DoD's $42.6M Aviation Squadron Admin Services Contract with Island Creek Associates Faces Scrutiny
Contract Overview
Contract Amount: $42,599,162 ($42.6M)
Contractor: Island Creek Associates, LLC
Awarding Agency: Department of Defense
Start Date: 2016-08-01
End Date: 2021-06-30
Contract Duration: 1,794 days
Daily Burn Rate: $23.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF AVIATION SQUADRON ADMINISTRATIVE SERVICES
Place of Performance
Location: SAINT LEONARD, CALVERT County, MARYLAND, 20685
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $42.6 million to ISLAND CREEK ASSOCIATES, LLC for work described as: IGF::OT::IGF AVIATION SQUADRON ADMINISTRATIVE SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 1794 days (approx. 4.9 years) indicates a significant, long-term commitment. 3. The use of Cost Plus Fixed Fee (CPFF) pricing could lead to cost overruns if not managed carefully. 4. The absence of small business participation is noted, potentially limiting broader economic impact.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable and aligned with the fixed fee. Benchmarking against similar engineering services contracts is crucial to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing mechanisms and negotiation outcomes are not detailed, making a definitive price discovery assessment difficult.
Taxpayer Impact: Taxpayer funds are being utilized for essential aviation support services. The effectiveness of the competitive process in securing optimal pricing will determine the ultimate taxpayer impact.
Public Impact
Ensures operational readiness for aviation squadrons through administrative support. Supports a specific segment of the defense industrial base. Potential for cost efficiencies or overruns depending on contract management. Lack of small business involvement may limit opportunities for smaller enterprises.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) pricing model
- Lack of small business participation
- Long contract duration
Positive Signals
- Awarded under full and open competition
- Provides essential administrative services
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), which supports various government functions. Spending benchmarks for similar administrative support contracts within the Department of Defense can vary widely based on scope and duration.
Small Business Impact
The contract data indicates no small business participation (SB=false). This suggests that opportunities for small businesses to compete for or be subcontracted on this significant contract were either not pursued or not successful.
Oversight & Accountability
Oversight will be critical to manage the CPFF contract effectively, ensuring that costs are controlled and that the fixed fee remains appropriate for the services rendered. The Department of the Navy's contracting officers are responsible for this oversight.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Lack of transparency in price discovery despite full and open competition
- No small business participation
- Long contract duration may reduce flexibility
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.6 million to ISLAND CREEK ASSOCIATES, LLC. IGF::OT::IGF AVIATION SQUADRON ADMINISTRATIVE SERVICES
Who is the contractor on this award?
The obligated recipient is ISLAND CREEK ASSOCIATES, 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 $42.6 million.
What is the period of performance?
Start: 2016-08-01. End: 2021-06-30.
What specific administrative services are included under this contract, and how do they contribute to aviation squadron efficiency?
The contract likely encompasses a range of administrative functions such as personnel support, logistical coordination, financial management, and documentation processing essential for aviation squadron operations. These services aim to streamline operations, allowing military personnel to focus on core aviation duties, thereby enhancing overall squadron efficiency and readiness.
Given the CPFF structure, what are the primary risks to cost control, and what mitigation strategies are in place?
The primary risk with CPFF is that the contractor may have less incentive to control costs since costs are reimbursed. Mitigation strategies typically include robust oversight, detailed cost reporting requirements, negotiation of a fair fixed fee, and clear performance metrics to ensure value for money.
How does the lack of small business participation impact the overall effectiveness and reach of this contract?
The absence of small business participation limits the potential for innovation and competition that smaller, agile firms can bring. It also means that a portion of the contract value does not flow down to the small business sector, potentially impacting broader economic development goals and the diversity of the defense industrial base.
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: N0002416R3070
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3805 LLOYD BOWEN RD, SAINT LEONARD, MD, 20685
Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $44,419,625
Exercised Options: $42,645,368
Current Obligation: $42,599,162
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017810D6120
IDV Type: IDC
Timeline
Start Date: 2016-08-01
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2022-08-23
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