Noblis Inc. awarded $231M for advisory and assistance services by the Defense Threat Reduction Agency

Contract Overview

Contract Amount: $231,065,066 ($231.1M)

Contractor: Noblis, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-05-12

End Date: 2026-08-12

Contract Duration: 1,918 days

Daily Burn Rate: $120.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: ADVISORY AND ASSISTANCE SERVICES

Place of Performance

Location: LORTON, FAIRFAX County, VIRGINIA, 22079

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $231.1 million to NOBLIS, INC. for work described as: ADVISORY AND ASSISTANCE SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs if not managed carefully. 3. The duration of the contract is over 1900 days, indicating a long-term need for these services. 4. The base value of the contract is over $120 million, with a potential ceiling of $231 million. 5. The contract is for advisory and assistance services, a broad category that can encompass various support functions. 6. The contractor, Noblis, Inc., has a significant award, implying a strong track record or competitive proposal. 7. The contract is managed by the Defense Threat Reduction Agency, indicating a focus on national security or defense-related support.

Value Assessment

Rating: good

The contract's value of $231 million over approximately five years suggests a substantial investment in advisory and assistance services. Benchmarking this against similar large-scale A&AS contracts within the Department of Defense is crucial for a precise value-for-money assessment. The Cost Plus Award Fee (CPAF) structure allows for performance incentives, which can be beneficial if well-defined and monitored, but also carries the risk of cost overruns if award criteria are too easily met or if the base fee is too high. Without specific performance metrics and award fee payouts, a definitive value assessment is challenging, but the competitive award process provides some assurance of a reasonable initial price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that the agency sought the best value through a competitive process. The number of bids received is not specified, but full and open competition generally leads to a wider range of proposals and potentially more competitive pricing compared to limited or sole-source procurements. This approach allows the government to leverage market forces to achieve better outcomes.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and improves the quality of services received by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are likely components within the Department of Defense requiring specialized advisory and assistance services to support their missions. Services delivered could range from strategic planning and policy development to technical analysis and program management. The geographic impact is primarily within the United States, supporting defense agencies, but could extend globally depending on the nature of the advisory services. Workforce implications may include the direct employment of consultants, analysts, and subject matter experts by Noblis, Inc., and indirectly by supporting subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) contract type can lead to higher costs if award criteria are not rigorously defined and monitored, potentially exceeding the base value.
The long contract duration (over 1900 days) necessitates continuous oversight to ensure ongoing relevance and effectiveness of services.
Advisory and Assistance services are inherently subjective, making objective performance measurement and value assessment challenging without clear metrics.
The broad nature of 'advisory and assistance' could lead to scope creep if not tightly managed, increasing costs and diverting focus.
Reliance on a single contractor for critical advisory functions could create dependency and limit flexibility in adapting to evolving needs.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process that likely secured competitive pricing and a qualified contractor.
Noblis, Inc. is a well-established government contractor with a history of performance, suggesting a lower risk of execution failure.
The Cost Plus Award Fee (CPAF) structure incentivizes high performance, potentially leading to superior service delivery if managed effectively.
The contract's value and duration suggest a significant and ongoing need for the services, indicating strategic importance to the agency.
The specific agency (Defense Threat Reduction Agency) implies the services are critical to national security objectives, suggesting a high level of scrutiny and expected quality.

Sector Analysis

Advisory and Assistance (A&AS) services represent a significant segment of the federal contracting market, particularly within defense and civilian agencies. This sector encompasses a wide range of support functions, from management consulting and scientific research to technical assistance and training. Federal spending on A&AS often reflects agencies' needs for specialized expertise that may not be available in-house or for surge capacity. The total federal spending on A&AS can run into tens of billions of dollars annually. This particular contract fits within the broader engineering and management support services sub-sector, where competition can be intense among established firms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was likely aimed at larger, established firms capable of handling the scope and complexity of the services required. Consequently, there may be limited direct subcontracting opportunities for small businesses unless Noblis, Inc. voluntarily includes them in its subcontracting plan. The absence of a small business set-aside means that the primary competition occurred among large businesses, potentially limiting the direct economic benefit to the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. They are responsible for monitoring contractor performance against the contract's terms, conditions, and performance standards, particularly the award fee criteria. The Inspector General for the Department of Defense may also conduct audits or investigations related to cost, performance, or potential fraud. Transparency is facilitated through contract award databases like FPDS, though detailed performance reports and award fee determinations are typically not public.

Related Government Programs

Defense Threat Reduction Agency Support Services
Department of Defense Management and Consulting Services
Federal Advisory and Assistance Contracts
Engineering and Technical Support Services
Cost Plus Award Fee Contracts

Risk Flags

Potential for cost overruns due to CPAF structure
Difficulty in objectively measuring performance for advisory services
Long contract duration requires sustained oversight
Scope creep risk in broad A&AS requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $231.1 million to NOBLIS, INC.. ADVISORY AND ASSISTANCE SERVICES

Who is the contractor on this award?

The obligated recipient is NOBLIS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $231.1 million.

What is the period of performance?

Start: 2021-05-12. End: 2026-08-12.

What is Noblis, Inc.'s track record with the Department of Defense and specifically with the Defense Threat Reduction Agency?

Noblis, Inc. has a substantial history of contracting with the Department of Defense across various agencies and services. Their portfolio includes work in areas such as research and development, engineering support, cybersecurity, and program management. For the Defense Threat Reduction Agency (DTRA), Noblis has previously been awarded contracts related to scientific and technical support, threat reduction initiatives, and operational support. A review of federal procurement data indicates multiple awards to Noblis from DTRA over several years, suggesting a consistent and established relationship. This long-standing engagement implies a level of trust and proven capability in meeting DTRA's complex requirements, although specific performance details for past contracts would require deeper analysis of performance evaluations and award fee data.

How does the awarded value of $231 million compare to similar advisory and assistance contracts within the DoD?

The $231 million ceiling for this five-year contract places it in the category of large-scale advisory and assistance (A&AS) procurements within the Department of Defense. Many DoD A&AS contracts, especially those supporting major commands or strategic initiatives, can range from tens to hundreds of millions of dollars. For instance, contracts for program management support, strategic planning, or specialized technical analysis for entities like the Army, Navy, or Air Force often fall within this value range. The Defense Threat Reduction Agency (DTRA) itself engages in significant contracting for its specialized mission. While $231 million is substantial, it is not an outlier for a multi-year, comprehensive A&AS requirement within the DoD, especially when considering the potential for award fee incentives to drive the total value up.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude revolve around cost control and performance measurement. For the government, the risk is that the contractor may incur costs that are not reasonable or necessary, or that the award fee criteria are not sufficiently stringent, leading to higher-than-expected total costs without a commensurate increase in value. Contractors are reimbursed for allowable costs plus a fee that is composed of a fixed base fee plus a variable award fee. The award fee is intended to incentivize superior performance. However, if the criteria for earning the award fee are poorly defined, subjective, or easily met, the government might end up paying a significant award fee for performance that is merely adequate rather than truly exceptional. Continuous monitoring, clear performance metrics, and objective evaluation processes are critical to mitigating these risks.

What is the typical duration for large-scale advisory and assistance contracts awarded by the Defense Threat Reduction Agency?

Large-scale advisory and assistance (A&AS) contracts awarded by the Defense Threat Reduction Agency (DTRA) often have durations of several years, reflecting the long-term nature of the agency's mission and the complexity of the support required. Contracts can be awarded with base periods of one to five years, often with multiple option periods that, if exercised, can extend the total performance period significantly. A total duration of around 1918 days (approximately 5.25 years), as seen in this contract, is quite common for substantial A&AS requirements. This allows for continuity of services, knowledge retention, and the development of deep expertise within the contractor team supporting DTRA's unique operational and strategic needs.

How does the NAICS code 541330 (Engineering Services) align with 'Advisory and Assistance Services'?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' can indeed encompass aspects of 'Advisory and Assistance Services' (A&AS), particularly when the advisory support involves significant technical or engineering expertise. Engineering services firms often provide consulting, analysis, design, and technical support that falls under the broad umbrella of A&AS. For example, providing advice on complex defense systems, analyzing technical requirements, or assisting in program management for engineering-intensive projects would be classified under engineering services but function as A&AS. The government often uses specific NAICS codes that best describe the primary nature of the work, even if the contract is broadly categorized as A&AS. In this case, the engineering focus suggests the advisory services are heavily rooted in technical and scientific domains relevant to DTRA's mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA120R0001

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 2002 EDMUND HALLEY DRIVE, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $277,818,826

Exercised Options: $251,746,315

Current Obligation: $231,065,066

Actual Outlays: $103,893,405

Subaward Activity

Number of Subawards: 67

Total Subaward Amount: $156,696,899

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU143

IDV Type: IDC

Timeline