DoD's $8.5M administrative support contract awarded to Saxman One, LLC, lacks competition

Contract Overview

Contract Amount: $8,523,528 ($8.5M)

Contractor: Saxman ONE, LLC

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2026-04-30

Contract Duration: 2,037 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CIWT ADMIN SUPPORT

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32511

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $8.5 million to SAXMAN ONE, LLC for work described as: CIWT ADMIN SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings through competition. 2. Administrative management services are crucial for operational efficiency within the Department of the Navy. 3. The contract duration of over 5 years suggests a long-term need for these services. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Awarded to a single vendor, raising questions about market responsiveness and pricing. 6. Geographic location in Florida may indicate specific regional support needs.

Value Assessment

Rating: questionable

The contract's value of $8.5 million over approximately 5.5 years for administrative management services requires careful benchmarking. Without competitive bids, it is difficult to assess if the pricing is fair market value. Comparing this to similar administrative support contracts within the Department of Defense or other federal agencies would be necessary to determine if the per-unit cost or overall value is reasonable. The lack of competition inherently raises concerns about potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded through a sole-source justification. This means only one vendor, Saxman One, LLC, was solicited and awarded the contract. The absence of multiple bidders prevents a robust price discovery process and limits the government's ability to secure the most advantageous terms and pricing.

Taxpayer Impact: Taxpayers may not be receiving the best value due to the lack of competitive pressure to drive down costs. The government missed an opportunity to leverage market forces for cost savings.

Public Impact

The Department of the Navy benefits from consistent administrative support services. Operational efficiency within specific Navy units in Florida is likely enhanced. The contract supports the administrative functions essential for military operations. Workforce implications are primarily related to the contractor's personnel providing these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award limits opportunities for other capable vendors.
Long contract duration without competition raises concerns about sustained value.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Contract awarded to a single entity suggests a specific capability match.
Long-term award indicates a stable, ongoing requirement.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category encompassing a wide range of support functions critical to government operations. The federal market for these services is substantial, with agencies consistently outsourcing non-core functions. This contract fits within the broader trend of federal agencies seeking specialized support to enhance efficiency and focus on core missions. Benchmarking would involve comparing this contract's value and scope to other administrative support contracts awarded across various federal departments.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. Therefore, it does not appear to directly benefit the small business ecosystem through this specific award. The absence of set-aside provisions means opportunities were not specifically reserved for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver services within the agreed-upon cost. Transparency is limited due to the sole-source nature of the award, but contract details should be available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Administrative Support Contracts
Navy General Management Consulting Services
Federal Administrative Services Procurement
Sole-Source Contract Awards

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.5 million to SAXMAN ONE, LLC. CIWT ADMIN SUPPORT

Who is the contractor on this award?

The obligated recipient is SAXMAN ONE, 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 $8.5 million.

What is the period of performance?

Start: 2020-10-01. End: 2026-04-30.

What is the specific nature of the administrative support services provided under this contract?

The contract, identified by NAICS code 541611, falls under 'Administrative Management and General Management Consulting Services.' While the data does not detail the precise services, this category typically includes functions such as general management consulting, strategic planning, organizational process analysis, business management, and administrative support. For the Department of the Navy, these services could range from logistical support coordination, personnel management assistance, financial administration, to operational planning and execution support, aimed at improving the efficiency and effectiveness of naval operations.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data states the contract was 'NOT COMPETED UNDER SAP' and awarded as a 'PURCHASE ORDER,' which often implies a sole-source or limited competition scenario, especially when only one awardee is listed. A sole-source award typically occurs when only one responsible source is available or capable of providing the required services. This could be due to unique capabilities, proprietary technology, urgent needs where competition is not feasible, or if the requirement was a logical follow-on to a previously competed contract where the original contractor possesses unique knowledge. Without a specific justification document, the exact reason for the sole-source award remains unknown, but it signifies a lack of market research or a determination that competition was not practicable or in the government's best interest.

How does the contract value of $8.5 million compare to similar administrative support contracts?

Benchmarking the $8.5 million contract value requires comparing it against similar administrative management and general management consulting services contracts awarded by the Department of Defense or other federal agencies. Given the contract duration of approximately 5.5 years (October 2020 to April 2026), the annual value is roughly $1.5 million. This figure needs to be assessed in the context of the specific services rendered, the complexity of the support required, and the geographic location. Without detailed service descriptions and scope, a precise comparison is challenging. However, federal spending databases can be queried for contracts of similar size and scope to identify potential outliers or confirm if this value aligns with market rates for comparable services.

What are the potential risks associated with a sole-source award of this magnitude and duration?

A primary risk of a sole-source award, especially for a contract valued at $8.5 million over more than five years, is the potential for inflated pricing due to the absence of competitive pressure. The government may not be achieving the best possible value for its expenditure. Another risk is vendor lock-in, where the agency becomes dependent on a single provider, potentially hindering innovation or the adoption of more cost-effective solutions from other vendors. Furthermore, a sole-source award can limit opportunities for small businesses or new entrants to the market, potentially stifling competition in the long run. Ensuring robust oversight and performance management becomes even more critical in sole-source situations to mitigate these risks.

What is Saxman One, LLC's track record with federal contracts, particularly with the Department of Defense?

Information on Saxman One, LLC's specific track record with federal contracts, especially within the Department of Defense, is not detailed in the provided data snippet. To assess their performance, one would need to consult federal procurement databases like SAM.gov or FPDS. These databases would reveal the number of contracts awarded to Saxman One, their values, the agencies they've served, and potentially performance ratings or past performance information. A review of their history would help determine their experience in delivering administrative management and general management consulting services, their ability to meet contract requirements, and their overall reliability as a government contractor.

What are the implications of the firm-fixed-price contract type for this administrative support service?

A Firm Fixed Price (FFP) contract type means that the price is set and not subject to adjustment based on the contractor's cost experience. For the government, this offers the highest level of cost certainty, as the total cost of the contract is known upfront, assuming the contractor performs as agreed. This shifts the risk of cost overruns entirely to the contractor, Saxman One, LLC. If the contractor incurs higher costs than anticipated to deliver the administrative support services, their profit margin will decrease. Conversely, if they can deliver the services more efficiently than planned, their profit will increase. This contract type is generally preferred when the scope of work is well-defined and the risks are manageable by the contractor.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cape FOX Corporation

Address: 7050 INFANTRY RIDGE RD, MANASSAS, VA, 20109

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,523,528

Exercised Options: $8,523,528

Current Obligation: $8,523,528

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline