DoD awards $144M for Operations Research Consulting, with limited competition and potential cost concerns

Contract Overview

Contract Amount: $9,914,557 ($9.9M)

Contractor: Group W Inc

Awarding Agency: Department of Defense

Start Date: 2005-05-16

End Date: 2008-06-30

Contract Duration: 1,141 days

Daily Burn Rate: $8.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: 200509!000304!5700!FA7012!11 CONS/LGCW !FA701205C0013 !A!N! !Y! ! !20050516!20060515!143980741!143980741!143980741!N!GROUP W INC !8315 LEE HWY STE 303 !FAIRFAX !VA!22031!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000001764500!N!N!000019126810!R405!OPERATIONS RESEARCH AND QUANTITATIVE ANALYSIS SER !S1 !SERVICES !000 !* !541690!E! !3! ! ! ! ! !20200930!B! ! !N!Z!D!N!Z!1!001!N!1A!Z!N!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to GROUP W INC for work described as: 200509!000304!5700!FA7012!11 CONS/LGCW !FA701205C0013 !A!N! !Y! ! !20050516!20060515!143980741!143980741!143980741!N!GROUP W INC !8315 LEE HWY STE 303 !FAIRFAX !VA!22031!50000!001!11!WASHINGTON !DIST… Key points: 1. The contract value is substantial at $143,980,741, primarily for consulting services. 2. Competition was limited, raising questions about price discovery and potential overpayment. 3. The contract duration is over 3 years, indicating a long-term need for these services. 4. The sector is professional services, specifically scientific and technical consulting.

Value Assessment

Rating: questionable

The awarded amount of $143,980,741 appears high for the described services, especially given the limited competition. Benchmarking against similar contracts for operations research and quantitative analysis is crucial to assess if the pricing is reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, suggesting a sole-source or limited competition award. This lack of robust competition may have led to a higher price than could have been achieved through a full and open process.

Taxpayer Impact: The limited competition and potential for inflated pricing directly impact taxpayer funds, as a higher cost may be borne than necessary for these essential services.

Public Impact

Taxpayers may be overpaying for operations research and quantitative analysis services due to limited competition. The long contract duration could lock the government into potentially suboptimal pricing for an extended period. The specific nature of 'Operations Research and Quantitative Analysis Services' suggests a need for specialized expertise, but the procurement method warrants scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for overpricing
Lack of clear justification for sole-source/limited competition

Positive Signals

Services are essential for complex decision-making
Contract awarded to a single entity, potentially indicating specialized capability

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on operations research and quantitative analysis. Spending in this area is often driven by complex defense and intelligence needs, but benchmarks for similar consulting services are vital for cost assessment.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made to a single entity, Group W Inc., and the procurement method did not prioritize small business participation.

Oversight & Accountability

Oversight is needed to ensure the services provided are necessary and that the pricing remains fair throughout the contract's life, especially given the limited competition. A review of the justification for the procurement method is also warranted.

Related Government Programs

Other Scientific and Technical Consulting Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for overpayment due to limited competition.
Lack of transparency in the procurement process.
Long contract duration may not be optimal.
No clear indication of small business participation.
High contract value warrants detailed scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to GROUP W INC. 200509!000304!5700!FA7012!11 CONS/LGCW !FA701205C0013 !A!N! !Y! ! !20050516!20060515!143980741!143980741!143980741!N!GROUP W INC !8315 LEE HWY STE 303 !FAIRFAX !VA!22031!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000001764500!N!N!000019126810!R405!OPERATIONS RESEARCH AND QUANTITATIVE ANALYSIS SER !S1 !SERVICES !000 !* !541690!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is GROUP W 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 $9.9 million.

What is the period of performance?

Start: 2005-05-16. End: 2008-06-30.

What specific quantitative analysis and operations research tasks are being performed under this contract, and how do they directly support the Department of Defense's mission?

The contract is for 'Operations Research and Quantitative Analysis Services'. These services likely involve complex modeling, simulation, statistical analysis, and optimization techniques to support decision-making in areas such as logistics, resource allocation, strategic planning, and threat assessment for the Department of Defense. The specific tasks would be detailed in the contract's Statement of Work (SOW).

What is the justification for awarding this contract with limited competition, and what steps were taken to ensure fair and reasonable pricing?

The data indicates the contract was 'NOT COMPETED'. A justification for other than full and open competition (J&A) would typically be required, citing reasons like urgency, unique capabilities, or lack of sources. Without this justification, it's difficult to assess the fairness of the price. The government should have performed market research and price analysis to validate the $144M award.

How effective have Group W Inc.'s services been in achieving the Department of Defense's objectives, and are there alternative, more cost-effective solutions available?

Effectiveness would be measured against the performance metrics outlined in the contract's SOW and Quality Assurance Surveillance Plan (QASP). Without access to performance reports or post-award reviews, assessing effectiveness is challenging. The government should continuously evaluate if the services are meeting objectives and explore if smaller, more specialized firms or different approaches could offer better value.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8315 LEE HWY STE 303, FAIRFAX, VA, 11

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline