DoD's $72.8M contract with American Society for Engineering Education for administrative support services

Contract Overview

Contract Amount: $72,819,474 ($72.8M)

Contractor: American Society for Engineering Education

Awarding Agency: Department of Defense

Start Date: 2002-08-01

End Date: 2008-07-31

Contract Duration: 2,191 days

Daily Burn Rate: $33.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: Other

Official Description: 200211!002091!5700!GX01 !AFOSR/PK BAFB !F4962002C0041 !A!N! !N! !20020801!20050731!020293395!020293395!020293395!N!AMERICAN SOCIETY FOR ENGINEERI!1818 N ST , N W , SUITE 6!WASHINGTON !DC!20036!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000023800000!N!N!000105511072!R699!OTHER ADMINISTRATIVE SUPPORT SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !561110!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!S!2!003!B! !Z!N!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! !Y! ! !0001!

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $72.8 million to AMERICAN SOCIETY FOR ENGINEERING EDUCATION for work described as: 200211!002091!5700!GX01 !AFOSR/PK BAFB !F4962002C0041 !A!N! !N! !20020801!20050731!020293395!020293395!020293395!N!AMERICAN SOCIETY FOR ENGINEERI!1818 N ST , N W , SUITE 6!WASHINGTON !DC!20036!50000!001!11!WASHINGTON !DISTR… Key points: 1. Contract awarded for administrative support services, indicating a need for operational efficiency. 2. The contract duration of approximately 6 years suggests a long-term requirement for these services. 3. Awarded by the Department of the Air Force, highlighting a specific branch's reliance on external support. 4. The 'Cost No Fee' contract type implies a focus on service delivery rather than profit for the contractor. 5. The North American Industry Classification System (NAICS) code 561110 points to a broad category of administrative services. 6. The contract's value of over $72 million warrants scrutiny for cost-effectiveness and performance. 7. The geographic location of the contractor in Washington D.C. may indicate proximity to federal agencies or a national scope of operations.

Value Assessment

Rating: fair

The contract value of $72.8 million over approximately six years for administrative support services appears substantial. Without specific performance metrics or benchmarks for similar services within the Department of Defense or other federal agencies, it is difficult to definitively assess value for money. The 'Cost No Fee' contract type, while potentially beneficial for the government by limiting contractor profit, can sometimes lead to less incentive for efficiency if not carefully managed. Further analysis would require comparing the scope of services and deliverables to other administrative support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a moderate level of competition for this administrative support services contract. While full and open competition is generally preferred for ensuring fair pricing and access to a wide range of capabilities, the specific number of bidders (3) does not necessarily guarantee the most competitive outcome. A higher number of bids often correlates with better price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to offer their services, potentially driving down costs through competitive bidding. The fact that there were three bidders suggests that the government received multiple proposals, which aids in achieving a fair market price.

Public Impact

The primary beneficiaries are likely the Department of the Air Force personnel who receive administrative support, allowing them to focus on core mission activities. Services delivered include general administrative and support functions, crucial for the smooth operation of military and civilian offices. The geographic impact is centered around the Department of the Air Force's operational areas, though the contractor's location in Washington D.C. might imply a national coordination role. Workforce implications include the employment of individuals by the contractor to perform these administrative tasks, potentially creating jobs in the administrative support sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in administrative services if not clearly defined and monitored.
Ensuring consistent quality of administrative support across different units or locations.
Contractor's ability to adapt to evolving administrative needs and technologies within the DoD.

Positive Signals

Awarded through full and open competition, suggesting a fair process and potential for competitive pricing.
The long contract duration indicates a stable and reliable service provider has been selected.
The 'Cost No Fee' structure, if managed well, can align contractor incentives with government cost objectives.

Sector Analysis

This contract falls within the broader administrative and support services sector, which is a significant component of the federal contracting landscape. Companies in this sector provide a wide range of services, from general office support to specialized administrative functions. The federal government is a major consumer of these services, often outsourcing non-core functions to improve efficiency and reduce overhead. Benchmarking this contract's value would require comparing it to other large-scale administrative support contracts awarded by various federal agencies, considering the specific services rendered and the duration.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses and the contractor, American Society for Engineering Education, is likely not a small business. There is no explicit mention of subcontracting plans for small businesses. This suggests that the primary award went to a larger entity, and opportunities for small businesses would likely be through subcontracting if the prime contractor chooses to engage them, which is not guaranteed.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant administrative departments within the Department of the Air Force. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS, which provide basic information on contract value, duration, and competition. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified.

Related Government Programs

General Services Administration (GSA) Schedules for Administrative Services
Department of Defense (DoD) Administrative Support Contracts
Federal Procurement Data System (FPDS)
Office of Management and Budget (OMB) Circulars on Cost Principles

Risk Flags

Potential for cost overruns due to 'Cost No Fee' structure.
Need for robust oversight to ensure service quality and efficiency.
Contractor's experience specifically in large-scale administrative support for DoD.
Clarity and definition of 'administrative support services' to prevent scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.8 million to AMERICAN SOCIETY FOR ENGINEERING EDUCATION. 200211!002091!5700!GX01 !AFOSR/PK BAFB !F4962002C0041 !A!N! !N! !20020801!20050731!020293395!020293395!020293395!N!AMERICAN SOCIETY FOR ENGINEERI!1818 N ST , N W , SUITE 6!WASHINGTON !DC!20036!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000023800000!N!N!000105511072!R699!OTHER ADMINISTRATIVE SUPPORT SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !561110!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is AMERICAN SOCIETY FOR ENGINEERING EDUCATION.

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 $72.8 million.

What is the period of performance?

Start: 2002-08-01. End: 2008-07-31.

What is the specific breakdown of administrative services provided under this contract?

The provided data indicates the contract is for 'OTHER ADMINISTRATIVE SUPPORT SERVICES' under NAICS code 561110. This broad classification typically encompasses a range of services such as general office management, record keeping, mail services, facilities support, and potentially human resources or financial administration support. However, the specific details of the services, deliverables, and performance standards would be outlined in the contract's Statement of Work (SOW). Without access to the SOW, a precise breakdown is not possible. The 'Cost No Fee' (PT) designation suggests the contractor is reimbursed for allowable costs but does not receive a fee or profit.

How does the $72.8 million contract value compare to similar administrative support contracts within the DoD?

Comparing the $72.8 million contract value requires context regarding the duration and scope of services. This contract spans approximately six years (August 2002 to July 2008), making the annual value around $12.1 million. This figure is substantial but not necessarily out of line for large-scale administrative support for a major federal agency like the Air Force. To provide a true benchmark, one would need to analyze other DoD contracts for similar administrative support services, considering factors like the number of personnel supported, geographic coverage, and specific functions performed. Without such comparative data, assessing whether this represents excellent, fair, or questionable value is challenging.

What are the potential risks associated with a 'Cost No Fee' contract type for administrative services?

A 'Cost No Fee' (CNF) contract type, while seemingly advantageous by eliminating contractor profit, can introduce specific risks. The primary risk is that the contractor may have less incentive to control costs or improve efficiency, as their profit is not directly tied to performance or cost savings. This can lead to inflated costs if not rigorously monitored. Additionally, the government bears the risk of cost overruns. For administrative services, ensuring the contractor maintains high standards of service delivery without the profit motive requires strong government oversight, clear performance metrics, and diligent cost auditing to prevent waste and ensure value.

What is the track record of the American Society for Engineering Education as a federal contractor?

The provided data identifies the American Society for Engineering Education (ASEE) as the contractor. ASEE is primarily known as a professional organization supporting engineering and technology education. Its involvement in a large federal contract for administrative support services is notable. While ASEE may have experience managing large organizations and grants, its specific track record as a direct prime contractor for extensive administrative support services to the DoD would need further investigation. Information on past performance, other federal contracts held, and client satisfaction would be crucial for a comprehensive assessment of their capabilities in this role.

How does the competition level (3 bidders) impact the price discovery for this contract?

Having three bidders for this contract indicates a moderate level of competition. While full and open competition is the framework, three bids suggest that the opportunity was known and pursued by several entities. This number is generally considered sufficient to provide some level of price discovery, meaning the government likely received proposals that reflected market rates. However, a higher number of bidders (e.g., 5 or more) often leads to more robust competition, potentially driving prices lower and offering a wider array of solutions. The specific pricing within the proposals would need to be analyzed against cost benchmarks to fully assess the outcome of this competition.

What are the implications of awarding a large administrative support contract to a non-traditional defense contractor like ASEE?

Awarding a significant administrative support contract to an organization like the American Society for Engineering Education (ASEE), which is not a traditional defense contractor, can have several implications. It may indicate the government's effort to broaden its supplier base or seek specialized expertise outside the usual defense industrial complex. For ASEE, it represents a diversification of its activities and revenue streams. Potential challenges could include ASEE adapting to the rigorous compliance and reporting requirements of federal contracting, especially within the Department of Defense. Conversely, it might bring fresh perspectives and potentially more cost-effective solutions if ASEE can leverage its existing operational efficiencies.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 1818 N ST , N W , SUITE 6, WASHINGTON, DC, 98

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline