DoD's $31.1M program management support contract awarded to Systems Planning and Analysis, Inc. shows fair value

Contract Overview

Contract Amount: $31,109,890 ($31.1M)

Contractor: Systems Planning and Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-06-29

End Date: 2016-06-28

Contract Duration: 1,826 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROGRAM MANAGEMENT SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: PROGRAM MANAGEMENT SUPPORT Key points: 1. The contract demonstrates a reasonable value for program management support services, aligning with industry benchmarks. 2. Competition was robust, suggesting effective price discovery and a competitive market for these specialized services. 3. The fixed-price contract structure mitigates cost overrun risks for the government. 4. Performance duration of five years indicates a stable, long-term need for these critical support functions. 5. The contract falls within the administrative management and general management consulting services sector, a common area for federal support. 6. No small business set-aside was utilized, indicating a focus on prime contractor capabilities.

Value Assessment

Rating: fair

The contract's total value of approximately $31.1 million over five years suggests a fair price for comprehensive program management support. Benchmarking against similar contracts for administrative and management consulting services indicates that the per-year cost is within expected ranges for specialized federal support. The firm fixed-price nature of the award further supports value by capping government liability and incentivizing contractor efficiency.

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 broadly suggests a healthy market for these services and likely resulted in competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation implies multiple interested parties.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best possible value from a wide pool of qualified contractors.

Public Impact

The Department of Defense benefits from enhanced program management capabilities, leading to more efficient execution of its initiatives. Services delivered include critical administrative and general management consulting, supporting the operational effectiveness of defense programs. The contract's primary geographic impact is likely within the Washington D.C. metropolitan area, given the agency and location of the award. The contract supports a workforce skilled in program management and administrative support, contributing to specialized federal employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical program management functions could pose a risk if performance degrades.
The broad scope of 'program management support' could lead to scope creep if not tightly managed.

Positive Signals

Firm fixed-price contract limits financial risk for the government.
Full and open competition suggests a competitive environment that should drive quality and efficiency.
Long-term contract duration (5 years) provides stability and continuity for essential support services.
Awarded to a single entity, potentially allowing for deep integration and understanding of specific program needs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under administrative management and general management consulting services. This sector is crucial for government operations, providing expertise that agencies often lack internally. Spending in this category is substantial across federal agencies, supporting a wide array of program management, strategic planning, and operational efficiency initiatives. Comparable contracts often range from a few million to tens of millions of dollars annually, depending on the scope and duration.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it indicate specific subcontracting goals for small businesses. This suggests that the primary focus was on securing the most capable prime contractor, potentially overlooking opportunities to engage smaller firms directly. The absence of set-aside provisions means that small businesses would likely need to compete as subcontractors to the prime awardee.

Oversight & Accountability

Oversight for this contract would typically be managed by the Washington Headquarters Services (WHS) within the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. The Inspector General's office within the DoD would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Management and Administrative Support Contracts
Federal Consulting Services Contracts
Program Management Support Services
Washington Headquarters Services Contracts

Risk Flags

Potential for vendor lock-in
Reliance on single contractor
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to SYSTEMS PLANNING AND ANALYSIS, INC.. PROGRAM MANAGEMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is SYSTEMS PLANNING AND ANALYSIS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $31.1 million.

What is the period of performance?

Start: 2011-06-29. End: 2016-06-28.

What is the track record of Systems Planning and Analysis, Inc. with federal contracts, particularly within the Department of Defense?

Systems Planning and Analysis, Inc. (SPA) has a significant history of performing federal contracts, with a notable presence within the Department of Defense. Their contract portfolio often includes support for complex defense programs, encompassing areas like systems engineering, acquisition support, financial management, and program management. SPA is generally recognized for its technical expertise and ability to provide specialized analytical and advisory services. Reviewing their past performance ratings and any documented issues on federal procurement databases would provide a more granular understanding of their reliability and effectiveness in delivering on similar contracts. Their sustained engagement with DoD suggests a generally positive track record, though specific contract performance can vary.

How does the value of this contract compare to similar program management support contracts awarded by the DoD or other federal agencies?

The total contract value of approximately $31.1 million over five years, averaging around $6.2 million per year, appears to be within a reasonable range for comprehensive program management support services. Benchmarking against similar contracts for administrative and general management consulting services awarded by the DoD and other large federal agencies reveals that annual costs for specialized support can range from $3 million to over $10 million, depending heavily on the scope, complexity, and specific deliverables. Factors such as the level of expertise required, the number of personnel involved, and the criticality of the programs being supported influence these costs. Given the firm fixed-price nature and the duration, this contract seems to represent a fair market value for the services rendered.

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

Key risks associated with this contract include potential scope creep, where the contractor might be asked to perform work beyond the original agreement without adequate adjustment to cost or schedule. Another risk is over-reliance on a single contractor for critical functions, which could lead to performance degradation or difficulties in transitioning services if the contract is not renewed. Mitigation strategies include robust contract management by the Washington Headquarters Services, clear definition of deliverables and performance standards, and regular performance reviews. The firm fixed-price structure itself acts as a mitigation tool by incentivizing the contractor to manage costs efficiently and adhere to the agreed-upon scope. Furthermore, the full and open competition process aims to ensure the selection of a capable contractor, reducing performance risk.

How effective has Systems Planning and Analysis, Inc. been in delivering program management support in past engagements?

Assessing the effectiveness of Systems Planning and Analysis, Inc. (SPA) requires a detailed review of their past performance on similar contracts. Generally, SPA is considered a reputable firm within the federal contracting space, particularly for its technical and analytical capabilities. Their long-standing relationship with the Department of Defense suggests a level of consistent performance that meets agency requirements. However, effectiveness can be subjective and contract-specific. Publicly available data may not fully capture the nuances of performance. A thorough assessment would involve examining past performance evaluations, any contract disputes or terminations, and feedback from government program managers who have utilized SPA's services on previous projects.

What are the historical spending patterns for program management support services within the Department of Defense?

The Department of Defense consistently represents one of the largest federal spenders on program management support services. Historical data indicates a significant and often increasing allocation of resources towards contracting out these functions to leverage specialized expertise and manage complex acquisition programs. Spending fluctuates based on defense priorities, budget cycles, and the initiation of new major defense acquisition programs. Agencies within the DoD, such as the Army, Navy, Air Force, and various support commands like WHS, regularly award multi-million dollar contracts for these services. This spending reflects a strategic decision to augment organic capabilities with external expertise to ensure program success and efficiency across a vast and complex operational landscape.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003411R0038

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2001 N BEAUREGARD ST., SUITE 100, ALEXANDRIA, VA, 22311

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,109,910

Exercised Options: $31,109,910

Current Obligation: $31,109,890

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0338N

IDV Type: FSS

Timeline