DoD awards $7.9M for Business Operations Support to The Prospect Group, Inc

Contract Overview

Contract Amount: $7,906,190 ($7.9M)

Contractor: THE Prospective Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-28

End Date: 2026-03-13

Contract Duration: 928 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: BUSINESS OPERATIONS SUPPORT

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $7.9 million to THE PROSPECTIVE GROUP, INC. for work described as: BUSINESS OPERATIONS SUPPORT Key points: 1. Contract awarded for Business Operations Support services. 2. The Prospect Group, Inc. is the contractor. 3. Department of Defense is the agency. 4. Services are engineering-related (NAICS 541330). 5. Contract duration is 928 days.

Value Assessment

Rating: fair

The contract value of $7.9M over approximately 2.5 years suggests a moderate annual spend. Benchmarking against similar engineering services contracts would be necessary to fully assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not have achieved the best possible price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential business operations support within the Department of Defense.

Public Impact

Supports critical defense counterintelligence and security agency operations. Ensures continuity of essential business functions. Potential for impact on service delivery timelines if support is inadequate.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Contract duration is substantial, requiring ongoing oversight.

Positive Signals

Supports a key agency within the DoD.
Clear contract end date provides a defined period.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services. Spending in this area is common across government agencies for specialized support.

Small Business Impact

The contract does not indicate any specific set-aside for small businesses, and the prime contractor is not listed as a small business.

Oversight & Accountability

Oversight will be crucial to ensure the contractor meets performance requirements and that the pricing remains competitive throughout the contract duration.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Counterintelligence and Security Agency Programs

Risk Flags

Limited competition.
Labor hour pricing can be less predictable.
Contract duration is significant.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.9 million to THE PROSPECTIVE GROUP, INC.. BUSINESS OPERATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is THE PROSPECTIVE GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $7.9 million.

What is the period of performance?

Start: 2023-08-28. End: 2026-03-13.

What specific business operations are being supported by this contract?

The contract is for 'BUSINESS OPERATIONS SUPPORT' and falls under engineering services (NAICS 541330) for the Defense Counterintelligence and Security Agency. Specific details on the exact nature of the business operations supported would require further investigation into the contract's statement of work.

What is the justification for excluding other sources in the competition?

The award notice states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This implies that while full and open competition was intended, specific criteria or circumstances led to the exclusion of certain potential sources. The precise justification for this exclusion is not detailed in the provided data.

How does the contract's labor hour pricing structure impact cost control?

A labor hour pricing structure can offer flexibility but also presents challenges for cost control. Without fixed price elements or strong performance metrics, there's a risk of cost overruns if labor hours are not efficiently managed or if the scope of work expands. Robust oversight is needed to monitor hours and ensure value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HS002123R0034

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3141 FAIRVIEW PARK DR STE R40, FALLS CHURCH, VA, 22042

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,994,444

Exercised Options: $7,994,444

Current Obligation: $7,906,190

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1124

IDV Type: IDC

Timeline