DoD's $26.8M contract for CIVMAR Support Center services awarded to Advanced Government Solutions, Inc

Contract Overview

Contract Amount: $26,834,180 ($26.8M)

Contractor: Advanced Government Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-08-11

End Date: 2015-03-31

Contract Duration: 2,058 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE CIVMAR SUPPORT CENTER SERVICES

Place of Performance

Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23511, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to ADVANCED GOVERNMENT SOLUTIONS, INC. for work described as: PROVIDE CIVMAR SUPPORT CENTER SERVICES Key points: 1. The contract's value of $26.8 million over its period of performance suggests a significant investment in support services. 2. Competition dynamics for this contract, initially under 'full and open competition after exclusion of sources,' warrant further examination. 3. The firm fixed-price contract type generally indicates a predictable cost structure for the government. 4. Performance context is provided by the duration of over 2000 days, implying a long-term need for these services. 5. The contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. 6. The award to Advanced Government Solutions, Inc. represents a substantial commitment to a single contractor for these services.

Value Assessment

Rating: fair

Benchmarking the value of this $26.8 million contract is challenging without specific performance metrics or comparable service contracts. The firm fixed-price structure suggests the government aimed for cost certainty. However, the absence of detailed cost breakdowns or comparisons to similar service agreements makes a definitive value-for-money assessment difficult. The duration of the contract (over 2000 days) indicates a sustained need, but whether the price reflects optimal market rates requires further analysis of the specific services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The number of bids received (4) is moderate, suggesting some level of competition, but the exclusion of sources raises questions about the breadth of market engagement and its potential impact on price discovery.

Taxpayer Impact: The limited competition, even if initially open, may have resulted in less aggressive pricing than a truly unrestricted full and open competition. Taxpayers may have paid a premium due to a reduced number of potential bidders.

Public Impact

The primary beneficiaries are likely the personnel and operations supported by the CIVMAR Support Center, ensuring continuity and efficiency. Services delivered are professional, scientific, and technical in nature, crucial for the operational readiness of the Navy's Military Sealift Command (MARS). The geographic impact is centered around the support center's location, likely impacting the local workforce and economy in Virginia. Workforce implications include the direct employment of individuals by Advanced Government Solutions, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method could limit competitive pressure and potentially increase costs.
Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services provided.
The broad 'All Other Professional, Scientific, and Technical Services' category lacks specificity, making it hard to gauge the exact nature and necessity of the spending.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The contract was awarded after a competitive process, indicating some level of market vetting.
The long contract duration suggests a stable and reliable service provision for the supported entity.

Sector Analysis

This contract falls within the broad professional, scientific, and technical services sector, which is a significant component of federal contracting. The market for such services is diverse, encompassing a wide range of specialized expertise. The Department of Defense is a major consumer of these services, often requiring support for complex operational and logistical functions. Comparable spending benchmarks would typically involve analyzing other contracts for similar support services within the DoD or other federal agencies, considering factors like scope, duration, and required expertise.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) or specific subcontracting goals mentioned in the provided data (sb: false). Therefore, its direct impact on the small business ecosystem is likely minimal, as it was not specifically designed to promote small business participation. The prime contractor, Advanced Government Solutions, Inc., would be responsible for its own subcontracting decisions, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy, a component of the Department of Defense. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Military Sealift Command Operations Support
Department of Defense Professional Services
Naval Support Contracts
Technical and Scientific Services
Federal Support Center Services

Risk Flags

Limited competition due to source exclusion
Lack of detailed performance metrics for value assessment
Broad service category may obscure specific needs and costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to ADVANCED GOVERNMENT SOLUTIONS, INC.. PROVIDE CIVMAR SUPPORT CENTER SERVICES

Who is the contractor on this award?

The obligated recipient is ADVANCED GOVERNMENT SOLUTIONS, 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 $26.8 million.

What is the period of performance?

Start: 2009-08-11. End: 2015-03-31.

What specific services were provided under the CIVMAR Support Center contract?

The contract data indicates the provision of 'CIVMAR SUPPORT CENTER SERVICES.' While the specific details are not enumerated in the provided summary, this designation typically encompasses a range of administrative, logistical, technical, and operational support functions essential for the functioning of a support center. For the Military Sealift Command (MARS), this could include personnel support, vessel readiness coordination, supply chain management assistance, data management, and other professional, scientific, and technical services aimed at ensuring the efficient operation of maritime assets and personnel.

How does the $26.8 million contract value compare to similar support services contracts within the Department of Defense?

Comparing the $26.8 million value requires access to a broader dataset of similar contracts. However, for a contract spanning over 2000 days (approximately 5.6 years), this annual expenditure averages around $4.8 million. This figure is moderate within the context of large federal contracts. Many DoD support service contracts can range from a few million to hundreds of millions of dollars annually, depending on the scope, complexity, and criticality of the services. Without knowing the precise deliverables and service levels, a direct comparison is difficult, but it suggests a substantial, long-term commitment rather than a small, incidental service.

What are the potential risks associated with a firm fixed-price contract of this duration?

Firm fixed-price (FFP) contracts are generally preferred for their cost certainty. However, for a long-duration contract like this (over 2000 days), risks can emerge. If the initial cost estimates did not accurately account for inflation, unforeseen operational challenges, or changes in market labor rates, the contractor might face reduced profit margins or seek contract modifications. Conversely, if the contractor underestimated costs, they bear the loss. For the government, the primary risk is that the contractor may cut corners on quality or service to maintain profitability if costs escalate unexpectedly, although the FFP structure incentivizes efficiency. Robust performance monitoring is crucial to mitigate these risks.

What does the 'full and open competition after exclusion of sources' procurement method imply about the bidding process?

This procurement method suggests a complex history. 'Full and open competition' is the standard for maximizing competition. However, the addition of 'after exclusion of sources' indicates that certain potential bidders were deliberately excluded from participating. The reasons for exclusion could range from security concerns, past performance issues, or specific technical requirements that only a subset of vendors could meet. While it aimed for open competition among the remaining eligible sources, it inherently limits the total number of potential bidders compared to a completely unrestricted process. This could impact the level of price competition achieved.

What is the track record of Advanced Government Solutions, Inc. in securing and performing similar federal contracts?

The provided data shows Advanced Government Solutions, Inc. was awarded this specific $26.8 million contract. To assess their broader track record, one would need to examine their contract history across various federal agencies. This would involve looking at the number and value of contracts awarded, the types of services rendered, their performance ratings (if available), and any history of contract disputes or terminations. A company with a consistent record of successful performance on similar, large-scale contracts would generally be considered a lower risk. Without this broader context, it's difficult to definitively assess their overall reliability for this specific service.

How has federal spending on 'All Other Professional, Scientific, and Technical Services' evolved over the period of this contract (2009-2015)?

Federal spending in the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) has generally seen fluctuations influenced by overall budget priorities and specific agency needs. During the period of this contract (2009-2015), the US was engaged in significant military operations and economic recovery efforts, which often drive demand for professional and technical support services. Spending in this broad category can increase during periods of heightened national security requirements or large-scale infrastructure projects. Analyzing historical spending trends for this specific NAICS code would reveal whether this $26.8 million contract represented a typical or exceptional level of investment for the DoD during those years.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4044208R7000

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 197 DEFENSE HWY, ANNAPOLIS, MD, 21401

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

Financial Breakdown

Contract Ceiling: $26,834,180

Exercised Options: $26,834,180

Current Obligation: $26,834,180

Contract Characteristics

Cost or Pricing Data: NO

Timeline