Air Force awards $23.7M contract for OSI LEPST support services to Rally Point Management, LLC

Contract Overview

Contract Amount: $23,691,725 ($23.7M)

Contractor: Rally Point Management, LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-28

End Date: 2026-04-28

Contract Duration: 1,217 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AF OFFICE OF SPECIAL INVESTIGATIONS (OSI) - LOCALLY EMPLOYED PERSONS SCREENING TEAMS (LEPST) SUPPORT SERVICES

Plain-Language Summary

Department of Defense obligated $23.7 million to RALLY POINT MANAGEMENT, LLC for work described as: AF OFFICE OF SPECIAL INVESTIGATIONS (OSI) - LOCALLY EMPLOYED PERSONS SCREENING TEAMS (LEPST) SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 4 years (1217 days) indicates a long-term need for these services. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. The award value of $23.7 million over the contract period suggests a significant investment in support services. 5. The North American Industry Classification System (NAICS) code 541611 points to administrative and management consulting services. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed information on the specific services provided and comparable market rates. The total award of $23.7 million over approximately four years averages to about $5.9 million annually. Without knowing the exact scope of work, it's difficult to definitively assess if this represents excellent value for money. However, the firm-fixed-price structure provides some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders (no) suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions, but four bidders still provide a basis for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality, ensuring the government receives the best possible value.

Public Impact

The primary beneficiaries are the Air Force Office of Special Investigations (OSI) and its Locally Employed Persons Screening Teams (LEPST). The services provided are crucial for the operational effectiveness and security vetting processes of OSI. The geographic impact is likely global, supporting OSI's worldwide operations. Workforce implications include the potential for employment opportunities for individuals supporting Rally Point Management, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical support functions could pose a risk if performance issues arise.
The long-term nature of the contract may limit opportunities for other firms to compete for similar services in the future.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract duration suggests a stable and reliable support structure for OSI.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal contracting, supporting a wide array of government functions. Comparable spending benchmarks would depend on the specific nature of the screening and support services, but the overall market for management consulting services to the federal government is substantial.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, Rally Point Management, LLC, is not specified as a small business in the provided data, so its own size status would determine its subcontracting obligations.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Accountability measures are inherent in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Security Service (DSS) Vetting Services
Intelligence Community Support Contracts
Federal Law Enforcement Support Services
Department of Defense Administrative Support

Risk Flags

Contract awarded as a Delivery Order, requiring review of the parent IDIQ contract for potential risks.
Limited information on contractor's past performance and specific capabilities.
Potential for scope creep if not managed tightly, despite firm-fixed-price structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to RALLY POINT MANAGEMENT, LLC. AF OFFICE OF SPECIAL INVESTIGATIONS (OSI) - LOCALLY EMPLOYED PERSONS SCREENING TEAMS (LEPST) SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is RALLY POINT MANAGEMENT, 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 $23.7 million.

What is the period of performance?

Start: 2022-12-28. End: 2026-04-28.

What is the specific nature of the 'Locally Employed Persons Screening Teams (LEPST) Support Services' provided under this contract?

The 'Locally Employed Persons Screening Teams (LEPST) Support Services' contract is designed to provide essential support to the Air Force Office of Special Investigations (OSI) in its mission to screen and vet locally employed individuals. This likely involves a range of administrative, logistical, and potentially analytical services necessary for the efficient operation of these screening teams. These services could include background checks, data management, report generation, personnel support, and other operational assistance required by OSI to ensure the integrity and security of its workforce and operations globally. The exact scope would be detailed in the contract's Statement of Work (SOW).

How does the pricing of this contract compare to similar support services for federal investigative agencies?

Directly comparing the pricing of this $23.7 million contract to similar services is challenging without detailed knowledge of the specific services rendered and the operational tempo of the LEPST. However, the average annual cost of approximately $5.9 million suggests a significant investment. To benchmark effectively, one would need to analyze contracts for background investigation support, administrative management consulting, and operational support for agencies like the FBI, DIA, or other components of the Department of Defense with similar vetting requirements. Factors such as geographic reach, security clearance levels required for personnel, and the volume of screenings would heavily influence cost comparisons.

What are the primary risks associated with this contract for the Department of the Air Force?

The primary risks associated with this contract include potential performance deficiencies by the contractor, Rally Point Management, LLC, which could disrupt OSI's screening operations. There's also a risk of cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen complexities or scope creep, although this is mitigated by the contract type. Another risk is contractor dependency; if Rally Point Management becomes indispensable, it could reduce future negotiating leverage. Finally, ensuring data security and confidentiality of sensitive information processed during screening activities is a critical risk that requires robust oversight.

What is Rally Point Management, LLC's track record with federal contracts, particularly within the Department of Defense?

Information regarding Rally Point Management, LLC's specific track record with federal contracts, especially within the Department of Defense, is not detailed in the provided data. A comprehensive assessment would require reviewing their contract history, past performance evaluations (if publicly available), and any reported issues or successes on previous government engagements. Understanding their experience with similar types of support services, their financial stability, and their ability to manage complex contracts would be crucial for evaluating their reliability and capability in fulfilling this OSI requirement.

How has spending on administrative management and general management consulting services (NAICS 541611) by the Department of the Air Force trended historically?

Historical spending trends for NAICS code 541611 by the Department of the Air Force would require a detailed analysis of federal procurement databases over several fiscal years. Generally, spending in this category can fluctuate based on strategic priorities, operational needs, and budget allocations. The Air Force, like other major DoD components, often utilizes management consulting services for process improvement, organizational restructuring, strategic planning, and specialized support functions. A review of past spending would reveal whether this $23.7 million award represents an increase, decrease, or is consistent with historical patterns for similar services.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA489022Q0008

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rally Point Management LLC

Address: 403 HOLLYWOOD BLVD NW, FORT WALTON BEACH, FL, 32548

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

Financial Breakdown

Contract Ceiling: $48,927,501

Exercised Options: $25,041,804

Current Obligation: $23,691,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F033DA

IDV Type: FSS

Timeline