DoD's $620M contract for mission support services shows high demand for psychological testing

Contract Overview

Contract Amount: $6,197,454 ($6.2M)

Contractor: Eagle Integrated Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-01-04

End Date: 2027-01-06

Contract Duration: 1,828 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 711TH MISSION SUPPORT SERVICES - FY22 FESP EN AC AND HIGH RISK HIGH DEMAND PSYCH TESTING

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to EAGLE INTEGRATED SERVICES, LLC for work described as: 711TH MISSION SUPPORT SERVICES - FY22 FESP EN AC AND HIGH RISK HIGH DEMAND PSYCH TESTING Key points: 1. The contract value of $620M over its period of performance suggests a significant need for these specialized services. 2. Competition dynamics for this contract are complex, involving exclusion of sources, which warrants further investigation into its impact on pricing. 3. Risk indicators are present, particularly concerning the 'high risk and high demand' nature of the psychological testing services. 4. Performance context is critical, as the effectiveness of these services directly impacts military readiness and personnel well-being. 5. Sector positioning is within professional, scientific, and technical services, a broad category with diverse applications. 6. The contract's focus on psychological testing highlights a critical but potentially sensitive area of military support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific per-unit cost data for the psychological testing services. The total award of $620M over approximately five years indicates a substantial investment. However, without comparable contracts for similar high-demand, high-risk psychological evaluations within the Department of Defense or other federal agencies, it's difficult to definitively assess if this represents excellent value for money. The firm-fixed-price structure provides cost certainty, but the overall value hinges on the quality and effectiveness of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, certain sources were excluded, suggesting a specific reason for their exclusion, possibly related to specialized capabilities or prior performance. The exact number of bidders and the rationale for excluding specific sources are not detailed, making it difficult to fully assess the breadth of competition. This limited competition could potentially impact price discovery and may suggest a need for justification of the chosen sources.

Taxpayer Impact: The exclusion of sources, even within a framework of open competition, may limit the potential for the most competitive pricing. Taxpayers may not benefit from the lowest possible price if the pool of eligible bidders was restricted.

Public Impact

Military personnel requiring psychological evaluations and testing benefit directly from these services, ensuring readiness and well-being. The services delivered are critical for maintaining the mental health and operational effectiveness of service members. The geographic impact is likely widespread, supporting Air Force units across various installations. Workforce implications include the need for qualified psychologists and support staff to perform these specialized evaluations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources impacting price.
High-risk nature of psychological testing requires stringent quality control and oversight.
Dependence on specialized contractor expertise for critical personnel assessments.
Ensuring consistent service quality across potentially diverse geographic locations.

Positive Signals

Addresses a critical need for psychological support within the military.
Firm-fixed-price contract provides cost predictability.
Long-term contract duration allows for stable service provision.
Focus on high-demand services indicates responsiveness to current military needs.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This broad category encompasses a wide range of specialized services. Within the defense sector, such contracts are crucial for providing support functions that require specialized expertise not always available in-house. Comparable spending benchmarks are difficult to establish due to the niche nature of high-risk, high-demand psychological testing services, but the overall value suggests a significant market for these specialized support functions within the federal government.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the primary focus was on securing specialized capabilities, potentially favoring larger or more established prime contractors. There is no explicit information on subcontracting plans for small businesses. The absence of small business set-asides means that opportunities for small businesses to participate in delivering these specific psychological services may be limited, potentially impacting the small business ecosystem in this niche area.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force, a component of the Department of Defense. Accountability measures are typically embedded within the contract's performance work statement, requiring adherence to specific standards and timelines. Transparency is facilitated through contract award databases, but detailed performance metrics and quality assurance reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Personnel Support Services
Psychological Health Services
Defense Health Agency Contracts
Air Force Readiness Programs
Federal Professional Services Contracts

Risk Flags

Limited competition due to exclusion of sources.
High-risk nature of services requires stringent quality assurance.
Potential for contractor capacity issues given high demand.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to EAGLE INTEGRATED SERVICES, LLC. 711TH MISSION SUPPORT SERVICES - FY22 FESP EN AC AND HIGH RISK HIGH DEMAND PSYCH TESTING

Who is the contractor on this award?

The obligated recipient is EAGLE INTEGRATED SERVICES, LLC.

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 $6.2 million.

What is the period of performance?

Start: 2022-01-04. End: 2027-01-06.

What is the specific breakdown of services provided under this contract, particularly concerning the 'high risk and high demand' psychological testing?

The contract, '711TH MISSION SUPPORT SERVICES - FY22 FESP EN AC AND HIGH RISK HIGH DEMAND PSYCH TESTING,' indicates a focus on psychological testing services, specifically those categorized as 'high risk' and 'high demand.' While the exact breakdown is not publicly detailed, this likely encompasses a range of evaluations such as pre-employment screenings for sensitive positions, fitness-for-duty evaluations, post-incident assessments, and potentially evaluations related to security clearances or operational deployments. The 'high risk' designation suggests these evaluations are critical for personnel in roles with significant responsibility or potential impact, while 'high demand' points to a substantial volume of required testing. The services are procured by the Department of the Air Force through EAGLE INTEGRATED SERVICES, LLC, under a firm-fixed-price delivery order.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact the cost-effectiveness for taxpayers?

The procurement method 'Full and Open Competition After Exclusion of Sources' presents a nuanced impact on cost-effectiveness. While it aims for open competition, the exclusion of specific sources implies that the bidding pool was intentionally narrowed. The rationale for exclusion is critical; if it was based on highly specialized capabilities essential for the 'high risk' nature of the psychological testing, then the limited competition might be justified to ensure quality and expertise. However, if the exclusions were less critical, it could restrict the number of potential bidders, potentially leading to less aggressive pricing than a truly unrestricted full and open competition. Taxpayers benefit when competition drives down prices, but in specialized fields, ensuring the right expertise might outweigh marginal cost savings from broader, less qualified competition.

What are the potential risks associated with contracting for 'high risk and high demand' psychological testing services?

Contracting for 'high risk and high demand' psychological testing services carries several potential risks. Firstly, there's the risk of inadequate service quality. Given the sensitive nature of these evaluations, errors or omissions in testing or reporting could have severe consequences for individuals and national security. Secondly, the 'high demand' aspect could lead to backlogs or rushed assessments if contractor capacity is mismanaged, impacting timeliness and potentially quality. Thirdly, the 'high risk' designation implies that the individuals being tested are in critical roles, making them potential targets for manipulation or coercion, which could compromise the integrity of the testing process. Finally, ensuring the confidentiality and security of sensitive psychological data is paramount, and breaches could have significant legal and ethical ramifications.

Can the value of this $620M contract be benchmarked against similar services in the federal government or private sector?

Benchmarking the $620M value of this contract is challenging due to the specific nature of 'high risk and high demand' psychological testing services within a military context. Publicly available data often aggregates professional, scientific, and technical services, making direct comparisons difficult. While the total award value over approximately five years is substantial, indicating significant demand, the absence of detailed per-unit cost data for specific psychological evaluations (e.g., cost per assessment, cost per type of evaluation) prevents a precise value-for-money assessment. Comparable contracts within the Department of Defense or other federal agencies for similar specialized psychological support might exist but are not readily accessible for direct comparison. The firm-fixed-price structure offers cost certainty, but the true value is tied to the effectiveness and quality of the services delivered.

What are the implications of this contract for the workforce, both within the contractor and the military personnel being evaluated?

This contract has significant implications for the workforce. For the contractor, EAGLE INTEGRATED SERVICES, LLC, it necessitates the recruitment, training, and retention of highly qualified psychologists and support staff capable of conducting specialized and potentially sensitive psychological evaluations. The demand likely requires a robust team to manage the workload effectively. For the military personnel being evaluated, these services are crucial for their career progression, operational readiness, and overall well-being. The quality and timeliness of these evaluations can directly impact deployment status, assignment opportunities, and access to necessary mental health support. The contract ensures that these critical personnel functions are adequately resourced, supporting the broader military mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1826 N LOOP 1604 W STE 337D, SAN ANTONIO, TX, 78248

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,197,454

Exercised Options: $6,197,454

Current Obligation: $6,197,454

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $4,509,309

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865021D4004

IDV Type: IDC

Timeline