DoD Awards $27.4M SETA Support Services Contract to Schafer Government Services
Contract Overview
Contract Amount: $27,431,139 ($27.4M)
Contractor: Schafer Government Services, LLC
Awarding Agency: Department of Defense
Start Date: 2021-04-05
End Date: 2026-04-04
Contract Duration: 1,825 days
Daily Burn Rate: $15.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TTO FRONT OFFICE SETA SUPPORT SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.4 million to SCHAFER GOVERNMENT SERVICES, LLC for work described as: TTO FRONT OFFICE SETA SUPPORT SERVICES Key points: 1. Contract value of $27.4 million over 5 years. 2. Awarded under full and open competition. 3. Services fall under 'All Other Professional, Scientific, and Technical Services' NAICS code. 4. Potential for cost overruns due to Cost Plus Fixed Fee contract type.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee. This can lead to higher costs if not managed tightly, especially for services where scope can be fluid. Benchmarking CPFF contracts in this sector is challenging due to variability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the CPFF structure introduces potential for cost escalation beyond initial estimates, impacting the final price.
Taxpayer Impact: Taxpayer funds are utilized for these support services. While competition aims for value, the CPFF structure necessitates careful oversight to ensure costs remain reasonable and do not exceed the fixed fee significantly.
Public Impact
Ensures continued operational support for the Defense Advanced Research Projects Agency (DARPA). Supports critical research and development initiatives by providing essential technical services. Potential impact on future DARPA projects if service quality or cost-effectiveness is compromised.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- No small business participation noted.
- Long contract duration (5 years) increases risk exposure.
Positive Signals
- Awarded via full and open competition.
- Supports critical R&D agency.
- Experienced contractor likely involved.
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category often supporting government agencies' core functions. Spending benchmarks for SETA support services vary widely based on agency needs and contract scope.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract award, as the 'sb' field is false. This suggests that larger prime contractors or those not specifically categorized as small businesses were the focus of this procurement.
Oversight & Accountability
Oversight will be crucial to monitor the Cost Plus Fixed Fee structure, ensuring that costs remain within reasonable bounds and that the fixed fee adequately compensates the contractor for the services rendered. The Defense Advanced Research Projects Agency (DARPA) will need robust contract management to ensure accountability.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation.
- Long contract duration.
- Potential for scope creep in technical services.
- Reliance on a single contractor for critical support.
Tags
all-other-professional-scientific-and-te, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.4 million to SCHAFER GOVERNMENT SERVICES, LLC. TTO FRONT OFFICE SETA SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is SCHAFER GOVERNMENT SERVICES, LLC.
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 $27.4 million.
What is the period of performance?
Start: 2021-04-05. End: 2026-04-04.
What is the estimated total cost per year, and how does it compare to similar support contracts at other R&D agencies?
The total contract value is $27.4 million over 1825 days (5 years), averaging approximately $5.48 million per year. Direct comparison is difficult without knowing the specific scope of services and overhead rates, but this figure should be benchmarked against similar SETA support contracts at agencies like the National Science Foundation or Department of Energy to assess cost-effectiveness.
What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) structure for this particular SETA support contract?
The primary risk of a CPFF contract is the potential for cost overruns, as the government reimburses allowable costs plus a fixed fee. If the contractor's actual costs exceed estimates, the government pays more. This necessitates stringent oversight to ensure costs are reasonable, allocable, and allowable, and that the contractor exercises cost control.
How effectively will this contract support DARPA's mission, given the nature of SETA services and the chosen contract type?
SETA (Systems Engineering and Technical Assistance) services are crucial for agencies like DARPA, providing specialized expertise. The CPFF structure, while potentially leading to higher costs, allows flexibility for evolving R&D needs. Effectiveness hinges on the contractor's ability to deliver high-quality technical support and the government's oversight in managing costs and performance.
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: HR001118R0001
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3811 N FAIRFAX DR STE 400, ARLINGTON, VA, 22203
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $30,384,156
Exercised Options: $30,384,156
Current Obligation: $27,431,139
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HR001118D0006
IDV Type: IDC
Timeline
Start Date: 2021-04-05
Current End Date: 2026-04-04
Potential End Date: 2026-04-04 00:00:00
Last Modified: 2025-12-05
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