DoD's $20.6M contract with REEP, INC for technical services awarded without competition
Contract Overview
Contract Amount: $20,579,828 ($20.6M)
Contractor: Reep, Inc
Awarding Agency: Department of Defense
Start Date: 2004-12-03
End Date: 2005-12-02
Contract Duration: 364 days
Daily Burn Rate: $56.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $20.6 million to REEP, INC for work described as: Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration of 364 days suggests a defined scope of work. 3. Awarded to a single vendor, raising questions about competitive pricing. 4. The service category 'All Other Professional, Scientific, and Technical Services' is broad. 5. No small business set-aside was applied to this procurement. 6. The contract was awarded by the Department of the Air Force.
Value Assessment
Rating: questionable
Without a competitive bidding process, it is difficult to benchmark the value for money. The firm-fixed-price structure provides cost certainty for the government, but the absence of competition means there's no market-driven validation of the pricing. Comparing this to similar 'All Other Professional, Scientific, and Technical Services' contracts awarded competitively would be necessary to assess if the $20.6 million represents a fair market price. The lack of transparency in pricing due to sole-sourcing makes a definitive value assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source justification, meaning it was not competed. This approach is typically used when only one vendor can provide the required services, or in specific emergency situations. The lack of competition means that the government did not benefit from multiple bids, which could have driven down the price and potentially led to a wider range of innovative solutions. The absence of bidders limits the government's ability to explore alternative service providers.
Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive pressure. Without competing the award, there is less assurance that the government secured the best possible price and value for these technical services.
Public Impact
The Department of the Air Force is the primary beneficiary, receiving specialized technical services. The contract supports 'All Other Professional, Scientific, and Technical Services,' which could encompass a wide range of support functions. The geographic impact is likely concentrated in the District of Columbia, where the contractor is located. Workforce implications are tied to the specific technical expertise required by the contract, potentially involving specialized personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpayment and limited vendor options.
- The broad nature of the service category makes it difficult to ascertain the specific value delivered.
- No small business participation was mandated, potentially excluding smaller, specialized firms.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Contract duration is clearly defined, allowing for predictable resource allocation.
- Awarded to a single entity, potentially indicating specialized capabilities required.
Sector Analysis
The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) is a broad classification encompassing a wide array of services not elsewhere classified. This sector is highly diverse, ranging from research and development support to specialized consulting. The market size for such services is substantial, with government agencies frequently procuring these for various mission-critical functions. This $20.6 million contract represents a significant, albeit single, expenditure within this broad sector for the Department of the Air Force.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it appear to have any specific subcontracting requirements for small businesses mentioned. The absence of set-aside provisions means that larger businesses were eligible to compete or be awarded the contract without specific mandates for small business participation. This could limit opportunities for small businesses to engage in providing these specialized technical services, potentially impacting the small business ecosystem that relies on government contracts for growth.
Oversight & Accountability
Oversight for this contract would fall under the Department of the Air Force's contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the procurement process and pricing more challenging. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Professional, Scientific, and Technical Services
- Defense Technical Support Contracts
- Air Force Service Contracts
- Sole-Source Procurements
Risk Flags
- Sole-source award
- Lack of competition
- Broad service category
Tags
defense, department-of-defense, department-of-the-air-force, professional-scientific-and-technical-services, all-other-professional-scientific-and-technical-services, definitive-contract, firm-fixed-price, sole-source, district-of-columbia, large-business, non-competed
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.6 million to REEP, INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is REEP, INC.
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 $20.6 million.
What is the period of performance?
Start: 2004-12-03. End: 2005-12-02.
What specific technical services were provided under this contract?
The contract falls under the NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category that can include a wide range of activities such as research, development, consulting, and specialized technical support not covered by more specific industry codes. Without further details on the contract's statement of work, it is difficult to pinpoint the exact nature of the services. However, given it was awarded by the Department of the Air Force, these services likely supported military operations, technological development, or administrative functions critical to the branch's mission. The broad classification suggests a need for expertise that doesn't fit neatly into other defined service categories.
How does the $20.6 million award compare to similar contracts for technical services?
Direct comparison of the $20.6 million award is challenging without knowing the specific services rendered and the contract's duration and scope. However, as a sole-source award for 'All Other Professional, Scientific, and Technical Services,' it is crucial to benchmark this against competitively awarded contracts for similar services. If comparable services were procured through a competitive process, the prices achieved in those awards would serve as a benchmark. The absence of competition for this $20.6 million contract means there is no direct market validation, raising questions about whether this represents optimal value for taxpayer dollars. Further analysis would require identifying comparable contracts and assessing their pricing structures and performance metrics.
What are the primary risks associated with a sole-source award of this magnitude?
The primary risks associated with a sole-source award of $20.6 million include potential overpayment due to the lack of competitive pricing pressure, limited innovation as the government doesn't benefit from multiple vendor proposals, and a reduced incentive for the contractor to perform exceptionally if they are the only option. There's also a risk of vendor lock-in, making it difficult and costly to switch providers in the future. Furthermore, the lack of transparency in the procurement process can lead to public or congressional scrutiny. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations to mitigate these risks and ensure accountability.
What is the track record of REEP, INC. in performing federal contracts?
Information regarding the specific track record of REEP, INC. in performing federal contracts is not detailed in the provided data. To assess their performance, one would need to examine past contract awards, performance reviews (such as Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A positive track record with previous government agencies, particularly in similar service areas, would lend confidence to this award. Conversely, a history of poor performance or cost overruns on prior contracts would raise significant concerns about the current award's likelihood of success and value for money.
What are the historical spending patterns for 'All Other Professional, Scientific, and Technical Services' by the Department of the Air Force?
Historical spending patterns for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) by the Department of the Air Force would reveal the agency's reliance on this broad service category. Analyzing past expenditures would indicate whether this $20.6 million contract is an anomaly or part of a consistent trend. It would also highlight the typical contract types (e.g., competitive vs. sole-source) and average award values within this category. Understanding these patterns provides context for the current contract, helping to assess if it aligns with historical procurement strategies or represents a deviation, potentially signaling a shift in service needs or procurement approaches.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ABM Industries Inc (UEI: 006911622)
Address: 15 HIGH ST, MANCHESTER, NH, 03101
Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2004-12-03
Current End Date: 2005-12-02
Potential End Date: 2005-12-02 00:00:00
Last Modified: 2015-11-27
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