Department of Defense awards $20.5M for consolidated support services to Anadarko Industries, L.L.C

Contract Overview

Contract Amount: $20,535,822 ($20.5M)

Contractor: Anadarko Industries, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2007-09-01

End Date: 2012-03-31

Contract Duration: 1,673 days

Daily Burn Rate: $12.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONSOLIDATED SUPPORT FOR AFOSR (CSA)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to ANADARKO INDUSTRIES, L.L.C. for work described as: CONSOLIDATED SUPPORT FOR AFOSR (CSA) Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Services include office administrative support, indicating a focus on operational efficiency. 3. The contract duration of over 4 years suggests a long-term need for these services. 4. Awarded by the Department of the Air Force, aligning with defense sector needs. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparable contract data. The total award amount of $20.5 million over approximately 4.5 years averages to roughly $4.5 million annually. This figure needs to be assessed against the scope and complexity of the administrative services provided. Given the sole-source nature, it's difficult to definitively assess if the pricing represents optimal value for money compared to a competitive environment. Further analysis would require understanding the specific deliverables and market rates for similar administrative support functions within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the agency determined that only one source could fulfill the requirement. This typically occurs when there are unique capabilities, urgent needs, or specific circumstances that preclude a competitive solicitation. The lack of competition means that price discovery through market forces was not leveraged, potentially leading to higher costs than if multiple bidders had vied for the contract. The justification for this sole-source award would need to be thoroughly reviewed to ensure it was appropriate.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the agency did not solicit bids from multiple vendors. This can result in a higher overall expenditure for the government compared to a fully competed contract.

Public Impact

The primary beneficiaries are likely the Department of the Air Force, which receives essential administrative support to facilitate its operations. Services delivered include office administrative functions, crucial for the day-to-day functioning of military and civilian personnel. The geographic impact is centered within the Department of Defense's operational areas, primarily in Virginia where the contractor is located. Workforce implications include the employment of personnel by Anadarko Industries, L.L.C. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if not closely managed due to limited competition.
Contract duration may lock in services without periodic re-evaluation of market alternatives.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Long-term contract provides stability and continuity of essential administrative services.
Award to a single entity can streamline management and oversight for the agency.

Sector Analysis

The administrative services sector is a broad category encompassing a wide range of support functions essential to government operations. This contract falls under the professional, scientific, and technical services industry. The market for these services is highly competitive, with numerous firms offering administrative support. However, specific government contracts, especially those requiring specialized knowledge or security clearances, can sometimes lead to limited competition. Benchmarking this contract's value requires comparison with similar administrative support contracts awarded by federal agencies, considering factors like service scope, duration, and location.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The absence of small business participation goals means that opportunities for small businesses to contribute to this specific contract are limited. This could potentially reduce the overall impact on the small business ecosystem for this particular procurement, as larger prime contractors are often better positioned to absorb the administrative overhead of managing subcontracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be defined by the contract's performance work statement and terms. Transparency is limited due to the sole-source nature of the award, as the justification for not competing the contract is not publicly detailed. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule Contracts
Department of Defense Administrative Support Contracts
Office Administrative Services (NAICS 561110) Procurements

Risk Flags

Sole-source award
Lack of competition
Potential for uncompetitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to ANADARKO INDUSTRIES, L.L.C.. CONSOLIDATED SUPPORT FOR AFOSR (CSA)

Who is the contractor on this award?

The obligated recipient is ANADARKO INDUSTRIES, L.L.C..

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 $20.5 million.

What is the period of performance?

Start: 2007-09-01. End: 2012-03-31.

What specific administrative services are covered under this contract, and how do they align with the Air Force's operational needs?

The provided data indicates the contract covers 'Office Administrative Services' under NAICS code 561110. This typically includes a range of support functions such as general office management, record keeping, scheduling, correspondence, and potentially human resources or financial administration support. The alignment with the Air Force's operational needs would depend on the specific tasks outlined in the Performance Work Statement (PWS). Without the PWS, it's difficult to ascertain the precise services and their criticality. However, administrative support is fundamental to the functioning of any large organization, including military branches, by ensuring smooth day-to-day operations, facilitating communication, and managing essential documentation and logistics.

How does the $20.5 million award amount compare to similar administrative support contracts within the Department of Defense?

Comparing this $20.5 million award requires context regarding the contract's duration and scope. The contract spans approximately 4.5 years (from September 2007 to March 2012), averaging around $4.5 million per year. Benchmarking this against similar administrative support contracts within the DoD is challenging without access to a comprehensive database of comparable contracts, including their specific services, performance periods, and geographic locations. However, for large-scale administrative support functions within a major military branch, an annual spend in the millions is not uncommon. The key is to evaluate if the services provided justify this expenditure relative to market rates and the outcomes achieved.

What were the specific justifications for awarding this contract on a sole-source basis, and were alternative sources considered?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source award. The specific justifications for such an award typically fall under exceptions to full and open competition, such as the existence of only one responsible source, urgent and compelling needs, or specific national security requirements. Without the official Justification and Approval (J&A) document, the precise reasons remain unknown. Agencies are required to document these justifications thoroughly. It is presumed that the Department of the Air Force followed its procurement regulations in determining that competition was not feasible or practicable for this requirement, though the details of this determination are not provided.

What is the track record of Anadarko Industries, L.L.C. in performing federal contracts, particularly those involving administrative services?

Information regarding Anadarko Industries, L.L.C.'s specific track record with federal contracts, especially concerning administrative services, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards, and any history of contract disputes or successes. Given this is a sole-source award, it might imply a pre-existing relationship or a unique capability that the agency deemed necessary. Further investigation into the company's federal contracting history would be needed to fully evaluate their performance reliability and expertise in delivering administrative support services.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

Sole-source contracts, especially those of significant value and duration like this $20.5 million award over 4.5 years, carry inherent risks. The primary risk is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to innovate or optimize service delivery. There's also a risk of vendor lock-in, where the agency becomes dependent on a single provider, making it difficult to switch even if performance issues arise or better alternatives become available. Furthermore, without the vetting process of a competitive bid, there's a potential, albeit not guaranteed, risk of selecting a contractor whose capabilities might not be as robust as those of other potential bidders. Robust oversight and performance management are crucial to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

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

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: 17625 EL CAMINO REAL STE 410, HOUSTON, TX, 90

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,993,894

Exercised Options: $20,579,068

Current Obligation: $20,535,822

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: NO

Timeline