DoD's Special Operations Command awards $39.7M for training readiness and travel services to Compass Point LLC
Contract Overview
Contract Amount: $39,734,447 ($39.7M)
Contractor: Compass Point LLC
Awarding Agency: Department of Defense
Start Date: 2023-03-01
End Date: 2026-02-28
Contract Duration: 1,095 days
Daily Burn Rate: $36.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LABOR - TRAINING READINESS & MISSION AND TRAVEL CLINS
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $39.7 million to COMPASS POINT LLC for work described as: LABOR - TRAINING READINESS & MISSION AND TRAVEL CLINS Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. The contract value is substantial, requiring careful oversight. 3. Focus on training readiness and travel suggests critical operational support. 4. The IT sector (Custom Computer Programming Services) is a key area of spending.
Value Assessment
Rating: questionable
The contract is a definitive contract with a firm fixed price, which is standard. However, without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This limits price discovery and potentially leads to higher costs than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive pricing, potentially resulting in a less efficient use of resources.
Public Impact
Special Operations Command relies on these services for critical readiness and mission support. The duration of the contract (3 years) indicates a long-term need for these services. The lack of competition may impact the availability of innovative solutions from other vendors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to limited bidding
Positive Signals
- Firm fixed price contract provides cost certainty
- Supports critical Special Operations Command missions
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is common across government agencies, but the lack of competition here is notable.
Small Business Impact
The contract was not awarded to a small business, as indicated by 'sb': false. This means opportunities for small business participation were not prioritized in this specific award.
Oversight & Accountability
The definitive contract structure and firm fixed price suggest some level of oversight. However, the limited competition warrants increased scrutiny to ensure value for money.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns
- Limited transparency in justification
Tags
custom-computer-programming-services, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.7 million to COMPASS POINT LLC. LABOR - TRAINING READINESS & MISSION AND TRAVEL CLINS
Who is the contractor on this award?
The obligated recipient is COMPASS POINT LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $39.7 million.
What is the period of performance?
Start: 2023-03-01. End: 2026-02-28.
What specific factors justified the 'NOT AVAILABLE FOR COMPETITION' determination for this significant contract?
The justification for a 'NOT AVAILABLE FOR COMPETITION' award typically stems from unique capabilities, urgent needs, or the unavailability of other sources. Without further details from the contracting agency, it's impossible to ascertain the precise reasons. This lack of transparency hinders a full assessment of the procurement's legitimacy and potential for better pricing.
How does the government ensure fair pricing when a contract is awarded without full and open competition?
When full and open competition is not feasible, agencies rely on various methods to ensure fair and reasonable pricing. This includes conducting market research, obtaining cost or pricing data from the contractor, using historical pricing data from similar contracts, and negotiating aggressively. However, the absence of competing bids inherently limits the government's leverage in price discovery.
What is the potential long-term impact on mission effectiveness if the chosen vendor's services are not cost-effective?
If the services provided by Compass Point LLC are not cost-effective due to the lack of competition, it could lead to budget overruns or reduced scope in other critical areas. This might indirectly impact mission effectiveness by diverting funds or resources. Furthermore, a lack of competitive pressure could stifle innovation, potentially leaving the Special Operations Command with less advanced solutions over time.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT
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: 2553 DULLES VIEW DR, HERNDON, VA, 20171
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,413,190
Exercised Options: $39,734,447
Current Obligation: $39,734,447
Actual Outlays: $359,592
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-03-01
Current End Date: 2026-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2025-12-23
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