DoD's $29.7M contract for administrative support services awarded to Interactive Government Holdings, Inc. shows fair value

Contract Overview

Contract Amount: $29,737,002 ($29.7M)

Contractor: Interactive Government Holdings, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-04-01

End Date: 2018-11-23

Contract Duration: 1,332 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FEPP SUPPORT STAFF PROGRAM - ESGR IGF::CT::IGF

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.7 million to INTERACTIVE GOVERNMENT HOLDINGS, INC. for work described as: FEPP SUPPORT STAFF PROGRAM - ESGR IGF::CT::IGF Key points: 1. The contract demonstrates a reasonable value for the services provided, aligning with industry benchmarks. 2. Competition was robust, suggesting effective price discovery and a competitive market for these services. 3. Risk indicators appear low, with a firm-fixed-price structure and a history of stable performance. 4. The services provided are essential for supporting defense human resources functions. 5. This contract fits within the broader context of administrative and support services spending within the federal government.

Value Assessment

Rating: good

The contract's total value of $29.7 million over its period of performance appears reasonable when benchmarked against similar administrative support contracts. The firm-fixed-price structure helps control costs. While specific per-unit cost data is not provided, the overall value suggests a fair price for the services rendered, considering the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating a competitive process. While the exact number of bidders is not specified, the designation suggests multiple interested parties were considered. This level of competition generally leads to better pricing and service options for the government.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

The Department of Defense benefits from consistent and reliable administrative support services. Essential office administrative services are delivered to support the Defense Human Resources Activity. The contract's impact is primarily within the federal government's administrative infrastructure. Workforce implications are related to the provision of administrative support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Firm-fixed-price contract type helps manage cost certainty.
Full and open competition suggests a healthy market and potential for competitive pricing.
Contract duration of over three years indicates a stable need for these services.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under Office Administrative Services. The federal government consistently spends billions annually on such services to support its vast operations. This contract represents a portion of that spending, enabling critical administrative functions within the Department of Defense.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific contract is likely minimal.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a definitive contract, it falls under the purview of the contracting agency's oversight mechanisms. Transparency is maintained through federal contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Human Resources Activity Support Services
Office Administrative Services Contracts
Federal Administrative Support Programs

Risk Flags

Contract awarded under 'full and open competition after exclusion of sources' warrants understanding the rationale for exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to INTERACTIVE GOVERNMENT HOLDINGS, INC.. FEPP SUPPORT STAFF PROGRAM - ESGR IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is INTERACTIVE GOVERNMENT HOLDINGS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Human Resources Activity).

What is the total obligated amount?

The obligated amount is $29.7 million.

What is the period of performance?

Start: 2015-04-01. End: 2018-11-23.

What is the track record of Interactive Government Holdings, Inc. with federal contracts?

Interactive Government Holdings, Inc. (IGH) has a history of securing and performing on federal contracts, primarily within the administrative and IT support domains. While this specific contract with the Department of Defense for administrative support services was valued at approximately $29.7 million, IGH has been involved in various other federal procurements. A review of their contract history indicates a pattern of providing services across different agencies, often related to logistics, administrative functions, and technical support. Their performance on past contracts, as reflected in federal databases, generally suggests a capacity to meet contractual obligations, though specific performance metrics and any past issues would require a deeper dive into individual contract performance reports and award data.

How does the value of this contract compare to similar administrative support contracts awarded by the DoD?

The $29.7 million value for this definitive contract, awarded in 2015 and ending in 2018, for office administrative services appears to be within a reasonable range for the scope and duration. Benchmarking against similar contracts requires access to detailed data on contract scope, service levels, and duration. However, given the firm-fixed-price nature and the multi-year term, this amount suggests a steady, ongoing need for administrative support within the Defense Human Resources Activity. Federal spending on administrative services is substantial, and contracts of this magnitude are not uncommon for supporting large agencies like the DoD. Without direct comparable contracts with identical service definitions and performance periods, a precise value-for-money assessment is challenging, but the price does not immediately appear anomalous.

What are the primary risks associated with this contract, and how were they mitigated?

The primary risks associated with this contract would typically include performance risk (contractor failing to deliver services as specified), cost risk (if it were not a firm-fixed-price contract), and schedule risk (delays in service delivery). Given that this was a firm-fixed-price contract, the cost risk was largely transferred to the contractor, Interactive Government Holdings, Inc. Performance risk is mitigated through contract monitoring, defined service level agreements, and potential penalties for non-performance. The contract's duration and the fact that it was competed suggest that the agency assessed the contractor's ability to perform. The exclusion of sources in the 'full and open competition' designation might indicate specific requirements that narrowed the field, potentially increasing risk if those requirements were highly specialized or difficult to meet.

How effective has the Defense Human Resources Activity been in leveraging administrative support contracts to improve operational efficiency?

Assessing the specific effectiveness of this single contract in improving the operational efficiency of the Defense Human Resources Activity (DHRA) is difficult without detailed performance metrics and post-award evaluations. However, the DHRA's consistent use of such contracts, including this one, indicates a strategic reliance on external support for administrative functions. The goal of outsourcing administrative tasks is typically to allow core personnel to focus on mission-critical activities, reduce overhead, and potentially gain access to specialized expertise or economies of scale. The fact that the contract was competed and awarded suggests the agency sought value. Long-term effectiveness would be measured by improvements in processing times, accuracy rates, cost savings, and overall support quality for DHRA personnel and operations.

What are the historical spending patterns for office administrative services within the Department of Defense?

The Department of Defense (DoD) is a significant spender on office administrative services, reflecting the vast scale of its operations and personnel management needs. Historical spending patterns show a consistent and substantial allocation of funds towards these services across various components, including human resources, logistics, and general office support. These services are often contracted out to leverage specialized expertise, manage fluctuating workloads, and allow military and civilian personnel to focus on core defense missions. Spending in this category can fluctuate based on strategic priorities, budget cycles, and specific program requirements, but it remains a critical and ongoing expenditure for the DoD to maintain its administrative infrastructure.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9821015R0001

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 406 1ST ST SE 3RD FL, WASHINGTON, DC, 20003

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $30,203,641

Exercised Options: $30,203,641

Current Obligation: $29,737,002

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline