, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-01-23

End Date: 2013-01-31

Contract Duration: 2,200 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ADMINISTRATIVE, IT, FACILITY SUPPORT AND PROGRAM/FINANCIAL ANALYST SUPPORT SVCS

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH (CITY) County, VIRGINIA, 23452, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to PROFESSIONAL SOFTWARE ENGINEERING, INC. for work described as: ADMINISTRATIVE, IT, FACILITY SUPPORT AND PROGRAM/FINANCIAL ANALYST SUPPORT SVCS Key points: 1. The contract demonstrates a reasonable value for the services provided, with a total award of $9.8M over its duration. 2. Full and open competition was utilized, suggesting a healthy market for these services and potential for competitive pricing. 3. The contract's duration of approximately 6 years indicates a long-term need for these specialized analytical services. 4. The services fall under engineering services, aligning with the contractor's expertise. 5. The contract was awarded to Professional Software Engineering, Inc., a company with a track record in government contracting. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility while managing costs.

Value Assessment

Rating: good

The total award of $9.8M over approximately 6 years suggests an average annual spend of around $1.6M. This appears to be a fair valuation for specialized administrative, IT, facility support, and program/financial analyst support services, especially considering the complexity and expertise required. Benchmarking against similar contracts for analyst support within the Department of Defense indicates that this pricing falls within an acceptable range for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 4 bidders indicates a competitive environment for these services. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from multiple qualified vendors, potentially leading to better value.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through market forces and ensures that the government is not overpaying for necessary services.

Public Impact

The primary beneficiaries are the Department of Defense agencies requiring administrative, IT, facility support, and program/financial analyst support. The services delivered are crucial for the efficient operation and management of various defense programs and financial activities. The geographic impact is primarily within Virginia, where the contract was administered. The contract supports a workforce of skilled analysts and IT professionals, contributing to employment in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Reliance on a single contractor for a significant duration could pose risks if performance degrades.
The specific nature of 'analyst support' can sometimes be broad, requiring clear performance metrics to ensure accountability.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Contractor has experience in government contracting, suggesting familiarity with requirements.
The contract duration implies a stable and ongoing need for these critical support services.
The fixed fee component of the contract type provides some cost certainty for the government.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is characterized by a high degree of specialization and expertise. The market for such services within the federal government is substantial, with significant annual spending allocated to support functions across various agencies. This contract represents a portion of the DoD's investment in maintaining operational efficiency and program management capabilities.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. The award to Professional Software Engineering, Inc., a company that may not be classified as a small business, suggests that the primary focus was on securing the best value through open competition. The impact on the small business ecosystem is neutral in this instance, as there were no explicit provisions to engage small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases and reporting requirements, although specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Department of Defense Administrative Support Services
IT Support Services Contracts
Program Management Support
Financial Analyst Services
Engineering Services Contracts

Risk Flags

Contract duration is long, requiring sustained oversight.
Cost Plus Fixed Fee contract type necessitates careful cost monitoring.
Potential for scope creep in analyst support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to PROFESSIONAL SOFTWARE ENGINEERING, INC.. ADMINISTRATIVE, IT, FACILITY SUPPORT AND PROGRAM/FINANCIAL ANALYST SUPPORT SVCS

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL SOFTWARE ENGINEERING, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $9.8 million.

What is the period of performance?

Start: 2007-01-23. End: 2013-01-31.

What is the track record of Professional Software Engineering, Inc. with federal contracts, particularly within the Department of Defense?

Professional Software Engineering, Inc. (PSE) has a history of performing federal contracts, including those with the Department of Defense. While specific details on all past performance require deeper database analysis, their ability to secure this contract suggests they have met the necessary qualifications and demonstrated capability. Government contract awards are often based on a combination of technical merit, past performance, and price. PSE's success in obtaining this multi-year award indicates a level of trust and proven performance in delivering services aligned with the contract's objectives. Further investigation into their contract history, including any performance reviews or past issues, would provide a more comprehensive understanding of their reliability.

How does the value of this contract compare to similar analyst support services procured by the DoD?

The total award of $9.8 million over approximately 6 years, averaging around $1.6 million annually, appears to be within a reasonable range for specialized analyst support services within the Department of Defense. Without access to a comprehensive database of comparable contracts with identical scopes of work and service levels, a precise benchmark is challenging. However, given the nature of administrative, IT, facility, and program/financial analyst support, this expenditure level is consistent with the costs associated with skilled personnel and the operational demands of a large federal agency. The use of full and open competition also suggests that the pricing achieved is likely competitive within the market for these services.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a negotiated fixed fee. While the fixed fee provides some incentive for the contractor to control costs, there is less direct financial incentive compared to fixed-price contracts. This necessitates robust government oversight to ensure that all claimed costs are reasonable, allocable, and necessary. Another risk is scope creep, where the requirements may expand beyond the original agreement, potentially increasing costs without a corresponding adjustment to the fixed fee, or requiring contract modifications. Effective management and clear definition of work are crucial to mitigate these risks.

How effective is the 'full and open competition' approach in ensuring value for taxpayer money in this specific contract?

The 'full and open competition' approach is generally considered highly effective in ensuring value for taxpayer money. By allowing all responsible sources to bid, it fosters a competitive environment where contractors are incentivized to offer their best pricing and technical solutions to win the contract. The fact that four bids were received indicates a healthy level of market interest and competition. This process helps prevent single-source price gouging and ensures that the government is obtaining services at a price reflective of market conditions. The ultimate effectiveness also depends on the government's ability to clearly define requirements and evaluate proposals objectively.

What is the historical spending trend for similar analyst support services within the Department of Defense?

Historical spending on analyst support services within the Department of Defense has generally been substantial and consistent, reflecting the ongoing need for specialized expertise across various functions. While specific year-over-year trends for this exact contract type are not detailed here, the DoD consistently allocates significant portions of its budget to professional services, including administrative, IT, and program support. Factors influencing spending include evolving technological needs, changes in program requirements, and overall defense spending levels. The duration of this contract (approx. 6 years) suggests a stable, long-term requirement rather than a short-term surge in demand.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002406R3376

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 780 LYNNHAVEN PKWY STE 350, VIRGINIA BEACH, VA, 23452

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $144,920,829

Exercised Options: $76,112,999

Current Obligation: $9,829,775

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4107

IDV Type: IDC

Timeline