DoD's $16.9M contract for project management services awarded to MA Federal, Inc. shows moderate competition

Contract Overview

Contract Amount: $16,924,195 ($16.9M)

Contractor: MA Federal, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-05-28

End Date: 2012-05-27

Contract Duration: 730 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROJECT MANAGEMENT FOR CLIN 0001

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33602

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to MA FEDERAL, INC. for work described as: PROJECT MANAGEMENT FOR CLIN 0001 Key points: 1. The contract value of $16.9 million over two years suggests a significant investment in project management capabilities. 2. Awarded under full and open competition, the contract saw 8 bidders, indicating a healthy level of market interest. 3. The fixed-price contract type aims to control costs, but performance risks may still exist. 4. The services provided are crucial for supporting complex defense projects. 5. The contract's duration of 730 days aligns with typical project lifecycles. 6. The geographic location of Florida (FL) may indicate specific operational needs or contractor presence.

Value Assessment

Rating: fair

The contract value of $16.9 million for two years of project management services appears to be within a reasonable range for specialized defense support. Benchmarking against similar contracts for project management within the Department of Defense is challenging without more specific service details. However, the number of bidders suggests that the pricing was likely competitive. The firm fixed-price structure provides cost certainty for the government, assuming the scope of work was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is the preferred method for ensuring the widest possible participation and best value. With 8 bidders, the competition level was moderate, suggesting that while multiple firms were interested, it may not have reached the highest levels of market saturation. This level of competition generally allows for price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: The moderate competition level is beneficial for taxpayers as it likely drove down prices compared to a sole-source award. It ensures that public funds are used efficiently by leveraging market forces to obtain services at a reasonable cost.

Public Impact

The primary beneficiaries are the Department of Defense and its various projects requiring expert project management. The services delivered likely include planning, execution, monitoring, and control of defense-related projects. The geographic impact is centered in Florida, where the contractor is located and likely where services are performed or managed. The contract supports a workforce skilled in project management, potentially within the defense contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not tightly managed.
Reliance on a single contractor for critical project management functions could pose a risk if performance falters.
Ensuring the contractor's personnel possess the necessary security clearances and expertise for defense projects.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type helps control costs and provides budget certainty.
The contractor, MA Federal, Inc., has experience in government contracting, suggesting a degree of reliability.

Sector Analysis

The IT services sector, particularly within defense contracting, is characterized by high demand for specialized project management. This contract falls under the broader category of IT services, specifically related to computer peripheral equipment manufacturing support, though the core service is project management. The market size for such services within the federal government is substantial, with significant annual spending allocated to IT and program management support across various agencies. Comparable spending benchmarks would typically involve analyzing other project management support contracts awarded by the Department of Defense or other federal agencies for similar scope and duration.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. The award to MA Federal, Inc. does not directly involve small business subcontracting opportunities unless specified in the contract terms, which are not detailed here. The absence of a small business set-aside suggests that the competition was open to all qualified businesses, and the primary focus was on securing the best value from the entire market, rather than specifically promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. Accountability measures are embedded in the firm fixed-price contract, requiring the contractor to deliver services within the agreed-upon scope and price. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Project Management Support
IT Services for Department of Defense
Contracting for Computer Peripheral Equipment
Federal IT Consulting Services
Navy IT Procurement

Risk Flags

Moderate competition level may impact price optimization.
Firm fixed-price contracts can pose risks if scope is not well-defined.
Performance data for MA Federal, Inc. on similar contracts not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to MA FEDERAL, INC.. PROJECT MANAGEMENT FOR CLIN 0001

Who is the contractor on this award?

The obligated recipient is MA FEDERAL, 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 $16.9 million.

What is the period of performance?

Start: 2010-05-28. End: 2012-05-27.

What is the track record of MA Federal, Inc. in performing similar project management contracts for the Department of Defense?

MA Federal, Inc. has a history of performing government contracts, including those with the Department of Defense. While specific details on past project management performance for similar contracts are not provided in this data snippet, their ability to win this $16.9 million award suggests they met the necessary qualifications and demonstrated capability. A deeper dive into their contract history, past performance evaluations (e.g., CPARS), and any awards or penalties would provide a more comprehensive understanding of their track record. Analyzing their success rate on firm fixed-price contracts and their experience with the specific types of projects managed under this award would also be informative.

How does the value of this contract compare to other project management support contracts awarded by the Department of the Navy?

The $16.9 million value for a two-year project management contract is a significant but not exceptionally large sum within the context of the Department of the Navy's extensive contracting portfolio. The Navy procures a wide range of services, and project management support can vary greatly in cost depending on the complexity, duration, and criticality of the projects being managed. To benchmark effectively, one would need to compare this contract against similar 'Delivery Order' type contracts for project management services, ideally with similar North American Industry Classification System (NAICS) codes and contract types (firm fixed price). The number of bidders (8) suggests a competitive environment, which typically helps in achieving a fair market price.

What are the primary risks associated with this firm fixed-price contract for project management services?

The primary risks associated with a firm fixed-price contract for project management services, even with moderate competition, include potential scope creep if requirements are not clearly defined and managed, and the risk of contractor underperformance if the fixed price does not adequately account for unforeseen challenges. For the government, the risk lies in potentially paying a premium if the competition was not robust enough to drive prices down to the lowest feasible level, or if the contractor inflates costs due to a lack of detailed oversight. Contractor risks include absorbing cost overruns if their initial bid was too low or if project complexities were underestimated. Ensuring clear deliverables and performance metrics is crucial to mitigate these risks.

How effective is the 'full and open competition' approach in ensuring value for money for this type of IT-related project management service?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money in federal contracting, including for IT-related project management services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. The fact that 8 bidders participated in this contract suggests that the market was sufficiently engaged. However, the ultimate value for money depends on the quality of the proposals received, the effectiveness of the evaluation process, and the contractor's subsequent performance. Robust evaluation criteria and diligent oversight are essential complements to the competitive process.

What are the historical spending patterns for project management services within the Department of the Navy, and how does this contract fit?

Historical spending patterns for project management services within the Department of the Navy are substantial, reflecting the complexity and scale of naval operations and acquisitions. The Navy consistently invests heavily in program management and project support across various domains, including IT, shipbuilding, and aviation. This $16.9 million contract for project management, awarded in 2010 for a two-year period, represents a specific instance of this ongoing investment. It fits within the broader category of professional services procurement, aimed at ensuring the efficient execution of defense projects. Analyzing trends in contract values, competition levels, and contractor performance over time would reveal patterns in how the Navy manages its project management needs.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Other Computer Peripheral Equipment Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8180 GREENSBORO DR # 1050, MC LEAN, VA, 22102

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $26,921,436

Exercised Options: $16,924,195

Current Obligation: $16,924,195

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4411G

IDV Type: FSS

Timeline