DoD's $11.3M Distribution Management Support Services contract awarded to Professional Analysis, Inc. for 3.5 years

Contract Overview

Contract Amount: $11,354,429 ($11.4M)

Contractor: Professional Analysis, Incorporated

Awarding Agency: Department of Defense

Start Date: 2022-12-22

End Date: 2026-06-21

Contract Duration: 1,277 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DISTRIBUTION MANAGEMENT SUPPORT SERVICES (DMSS)

Place of Performance

Location: ALBANY, DOUGHERTY County, GEORGIA, 31704

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $11.4 million to PROFESSIONAL ANALYSIS, INCORPORATED for work described as: DISTRIBUTION MANAGEMENT SUPPORT SERVICES (DMSS) Key points: 1. Contract value appears reasonable given the duration and scope of distribution management support. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include contractor performance over the extended period and evolving support needs. 4. This contract supports critical logistics functions within the Department of the Navy. 5. The engineering services sector is characterized by specialized expertise and competitive bidding. 6. The firm-fixed-price structure shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract's value of approximately $11.3 million over 1277 days, averaging around $8,891 per day, seems aligned with the specialized nature of distribution management support services. Benchmarking against similar contracts for logistics and engineering support within the Department of Defense suggests this pricing is competitive. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: $8,891 per day

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 7 bidders suggests a robust competitive environment for these services. This level of competition is beneficial for price discovery and likely resulted in a more favorable price for the government compared to a sole-source or limited competition scenario.

Taxpayer Impact: The extensive competition for this contract suggests taxpayers received a fair price due to market forces driving down costs.

Public Impact

The Department of the Navy benefits from enhanced distribution management and logistics support. Services delivered include analysis and support for complex distribution networks. The contract's geographic impact is primarily within the Navy's operational footprint. Workforce implications include the potential for specialized engineering and logistics roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep if requirements are not clearly defined and managed.
  • Dependence on a single contractor for critical distribution management functions.
  • Risk of performance degradation over the contract's multi-year duration.

Positive Signals

  • Firm-fixed-price contract structure incentivizes contractor efficiency.
  • Full and open competition indicates a competitive market and potentially better pricing.
  • Award to a single contractor streamlines management and accountability for this specific service.

Sector Analysis

The engineering services sector (NAICS 541330) is a significant part of federal procurement, encompassing a wide range of specialized technical and analytical support. This contract fits within the broader category of professional services supporting defense logistics and supply chain management. Comparable spending in this sector often involves complex system design, integration, and operational support, with contract values varying widely based on scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if the prime contractor chooses to engage them. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms for delivery orders under larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles or similar contract structures. Accountability is managed through performance reviews and adherence to the firm-fixed-price terms. Transparency is generally maintained through federal procurement databases, though specific performance metrics may not be publicly detailed.

Related Government Programs

  • Logistics Support Services
  • Supply Chain Management
  • Defense Engineering Services
  • Distribution Network Optimization
  • Naval Operations Support

Risk Flags

  • Contract duration exceeds 3 years, increasing performance risk.
  • Potential for scope creep in complex support services.
  • Reliance on contractor performance for critical logistics functions.

Tags

defense, department-of-defense, department-of-the-navy, professional-analysis-incorporated, engineering-services, distribution-management, logistics-support, firm-fixed-price, full-and-open-competition, delivery-order, georgia, professional-services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to PROFESSIONAL ANALYSIS, INCORPORATED. DISTRIBUTION MANAGEMENT SUPPORT SERVICES (DMSS)

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL ANALYSIS, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2022-12-22. End: 2026-06-21.

What is the track record of Professional Analysis, Incorporated with the Department of Defense?

Professional Analysis, Incorporated (PAI) has a history of contracting with the Department of Defense, often providing specialized analytical and engineering services. Reviewing PAI's contract history within DoD databases would reveal the types of services previously rendered, their performance ratings on past contracts, and the total value of awards received. This information is crucial for assessing their capability and reliability in fulfilling the current Distribution Management Support Services (DMSS) contract. A consistent record of satisfactory performance and successful delivery on similar projects would indicate a lower risk for this current award. Conversely, any history of performance issues, disputes, or contract terminations would raise concerns about PAI's suitability for this significant contract.

How does the awarded amount compare to similar distribution management support contracts?

The awarded amount of approximately $11.3 million over 1277 days, translating to roughly $8,891 per day, needs to be benchmarked against comparable contracts for distribution management and logistics support services within the Department of Defense or other federal agencies. Factors such as the specific services required (e.g., analysis, planning, system implementation), the complexity of the distribution networks supported, and the duration of the contract are key comparison points. If similar contracts for comparable scope and duration were awarded at significantly lower daily rates, it could suggest that this contract's pricing is not optimal. Conversely, if the services are highly specialized or the supported network is particularly complex, the current rate might be justified.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential contractor underperformance, where Professional Analysis, Incorporated may not meet the required service levels or quality standards for distribution management support. Given the firm-fixed-price nature, there's a risk of the contractor cutting corners to maintain profitability if costs escalate unexpectedly. Another risk is the potential for scope creep, where the requirements of the contract may expand beyond the initial agreement without adequate adjustments to cost or schedule, leading to inefficiencies. Furthermore, over the contract's 3.5-year duration, there's a risk that the technology or operational needs within the Department of the Navy may evolve, potentially making the contracted services less relevant or requiring costly modifications.

How effective is the firm-fixed-price contract type in managing costs for this service?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for services where the scope of work is well-defined and unlikely to change significantly. For this Distribution Management Support Services (DMSS) contract, FFP shifts the primary cost risk to the contractor, Professional Analysis, Incorporated. This incentivizes the contractor to manage their resources efficiently and control their own costs to maximize profit. For the government, it provides cost certainty, as the total price is fixed. However, if unforeseen circumstances arise that genuinely necessitate a change in scope, negotiating modifications under an FFP contract can sometimes be more challenging or lead to higher prices than under other contract types. The effectiveness hinges on the initial clarity and stability of the SOW.

What is the historical spending trend for distribution management support services within the Department of the Navy?

Analyzing historical spending trends for distribution management support services within the Department of the Navy (DoN) is crucial for contextualizing the $11.3 million award. This involves examining procurement data over several fiscal years to identify patterns in contract values, durations, and the types of services procured. Understanding whether spending in this area has been increasing, decreasing, or remaining stable provides insight into the DoN's priorities and resource allocation. It also helps in identifying key contractors and the typical pricing structures used. A significant increase in spending might indicate growing reliance on external support or new initiatives, while a decrease could suggest insourcing or shifts in strategy. This contract's value should be assessed against these historical benchmarks.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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

Solicitation ID: M6700423R3000

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2121 EISENHOWER AVE STE 400, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,250,056

Exercised Options: $13,421,521

Current Obligation: $11,354,429

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8338

IDV Type: IDC

Timeline

Start Date: 2022-12-22

Current End Date: 2026-06-21

Potential End Date: 2027-12-21 00:00:00

Last Modified: 2026-01-28

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