Interior Department's $114M engineering services contract awarded to Strategic Analysis, Inc. shows long duration and firm fixed price

Contract Overview

Contract Amount: $114,050,872 ($114.1M)

Contractor: Strategic Analysis, Inc.

Awarding Agency: Department of the Interior

Start Date: 2003-10-17

End Date: 2012-03-31

Contract Duration: 3,088 days

Daily Burn Rate: $36.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INCREMENTAL FUNDING

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $114.1 million to STRATEGIC ANALYSIS, INC. for work described as: INCREMENTAL FUNDING Key points: 1. The contract's long duration (over 8 years) suggests a sustained need for engineering services. 2. A firm fixed-price structure indicates that the contractor bears the risk of cost overruns. 3. The award was made under full and open competition, implying a robust bidding process. 4. The contractor, Strategic Analysis, Inc., has a track record with this type of service. 5. The contract's value of over $114 million positions it as a significant investment in engineering support. 6. The NAICS code 541330 points to a focus on engineering services, a critical component for infrastructure and project management.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. However, a firm fixed-price contract over an extended period suggests a degree of cost certainty for the government. The total value of $114 million for over 8 years of engineering services averages to approximately $14 million per year. This figure needs to be compared against the scope and complexity of the engineering tasks performed to assess true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a more competitive environment, potentially driving down prices and ensuring the government receives the best value. The fact that it was competed suggests that the Department of the Interior sought multiple proposals and evaluated them based on established criteria.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors vie for the best price and performance, leading to more efficient use of public funds.

Public Impact

The Department of the Interior benefits from specialized engineering expertise to support its various missions and projects. Services delivered likely include design, analysis, and consulting related to infrastructure, resource management, or other departmental initiatives. The geographic impact is likely nationwide, supporting the diverse operations of the Interior Department across the United States. The contract supports a workforce within Strategic Analysis, Inc., contributing to employment in the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extended duration of the contract could lead to potential complacency or a decrease in competitive pressure over time.
Without detailed performance metrics, it's difficult to assess the ongoing effectiveness and efficiency of the services provided.
The large contract value may indicate a concentration of work with one firm, potentially limiting opportunities for other specialized engineering companies.

Positive Signals

The firm fixed-price structure provides cost certainty for the government, protecting against unexpected cost increases.
Awarding under full and open competition suggests a thorough evaluation process and a commitment to obtaining competitive pricing.
The long contract duration implies a stable and reliable source of engineering support for the Department of the Interior's ongoing needs.

Sector Analysis

The engineering services sector is a critical component of government contracting, supporting a wide range of activities from infrastructure development to research and development. This contract, under NAICS code 541330, falls within a market characterized by specialized expertise and significant demand from federal agencies. The total federal spending on engineering services is substantial, and this contract represents a portion of that investment, likely focused on supporting the Department of the Interior's specific mission requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope and nature of the engineering services required were likely beyond the capacity or specialization of small businesses, or that the competition was open to all firms regardless of size. Consequently, there may be limited direct subcontracting opportunities for small businesses unless Strategic Analysis, Inc. voluntarily includes them in its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Performance reviews, regular reporting requirements, and adherence to contract terms would be key accountability measures. Transparency is facilitated through contract databases like FPDS, which provide basic award information. Specific Inspector General jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified.

Related Government Programs

Department of the Interior - General Services
Engineering and Technical Services Contracts
Professional Services Contracts
Definitive Contracts

Risk Flags

Long contract duration may reduce flexibility and increase risk of price becoming uncompetitive over time.
Lack of specific performance metrics in summary data makes it difficult to assess ongoing value and effectiveness.
Potential for scope creep in long-term service contracts requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $114.1 million to STRATEGIC ANALYSIS, INC.. INCREMENTAL FUNDING

Who is the contractor on this award?

The obligated recipient is STRATEGIC ANALYSIS, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $114.1 million.

What is the period of performance?

Start: 2003-10-17. End: 2012-03-31.

What specific types of engineering services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541330, which covers Engineering Services. This broad category can encompass a wide range of activities, including civil, mechanical, electrical, environmental, and structural engineering. Specific services could have included feasibility studies, design and development, technical consulting, project management, systems engineering, and support for the Department of the Interior's diverse operations, such as land management, resource conservation, and infrastructure projects. Without access to the contract's statement of work, the precise nature of the services remains general.

How does the $114 million value compare to similar engineering services contracts awarded by the Department of the Interior?

Comparing the $114 million value requires context on the duration and scope. This contract spanned over 8 years (3088 days), averaging approximately $14 million annually. To assess its comparability, one would need to examine other large-scale engineering services contracts awarded by the DOI during that period (2003-2012). Factors like the complexity of projects, specific engineering disciplines required, and the number of bidders would influence price. Generally, large, multi-year engineering support contracts for federal agencies can range from tens to hundreds of millions of dollars, depending on the agency's needs and the market rates for specialized expertise.

What are the key risks associated with a long-term, firm fixed-price contract of this magnitude?

A primary risk with long-term, firm fixed-price contracts is the potential for scope creep, where the government may request additional work not originally envisioned, potentially leading to disputes if not properly managed through contract modifications. For the contractor, the risk lies in underestimating costs or encountering unforeseen technical challenges, which could erode profit margins. For the government, there's a risk that the fixed price might become uncompetitive over time if market rates decrease significantly, or that the contractor may become less incentivized to innovate or provide exceptional service due to the long-term nature of the agreement. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.

What was the track record of Strategic Analysis, Inc. prior to or during this contract award?

The provided data does not include specific details about Strategic Analysis, Inc.'s track record prior to or during this contract. However, its selection for a significant $114 million, over 8-year contract by the Department of the Interior suggests they possessed the necessary qualifications, experience, and capacity to meet the government's requirements. Federal procurement processes typically involve evaluating past performance, technical capabilities, and financial stability. A contract of this duration and value usually indicates a positive assessment of the contractor's ability to deliver.

How did the 'full and open competition' process impact the final price and service quality?

Full and open competition is designed to maximize the number of potential bidders, thereby increasing the likelihood of receiving competitive offers. This process typically drives down prices as companies vie for the contract. It also encourages higher service quality as contractors aim to differentiate themselves based on technical merit and past performance. For this $114 million contract, the competitive process likely resulted in a more favorable price for the Department of the Interior than a sole-source or limited competition award would have. It also provided assurance that the selected contractor, Strategic Analysis, Inc., was deemed the best value among multiple capable offerors.

What is the historical spending trend for engineering services within the Department of the Interior?

The provided data focuses on a single contract and does not offer historical spending trends for engineering services within the Department of the Interior. To analyze such trends, one would need access to historical procurement data over multiple fiscal years, broken down by service type (like engineering), agency, and potentially by specific offices or projects. Such an analysis would reveal patterns of investment, identify periods of increased or decreased spending, and highlight major contractors or service areas that receive significant funding.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 3601 WILSON BLVD., ARLINGTON, VA, 22201

Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $117,672,468

Exercised Options: $117,672,468

Current Obligation: $114,050,872

Actual Outlays: $114,102

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline