Navy awards $25.4M for operational medicine support, leveraging existing readiness reporting systems

Contract Overview

Contract Amount: $25,406,368 ($25.4M)

Contractor: Reefpoint Group LLC

Awarding Agency: Department of Defense

Start Date: 2019-07-02

End Date: 2022-07-01

Contract Duration: 1,095 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE CONTRACTOR SHALL PROVIDE OPERATIONAL MEDICINE CAPABILITY DEVELOPMENT SUPPORT SERVICES IN ORDER TO LEVERAGE RECENT SUCCESS IN TRANSFORMING NEHSS OPERATIONAL READINESS REPORTING SYSTEMS.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to REEFPOINT GROUP LLC for work described as: THE CONTRACTOR SHALL PROVIDE OPERATIONAL MEDICINE CAPABILITY DEVELOPMENT SUPPORT SERVICES IN ORDER TO LEVERAGE RECENT SUCCESS IN TRANSFORMING NEHSS OPERATIONAL READINESS REPORTING SYSTEMS. Key points: 1. Contract focuses on enhancing operational readiness through medical capability development. 2. Leverages prior success in transforming readiness reporting systems, indicating a focus on continuity and proven methods. 3. The contract type (Cost Plus Fixed Fee) suggests potential for cost overruns if not closely managed. 4. Competition was full and open, implying a robust market and potential for competitive pricing. 5. The duration of 1095 days (3 years) indicates a significant, long-term need for these services. 6. The contractor, REEFPOINT GROUP LLC, has a track record with this agency, suggesting familiarity and potentially lower ramp-up time.

Value Assessment

Rating: good

The contract value of $25.4 million over three years for operational medicine capability development appears reasonable given the scope. Benchmarking against similar contracts for specialized engineering and support services in the defense sector suggests this pricing is within expected ranges. The Cost Plus Fixed Fee structure, while allowing flexibility, necessitates careful oversight to ensure value for money and prevent uncontrolled cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of five bidders suggests a healthy competitive environment for these specialized services. This level of competition generally leads to better price discovery and potentially more innovative solutions for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives competitive pricing for essential services.

Public Impact

Personnel within the Department of the Navy, particularly those involved in operational readiness and medical support, will benefit from enhanced capabilities. Services delivered will focus on developing and improving operational medicine capabilities, directly impacting the effectiveness of medical readiness reporting systems. The geographic impact is primarily within the Department of the Navy's operational theaters and support commands. Workforce implications include potential for specialized roles in medical capability development and system integration within the contractor's team and potentially within the Navy's medical support structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively.
Ensuring the 'leveraging recent success' aspect translates to tangible improvements and not just incremental changes.
Monitoring contractor performance to ensure the development of robust and sustainable operational medicine capabilities.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace.
Contractor has prior experience with the agency, suggesting potential for efficient execution.
Focus on leveraging existing successful systems implies a strategic approach to capability enhancement.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical area for defense spending. The market for specialized defense support services is robust, with significant government investment. This contract aligns with broader defense initiatives to modernize medical support and enhance operational readiness, fitting into a sector characterized by long-term, high-value engagements.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the primary awardee is REEFPOINT GROUP LLC, the potential for subcontracting opportunities with small businesses exists, particularly for specialized support functions. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures will be tied to performance metrics and deliverables outlined in the contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be sensitive.

Related Government Programs

Navy Operational Readiness Reporting Systems
Defense Health Agency Support Services
Medical Capability Development Programs
Operational Medicine Support Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Performance Measurement Clarity
Integration of Prior Success

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to REEFPOINT GROUP LLC. THE CONTRACTOR SHALL PROVIDE OPERATIONAL MEDICINE CAPABILITY DEVELOPMENT SUPPORT SERVICES IN ORDER TO LEVERAGE RECENT SUCCESS IN TRANSFORMING NEHSS OPERATIONAL READINESS REPORTING SYSTEMS.

Who is the contractor on this award?

The obligated recipient is REEFPOINT GROUP 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 $25.4 million.

What is the period of performance?

Start: 2019-07-02. End: 2022-07-01.

What is REEFPOINT GROUP LLC's track record with the Department of the Navy and similar defense contracts?

REEFPOINT GROUP LLC has a history of performing services for the Department of the Navy and other defense agencies. Their past performance on contracts, particularly those involving engineering services, operational support, and readiness initiatives, would be a key factor in their selection for this award. Reviewing their contract history, including any past performance evaluations or awards, provides insight into their reliability and capability to meet the demanding requirements of defense contracts. Specific details on their prior work with readiness reporting systems would be particularly relevant to understanding their suitability for this particular task.

How does the $25.4 million value compare to similar operational medicine support contracts?

The $25.4 million contract value over three years for operational medicine capability development support services is within the typical range for specialized defense support contracts of this nature. Similar engagements involving engineering services, system integration, and operational support for military branches often fall within this multi-million dollar bracket. Factors influencing this value include the complexity of the required capabilities, the level of expertise needed, the duration of the contract, and the specific performance metrics. Benchmarking against contracts with similar scope, duration, and agency would provide a more precise comparison, but the initial assessment suggests it is a commensurate investment for the stated objectives.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, such as this one, is the potential for cost overruns. While the contractor is incentivized to control costs to maximize their fixed fee, the government bears the risk of increased costs if the contractor's actual expenses exceed initial estimates. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are crucial to mitigate this risk. Another risk is ensuring the contractor's focus remains on delivering the required capabilities efficiently rather than on maximizing billable hours. Clear performance metrics and regular reviews are essential to manage these risks.

How effectively is the 'leveraging recent success' clause likely to translate into improved program effectiveness?

The effectiveness of 'leveraging recent success' hinges on the clarity and measurability of that prior success. If the 'transforming NEHSS operational readiness reporting systems' initiative yielded demonstrable improvements in readiness reporting accuracy, timeliness, or comprehensiveness, then building upon that foundation should enhance overall operational medicine capabilities. The success of this clause depends on the contractor's ability to identify the key elements of that prior success and apply them strategically to new capability development. Clear performance indicators tied to both the original success and the new development efforts will be crucial for assessing the actual improvement in program effectiveness.

What historical spending patterns exist for operational medicine support within the Department of the Navy?

Historical spending patterns for operational medicine support within the Department of the Navy typically reflect evolving military medical needs, technological advancements, and readiness requirements. This includes investments in training, equipment, system development, and specialized support services. Analyzing past budgets and contract awards for similar services can reveal trends in funding levels, types of services procured, and key contractors. Such analysis helps contextualize the current $25.4 million award, indicating whether it represents an increase, decrease, or stable level of investment in this critical area compared to previous years or similar initiatives.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018919R3031

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 60 WEST ST STE 400, ANNAPOLIS, MD, 21401

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

Financial Breakdown

Contract Ceiling: $25,446,368

Exercised Options: $25,446,368

Current Obligation: $25,406,368

Actual Outlays: $-1,381,930

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017811D6663

IDV Type: IDC

Timeline