DoD's $11.5M Logistics Support Contract Awarded to Phoenix Group of Virginia Inc

Contract Overview

Contract Amount: $11,518,449 ($11.5M)

Contractor: Phoenix Group of Virginia Inc

Awarding Agency: Department of Defense

Start Date: 2006-09-08

End Date: 2011-09-30

Contract Duration: 1,848 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROVIDE TECHNICAL, MANAGERIAL AND ADMINISTRATIVE INTEGRATED LOGISTICS SUPPORT

Place of Performance

Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23510, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to PHOENIX GROUP OF VIRGINIA INC for work described as: PROVIDE TECHNICAL, MANAGERIAL AND ADMINISTRATIVE INTEGRATED LOGISTICS SUPPORT Key points: 1. The contract focuses on integrated logistics support, encompassing technical, managerial, and administrative functions. 2. Awarded under full and open competition, suggesting a broad market search for qualified bidders. 3. The contract duration of 1848 days indicates a significant, long-term need for these services. 4. The 'COST PLUS FIXED FEE' pricing structure can incentivize cost control while ensuring contractor profit. 5. The specific Product Service Code (PSC) and NAICS code point to engineering services, highlighting the technical nature of the support. 6. The contract was awarded to a single entity, Phoenix Group of Virginia Inc., indicating their success in the competitive bidding process.

Value Assessment

Rating: fair

Benchmarking the value of this $11.5 million contract for integrated logistics support is challenging without specific performance metrics or comparable contract data. The 'COST PLUS FIXED FEE' (CPFF) contract type, while common, requires careful oversight to ensure costs remain reasonable and the fixed fee aligns with the scope of work. Without details on the specific services rendered and their effectiveness, it's difficult to definitively assess value for money. However, the duration of nearly five years suggests a sustained need and potentially a reasonable price point if the services delivered met expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that the Department of the Navy sought proposals from all responsible sources. The fact that it resulted in a single award suggests that Phoenix Group of Virginia Inc. was the most advantageous offer received based on the evaluation criteria. The level of competition is not explicitly stated in terms of the number of bidders, but the 'full and open' designation implies a robust process designed to encourage broad participation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and higher quality services. It ensures that the government explores the widest possible range of solutions and contractors, potentially driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of the Navy, receiving essential logistics support for its operations. Services delivered include technical, managerial, and administrative integrated logistics support, crucial for maintaining readiness and operational efficiency. The contract's geographic impact is likely concentrated around the Navy installations or operational areas where Phoenix Group of Virginia Inc. provides support. Workforce implications include employment opportunities for individuals with expertise in logistics, engineering, and administrative support roles within Phoenix Group of Virginia Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST PLUS FIXED FEE' structure requires diligent oversight to prevent cost overruns and ensure the fixed fee remains appropriate for the work performed.
Lack of specific performance metrics makes it difficult to fully assess the contractor's effectiveness and the overall value delivered.
The contract's duration of nearly five years necessitates ongoing monitoring to ensure continued alignment with evolving DoD needs.

Positive Signals

Awarded through full and open competition, indicating a thorough vetting process and potential for competitive pricing.
The contract addresses critical integrated logistics support functions, vital for maintaining military readiness.
Phoenix Group of Virginia Inc. was selected as the successful bidder, suggesting they met the government's requirements and evaluation criteria.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to integrated logistics support. The market for such services is substantial within the defense industry, as military operations rely heavily on efficient and effective logistics. Comparable spending benchmarks would involve analyzing other large-scale logistics support contracts awarded by the Department of Defense or other federal agencies to similar engineering service providers. The size of this contract, over $11 million, places it in the mid-to-large tier for individual service contracts within this domain.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities if Phoenix Group of Virginia Inc. chooses to engage small businesses for specialized support. Without explicit subcontracting plans or goals, it's difficult to quantify the direct benefit to small businesses from this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. Accountability measures are inherent in the 'COST PLUS FIXED FEE' structure, which requires detailed reporting and justification of costs. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Naval Sea Systems Command (NAVSEA) Support Services
Department of Defense Logistics Modernization Programs
Integrated Warfare Systems Support Contracts

Risk Flags

Potential for vendor lock-in due to single award and long duration.
Need for rigorous oversight of CPFF structure to manage costs.
Dependence on contractor performance for critical logistics functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to PHOENIX GROUP OF VIRGINIA INC. PROVIDE TECHNICAL, MANAGERIAL AND ADMINISTRATIVE INTEGRATED LOGISTICS SUPPORT

Who is the contractor on this award?

The obligated recipient is PHOENIX GROUP OF VIRGINIA INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2006-09-08. End: 2011-09-30.

What specific technical, managerial, and administrative tasks were included in the 'integrated logistics support'?

The term 'integrated logistics support' (ILS) is broad and encompasses a range of activities critical to the lifecycle management of military systems and equipment. For this contract, it likely included functions such as supply chain management, maintenance planning and execution, inventory control, transportation and distribution, technical data management, and personnel training related to logistics operations. The specific breakdown of these tasks would be detailed in the Performance Work Statement (PWS) or Statement of Work (SOW) attached to the contract. These documents outline the precise deliverables, standards, and reporting requirements that Phoenix Group of Virginia Inc. was obligated to meet to ensure the effective functioning of the Navy's logistical needs.

How does the 'COST PLUS FIXED FEE' (CPFF) contract type compare to other pricing structures for similar logistics support services?

The CPFF structure is common for complex service contracts where the scope of work is well-defined but the exact costs are difficult to predict upfront. It provides the contractor with reimbursement for allowable costs plus a predetermined fixed fee representing their profit. Compared to 'Cost Plus Incentive Fee' (CPIF), CPFF offers less flexibility for performance-based incentives but provides greater cost certainty for the government once the fee is negotiated. It differs significantly from 'Fixed Price' contracts, where the contractor assumes more risk for cost overruns. For logistics support, CPFF is often chosen when the government needs a stable, long-term provider and wants to share cost-control responsibilities, balancing risk between the government and the contractor.

What were the key evaluation criteria used to select Phoenix Group of Virginia Inc. under full and open competition?

While the specific evaluation criteria are not provided in the summary data, contracts awarded under 'full and open competition' typically evaluate proposals based on a combination of factors. These often include technical approach (how well the contractor plans to meet the PWS requirements), past performance (track record on similar contracts), management capability (organizational structure and key personnel), and price/cost. The Department of the Navy would have outlined these criteria in the solicitation document (e.g., Request for Proposal - RFP). The selection of Phoenix Group of Virginia Inc. implies they offered the 'most advantageous value' to the government, considering both technical merit and cost, as defined by the stated evaluation factors.

What is the typical duration for integrated logistics support contracts of this nature, and how does this contract's duration compare?

Integrated logistics support contracts can vary significantly in duration depending on the system or platform they support and the nature of the services. Contracts supporting major weapon systems or long-term operational readiness initiatives often span multiple years. A duration of 1848 days, approximately five years, is a substantial commitment and suggests a critical, ongoing need for the services provided. This duration is not unusual for comprehensive ILS contracts, especially those involving complex systems requiring sustained maintenance, supply chain management, and technical expertise. Shorter durations might be seen for more specialized, project-based support, while longer periods indicate a strategic partnership for enduring logistical requirements.

Are there any specific risks associated with the 'Department of the Navy' awarding a large logistics support contract to a single vendor?

Awarding a large, long-term contract to a single vendor, even after full and open competition, carries inherent risks. One primary risk is vendor lock-in, where the government becomes heavily reliant on the incumbent contractor, potentially reducing leverage in future negotiations. If the contractor underperforms or faces financial difficulties, it can significantly disrupt critical operations. Furthermore, a single award might limit the infusion of new ideas or technologies that could come from a more diverse supplier base. Mitigating these risks involves robust contract management, clear performance standards, regular performance reviews, and contingency planning for potential contractor failure or the need to transition services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002406R3387

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 630 WOODLAKE DR STE C, CHESAPEAKE, VA, 23320

Business Categories: Category Business, Manufacturer of Goods, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $119,139,040

Exercised Options: $65,533,456

Current Obligation: $11,518,449

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4626

IDV Type: IDC

Timeline