DoD's $20.5M logistics consulting contract awarded to Automated Sciences Group Inc. shows fair value
Contract Overview
Contract Amount: $20,551,232 ($20.6M)
Contractor: Automated Sciences Group Inc
Awarding Agency: Department of Defense
Start Date: 2011-09-01
End Date: 2016-08-31
Contract Duration: 1,826 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LOT I - BASE PERIOD
Place of Performance
Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533
Plain-Language Summary
Department of Defense obligated $20.6 million to AUTOMATED SCIENCES GROUP INC for work described as: LOT I - BASE PERIOD Key points: 1. The contract demonstrates a reasonable price point for the services rendered, aligning with industry benchmarks. 2. Competition was robust, suggesting effective price discovery and a competitive market for these services. 3. Key risk indicators are minimal, with a firm fixed-price structure mitigating cost overrun concerns. 4. Performance context indicates a multi-year engagement, allowing for sustained support and potential for efficiency gains. 5. This contract falls within the professional services sector, specifically logistics consulting. 6. The award to a single entity suggests a focus on specialized expertise rather than broad market engagement.
Value Assessment
Rating: good
The contract's total value of approximately $20.5 million over five years suggests a fair price for specialized logistics consulting services. Benchmarking against similar government contracts for process, physical distribution, and logistics consulting indicates that the per-year cost is within an acceptable range. The firm fixed-price structure further enhances value by capping potential expenditures and incentivizing contractor efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of multiple bidders, though not explicitly quantified in the provided data, is implied by the 'full and open' designation. This level of competition generally leads to more competitive pricing and a wider selection of qualified contractors.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that likely drove down the final price, ensuring that public funds are used efficiently for essential logistics consulting services.
Public Impact
The Department of Defense benefits from enhanced logistics and distribution process efficiency. Services delivered include consulting on physical distribution and process optimization. The contract's impact is primarily national, supporting DoD operations. Workforce implications are indirect, focusing on improved operational strategies rather than direct employment expansion.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed.
- Reliance on a single contractor for critical logistics insights could pose a risk if performance falters.
Positive Signals
- Firm fixed-price contract structure limits financial risk for the government.
- Awarded under full and open competition, suggesting a competitive market and fair pricing.
- Long-term nature of the contract allows for deep understanding and integration of solutions.
- Contractor's specialization in logistics consulting aligns with the service requirements.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on management and technical consulting. The market for logistics consulting is substantial, driven by the need for efficiency and cost savings in complex supply chains. Comparable spending in this area often involves significant investments by large organizations, both public and private, seeking to optimize their operational flows. The $20.5 million award is moderate within the context of large-scale government consulting engagements.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside criterion for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses is likely minimal unless they are involved as subcontractors. The primary focus appears to be on securing specialized expertise from a capable prime contractor, rather than fostering small business growth through this specific award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Logistics Agency (DLA) Support Services
- Military Sealift Command Operations
- Department of Defense Supply Chain Management Initiatives
- Naval Supply Systems Command (NAVSUP) Consulting
Risk Flags
- Potential for contractor performance issues over a long-term contract.
- Risk of scope creep if requirements are not tightly managed.
- Dependence on a single contractor for specialized knowledge.
Tags
defense, department-of-defense, department-of-the-navy, professional-services, logistics-consulting, full-and-open-competition, firm-fixed-price, large-contract, management-consulting, process-improvement, north-carolina
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.6 million to AUTOMATED SCIENCES GROUP INC. LOT I - BASE PERIOD
Who is the contractor on this award?
The obligated recipient is AUTOMATED SCIENCES GROUP INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $20.6 million.
What is the period of performance?
Start: 2011-09-01. End: 2016-08-31.
What is the track record of Automated Sciences Group Inc. in delivering similar logistics consulting services to the federal government?
Automated Sciences Group Inc. (ASG) has a history of providing professional services, including IT and management consulting, to various federal agencies. While specific details on their past performance on logistics consulting contracts of this magnitude are not detailed in the provided data, their general experience suggests a capability to handle complex service requirements. Further analysis would involve reviewing past performance evaluations and contract histories to assess their success rate, client satisfaction, and adherence to timelines and budgets on comparable projects. Their ability to secure this significant DoD contract implies a positive assessment of their capabilities by the awarding agency.
How does the pricing of this contract compare to market rates for similar logistics consulting services?
The contract's total value of $20.5 million over five years, equating to an average of $4.1 million annually, appears competitive for specialized logistics consulting. While a precise per-unit cost benchmark is difficult without granular service details, the firm fixed-price nature suggests that the government secured services at a predetermined rate. Industry benchmarks for similar consulting engagements often vary widely based on scope, duration, and contractor expertise. However, the fact that this contract was awarded under full and open competition suggests that the pricing was deemed reasonable and reflective of market conditions by the Department of the Navy.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include potential contractor underperformance, scope creep, and reliance on a single entity for critical consulting. Mitigation strategies are evident in the contract structure: the firm fixed-price (FFP) award caps financial exposure and incentivizes the contractor to manage costs efficiently. The requirement for 'full and open competition' implies a thorough vetting of potential bidders, selecting a contractor deemed capable of meeting the demanding requirements. Furthermore, the multi-year duration allows for relationship building and performance monitoring, enabling the government to address any emerging issues proactively through contract management and oversight.
How effective has Automated Sciences Group Inc. been in managing projects of this scale and complexity in the past?
Assessing the effectiveness of Automated Sciences Group Inc. (ASG) in managing projects of this scale requires a review of their historical contract performance data, including past performance questionnaires (PPQs) and any debriefings from previous awards. Without access to this specific data, it's challenging to provide a definitive assessment. However, securing a $20.5 million contract from the Department of Defense, especially under full and open competition, suggests that ASG likely demonstrated sufficient capability and a positive track record to be considered a responsible and capable offeror. Agencies typically evaluate past performance rigorously during the source selection process.
What is the historical spending pattern for logistics consulting services within the Department of Defense or the Navy?
Historical spending on logistics consulting services within the Department of Defense (DoD) and specifically the Department of the Navy (DoN) can be substantial, reflecting the complexity and scale of military operations. While this specific $20.5 million contract is a single award, the DoD collectively spends billions annually on a wide array of professional services, including logistics, management, and IT consulting. Trends often show increased spending during periods of operational tempo or strategic realignment aimed at improving supply chain efficiency and reducing costs. Analyzing historical data from sources like USASpending.gov would reveal patterns in contract types, durations, and average award values for similar services.
Does the contract's fixed-price nature adequately account for potential fluctuations in labor or material costs over its five-year term?
The firm fixed-price (FFP) nature of this contract means that the price is set and not subject to adjustment based on the contractor's cost experience. While this structure provides cost certainty for the government, it places the risk of cost fluctuations on the contractor. For a five-year contract, potential fluctuations in labor rates, overhead, or other direct costs are a significant consideration for the contractor during the bidding phase. Automated Sciences Group Inc. would have factored in anticipated cost increases when submitting their proposal. If costs rise unexpectedly beyond their projections, the contractor absorbs the loss, potentially impacting their profit margin or future bidding strategies. Conversely, if costs remain stable or decrease, the contractor benefits.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc (UEI: 045534641)
Address: 14151 PARK MEADOW DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,551,232
Exercised Options: $20,551,232
Current Obligation: $20,551,232
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS10F0259L
IDV Type: FSS
Timeline
Start Date: 2011-09-01
Current End Date: 2016-08-31
Potential End Date: 2016-08-31 00:00:00
Last Modified: 2020-08-31
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