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 ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT 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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