DoD's $38.8M Print Services Contract Awarded to Sinew Management Group LLC Shows Fair Value

Contract Overview

Contract Amount: $38,845,554 ($38.8M)

Contractor: Sinew Management Group LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-28

End Date: 2024-03-27

Contract Duration: 2,007 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF. ENTERPRISE MANAGED PRINT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22206

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.8 million to SINEW MANAGEMENT GROUP LLC for work described as: IGF::OT::IGF. ENTERPRISE MANAGED PRINT SERVICES Key points: 1. Contract value of $38.8 million over its duration indicates a significant investment in managed print services. 2. The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a deliberate selection process. 3. A firm-fixed-price contract type helps manage cost certainty for the Department of Defense. 4. The contract duration of 2007 days (approximately 5.5 years) allows for sustained service delivery. 5. The North American Industry Classification System (NAICS) code 811212 points to a focus on repair and maintenance of office machines. 6. The contract was awarded to Sinew Management Group LLC, a single entity, highlighting potential specialization or a competitive win. 7. The contract's 'Definitive Contract' award type suggests a well-defined scope of work and terms.

Value Assessment

Rating: good

The contract's firm-fixed-price nature provides cost predictability for the Department of Defense. While specific performance metrics and comparisons to similar contracts are not detailed in the provided data, the award value of approximately $38.8 million over 5.5 years suggests a substantial commitment to managed print services. Benchmarking against industry standards for enterprise print management would be necessary for a more precise value assessment, but the competitive award process implies a degree of market-driven pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method indicates that while the competition was initially open, certain sources were excluded before the final award. The number of bidders is not specified, but this approach suggests a targeted approach to finding the best value, potentially after an initial broad solicitation or due to specific technical requirements that narrowed the field. The exclusion of sources could imply a need for specialized capabilities or prior performance.

Taxpayer Impact: This procurement method, while competitive, may limit the number of potential offerors, potentially impacting the lowest possible price achievable for taxpayers compared to a purely full and open competition.

Public Impact

The Department of Defense benefits from streamlined and potentially more cost-effective managed print services. This contract ensures the continued operation and maintenance of essential office equipment for military and civilian personnel. The services delivered likely support administrative functions across various DoD facilities, contributing to overall operational efficiency. The geographic impact is likely widespread, covering DoD installations where these managed print services are required. Workforce implications may include the need for skilled technicians for repair and maintenance, potentially sourced through the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition type warrants further investigation to understand the rationale and potential impact on market breadth.
Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness and efficiency beyond the contract award itself.
The specific nature of 'managed print services' can vary widely; understanding the full scope of services is crucial for a complete assessment.

Positive Signals

The use of a Firm Fixed Price contract provides budget certainty for the agency.
The contract duration of over five years suggests a stable and ongoing need for these services, indicating a recognized value.
Awarding to a single contractor can lead to specialized expertise and streamlined service delivery.

Sector Analysis

The managed print services sector is a significant part of the broader IT and business services market, focusing on optimizing document output, reducing costs, and improving efficiency for organizations. This contract fits within the defense sector's need for reliable and cost-effective operational support. Comparable spending benchmarks in this area often focus on cost-per-page, device utilization, and total cost of ownership, which are not detailed here but are key metrics for evaluating such services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting plans. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor may engage small businesses for specific support services, which is not detailed in the available information.

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 structure, which incentivizes the contractor to meet defined service levels within the agreed budget. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Services Contracts
Federal Office Equipment Maintenance Contracts
Enterprise Resource Planning (ERP) Support Services
Government-wide Acquisition Contracts (GWACs) for IT

Risk Flags

Competition Level: 'Full and Open Competition After Exclusion of Sources' requires scrutiny to ensure adequate market participation.
Performance Data: Lack of specific performance metrics makes objective assessment of value difficult.
Contractor Past Performance: Detailed review of Sinew Management Group LLC's history is needed for a complete risk profile.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.8 million to SINEW MANAGEMENT GROUP LLC. IGF::OT::IGF. ENTERPRISE MANAGED PRINT SERVICES

Who is the contractor on this award?

