Department of Defense awarded $32.9M to Al Raha Group for printing services, with limited competition

Contract Overview

Contract Amount: $32,916,524 ($32.9M)

Contractor: AL Raha Group for Technical S Ervices

Awarding Agency: Department of Defense

Start Date: 2014-06-01

End Date: 2017-11-30

Contract Duration: 1,278 days

Daily Burn Rate: $25.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF PRINT PLANT (PP) AND PRINT ON DEMAND (POD)

Plain-Language Summary

Department of Defense obligated $32.9 million to AL RAHA GROUP FOR TECHNICAL S ERVICES for work described as: IGF::OT::IGF PRINT PLANT (PP) AND PRINT ON DEMAND (POD) Key points: 1. The contract value of $32.9M for printing services represents a significant investment in supporting defense operations. 2. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the extent of market research and potential for better pricing. 3. The contract duration of 1278 days (over 3 years) indicates a long-term need for these printing services. 4. The firm fixed-price contract type suggests that cost risks are primarily borne by the contractor. 5. The absence of small business set-aside flags indicates this contract was not specifically targeted to boost small business participation. 6. The specific NAICS code (511130 - Book Publishers) suggests a focus on publishing-related printing, which may or may not align with broader defense needs.

Value Assessment

Rating: questionable

Benchmarking the value of this $32.9M contract is challenging without more specific details on the printing services rendered. However, the limited competition aspect suggests that the government may not have achieved the most favorable pricing. Comparing it to similar large-scale printing contracts within the federal government would be necessary to determine if the per-unit costs or overall value were competitive. The lack of transparency in the procurement process makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' status, indicating that the solicitation was not broadly advertised or competed among multiple vendors. This typically occurs when only one source is capable of meeting the requirement, or for other specific justifications. The limited competition means there were likely no other bidders, which can lead to higher prices and reduced innovation compared to an open market approach.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. Without multiple offers, the government had less leverage to negotiate favorable terms and pricing, potentially resulting in a less efficient use of public funds.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential printing and publishing services. Services delivered likely include the production of official documents, manuals, reports, and potentially other printed materials critical for military operations and administration. The geographic impact is likely concentrated where the Department of Defense has significant operational presence, though the printing itself may be centralized. Workforce implications could involve jobs within the contractor's organization and potentially within the DoD for managing and distributing printed materials.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Limited transparency in the procurement process hinders value assessment.
The 'NOT AVAILABLE FOR COMPETITION' status warrants further investigation into the justification.
Potential for vendor lock-in due to limited sourcing options.
Unclear if the services procured align with the most cost-effective solutions available in the market.

Positive Signals

The contract is firm fixed-price, which shifts cost overrun risks to the contractor.
The contract duration suggests a stable, long-term need being met.
The award to Al Raha Group indicates a recognized capability in providing these services.
The specific NAICS code provides some clarity on the nature of the services.

Sector Analysis

The printing and publishing industry (NAICS 511130) is a mature sector. Federal spending in this area supports various government functions, from administrative documentation to operational manuals. While digital solutions are increasingly prevalent, traditional printing remains essential for certain government needs. The market size for federal printing contracts can be substantial, but often fragmented across agencies and specific service types. This contract represents a significant portion of spending within a niche of this sector, potentially related to specialized defense publications.

Small Business Impact

The contract details indicate that this was not a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated for small businesses through this specific award. The absence of set-aside provisions means that larger, established companies were likely the primary focus or sole source for this procurement, potentially limiting opportunities for small businesses to participate in this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is limited due to the non-competitive award, making it difficult for the public to assess the full scope of oversight and accountability without further investigation.

Related Government Programs

Department of Defense Printing Services
Federal Publishing Contracts
Government Document Production
Defense Logistics Agency Support Services

Risk Flags

Limited competition raises concerns about price fairness.
Lack of detailed justification for sole-source award.
Potential for above-market pricing due to lack of competition.
Limited public information on contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.9 million to AL RAHA GROUP FOR TECHNICAL S ERVICES. IGF::OT::IGF PRINT PLANT (PP) AND PRINT ON DEMAND (POD)

Who is the contractor on this award?

The obligated recipient is AL RAHA GROUP FOR TECHNICAL S ERVICES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.9 million.

What is the period of performance?

Start: 2014-06-01. End: 2017-11-30.

What specific types of printing services were procured under this contract, and how do they align with the 'Book Publishers' NAICS code?

The provided data lists the NAICS code as 511130, 'Book Publishers.' However, the contract description is 'IGF::OT::IGF PRINT PLANT (PP) AND PRINT ON DEMAND (POD).' This suggests the services might extend beyond traditional book publishing to include broader print plant operations and on-demand printing for various defense-related materials. These could encompass manuals, reports, forms, and other official documents. Without a more detailed statement of work, it's difficult to ascertain the precise mix of services and how they precisely map to the book publishing classification. It's possible the contractor has capabilities that span both areas, or that the classification is a broad fit for the primary function.

What was the justification for awarding this contract on a 'NOT AVAILABLE FOR COMPETITION' basis?

The justification for a 'NOT AVAILABLE FOR COMPETITION' (sole-source) award is critical for understanding the procurement's integrity. Common reasons include: only one responsible source exists with the unique capability to meet the requirement, or the agency has urgent, compelling needs that preclude full and open competition. For this Department of Defense contract, the specific justification would need to be documented and publicly accessible (e.g., through a Justification and Approval document). Without this documentation, it remains a significant question mark regarding whether competition was genuinely impossible or if it was simply not pursued effectively, potentially leading to suboptimal value for taxpayers.

How does the $32.9 million contract value compare to historical spending on similar printing services by the Department of Defense?

Comparing this $32.9 million contract to historical spending requires access to historical contract data for similar printing and publishing services procured by the Department of Defense. Without that specific data, it's difficult to establish a benchmark. However, given the duration of over three years (1278 days), the annual spending averages around $8.2 million. This figure needs to be contextualized against the scale and nature of DoD's printing needs. If historical spending on comparable services was significantly lower or higher, it would indicate whether this contract represents an increase or decrease in investment, and whether the pricing structure is consistent with past trends, adjusted for inflation and scope.

What are the potential risks associated with a sole-source award for essential printing services?

Sole-source awards for essential services like printing carry several risks. Primarily, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most competitive rates. This can result in a less efficient use of taxpayer funds. Secondly, it can stifle innovation, as there's less incentive for the contractor to develop more cost-effective or technologically advanced solutions. Thirdly, it creates a dependency on a single vendor, which can be problematic if the vendor experiences performance issues, financial instability, or decides to discontinue services. Finally, it reduces transparency and makes it harder for the government and the public to verify that fair market value was obtained.

What is the track record of Al Raha Group for Technical Services in fulfilling federal contracts, particularly within the defense sector?

Information regarding Al Raha Group for Technical Services' track record with federal contracts, especially within the defense sector, is not detailed in the provided data. A thorough assessment would require examining their past performance on similar contracts, including client satisfaction, on-time delivery rates, adherence to specifications, and any history of disputes or contract terminations. Without this performance history, it's challenging to fully evaluate their reliability and capability in executing this $32.9 million printing services contract. Further research into federal procurement databases and past performance reviews would be necessary.

Given the firm fixed-price nature, what is the contractor's potential exposure to financial loss on this contract?

Under a Firm Fixed-Price (FFP) contract, the contractor, Al Raha Group for Technical Services, bears the primary responsibility for all costs incurred to complete the work. If their actual costs exceed the agreed-upon fixed price, they absorb the loss. Conversely, if their costs are lower than anticipated, they retain the profit. This contract type offers the government price certainty. However, the contractor's exposure to financial loss is directly tied to their ability to accurately estimate costs, manage resources efficiently, and control unforeseen expenses throughout the contract's duration. The longer duration (1278 days) increases the potential for cost fluctuations due to market changes (e.g., paper, ink, labor costs).

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › Book Publishers

Product/Service Code: PHOTO, MAP, PRINT, PUBLICATION › PHOTOGR, MAPPING, PRINTING, PUBLISH

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BUILDING 40 PRINCE FAWWAZ BIN, RIYADH

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $32,916,524

Exercised Options: $32,916,524

Current Obligation: $32,916,524

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline