DoD's $48.4M contract for administrative support awarded to Strategic Analysis, Inc. shows fair value

Contract Overview

Contract Amount: $48,353,767 ($48.4M)

Contractor: Strategic Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-10-01

End Date: 2024-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $26.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Defense

Official Description: DSO ACQUISITION&ADMINISTRATIVE SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $48.4 million to STRATEGIC ANALYSIS, INC. for work described as: DSO ACQUISITION&ADMINISTRATIVE SUPPORT Key points: 1. Contract provides essential administrative and professional services to DARPA. 2. Strategic Analysis, Inc. has a history of performing government contracts. 3. The contract's duration and delivery order structure suggest flexibility. 4. Competition was robust, potentially leading to competitive pricing. 5. The services fall under a broad professional services category. 6. Performance is monitored by DARPA, indicating a level of oversight.

Value Assessment

Rating: fair

The contract's total value of $48.4 million over five years, with a base of $26.5 million, appears reasonable for the scope of administrative and professional support services provided to DARPA. Benchmarking against similar contracts for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) is challenging due to the broad nature of the category. However, the pricing structure, likely based on labor hours, needs careful management to ensure value. The contract's delivery order mechanism allows for adjustments, which can be cost-effective if managed properly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of full and open competition generally fosters a competitive environment, which can lead to more favorable pricing and better quality services for the government. The specific number of bidders is not provided, but the award type suggests a healthy level of interest from the market.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the services rendered, preventing potential overpricing and encouraging efficiency from the contractor.

Public Impact

The primary beneficiaries are the Department of Defense and its research arm, DARPA, receiving critical administrative and analytical support. Services delivered include a range of professional, scientific, and technical support functions essential for program operations. The geographic impact is primarily within Virginia, where the contractor is located, and potentially at DARPA facilities. Workforce implications include employment opportunities for professionals in administrative, analytical, and technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if delivery orders are not tightly managed.
Reliance on a single contractor for a significant period requires ongoing performance monitoring.
The broad NAICS code makes direct cost comparisons difficult.

Positive Signals

Awarded through full and open competition, suggesting market validation.
Contract duration allows for continuity of essential services.
Delivery order structure provides flexibility to adapt to evolving needs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide array of support functions for government agencies. The market for these services is highly competitive, with numerous firms offering specialized expertise. Spending in this sector is substantial across the federal government, supporting everything from research and development to administrative functions. This specific contract supports DARPA's mission-critical operations, fitting within the broader defense research and development ecosystem.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Strategic Analysis, Inc. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting reports would be needed to assess any indirect benefits.

Oversight & Accountability

Oversight is provided by the Department of Defense, specifically DARPA, which is responsible for monitoring contractor performance and ensuring compliance with contract terms. Accountability is established through the contract's delivery order system and performance metrics. Transparency is facilitated by the contract award process being under full and open competition, with data publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DSO ACQUISITION & ADMINISTRATIVE SUPPORT
Professional, Scientific, and Technical Services
Department of Defense Contracts
DARPA Support Services

Risk Flags

Broad NAICS code may obscure specific service costs.
Potential for scope creep in delivery order contracts.
Long contract duration requires sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.4 million to STRATEGIC ANALYSIS, INC.. DSO ACQUISITION&ADMINISTRATIVE SUPPORT

Who is the contractor on this award?

The obligated recipient is STRATEGIC ANALYSIS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $48.4 million.

What is the period of performance?

Start: 2019-10-01. End: 2024-09-30.

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

Strategic Analysis, Inc. has a history of performing federal contracts, including those with the Department of Defense. While specific details on past performance metrics for this particular contract are not provided in the summary data, their continued engagement with government agencies suggests a capacity to meet contractual obligations. A deeper dive into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their reliability and effectiveness as a contractor. Their presence in the federal contracting space indicates experience navigating government procurement processes and delivering required services.

How does the awarded price compare to market rates for similar administrative and professional support services?

Directly comparing the price of this $48.4 million contract to market rates is challenging due to the broad classification of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). This category encompasses a wide range of services, making precise benchmarking difficult without more specific service details. The contract's structure relies on labor hours, meaning the final cost is dependent on the actual hours worked and the rates applied. To assess value for money, a detailed analysis of the labor categories, hours billed, and comparison against industry benchmarks for similar skill sets and service levels would be necessary. The fact that it was awarded under full and open competition suggests that the pricing was deemed competitive at the time of award.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the key performance indicators (KPIs) used to measure the success of this contract. Typically, for administrative and professional support services, KPIs might include timeliness of service delivery, accuracy of work, responsiveness to requests, adherence to budget (if applicable to specific tasks), and overall client satisfaction. DARPA, as the contracting agency, would be responsible for establishing and monitoring these KPIs throughout the contract's duration. Performance evaluations would likely be conducted periodically to ensure Strategic Analysis, Inc. is meeting the required standards and delivering value.

What is the historical spending pattern for similar administrative support services at DARPA or the Department of Defense?

Historical spending patterns for similar administrative support services at DARPA and the Department of Defense are generally substantial, reflecting the extensive operational needs of these agencies. While specific figures for this contract's category are not detailed, agencies like DARPA often procure a wide range of support services, including administrative, analytical, and technical assistance, to facilitate their research and development missions. Spending in this area can fluctuate based on program priorities, budget allocations, and the specific requirements of ongoing projects. Analyzing past solicitations and awards for comparable services would reveal trends in contract values, durations, and the types of contractors engaged.

Are there any identified risks associated with the contractor's performance or the nature of the services provided?

Potential risks associated with this contract include the possibility of scope creep if delivery orders are not precisely defined and managed, leading to costs exceeding initial projections. Another risk is the reliance on a single contractor for a significant period, which necessitates robust oversight to ensure continued quality and value. Given the broad NAICS code, there's also a risk that the specific services rendered might not be fully optimized if not clearly articulated and monitored. Furthermore, the effectiveness of the services is contingent on the contractor's ability to adapt to DARPA's evolving needs and maintain a high level of expertise throughout the contract term.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: HR001119Q0006

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4075 WILSON BLVD STE 200, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $58,813,397

Exercised Options: $58,813,397

Current Obligation: $48,353,767

Actual Outlays: $1,962,451

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $19,369,929

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HR001118D0007

IDV Type: IDC

Timeline