DoD's $22.4M strategy planning contract awarded to SPECIAL APPLICATIONS GROUP LLC shows fair value with 13 bids

Contract Overview

Contract Amount: $22,437,530 ($22.4M)

Contractor: Special Applications Group LLC

Awarding Agency: Department of Defense

Start Date: 2012-02-07

End Date: 2014-09-20

Contract Duration: 956 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: LABOR HOURS

Sector: Other

Official Description: STRATEGY, PLANS, AND POLICY PLANNER

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621, UNITED STATES OF AMERICA

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $22.4 million to SPECIAL APPLICATIONS GROUP LLC for work described as: STRATEGY, PLANS, AND POLICY PLANNER Key points: 1. The contract achieved a competitive outcome with 13 bids, suggesting a healthy price discovery process. 2. While specific performance metrics are not detailed, the contract's duration and value indicate a significant scope of work. 3. The administrative management and general management consulting services sector is characterized by a mix of large and specialized firms. 4. The contract was awarded under 'full and open competition after exclusion of sources,' a less common but permissible method. 5. The total award value of $22.4M over its period suggests a substantial investment in strategic planning capabilities for the Air Force. 6. The contract's focus on strategy, plans, and policy planning aligns with critical defense modernization efforts.

Value Assessment

Rating: good

The contract's total award value of $22.4M over approximately 2.6 years (956 days) averages to roughly $23.4M annually. Benchmarking this against similar large-scale strategy and policy planning contracts within the Department of Defense is challenging without more granular data on the specific services rendered. However, the presence of 13 bids suggests that the pricing was likely competitive and within a reasonable range for the scope of work. The contract type (labor hours) allows for flexibility but requires careful monitoring to ensure efficient resource utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'full and open competition after exclusion of sources.' This procurement method allows for full and open competition but requires justification for excluding specific sources. The fact that 13 bids were received indicates that despite the exclusion of some potential sources, a robust level of competition was still achieved. This suggests that the exclusion criteria did not unduly limit the pool of qualified bidders, leading to a competitive outcome.

Taxpayer Impact: The substantial number of bidders (13) in this limited competition scenario indicates that taxpayers likely benefited from competitive pricing. While not a pure 'full and open' competition, the broad participation suggests that the government received fair market value for the services.

Public Impact

The Department of the Air Force benefits from enhanced strategic planning capabilities, aiding in policy development and future operational readiness. Specialized consulting services are delivered to support complex defense planning initiatives. The geographic impact is primarily within the Department of Defense's operational and administrative structures, with potential downstream effects on national security. The contract supports a workforce of skilled consultants in administrative management and general management consulting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' aspect of the competition warrants scrutiny to ensure it was fully justified and did not unduly restrict competition.
Lack of detailed performance metrics makes it difficult to assess the direct impact and effectiveness of the strategic planning services provided.
The labor hours contract type can lead to cost overruns if not managed diligently, requiring robust oversight.

Positive Signals

The high number of bidders (13) indicates strong market interest and a competitive environment for these services.
The contract's focus on strategy, plans, and policy planning addresses a critical need within the Department of Defense.
The award to SPECIAL APPLICATIONS GROUP LLC, a known entity in government contracting, suggests a level of established capability.

Sector Analysis

The Administrative Management and General Management Consulting Services sector (NAICS 541611) is a significant part of the federal contracting landscape, particularly within defense and intelligence agencies. This sector encompasses a wide range of advisory services aimed at improving organizational efficiency and effectiveness. The market includes numerous firms, from large, diversified contractors to niche specialists. Federal spending in this category often supports strategic planning, organizational restructuring, and policy development, reflecting the government's need for expert external advice on complex issues. The total award value of $22.4M places this contract within the mid-to-large tier for consulting services within the DoD.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests no specific small business subcontracting goals were mandated. This means the primary contractor, SPECIAL APPLICATIONS GROUP LLC, has flexibility in how it utilizes its resources, and there is no explicit mechanism within this award to ensure direct benefit or subcontracting opportunities for small businesses. The impact on the small business ecosystem is therefore indirect, relying on the prime contractor's own procurement practices.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The contract type (labor hours) necessitates diligent monitoring of hours worked and task completion to ensure adherence to scope and budget. Transparency is facilitated by the Federal Procurement Data System (FPDS), which records contract actions. While specific Inspector General (IG) jurisdiction for this particular contract action isn't detailed, the DoD IG generally oversees all DoD spending for waste, fraud, and abuse. Accountability rests with the contracting officer and program managers to ensure deliverables meet requirements.

Related Government Programs

Defense-wide Planning and Policy Support
Management and Consulting Services
Strategic Planning Contracts
Department of Defense Administrative Support
Air Force Policy Development

Risk Flags

Competition Method Justification
Performance Monitoring
Cost Control for Labor Hours

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.4 million to SPECIAL APPLICATIONS GROUP LLC. STRATEGY, PLANS, AND POLICY PLANNER

Who is the contractor on this award?

The obligated recipient is SPECIAL APPLICATIONS GROUP 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 $22.4 million.

What is the period of performance?

Start: 2012-02-07. End: 2014-09-20.

What is the track record of SPECIAL APPLICATIONS GROUP LLC with the Department of Defense, particularly in strategy and policy planning?

SPECIAL APPLICATIONS GROUP LLC has a history of contracting with the Department of Defense, as evidenced by this $22.4M award. While this specific contract focuses on strategy, plans, and policy planning, their broader portfolio with the DoD would need further investigation to fully assess their track record. Analyzing past performance evaluations, other contract awards (both successful and unsuccessful), and any documented issues or commendations would provide a more comprehensive picture of their capabilities and reliability in delivering complex consulting services to the military. Their experience in administrative management and general management consulting services suggests a foundational capability relevant to strategic planning.

How does the $22.4M award value compare to similar strategy and policy planning contracts within the DoD?

The $22.4M award value for strategy, plans, and policy planning services over approximately 2.6 years is substantial, indicating a significant scope of work. To benchmark this effectively, comparisons would ideally be made against contracts of similar duration, complexity, and specific service requirements within the Department of Defense. Without access to a detailed database of comparable contracts, it's difficult to provide precise benchmarks. However, for major strategic initiatives or long-term policy development efforts within large federal agencies, awards in the tens of millions of dollars are not uncommon. The key factor is whether the value aligns with the expected outcomes and the criticality of the planning support provided.

What are the primary risks associated with a 'full and open competition after exclusion of sources' award?

The primary risk with 'full and open competition after exclusion of sources' lies in the potential for limiting the competitive pool, even if multiple bids are received. If the exclusion criteria are not well-justified or are perceived as overly restrictive, it could prevent highly capable vendors from participating, potentially leading to suboptimal pricing or solutions. There's also a risk of protests if excluded bidders believe the exclusion was improper. Ensuring transparency and a clear, defensible rationale for any source exclusions is crucial to mitigate these risks and maintain confidence in the integrity of the procurement process.

How effective is the labor hours contract type for strategic planning services, and what are its associated risks?

The labor hours contract type offers flexibility, allowing the government to adjust the level of effort and adapt to evolving strategic needs without formal contract modifications for scope changes. This can be advantageous for dynamic planning projects. However, the primary risk is cost control. Without fixed pricing for specific deliverables, there's a potential for scope creep and inefficient use of labor hours, leading to costs exceeding initial estimates. Robust oversight, clear task definitions, and diligent monitoring of hours expended against progress are essential to mitigate these risks and ensure value for money.

What is the historical spending trend for Administrative Management and General Management Consulting Services (NAICS 541611) within the Department of the Air Force?

Historical spending data for NAICS 541611 within the Department of the Air Force would reveal trends in the utilization of external consulting services for management and strategic planning. Analyzing this data over several fiscal years would indicate whether spending in this category is increasing, decreasing, or remaining stable. Such analysis could highlight shifts in the Air Force's reliance on contractors for these services, potentially correlating with major modernization efforts, budget cycles, or changes in internal capabilities. Understanding these trends provides context for the current $22.4M award, indicating if it represents a typical investment or a significant deviation.

What are the potential implications of this contract on the broader defense strategy and policy landscape?

This contract directly supports the Department of the Air Force's efforts in strategy, plans, and policy development. The insights and recommendations generated by SPECIAL APPLICATIONS GROUP LLC could influence future Air Force modernization programs, resource allocation decisions, and operational doctrines. The quality and strategic direction provided by the contractor can have long-term implications for the Air Force's ability to adapt to evolving threats and technological advancements. Therefore, the effectiveness of this contract is critical for shaping the future trajectory of Air Force capabilities and its role within the broader national defense strategy.

Industry Classification

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

Solicitation ID: FA481411R0014

Offers Received: 13

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3710 CORPOREX PARK DR STE 320, TAMPA, FL, 33619

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $22,554,328

Exercised Options: $22,437,530

Current Obligation: $22,437,530

Contract Characteristics

Cost or Pricing Data: NO

Timeline