DoD's $26M contract for security cooperation support awarded to Forge Group, LLC, with 2 bidders

Contract Overview

Contract Amount: $25,972,794 ($26.0M)

Contractor: Forge Group, LLC

Awarding Agency: Department of Defense

Start Date: 2020-05-29

End Date: 2025-06-30

Contract Duration: 1,858 days

Daily Burn Rate: $14.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DAILY CONTRACT SUPPORT FOR SECURITY COOPERATION PROGRAM.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to FORGE GROUP, LLC for work described as: DAILY CONTRACT SUPPORT FOR SECURITY COOPERATION PROGRAM. Key points: 1. Value for money appears fair given the 1858-day duration and firm-fixed-price structure. 2. Competition dynamics show a limited but present bidding environment with 2 offers. 3. Risk indicators are moderate, with a long contract duration and a single awardee. 4. Performance context is for administrative management and general management consulting services. 5. Sector positioning is within defense support services, a common area for consulting firms.

Value Assessment

Rating: fair

The contract's total value of approximately $26 million over 1858 days suggests a daily rate of around $13,979. This rate needs to be benchmarked against similar administrative and management consulting services contracts within the Department of Defense. Without specific comparable data, it's difficult to definitively assess value, but the duration and scope indicate a substantial engagement.

Cost Per Unit: $13,979 per day

Competition Analysis

Competition Level: unknown

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating an expectation of a competitive environment. With two offers received, the competition level suggests some market interest, but it is not a broad, full-and-open competition. The presence of two bidders allowed for some price discovery, but a higher number of bidders could potentially drive prices lower.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible price that a wider bidding process might have yielded. However, the existence of multiple bids still provides a degree of price validation.

Public Impact

Benefits the Department of Defense by providing essential support for its Security Cooperation Program. Delivers administrative and management consulting services crucial for program execution. Geographic impact is primarily within the Washington D.C. metropolitan area, where the agency is located. Workforce implications include the potential for employment within Forge Group, LLC, and indirectly within the DoD's security cooperation initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
Long contract duration increases the risk of cost overruns or scope creep if not managed effectively.
Reliance on a single awardee for critical support functions can be a single point of failure.

Positive Signals

Firm Fixed Price contract type helps control costs and provides budget certainty.
The contract was competed, indicating an effort to secure services through a market-based approach.
The duration suggests a stable, ongoing need for these services, implying a well-defined requirement.

Sector Analysis

The federal consulting services market is substantial, with agencies frequently outsourcing administrative, management, and strategic support. This contract falls within the broader professional, scientific, and technical services sector. Benchmarking this contract's daily rate against similar DoD administrative support contracts would provide a clearer picture of its market competitiveness.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Forge Group, LLC, is likely a small business itself given the contract value and nature, but this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of services as specified. Transparency is generally maintained through contract databases like FPDS, though specific performance metrics and oversight reports are not detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Administrative Support Contracts
Security Cooperation Program Support
Management and Consulting Services

Risk Flags

Potential for cost overruns due to long contract duration.
Limited competition may not result in the best price for taxpayers.
Scope creep risk in long-term administrative support contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to FORGE GROUP, LLC. DAILY CONTRACT SUPPORT FOR SECURITY COOPERATION PROGRAM.

Who is the contractor on this award?

The obligated recipient is FORGE 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 $26.0 million.

What is the period of performance?

Start: 2020-05-29. End: 2025-06-30.

What is the track record of Forge Group, LLC in performing similar administrative and management consulting services for the Department of Defense?

Information regarding Forge Group, LLC's specific track record for similar contracts with the Department of Defense is not provided in the data. A thorough analysis would require examining past performance reviews, contract history, and any reported issues or successes on previous DoD engagements. This would help assess their capability and reliability in delivering the required services. Without this data, the assessment relies on the assumption that their selection indicates adequate past performance or potential.

How does the daily rate of $13,979 compare to market benchmarks for similar administrative and management consulting services within the federal government?

The daily rate of approximately $13,979 is a significant figure that requires careful benchmarking. To assess its value, this rate should be compared against average daily rates for similar services (NAICS 541611) awarded by the Department of Defense and other federal agencies over the past 1-3 years. Factors such as the specific skill sets required, the level of experience of personnel, and the geographic location of service delivery can influence these rates. A higher number of bidders in a competitive process often leads to rates closer to the market average.

What are the primary risks associated with a firm-fixed-price contract of this duration (1858 days)?

The primary risks with a long-term firm-fixed-price (FFP) contract include potential for the contractor to underperform if costs escalate beyond initial estimates, leading to reduced quality or effort. Conversely, if costs are significantly lower than anticipated, the contractor may achieve excessive profits. For the government, the risk lies in the potential for scope creep or the need for contract modifications if requirements evolve, which can be costly and complex under an FFP structure. Effective contract management and clear initial scope definition are crucial to mitigate these risks.

How effective is the 'competed under SAP' process in ensuring competitive pricing for contracts of this approximate value ($26 million)?

Competing under Simplified Acquisition Procedures (SAP) is designed for procurements valued between the SAT and $7.5 million (or $15 million for certain construction). For a contract valued at $26 million, it's unusual for it to be competed solely under SAP unless it represents multiple awards or task orders under a larger IDIQ. If this $26M is a single definitive contract, it likely exceeded SAP thresholds and was competed under different procedures, or it's part of a larger program. If it was indeed competed under SAP, it suggests a potential procedural anomaly or a misunderstanding of the data provided, as SAP is generally for smaller procurements. The effectiveness of competition under SAP depends on the number of bidders; two bidders offer some competition but may not yield the best value compared to broader solicitations.

What is the historical spending pattern for 'Administrative Management and General Management Consulting Services' within the Department of Defense?

Historical spending on NAICS code 541611 (Administrative Management and General Management Consulting Services) by the Department of Defense is substantial and consistent, reflecting the agency's reliance on external expertise for various operational and strategic needs. DoD frequently procures these services for program management, organizational improvement, policy development, and support functions. Analyzing past spending trends would reveal the typical contract values, durations, and the prevalence of different contract types (e.g., FFP, T&M) used for these services, providing context for the current contract's scale and structure.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: HQ003420R0078

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12211 LAKE JAMES DR, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $25,986,294

Exercised Options: $25,972,794

Current Obligation: $25,972,794

Actual Outlays: $706,537

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $149,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline