DoD's $33.6M Teleproduction Contract to TOWNE GROUP INC. Shows Fair Value Amidst Limited Competition
Contract Overview
Contract Amount: $33,562,944 ($33.6M)
Contractor: Towne Group Inc.
Awarding Agency: Department of Defense
Start Date: 2009-03-19
End Date: 2014-03-31
Contract Duration: 1,838 days
Daily Burn Rate: $18.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASIC SERVICE - BASE PERIOD
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $33.6 million to TOWNE GROUP INC. for work described as: BASIC SERVICE - BASE PERIOD Key points: 1. The contract's value appears reasonable when benchmarked against similar services, suggesting efficient use of funds. 2. Competition was limited, raising questions about potential price discovery and optimal value for taxpayers. 3. The contractor, TOWNE GROUP INC., has a history with the agency, indicating a degree of established performance. 4. This contract falls within the broader 'Teleproduction and Postproduction Services' sector, a common need for defense media. 5. The firm fixed-price structure provides cost certainty for the government. 6. The duration of the contract suggests a sustained need for these specialized services.
Value Assessment
Rating: good
The contract's total value of approximately $33.6 million over its period of performance appears to be within a reasonable range when compared to industry benchmarks for teleproduction and postproduction services. While specific comparable contracts are not detailed here, the nature of the services suggests a standard market rate. The firm fixed-price contract type helps manage costs, and the absence of significant modifications or overruns would further support a 'good' value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. The presence of 5 bidders suggests a degree of market interest, but the exclusion of sources limits the breadth of competition. This level of competition may not have driven the absolute lowest price possible, but it likely prevented significantly inflated costs.
Taxpayer Impact: Limited competition means taxpayers may not have benefited from the most aggressive pricing that a fully open and unrestricted bidding process could have yielded.
Public Impact
The Department of Defense benefits from specialized teleproduction and postproduction services, crucial for communication and training. Services delivered likely include video editing, audio mixing, graphics creation, and potentially live broadcast support. The geographic impact is primarily within the agency's operational sphere, likely supporting national defense communication efforts. The contract supports a workforce skilled in media production and postproduction technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could lead to higher prices than a fully open process.
- Reliance on a single contractor for an extended period may reduce future competitive pressure.
- The specific reasons for excluding certain sources are not detailed, raising potential transparency concerns.
Positive Signals
- The firm fixed-price contract provides budget predictability.
- The contractor has a history with the agency, suggesting familiarity and potentially smoother execution.
- The award was made under a competitive process, even if limited.
Sector Analysis
The teleproduction and postproduction services sector is vital for government agencies, particularly in defense and public outreach, for creating training materials, public service announcements, and internal communications. The market includes a range of companies from small specialized firms to larger media conglomerates. This contract represents a significant investment within this niche, reflecting the ongoing need for high-quality media content creation and management by the Department of Defense.
Small Business Impact
There is no indication that this contract included specific small business set-asides. The 'full and open competition after exclusion of sources' award type suggests larger prime contractors were likely the primary focus. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.
Oversight & Accountability
The contract falls under the purview of the Department of Defense's contracting oversight. Accountability is managed through contract performance monitoring and adherence to the firm fixed-price terms. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Media Activity Contracts
- Teleproduction Services
- Postproduction Services
- Department of Defense Media Support
- Government Video Production
Risk Flags
- Limited Competition
- Potential for Price Inflation
- Contract Duration
Tags
defense, department-of-defense, teleproduction, postproduction, firm-fixed-price, limited-competition, virginia, media-services, ict-services, historical-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.6 million to TOWNE GROUP INC.. BASIC SERVICE - BASE PERIOD
Who is the contractor on this award?
The obligated recipient is TOWNE GROUP INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Media Activity).
What is the total obligated amount?
The obligated amount is $33.6 million.
What is the period of performance?
Start: 2009-03-19. End: 2014-03-31.
What is the track record of TOWNE GROUP INC. with the Department of Defense?
TOWNE GROUP INC. has a history of contracts with the Department of Defense, including this significant award for teleproduction and postproduction services. The provided data indicates this contract (ID: DCA) was awarded in 2009 and ran through 2014. While specific performance metrics or past issues are not detailed here, the agency's decision to award them this contract suggests a level of satisfaction or perceived capability based on prior interactions or their proposal. Further investigation into their contract history, including any past performance reviews or disputes, would provide a more comprehensive understanding of their track record.
How does the value of this contract compare to similar teleproduction services procured by the government?
Benchmarking this $33.6 million contract requires comparing it to similar teleproduction and postproduction service contracts awarded by government agencies over a comparable timeframe (2009-2014). Factors such as the scope of services (e.g., editing, graphics, sound, live production), duration, and specific technical requirements heavily influence pricing. Without access to a detailed database of comparable contracts with granular service descriptions, a precise comparison is difficult. However, for a multi-year, large-scale contract supporting a major agency like the DoD, this value appears within a plausible range, suggesting fair market pricing, though potentially not the absolute lowest achievable due to the limited competition.
What are the primary risks associated with this type of contract?
The primary risks associated with this firm fixed-price contract for teleproduction services include: 1) Scope Creep: If the government's requirements evolve significantly beyond the initial scope, managing changes under a fixed price can lead to disputes or require costly modifications. 2) Contractor Performance: The risk that TOWNE GROUP INC. may not deliver services to the required quality standards or on schedule, impacting the DoD's media output. 3) Limited Competition: As noted, the 'limited' competition aspect carries the risk of paying a premium compared to what might have been achieved in a more open market. 4) Technological Obsolescence: The rapid pace of change in media technology means the services or equipment used might become outdated during the contract's long duration.
How effective is the 'full and open competition after exclusion of sources' method for this type of service?
The effectiveness of 'full and open competition after exclusion of sources' is context-dependent. For specialized services like teleproduction, where a limited number of firms possess the required expertise and equipment, this method can be a pragmatic approach. It ensures a competitive process while acknowledging market realities. However, the 'exclusion of sources' element inherently limits the pool of potential bidders. If the exclusions were not justified by clear technical or capability reasons, it could stifle innovation and lead to suboptimal pricing for the government. Its effectiveness hinges on whether the excluded sources were genuinely incapable or if their exclusion was arbitrary.
What are the historical spending patterns for teleproduction services within the Department of Defense?
Historical spending patterns for teleproduction services within the Department of Defense typically show a consistent need driven by requirements for training, public affairs, intelligence dissemination, and operational communications. Spending levels can fluctuate based on global events, shifts in military strategy, and budget allocations. Contracts in this area often range from smaller, project-specific awards to larger, multi-year IDIQ (Indefinite Delivery, Indefinite Quantity) vehicles or large fixed-price contracts like the one awarded to TOWNE GROUP INC. The DoD's reliance on visual and audio media for diverse functions suggests that spending in this category remains a significant and ongoing component of its procurement portfolio.
Industry Classification
NAICS: Information › Motion Picture and Video Industries › Teleproduction and Other Postproduction Services
Product/Service Code: PHOTO, MAP, PRINT, PUBLICATION › PHOTOGR, MAPPING, PRINTING, PUBLISH
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ002809R0006
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7355 HIDDEN COVE, COLUMBIA, MD, 03
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $36,438,319
Exercised Options: $35,695,438
Current Obligation: $33,562,944
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-03-19
Current End Date: 2014-03-31
Potential End Date: 2014-03-31 00:00:00
Last Modified: 2014-03-06
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