The obligated recipient is SINEW MANAGEMENT GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.8 million.

What is the period of performance?

Start: 2018-09-28. End: 2024-03-27.

What specific managed print services are included under this contract?

The provided data identifies the contract under NAICS code 811212 (Computer and Office Machine Repair and Maintenance) and describes it as 'ENTERPRISE MANAGED PRINT SERVICES.' This typically encompasses a range of services including printer/copier fleet management, device procurement, installation, maintenance, repair, consumables management (toner, paper), usage monitoring, and potentially document security and workflow optimization. The exact scope would be detailed in the contract's statement of work, which is not provided here. However, the focus on repair and maintenance suggests a strong emphasis on keeping existing equipment operational and efficient.

How does the contract value of $38.8 million compare to similar DoD managed print services contracts?

Without access to a comprehensive database of all DoD managed print services contracts, a direct comparison is challenging. However, $38.8 million over approximately 5.5 years (2007 days) represents an average annual spend of roughly $7 million. This figure is substantial and suggests a large-scale deployment or a significant number of devices managed across multiple DoD locations. Larger federal agencies often award multi-million dollar contracts for enterprise-wide managed print services, so this value appears consistent with the scale of a major defense organization. A more precise benchmark would require analyzing contracts with similar scope, duration, and number of users/devices.

What are the potential risks associated with a 'Full and Open Competition After Exclusion of Sources' award?

The primary risk associated with 'Full and Open Competition After Exclusion of Sources' is the potential for reduced competition, which could lead to higher prices or less innovative solutions compared to a purely open competition. The exclusion of certain sources, even if justified by specific requirements, means that the government may not have considered all potential offerors. This could arise if the exclusion criteria were overly restrictive or if the market for the specific service is limited. It is crucial that the exclusion was based on objective, documented reasons related to the agency's needs and that the remaining pool of competitors was sufficient to ensure fair pricing and quality.

What is the track record of Sinew Management Group LLC in performing federal contracts?

The provided data indicates that Sinew Management Group LLC is the contractor for this specific Department of Defense contract. To assess their track record, one would need to examine their past performance on other federal contracts, including their success in meeting delivery schedules, quality standards, and budget requirements. Information on past performance, including any awards, past issues, or contract terminations, is typically available through federal procurement data systems like SAM.gov or through agency-specific performance evaluation records. Without this additional data, it's difficult to provide a detailed assessment of their track record.

How does the firm-fixed-price (FFP) contract type benefit the DoD in this scenario?

A Firm Fixed Price (FFP) contract type is highly beneficial for the DoD in this managed print services scenario as it shifts the majority of the cost risk to the contractor, Sinew Management Group LLC. The price is set at the time of award and generally does not change, regardless of the contractor's actual costs incurred. This provides the DoD with significant budget certainty and predictability, making financial planning easier. It incentivizes the contractor to manage its own costs efficiently to maintain profitability. For services like managed print, where the scope of work can be well-defined, FFP is often preferred to control expenditures and avoid cost overruns.

What is the significance of the NAICS code 811212 for this contract?

The North American Industry Classification System (NAICS) code 811212, 'Computer and Office Machine Repair and Maintenance,' is significant because it defines the primary business activity for which this contract was awarded. It indicates that the core of the service provided by Sinew Management Group LLC revolves around the repair, upkeep, and potentially the servicing of office equipment such as printers, copiers, fax machines, and other related computer peripherals. While 'managed print services' can encompass broader aspects like procurement and consumables, this NAICS code emphasizes the maintenance and operational support aspect, suggesting that a substantial portion of the contract value is allocated to ensuring the functionality and longevity of the DoD's printing and copying infrastructure.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Computer and Office Machine Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003418R0143

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3949 HWY 8 STE 111, NEW TOWN, ND, 58763

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,766,684

Exercised Options: $43,707,118

Current Obligation: $38,845,554

Actual Outlays: $1,827,505

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline