DoD's $10.5M Help Desk Contract with ASRC Federal Faces Scrutiny for Limited Competition

Contract Overview

Contract Amount: $10,498,498 ($10.5M)

Contractor: Asrc Federal Professional Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-01-04

End Date: 2026-07-03

Contract Duration: 2,006 days

Daily Burn Rate: $5.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DAI HELP DESK SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to ASRC FEDERAL PROFESSIONAL SERVICES, LLC for work described as: DAI HELP DESK SUPPORT Key points: 1. The contract value is $10.5 million over its period of performance. 2. ASRC Federal Professional Services, LLC is the sole awardee, raising competition concerns. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad. 4. Risk is elevated due to the lack of competitive bidding and potential for price creep.

Value Assessment

Rating: questionable

The contract's pricing is not benchmarked against similar services due to the 'NOT AVAILABLE FOR COMPETITION' status. Without competitive bids, it's difficult to assess if the $10.5 million represents a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential help desk services.

Public Impact

Essential IT support for the Department of the Navy is provided by a single vendor. The broad NAICS code (541990) makes it challenging to compare this contract to specific industry benchmarks. The long contract duration (over 5 years) means taxpayers are committed to this arrangement without competitive review.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • Broad NAICS code
  • Long contract duration

Positive Signals

  • Provides essential help desk support

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically IT support. Benchmarking is difficult without competitive data, but IT support contracts can range widely in cost depending on scope and service levels.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, potentially missing opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services effectively and at a reasonable cost, despite the absence of competition.

Related Government Programs

  • All Other Professional, Scientific, and Technical Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Sole-source award limits competition.
  • Potential for inflated pricing due to lack of competition.
  • Broad NAICS code hinders specific benchmarking.
  • Long contract duration locks in current arrangement.
  • Lack of small business participation noted.

Tags

all-other-professional-scientific-and-te, department-of-defense, dc, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to ASRC FEDERAL PROFESSIONAL SERVICES, LLC. DAI HELP DESK SUPPORT

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL PROFESSIONAL SERVICES, 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 $10.5 million.

What is the period of performance?

Start: 2021-01-04. End: 2026-07-03.

What specific justification was provided for the sole-source award, and does it align with federal procurement regulations for such exceptions?

The provided data does not include the justification for the sole-source award. Federal regulations typically require stringent justification for sole-source procurements, such as unique capabilities or urgent needs. Without this information, it's impossible to assess the validity of the award and ensure compliance.

How will the Department of the Navy ensure cost-effectiveness and performance quality without the pressure of a competitive bidding process?

The Department of the Navy must implement robust performance monitoring and potentially conduct market research for future procurements to ensure cost-effectiveness. Strong contract management, clear performance metrics, and regular reviews are crucial to mitigate risks associated with sole-source awards and maintain service quality.

Could a competitive process have yielded better pricing or a wider range of service options for the government?

It is highly probable that a competitive process could have yielded better pricing and potentially more innovative service options. Competition inherently drives down costs and encourages vendors to offer superior solutions to win contracts. The absence of competition removes these market forces.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0018921RZ015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR #100, BELTSVILLE, MD, 20705

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

Financial Breakdown

Contract Ceiling: $10,630,410

Exercised Options: $10,630,410

Current Obligation: $10,498,498

Actual Outlays: $970,684

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $904,669

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2021-01-04

Current End Date: 2026-07-03

Potential End Date: 2026-07-03 00:00:00

Last Modified: 2025-12-23

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