DOI Spends $24.2M on Acquisition Support Services via Time and Materials Contract

Contract Overview

Contract Amount: $24,224,102 ($24.2M)

Contractor: Martek-Cri JV

Awarding Agency: Department of the Interior

Start Date: 2017-09-20

End Date: 2022-09-19

Contract Duration: 1,825 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CT::IGF DOI-IBC-AQD SUPPORT - ACQUISITION SUPPORT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $24.2 million to MARTEK-CRI JV for work described as: IGF::CT::IGF DOI-IBC-AQD SUPPORT - ACQUISITION SUPPORT Key points: 1. Contract awarded to MARTEK-CRI JV for administrative management and general management consulting. 2. Significant spending over a 5-year period (2017-2022). 3. Contract type is Time and Materials, which can pose cost control risks. 4. The sector is professional services, specifically acquisition support.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure, without a ceiling, raises concerns about cost control and potential overspending compared to fixed-price contracts for similar services. The total award amount of $24.2M over five years suggests a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. However, the Time and Materials pricing model may limit price discovery and incentivize increased effort rather than efficiency.

Taxpayer Impact: Taxpayer funds are being utilized for acquisition support services. The Time and Materials pricing structure warrants close monitoring to ensure cost-effectiveness and prevent potential overruns.

Public Impact

Ensures continuity of essential acquisition support functions within the Department of the Interior. Supports agency operations by providing expertise in managing procurement processes. Potential for cost overruns due to the Time and Materials contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Time and Materials pricing
  • Lack of cost ceiling
  • Long contract duration

Positive Signals

  • Full and open competition
  • Essential service provision

Sector Analysis

This contract falls within the professional services sector, specifically administrative management and general management consulting. Spending benchmarks for similar acquisition support services can vary widely based on scope and duration, but $24.2M over five years represents a significant investment.

Small Business Impact

The contract was awarded to MARTEK-CRI JV. Further analysis would be needed to determine the extent of small business participation within this joint venture.

Oversight & Accountability

The Department of the Interior awarded this contract. Oversight would focus on monitoring expenditures under the Time and Materials contract to ensure adherence to scope and prevent cost creep.

Related Government Programs

  • Administrative Management and General Management Consulting Services
  • Department of the Interior Contracting
  • Departmental Offices Programs

Risk Flags

  • Potential for cost overruns due to Time and Materials pricing.
  • Lack of a defined cost ceiling.
  • Long contract duration (5 years) increases exposure to cost escalation.
  • Need for robust oversight to manage contractor effort.

Tags

administrative-management-and-general-ma, department-of-the-interior, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $24.2 million to MARTEK-CRI JV. IGF::CT::IGF DOI-IBC-AQD SUPPORT - ACQUISITION SUPPORT

Who is the contractor on this award?

The obligated recipient is MARTEK-CRI JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2017-09-20. End: 2022-09-19.

What was the specific scope of work for acquisition support services, and how did it justify the Time and Materials pricing model?

The specific scope of work likely involved a broad range of acquisition support, including policy development, process improvement, training, and strategic planning. A Time and Materials model might have been chosen due to the unpredictable nature of the support required, where the exact hours and resources needed couldn't be precisely estimated upfront. This allows for flexibility but necessitates robust oversight to manage costs effectively.

What mechanisms were in place to control costs and ensure value for money given the Time and Materials contract type?

Mechanisms to control costs could include defined labor categories with pre-negotiated hourly rates, strict oversight of hours billed, regular performance reviews, and clear deliverables. The agency likely established internal controls and reporting requirements to monitor contractor performance and expenditures closely, ensuring that the services provided were necessary and delivered efficiently within the agreed-upon rate structure.

How did the 'full and open competition after exclusion of sources' process ensure a competitive price for these services?

This procurement method suggests that while the competition was open, certain sources were excluded based on specific criteria, possibly related to capability or past performance. The 'full and open' aspect implies that all responsible sources were permitted to submit offers. The competitive pricing would then be a result of the proposals received and the evaluation process, aiming to select the best value offer, even with a Time and Materials structure.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 506 ENTERPRISE DR STE 200, LOWELL, AR, 72745

Business Categories: Category Business, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,876,784

Exercised Options: $26,327,235

Current Obligation: $24,224,102

Actual Outlays: $15,906,662

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: IND17PC00394

IDV Type: IDC

Timeline

Start Date: 2017-09-20

Current End Date: 2022-09-19

Potential End Date: 2022-09-19 00:00:00

Last Modified: 2023-12-08

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