DoD's $16.3M pet care contract awarded to AMERICAN K 9 INTERDICTION LLC shows fair value with 5 bidders

Contract Overview

Contract Amount: $16,328,298 ($16.3M)

Contractor: American K 9 Interdiction LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-27

End Date: 2013-03-31

Contract Duration: 916 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRAVEL; BASE YEAR

Place of Performance

Location: CARROLLTON, ISLE OF WIGHT County, VIRGINIA, 23314

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to AMERICAN K 9 INTERDICTION LLC for work described as: TRAVEL; BASE YEAR Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Strong competition with 5 bidders suggests a healthy market for these services. 3. No immediate red flags regarding contractor performance or risk indicators. 4. Services align with specialized needs within the Department of Defense. 5. This contract falls within the broader 'Other Services' category for federal spending. 6. The firm-fixed-price structure provides cost certainty for the government.

Value Assessment

Rating: good

The contract's total value of $16.3 million over approximately 916 days (2.5 years) suggests a daily rate of roughly $17,826. While a direct per-day comparison is difficult without more granular data on service levels, the number of bidders (5) indicates that the pricing was likely competitive. Benchmarking against similar pet care services for government entities is challenging due to the specialized nature of military K9 support, but the presence of multiple offers suggests the price was within an acceptable range for the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the initial solicitation was broad, but specific sources were later excluded. The presence of 5 bidders suggests a robust level of competition for this specialized service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie to win the award.

Taxpayer Impact: The strong competition indicates that taxpayers benefited from a market-driven price, rather than a sole-source situation where costs could be inflated.

Public Impact

Military working dogs and their handlers benefit from specialized pet care services. Ensures the health and readiness of critical K9 units within the Department of Defense. Services are likely concentrated in geographic areas with significant military installations. Supports a specialized workforce involved in animal care and veterinary support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is highly concentrated.
Dependence on a single contractor for critical animal care services could pose a risk.
Scope creep could lead to cost overruns if not managed tightly.

Positive Signals

Award to a specialized firm suggests expertise in meeting unique military requirements.
Multiple bidders indicate a healthy market and potential for future competition.
Firm-fixed-price contract provides budget predictability.

Sector Analysis

The pet care services sector, particularly for specialized government contracts like military K9 support, is a niche within the broader 'Other Services' category. While the overall market for pet care is substantial, contracts involving federal agencies often require specific security clearances, operational capabilities, and adherence to stringent regulations. This contract fits within the government's need for specialized support services that are not typically provided by general commercial vendors.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data indicates the awardee is AMERICAN K 9 INTERDICTION LLC. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses. The absence of a small business set-aside suggests the primary focus was on obtaining the most qualified offeror through full and open competition.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature of the award simplifies some aspects of oversight by fixing the cost. Accountability would be managed through performance metrics and contract administration by the Department of the Navy. Transparency is generally maintained through contract databases like FPDS, where this award is recorded.

Related Government Programs

Military Animal Care Services
Veterinary Services Contracts
Department of Defense Support Services
K9 Unit Support Contracts

Risk Flags

Potential for service disruption
Risk of cost overruns due to scope creep
Dependence on a single contractor
Ensuring consistent quality across locations
Difficulty finding alternative providers quickly

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to AMERICAN K 9 INTERDICTION LLC. TRAVEL; BASE YEAR

Who is the contractor on this award?

The obligated recipient is AMERICAN K 9 INTERDICTION LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $16.3 million.

What is the period of performance?

Start: 2010-09-27. End: 2013-03-31.

What is the track record of AMERICAN K 9 INTERDICTION LLC with federal contracts?

Information on AMERICAN K 9 INTERDICTION LLC's track record with federal contracts is limited in the provided data. The award details indicate this specific contract (ID: DCA) was awarded on 2010-09-27 and ended on 2013-03-31, with a base year value of $16,328,297.59. To assess their broader track record, one would need to search federal procurement databases (like FPDS or SAM.gov) for other contracts awarded to this entity. This would reveal the number of contracts, their values, agencies involved, performance history (if available through past performance reviews), and any history of contract disputes or terminations. A comprehensive review would help determine if they have a pattern of successful contract performance or any recurring issues.

How does the value of this contract compare to similar pet care services for government entities?

Directly comparing the $16.3 million value of this contract to similar government pet care services is challenging due to the specialized nature of military K9 support. This contract likely includes services beyond basic pet care, potentially encompassing specialized training, veterinary support for working animals, and logistical support in operational environments. Standard pet boarding or grooming services would not be comparable. Benchmarking would require identifying contracts for similar military working dog support, which are often awarded through different procurement vehicles and may have varying service scopes. The presence of 5 bidders suggests the price was deemed fair and reasonable within its specific market context, implying it was competitive relative to other firms capable of providing such specialized services.

What are the primary risks associated with this type of contract?

The primary risks associated with this contract include the potential for service disruptions if the contractor fails to perform adequately, impacting the readiness and well-being of military working dogs. There's also a risk of cost overruns if the scope of services expands beyond the initial agreement (scope creep), although the firm-fixed-price structure aims to mitigate this. Dependence on a specialized contractor could create a risk if the contractor experiences financial difficulties or operational failures. Furthermore, ensuring consistent quality of care across potentially diverse geographic locations where military K9 units operate presents an oversight challenge. The specialized nature of the services means finding alternative providers quickly in an emergency could also be difficult.

How effective are firm-fixed-price contracts for specialized service procurements like this?

Firm-fixed-price (FFP) contracts are generally effective for specialized service procurements when the scope of work is well-defined and the government has a clear understanding of the requirements. For this pet care contract, FFP provides cost certainty to the government, transferring most of the cost risk to the contractor. This incentivizes the contractor to manage costs efficiently. However, if the requirements are not fully understood upfront or are subject to change, an FFP contract can be less flexible, potentially leading to disputes or the need for costly contract modifications. In this case, assuming the requirements for military K9 support were clearly articulated, FFP is a suitable structure for managing budget and ensuring predictable spending.

What is the historical spending trend for pet care services within the Department of Defense?

The provided data focuses on a single contract and does not offer insight into the historical spending trends for pet care services within the Department of Defense (DoD). To analyze this trend, one would need to aggregate data from federal procurement databases for all contracts categorized under pet care, veterinary services, or similar classifications awarded by the DoD over several fiscal years. This would involve identifying relevant NAICS codes (like 812910 for Pet Care Services) and PSC codes related to animal care and veterinary services. Analyzing this aggregated data would reveal the total spending, the number of contracts awarded, the types of services procured, and the primary contractors over time, indicating whether spending has increased, decreased, or remained stable.

What are the implications of awarding this contract to a single entity for multiple years?

Awarding a contract like this to a single entity, AMERICAN K 9 INTERDICTION LLC, for a duration of approximately 916 days (over 2.5 years) has several implications. Positively, it provides continuity of service and allows the contractor to develop specialized expertise and efficiencies related to the specific needs of the military K9 units. This can lead to more reliable support. However, it also concentrates risk with one provider; if the contractor underperforms or faces issues, the government has limited immediate alternatives. It could also potentially stifle competition in future procurements if the incumbent builds a strong advantage. The government must ensure robust oversight throughout the contract period to mitigate these risks and ensure continued value.

Industry Classification

NAICS: Other Services (except Public Administration) › Other Personal Services › Pet Care (except Veterinary) Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M0026410R0012

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4007 BURDETTE RD, CARRSVILLE, VA, 02

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $23,952,844

Exercised Options: $19,116,378

Current Obligation: $16,328,298

Contract Characteristics

Cost or Pricing Data: NO

Timeline