DoD's $21.8M contract for technical and analytical services awarded to Ho-Chunk Shared Services Company

Contract Overview

Contract Amount: $21,790,291 ($21.8M)

Contractor: Ho-Chunk Shared Services Company

Awarding Agency: Department of Defense

Start Date: 2021-06-01

End Date: 2025-05-31

Contract Duration: 1,460 days

Daily Burn Rate: $14.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CONTRACTOR SHALL PROVIDE BROAD TECHNICAL AND ANALYTICAL SERVICES TO SUPPORT AND IMPROVE POLICY DEVELOPMENT, DECISION MAKING, AND MANAGEMENT AND ADMINISTRATION, AS WELL AS IMPROVE THE OPERATION OF SYSTEMS WITHIN AREAS OF RESPONSIBILITY.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to HO-CHUNK SHARED SERVICES COMPANY for work described as: CONTRACTOR SHALL PROVIDE BROAD TECHNICAL AND ANALYTICAL SERVICES TO SUPPORT AND IMPROVE POLICY DEVELOPMENT, DECISION MAKING, AND MANAGEMENT AND ADMINISTRATION, AS WELL AS IMPROVE THE OPERATION OF SYSTEMS WITHIN AREAS OF RESPONSIBILITY. Key points: 1. Contract aims to enhance policy development, decision-making, and system operations. 2. Services are broad, covering technical and analytical support across various responsibilities. 3. The contract duration is 4 years, indicating a significant, ongoing need. 4. Awarded as a definitive contract, suggesting a structured and defined scope of work. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 6. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services.

Value Assessment

Rating: fair

Benchmarking the value of this $21.8 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's actual costs plus a fixed fee, which can lead to cost overruns if not managed carefully. While the fixed fee provides some cost certainty for the contractor, the government bears the risk of fluctuating direct costs. Comparing this to similar broad technical and analytical service contracts within the Department of Defense would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This raises questions about whether the government explored all available options to ensure the best value and pricing. Sole-source awards can be justified for various reasons, such as unique capabilities or urgent needs, but they typically result in less competitive pricing compared to fully competed contracts. The lack of competition limits the government's ability to leverage market forces to drive down costs.

Taxpayer Impact: Taxpayers may not be receiving the most competitive pricing due to the absence of a competitive bidding process. This could translate to higher overall costs for the services rendered.

Public Impact

The Department of the Air Force benefits from enhanced policy development and decision-making capabilities. Improved operational efficiency of internal systems within the agency is a key outcome. The contract supports the broader mission of the Department of Defense by providing critical analytical insights. Workforce within the agency may see improved tools and processes for management and administration. The geographic impact is primarily within the agency's operational locations, likely within Colorado where the contractor is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award requires strong justification to ensure fair value.
CPFF contract type shifts cost overrun risk to the government.
Broad scope of services could lead to potential scope creep if not managed tightly.

Positive Signals

Contract aims to improve critical policy and decision-making processes.
Definitive contract structure provides a clear framework for services.
Fixed fee component in CPFF offers some predictability in contractor profit.
Contract duration suggests a sustained need for these specialized services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically consulting services. This sector is a significant component of federal spending, supporting a wide range of government functions from policy analysis to IT support. The market for these services is competitive, with many firms offering specialized expertise. The Department of Defense, as a major federal agency, frequently procures such services to augment its internal capabilities and address complex challenges. Benchmarking would involve comparing this contract's value and scope to other similar consulting contracts awarded by DoD or other large federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false) or specific subcontracting requirements mentioned in the provided data. Therefore, its direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses. The absence of set-asides means that larger, established firms are more likely to be the primary awardees for such contracts. Further investigation into subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, which provide award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Technical Support Services
Federal Consulting Services
Policy Development Support Contracts
Analytical Services for Government Agencies
Air Force IT and Management Support

Risk Flags

Sole-source award limits competitive pricing.
CPFF contract shifts cost overrun risk to the government.
Broad scope requires diligent performance management to avoid scope creep.
Lack of specified KPIs makes performance assessment challenging without further detail.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to HO-CHUNK SHARED SERVICES COMPANY. CONTRACTOR SHALL PROVIDE BROAD TECHNICAL AND ANALYTICAL SERVICES TO SUPPORT AND IMPROVE POLICY DEVELOPMENT, DECISION MAKING, AND MANAGEMENT AND ADMINISTRATION, AS WELL AS IMPROVE THE OPERATION OF SYSTEMS WITHIN AREAS OF RESPONSIBILITY.

Who is the contractor on this award?

The obligated recipient is HO-CHUNK SHARED SERVICES COMPANY.

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 $21.8 million.

What is the period of performance?

Start: 2021-06-01. End: 2025-05-31.

What is the track record of Ho-Chunk Shared Services Company in performing similar technical and analytical services for the federal government?

Assessing Ho-Chunk Shared Services Company's track record requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. Without specific historical data on this contractor's performance in providing broad technical and analytical services, it is difficult to definitively gauge their capability and reliability for this $21.8 million contract. A thorough review would look for evidence of successful project completion, adherence to schedules and budgets, and positive client feedback on similar engagements.

How does the pricing structure (Cost Plus Fixed Fee) compare to other federal contracts for similar technical and analytical services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for federal contracts, particularly when the scope of work involves uncertainties or evolving requirements, as is often the case with technical and analytical services. In a CPFF contract, the government reimburses the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. This structure can incentivize efficiency as the fee is fixed, but it also places the risk of cost overruns on the government. Compared to fixed-price contracts, CPFF can be more expensive if costs are not well-controlled. However, it offers flexibility that might be necessary for complex, long-term analytical support, potentially leading to better overall outcomes if managed effectively.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a contract focused on 'broad technical and analytical services to support and improve policy development, decision making, and management and administration,' typical KPIs might include metrics related to the quality and timeliness of analytical reports, the impact of recommendations on policy improvements, the efficiency gains achieved in system operations, and client satisfaction. The effectiveness of the services would likely be assessed through regular performance reviews, milestone achievements, and the demonstrable value added to the agency's decision-making processes. Specific KPIs would be detailed in the contract's Statement of Work (SOW).

What is the historical spending trend for similar technical and analytical consulting services within the Department of the Air Force?

Historical spending trends for technical and analytical consulting services within the Department of the Air Force (and the broader Department of Defense) are substantial and have generally increased over time, driven by the need for specialized expertise in areas like cybersecurity, data analytics, strategic planning, and systems modernization. Agencies often rely on external contractors to supplement internal capabilities, especially for complex or rapidly evolving technological and analytical requirements. Analyzing past spending patterns would reveal the typical contract values, durations, and types of services procured. This context helps in evaluating whether the current $21.8 million award is consistent with historical procurement practices or represents a significant deviation.

What are the potential risks associated with a sole-source award for these critical support services?

The primary risk associated with a sole-source award for critical support services is the potential for inflated pricing due to the lack of competition. Without multiple bidders vying for the contract, the government may not achieve the most cost-effective solution. Additionally, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single vendor, which can create dependency and limit future flexibility. There's also a risk that the chosen contractor may not be the best performer available, as the full spectrum of market capabilities may not have been explored. Robust oversight and negotiation are crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ho-Chunk, Inc.

Address: 1 MISSION DR, WINNEBAGO, NE, 68071

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,362,188

Exercised Options: $40,683,917

Current Obligation: $21,790,291

Actual Outlays: $167,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline