Air Force awards $78.3M contract for administrative services to De Leon Technical Services, Inc

Contract Overview

Contract Amount: $11,195,900 ($11.2M)

Contractor: DE Leon Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-08-01

End Date: 2007-10-31

Contract Duration: 1,552 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200311!000129!5700!GM20 !DET 8 AFRL/PKO !F2965003C0005 !A!N! !Y!P00002 !20030801!20040831!783472673!783472673!783472673!N!DE LEON TECHNICAL SERVICES !221 W 6TH ST , SUITE 1050!AUSTIN !TX!78701!36300!001!35!KIRTLAND AFB !BERNALILLO !NEW MEXICO!+000000191516!N!N!000000000000!M119!OPERATION/OTHER ADMINISTRATIVE & SERVICE BUILDINGS!S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541611!E! !3! ! !H! ! !99990909!B! ! !A! !A!N!J!2!009!K! !C!N!Z! ! !N!B!N!N! ! !Z! !B!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to DE LEON TECHNICAL SERVICES, INC. for work described as: 200311!000129!5700!GM20 !DET 8 AFRL/PKO !F2965003C0005 !A!N! !Y!P00002 !20030801!20040831!783472673!783472673!783472673!N!DE LEON TECHNICAL SERVICES !221 W 6TH ST , SUITE 1050!AUSTIN !TX!78701!36300!001!35!KIRTLAND AFB !BERNA… Key points: 1. Contract awarded for administrative management and general management consulting services. 2. The contract has a duration of 1552 days, indicating a long-term need. 3. The award was made under full and open competition after exclusion of sources. 4. The contractor, De Leon Technical Services, Inc., is based in Austin, Texas. 5. The contract is a Firm Fixed Price type, suggesting defined scope and cost. 6. The contract falls under the 'Services' category, specifically administrative and operational support.

Value Assessment

Rating: good

The contract value of $78.3 million over approximately 4.25 years averages to about $18.5 million annually. Benchmarking this against similar administrative support contracts requires detailed market analysis, but the duration and scope suggest a substantial requirement. The firm fixed-price nature implies that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. Without specific performance metrics or comparisons to similar service contracts, a definitive value-for-money assessment is challenging, but the competitive award process provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While the 'full and open' aspect suggests broad solicitation, the 'exclusion of sources' clause indicates specific criteria were used to narrow the field of potential bidders. The data indicates 9 bids were received, demonstrating a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more efficient allocation of funds and potentially lower pricing than a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are likely the Department of the Air Force units requiring administrative and management support services. The contract delivers essential administrative and general management consulting services, crucial for operational efficiency. The geographic impact is centered around Kirtland AFB in New Mexico, where the services are likely performed. Workforce implications include the creation of jobs for individuals with expertise in administrative support and management consulting, potentially benefiting the local economy in New Mexico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'administrative management and general management consulting services' is not precisely defined and managed.
Dependence on a single contractor for a significant period (over 4 years) could lead to complacency or reduced innovation if not actively managed.
The 'exclusion of sources' clause, while part of a competitive process, warrants scrutiny to ensure it did not unduly limit competition.

Positive Signals

The contract was awarded through a competitive process with multiple bids received, indicating a robust selection.
The firm fixed-price contract structure shifts cost risk to the contractor, which can be advantageous for the government.
The long-term nature of the contract suggests a stable and ongoing requirement, allowing for potential efficiency gains through contractor expertise.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on administrative management and general management consulting. The North American Industry Classification System (NAICS) code 541611 represents establishments primarily engaged in providing advice and assistance to businesses and other organizations on administrative and management issues. The federal government is a significant consumer of these services to support its vast operational needs. Comparable spending benchmarks would involve analyzing other large-scale administrative support contracts across various agencies.

Small Business Impact

The data indicates that this contract was not 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 De Leon Technical Services, Inc. chooses to engage small businesses. Without specific subcontracting plans or goals outlined in the award, it's difficult to assess the direct impact on small business growth or participation in this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract type, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS, though specific performance details and internal oversight processes may not be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Administrative Support Services
Management Consulting Services
Department of the Air Force Contracts
Federal Professional Services
Base Operations Support Contracts

Risk Flags

Potential for scope creep in administrative and consulting services.
Contractor performance risk over a long duration.
Adequacy of competition despite 'full and open' with exclusions.
Ensuring value for money in fixed-price service contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to DE LEON TECHNICAL SERVICES, INC.. 200311!000129!5700!GM20 !DET 8 AFRL/PKO !F2965003C0005 !A!N! !Y!P00002 !20030801!20040831!783472673!783472673!783472673!N!DE LEON TECHNICAL SERVICES !221 W 6TH ST , SUITE 1050!AUSTIN !TX!78701!36300!001!35!KIRTLAND AFB !BERNALILLO !NEW MEXICO!+000000191516!N!N!000000000000!M119!OPERATION/OTHER ADMINISTRATIVE & SERVICE BUILDINGS!S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541611!E! !3! ! !H! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is DE LEON TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2003-08-01. End: 2007-10-31.

What is the track record of De Leon Technical Services, Inc. with federal contracts, particularly with the Department of Defense?

De Leon Technical Services, Inc. has a history of receiving federal contracts, primarily with the Department of Defense. Reviewing their contract history reveals multiple awards, suggesting a capacity to meet government requirements. The specific nature of past contracts, their values, and performance ratings (if available) would provide a more comprehensive understanding of their track record. For this particular contract, the award itself indicates they met the criteria set forth by the Air Force. Further analysis would involve examining past performance evaluations and any documented issues or successes on previous engagements to gauge their reliability and effectiveness as a contractor.

How does the awarded price of $78.3 million compare to similar administrative support contracts awarded by the Air Force or other DoD branches?

Benchmarking the $78.3 million award requires comparing it to contracts with similar scope, duration, and service requirements. The average annual value of this contract is approximately $18.5 million. To assess value for money, one would need to identify comparable contracts for administrative management and general management consulting services awarded within the last few years by the Air Force or other Department of Defense agencies. Factors such as the number of bidders, the specific services rendered, and the geographic location of performance are crucial for a fair comparison. Without access to a detailed database of comparable contract pricing and performance metrics, it is difficult to definitively state whether this award represents excellent, fair, or questionable value.

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

A firm fixed-price (FFP) contract, while shifting cost risk to the contractor, carries inherent risks, especially for a large, long-term award like this ($78.3M over ~4.25 years). The primary risk is that the contractor may cut corners on quality or service delivery to maintain profitability if their initial cost estimates were too low or if unforeseen issues arise. Conversely, if the government's requirements evolve significantly, the FFP structure can make contract modifications costly and complex. There's also a risk of contractor default or poor performance, which could disrupt essential administrative functions. Effective oversight, clear performance metrics, and proactive contract management are crucial to mitigate these risks and ensure the government receives the intended value.

What is the expected effectiveness of the services provided under this contract for the Air Force's operations?

The effectiveness of the services provided under this contract hinges on the precise definition and execution of 'administrative management and general management consulting services.' These services are critical for streamlining operations, improving efficiency, and supporting decision-making within the Air Force. If the contractor delivers high-quality support, manages resources effectively, and provides insightful consulting, it can significantly enhance the operational readiness and administrative functions of the supported units. However, effectiveness is also dependent on the Air Force's ability to clearly articulate its needs, provide necessary access and information to the contractor, and actively manage the contract to ensure alignment with strategic objectives.

How has federal spending on administrative and management consulting services evolved over the past five years, and where does this contract fit?

Federal spending on administrative and management consulting services has generally seen fluctuations driven by budget cycles, agency priorities, and the need for specialized expertise. While specific aggregate data for this niche can be complex to isolate, the overall trend indicates a consistent demand for such services across various government agencies to improve efficiency, implement new technologies, and manage complex programs. This $78.3 million contract for the Air Force represents a significant investment within this category. Its size suggests a substantial and ongoing requirement, potentially reflecting a strategic decision by the Air Force to outsource or augment its internal capabilities in these areas rather than a temporary surge in spending.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 221 W 6TH ST STE 1050, AUSTIN, TX, 90

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline