DoD's $49.5M analysis and support services contract awarded to Schafer Government Services, LLC, lacked competition

Contract Overview

Contract Amount: $49,454,721 ($49.5M)

Contractor: Schafer Government Services, LLC

Awarding Agency: Department of Defense

Start Date: 2011-04-01

End Date: 2016-03-31

Contract Duration: 1,826 days

Daily Burn Rate: $27.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NPP ANALYSIS AND SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $49.5 million to SCHAFER GOVERNMENT SERVICES, LLC for work described as: NPP ANALYSIS AND SUPPORT SERVICES Key points: 1. The contract's value of nearly $50 million over five years suggests a significant investment in specialized analytical and support functions. 2. Awarded on a non-competitive basis, the lack of a competitive bidding process raises questions about potential overpricing and missed opportunities for cost savings. 3. The cost-plus-fixed-fee contract type indicates that contractor profit is guaranteed, potentially disincentivizing cost control. 4. The duration of the contract (1826 days) allowed for a long-term relationship, which can sometimes lead to complacency or reduced urgency in performance. 5. The absence of small business set-aside provisions means that opportunities for smaller, specialized firms were not explicitly prioritized. 6. The contract's focus on 'NPP ANALYSIS AND SUPPORT SERVICES' implies a critical role in defense operations, though the specific nature of 'NPP' is not detailed.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific details on the 'NPP ANALYSIS AND SUPPORT SERVICES' provided. However, the award to a single contractor without competition suggests a potential lack of price discovery. The cost-plus-fixed-fee structure, while common for complex services, can lead to higher overall costs compared to fixed-price contracts if not managed diligently. Without comparable contract data or detailed performance metrics, assessing the true value-for-money is difficult, but the non-competitive nature is a significant red flag.

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. This typically occurs when only one contractor is deemed capable of performing the required services, often due to proprietary technology, unique expertise, or urgent national security needs. The lack of competition means that the government did not benefit from the price reductions and innovation that typically arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure to lower prices. The government also missed an opportunity to explore alternative solutions or more cost-effective approaches that other vendors might have offered.

Public Impact

The primary beneficiaries are likely the Department of Defense agencies requiring specialized analysis and support for their operations. The services delivered are crucial for understanding and potentially mitigating complex threats or operational challenges, though the specifics of 'NPP' are not defined. The geographic impact is centered around the District of Columbia, where the contractor is located and likely where the services are performed or managed. The contract supports a workforce of analysts and support personnel, contributing to specialized employment within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to higher costs for taxpayers.
Cost-plus-fixed-fee contract type offers limited incentive for contractor cost efficiency.
The specific nature of 'NPP ANALYSIS AND SUPPORT SERVICES' is not clearly defined, hindering a full understanding of the contract's scope and necessity.
Long contract duration could potentially reduce urgency and oversight effectiveness over time.

Positive Signals

The contract was awarded to a known entity, Schafer Government Services, LLC, suggesting a level of established capability.
The services provided are critical to defense operations, indicating a potentially high level of importance and impact.
The contract was managed by the Defense Contract Management Agency, implying a degree of established oversight within the DoD.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically related to testing laboratories and services (NAICS 541380). This sector is vital for government operations, providing specialized expertise that agencies may not possess internally. The market for such services is competitive, but specific niche areas like 'NPP ANALYSIS AND SUPPORT SERVICES' might have limited qualified providers. The nearly $50 million awarded over five years places this contract in the mid-to-large size category within this sector for federal spending.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. This means that large businesses, like Schafer Government Services, LLC, were the primary focus for this award. The absence of small business considerations suggests that opportunities for smaller, specialized firms to participate in this particular contract were limited, potentially impacting the broader small business ecosystem within the defense services industry.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. However, the specific oversight mechanisms, accountability measures, and transparency assessments are not detailed in the provided data. Given the sole-source award and cost-plus-fixed-fee structure, robust oversight would be crucial to ensure fair pricing and effective service delivery. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Analysis Services
Government Support Services
Scientific and Technical Consulting
Contract Management Support
Federal IT and Data Analysis

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of defined acronym 'NPP'
Potential for cost overruns due to contract type
Absence of small business participation requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.5 million to SCHAFER GOVERNMENT SERVICES, LLC. NPP ANALYSIS AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SCHAFER GOVERNMENT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $49.5 million.

What is the period of performance?

Start: 2011-04-01. End: 2016-03-31.

What does 'NPP' stand for in the context of this contract, and what specific services were provided?

The provided data does not define the acronym 'NPP'. In the context of federal contracts, 'NPP' could potentially stand for various terms depending on the agency and program, such as 'Nuclear Power Program,' 'National Preparedness Program,' 'Naval Personnel Program,' or other specialized defense-related initiatives. Without this definition, it is impossible to ascertain the precise nature of the 'ANALYSIS AND SUPPORT SERVICES' rendered by Schafer Government Services, LLC. This lack of clarity hinders a thorough assessment of the contract's necessity, scope, and performance. Further investigation into DoD program acronyms or direct inquiry with the contracting agency would be required to understand the specific services and their criticality.

How does the $49.5 million contract value compare to similar analysis and support services contracts within the Department of Defense?

Comparing this $49.5 million contract value requires access to a broader dataset of similar DoD contracts. However, for a five-year period (2011-2016), this amount represents a substantial investment. Contracts for specialized analysis and support services can vary widely in price depending on the complexity, criticality, and duration. Without specific benchmarks for 'NPP ANALYSIS AND SUPPORT SERVICES,' it's difficult to definitively state if this represents high or low spending. However, the fact that it was a sole-source award suggests it might be for a niche capability, potentially justifying a higher price point if truly unique. Further analysis would involve identifying contracts with similar NAICS codes (541380) and service descriptions, ideally also sole-source, to establish a more accurate comparison.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract of this magnitude?

The primary risks associated with a sole-source, cost-plus-fixed-fee (CPFF) contract of this magnitude ($49.5 million) are significant. Firstly, the sole-source nature eliminates competitive pressure, increasing the risk of inflated pricing and reduced value for money. The government does not benefit from the price discovery that competition provides. Secondly, the CPFF structure guarantees the contractor's profit margin regardless of cost efficiency. While it allows for flexibility in scope, it provides minimal incentive for the contractor to control costs, potentially leading to cost overruns. This structure requires robust government oversight to manage costs and ensure performance, which may be challenging if the services are highly technical or the contractor is not fully transparent. The long duration (five years) also adds risk, as market conditions and requirements can change, potentially making the contract less relevant or efficient over time.

What is Schafer Government Services, LLC's track record with the Department of Defense, particularly on similar contracts?

Schafer Government Services, LLC has a history of contracting with the Department of Defense. While the provided data indicates they were awarded this specific $49.5 million contract, a comprehensive track record analysis would require accessing broader federal procurement databases (like FPDS-NG or USASpending.gov). This would reveal the total value of contracts awarded to the company, the types of services rendered, their performance ratings (if available), and any past performance issues or awards. Without this broader context, it's difficult to assess their specific expertise in 'NPP ANALYSIS AND SUPPORT SERVICES' or their general reliability as a DoD contractor. However, being awarded a contract of this size suggests they possess the necessary clearances and capabilities to work with the DoD.

Given the contract's duration and cost, what are the potential implications for program effectiveness and long-term strategic goals?

A five-year, $49.5 million contract for analysis and support services can have significant implications for program effectiveness and long-term strategic goals. If the services provided are critical and consistently high-quality, the long duration allows for deep integration, sustained support, and the development of institutional knowledge within the DoD. This can lead to more effective program execution and better-informed strategic decision-making. However, the sole-source nature and CPFF structure introduce risks. If costs are not managed or if the contractor's focus shifts away from optimal performance due to guaranteed profit, program effectiveness could suffer. Furthermore, if the 'NPP' services are tied to evolving strategic goals, a rigid, long-term contract might hinder adaptability. Regular reviews and performance assessments would be crucial to ensure the contract continues to align with and support the DoD's strategic objectives throughout its term.

What historical spending patterns exist for 'NPP ANALYSIS AND SUPPORT SERVICES' within the DoD, and how does this contract fit?

The provided data does not offer historical spending patterns for 'NPP ANALYSIS AND SUPPORT SERVICES' specifically, nor does it define 'NPP'. To establish historical context, one would need to query federal procurement databases for similar contracts over previous fiscal years. This would involve searching by agency (DoD), service description keywords, and potentially the NAICS code (541380). Understanding past spending would reveal if this $49.5 million award represents an increase, decrease, or consistent level of investment in these types of services. It would also help determine if this is a recurring need or a one-time significant procurement. The fact that this contract was sole-sourced suggests it might be a specialized or unique requirement, potentially indicating a gap in organic capabilities or a specific, long-standing need that was previously met through other means or by different contractors.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA702210R0032

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gryphon Technologies, Inc. (UEI: 081041651)

Address: 101 BILLERICA AVE BLDG 5 STE 201, NORTH BILLERICA, MA, 01862

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,636,451

Exercised Options: $49,636,451

Current Obligation: $49,454,721

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline