DoD awards $3.5M contract for administrative services to Forge Group, LLC, with limited competition

Contract Overview

Contract Amount: $3,522,595 ($3.5M)

Contractor: Forge Group, LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-10

End Date: 2026-07-09

Contract Duration: 729 days

Daily Burn Rate: $4.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IPSA CAMPAIGNING SUPPORT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $3.5 million to FORGE GROUP, LLC for work described as: IPSA CAMPAIGNING SUPPORT Key points: 1. Contract awarded for administrative support services, indicating a need for operational efficiency within the Department of Defense. 2. The contract's duration of 729 days suggests a medium-term requirement for these services. 3. Awarded as a definitive contract, implying a clear scope of work and established terms. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. Limited competition raises questions about potential cost savings and the breadth of available solutions. 6. The specific services provided under 'Office Administrative Services' are crucial for understanding the contract's impact.

Value Assessment

Rating: fair

Benchmarking the value of this $3.5 million contract for administrative services is challenging without more detailed service descriptions and comparable contract data. However, the duration of approximately two years suggests a moderate investment. The fixed-price contract type indicates that the contractor bears the risk of cost overruns, which can be a positive sign for value if the price is competitive. Further analysis would require comparing the per-unit cost of specific administrative tasks against industry benchmarks or similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a form of limited competition. This typically occurs when only one source is capable of meeting the requirement, or in specific circumstances like urgent needs or when it's a follow-on to a previous contract. The limited competition means that the government did not explore a wide range of potential vendors, which could potentially lead to higher prices than if it were fully competed. The number of bidders was not specified, but the 'NOT AVAILABLE FOR COMPETITION' designation implies a very restricted or single-source scenario.

Taxpayer Impact: Limited competition can mean taxpayers may not be getting the best possible price, as the government had fewer options to negotiate with. This could result in a higher overall cost for the services provided.

Public Impact

The Department of Defense benefits from the provision of essential office administrative services, supporting its operational functions. Personnel within the Washington Headquarters Services are likely to receive direct support from the services rendered under this contract. The contract's geographic impact is centered in Virginia, where the services are presumably delivered. Workforce implications may include the utilization of administrative support staff by Forge Group, LLC, potentially creating jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs for taxpayers.
Lack of transparency in the procurement process due to 'NOT AVAILABLE FOR COMPETITION' designation.
Potential for contractor lock-in if this is a recurring need without future competitive bidding.

Positive Signals

Fixed-price contract shifts cost risk to the contractor.
Award to a specific LLC suggests a targeted approach to meeting a defined need.
Contract duration indicates a planned and sustained requirement for administrative support.

Sector Analysis

The administrative services sector is a broad category encompassing a wide range of support functions essential for the operation of government agencies and private businesses. This contract falls under the Office Administrative Services NAICS code (561110). The federal government is a significant consumer of these services, often outsourcing functions like clerical support, record management, and general office operations. The market for administrative services is competitive, but specific niche requirements or security considerations can lead to limited competition for certain government contracts.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific award, as the contract is not set aside for small businesses and there is no explicit mention of subcontracting goals. This suggests that Forge Group, LLC, may not be a small business, or if it is, the contract was not awarded under a small business set-aside program. The impact on the small business ecosystem is minimal for this particular contract, as it does not appear to prioritize small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management divisions. Accountability measures are inherent in the definitive contract structure and the firm-fixed-price terms, which obligate Forge Group, LLC, to deliver specified services. Transparency is limited due to the 'NOT AVAILABLE FOR COMPETITION' award type. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.

Related Government Programs

Department of Defense Administrative Support Contracts
Office Administrative Services Procurement
Federal Government Support Services

Risk Flags

Limited Competition
Potential for higher cost due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.5 million to FORGE GROUP, LLC. IPSA CAMPAIGNING SUPPORT

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 $3.5 million.

What is the period of performance?

Start: 2024-07-10. End: 2026-07-09.

What specific administrative services are included under this contract, and how do they align with the Department of Defense's operational needs?

The contract specifies 'Office Administrative Services' under NAICS code 561110. This broad category typically includes services such as general office management, clerical support, scheduling, record keeping, mail processing, and potentially basic human resources or financial administration support. For the Department of Defense (DoD), these services are crucial for maintaining the day-to-day operations of various offices and departments, ensuring that administrative tasks do not impede the core mission functions. The specific alignment would depend on which particular office within the Washington Headquarters Services (WHS) is the end-user. For instance, it could support personnel administration, logistical documentation, or general office coordination, freeing up military and civilian personnel to focus on defense-specific duties.

How does the $3.5 million contract value compare to similar administrative support contracts awarded by the DoD or other federal agencies?

Comparing the $3.5 million value requires context regarding the contract's duration and the scope of services. This contract is for approximately two years (729 days). For administrative support, this value is moderate. Larger, more complex contracts for comprehensive facility management or extensive program support can run into tens or hundreds of millions of dollars. Conversely, smaller, short-term contracts for specific tasks might be in the tens or hundreds of thousands. Without knowing the exact deliverables and service levels, it's difficult to provide a precise benchmark. However, for ongoing, general office administrative support over two years, $3.5 million suggests a team of several full-time equivalent personnel, which is a common scale for such requirements within federal agencies.

What are the primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' award for administrative services, and how are they mitigated?

The primary risk of a 'NOT AVAILABLE FOR COMPETITION' (NAFC) award is the potential for reduced value for taxpayers due to a lack of competitive pricing. When only one source is considered, the government may not achieve the lowest possible price. Other risks include a potential lack of innovation if alternative solutions are not explored, and a perception of unfairness in the procurement process. Mitigation strategies often involve rigorous justification for the NAFC status, ensuring that the sole source is indeed the only viable option. The government also typically negotiates the price and terms carefully, and the fixed-price contract type shifts performance risk to the contractor. Post-award oversight is also critical to ensure the contractor meets all requirements and that the pricing remains reasonable throughout the contract's life.

What is the track record of Forge Group, LLC, in performing federal government contracts, particularly those involving administrative services?

Information regarding Forge Group, LLC's specific track record in performing federal government contracts, especially those related to administrative services, is not directly provided in the abbreviated data. To assess their performance history, one would typically consult databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). These systems would detail past contract awards, performance ratings, and any past performance issues. Without access to this detailed information, it is difficult to definitively state their track record. However, the award of this contract by the Department of Defense suggests that they have met certain pre-qualification criteria or have been identified as a capable provider for this specific requirement.

How does the duration of the contract (729 days) influence the assessment of its value and the contractor's commitment?

A contract duration of 729 days, approximately two years, is a significant period for administrative support services. This duration suggests that the requirement is not a short-term, ad-hoc need but rather a sustained operational necessity for the Washington Headquarters Services. From a value perspective, a longer duration allows for potential economies of scale and a more stable operational environment for the contractor, which can sometimes translate into better pricing than multiple short-term contracts. For the contractor, Forge Group, LLC, this duration provides a stable revenue stream and an opportunity to build expertise and efficiency in supporting the specific needs of the DoD. It also implies a higher level of commitment and investment from the contractor in terms of staffing and resources.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ003424R0304

Offers Received: 1

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, Corporate Entity Not Tax Exempt, 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, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,552,595

Exercised Options: $3,552,595

Current Obligation: $3,522,595

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline