USMC awards $18.5M contract for logistics support to Techflow, Inc

Contract Overview

Contract Amount: $18,515,185 ($18.5M)

Contractor: Techflow, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-09

End Date: 2016-09-08

Contract Duration: 1,826 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE UNITED STATES MARINE CORPS (USMC),LOGISTICS POLICIES AND STRATEGIC MOBILITY DIVISION, LOGISTICS VISION AND STRATEGY BRANCH (LPV), HAS A REQUIREMENT FOR DATA COLLECTION, INFORMATION ANALYSES, STUDIES, DOCUMENT PREPARATION, AND MANAGEMENT SUPPORT.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92131

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to TECHFLOW, INC. for work described as: THE UNITED STATES MARINE CORPS (USMC),LOGISTICS POLICIES AND STRATEGIC MOBILITY DIVISION, LOGISTICS VISION AND STRATEGY BRANCH (LPV), HAS A REQUIREMENT FOR DATA COLLECTION, INFORMATION ANALYSES, STUDIES, DOCUMENT PREPARATION, AND MANAGEMENT SUPPORT. Key points: 1. Contract awarded via full and open competition, indicating a competitive bidding process. 2. The contract value of $18.5 million over five years suggests significant support needs. 3. Focus on logistics policies and strategic mobility highlights a critical operational area for the USMC. 4. The use of Cost Plus Fixed Fee (CPFF) pricing may introduce cost escalation risks.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee. This can incentivize contractor efficiency but also carries a risk of cost overruns if not closely monitored, potentially impacting overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently, though the CPFF structure requires diligent oversight to control costs.

Public Impact

Ensures continued operational readiness for the Marine Corps by supporting critical logistics functions. Provides essential analytical and management support for strategic mobility initiatives. The contract's duration of five years offers stability for the supported division. Supports the development and implementation of effective logistics policies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns.
Potential for scope creep in data collection and analysis tasks.
Reliance on a single award for comprehensive logistics support.

Positive Signals

Awarded through full and open competition, promoting market fairness.
Long-term contract provides stability for critical functions.
Focus on strategic mobility aligns with key military objectives.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense logistics and strategic mobility. Spending in this area is crucial for maintaining military operational capabilities and efficiency.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract requires diligent oversight due to its CPFF structure. The Department of Defense, through the Defense Contract Management Agency, is responsible for monitoring performance and costs to ensure accountability and value.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure.
Potential for scope creep in analytical and data collection tasks.
Reliance on contractor's internal controls for cost management.
Need for continuous government oversight to ensure value.
Complexity of logistics and strategic mobility requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to TECHFLOW, INC.. THE UNITED STATES MARINE CORPS (USMC),LOGISTICS POLICIES AND STRATEGIC MOBILITY DIVISION, LOGISTICS VISION AND STRATEGY BRANCH (LPV), HAS A REQUIREMENT FOR DATA COLLECTION, INFORMATION ANALYSES, STUDIES, DOCUMENT PREPARATION, AND MANAGEMENT SUPPORT.

Who is the contractor on this award?

The obligated recipient is TECHFLOW, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2011-09-09. End: 2016-09-08.

How effectively will Techflow, Inc. manage cost controls under the CPFF structure to ensure optimal value for the Marine Corps?

Effectiveness hinges on robust government oversight and Techflow's internal cost management practices. The CPFF structure allows for cost reimbursement plus a fixed fee, meaning the contractor is incentivized to control costs to maximize profit. However, without stringent monitoring by the Defense Contract Management Agency, there's a risk of cost overruns, potentially diminishing the contract's value and impacting taxpayer funds.

What are the primary risks associated with the 'data collection, information analyses, studies, and document preparation' scope of work?

Key risks include scope creep, where requirements may expand beyond the initial agreement, leading to increased costs and delays. Ensuring data accuracy and relevance is also critical. Furthermore, the subjective nature of 'studies' and 'analyses' necessitates clear deliverables and performance metrics to prevent disputes and ensure the work meets the USMC's strategic needs.

How does this contract contribute to the USMC's overall strategic mobility and logistics modernization efforts?

This contract directly supports the USMC's Logistics Vision and Strategy Branch by providing essential analytical and support services. The insights gained from data collection and analysis are intended to inform policy development and strategic planning, thereby enhancing the Corps' ability to move and sustain forces effectively. Its success is crucial for modernizing logistics capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: N0002411R3234

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6405 MIRA MESA BLVD STE 250, SAN DIEGO, CA, 92121

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

Financial Breakdown

Contract Ceiling: $19,731,508

Exercised Options: $19,681,508

Current Obligation: $18,515,185

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $46,050,495

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4586

IDV Type: IDC

Timeline