DoD's $13.8M FIAR ERM RMIC Support contract awarded to AOC Solutions, Inc. for accounting services
Contract Overview
Contract Amount: $13,822,744 ($13.8M)
Contractor: AOC Solutions, Inc
Awarding Agency: Department of Defense
Start Date: 2023-09-30
End Date: 2025-09-29
Contract Duration: 730 days
Daily Burn Rate: $18.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FIAR ERM RMIC SUPPORT
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $13.8 million to AOC SOLUTIONS, INC for work described as: FIAR ERM RMIC SUPPORT Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Duration of 730 days provides a stable period for service delivery. 4. No small business set-aside, potentially limiting opportunities for smaller firms. 5. Contractor AOC Solutions, Inc. has a track record with government contracts. 6. Services fall under 'Other Accounting Services', a common government function.
Value Assessment
Rating: good
The contract's value of approximately $13.8 million over two years for accounting services appears reasonable, especially considering it was awarded through a Blanket Purchase Agreement (BPA) Call, suggesting pre-negotiated rates. Benchmarking against similar contracts for financial improvement and audit readiness (FIAR) support is crucial, but the firm fixed-price nature provides cost certainty. Without specific per-unit metrics, a direct value-for-money assessment is challenging, but the competitive award process likely contributed to a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, with 6 bidders participating. This indicates a healthy level of market interest and suggests that the Defense Logistics Agency sought to maximize competition to obtain the best value. The presence of multiple bidders generally leads to more competitive pricing and a wider range of potential solutions.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, driving down costs and improving service quality.
Public Impact
The Department of Defense benefits from enhanced financial improvement and audit readiness (FIAR) capabilities. Services provided support the agency's efforts to meet financial reporting requirements. The contract impacts the agency's ability to manage its financial resources effectively. Workforce implications are likely related to specialized accounting and financial management roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for contractor lock-in if services are highly specialized and difficult to transition.
- Reliance on a single contractor for critical financial functions could pose a risk if performance falters.
Positive Signals
- Firm Fixed Price contract provides cost predictability.
- Awarded through a BPA Call, suggesting a streamlined and potentially cost-effective procurement.
- Multiple bidders indicate a competitive environment that likely benefited the government.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically 'Other Accounting Services' (NAICS 541219). This sector is vital for government operations, providing essential support for financial management, auditing, and compliance. The market for these services is competitive, with numerous firms capable of supporting federal agencies' complex financial reporting and audit readiness needs, particularly in areas like FIAR.
Small Business Impact
The contract was not set aside for small businesses, and the awardee, AOC Solutions, Inc., is not explicitly identified as a small business in the provided data. This means that opportunities for small business subcontracting may be limited unless voluntarily pursued by the prime contractor. The absence of a small business set-aside could mean that larger, more established firms dominated the bidding process.
Oversight & Accountability
Oversight for this contract would typically fall under the Defense Logistics Agency's contracting officer and program managers. The firm fixed-price nature of the contract provides a degree of financial oversight by establishing a set cost. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.
Related Government Programs
- Financial Improvement and Audit Readiness (FIAR) initiatives
- Accounting and Auditing Services
- Defense Logistics Agency Support Contracts
- BPA Call Awards
Risk Flags
- Potential for scope creep if requirements are not clearly defined.
- Contractor performance risk if specialized expertise is not consistently delivered.
- Dependency on contractor for critical financial data integrity.
Tags
defense, department-of-defense, defense-logistics-agency, accounting-services, firm-fixed-price, full-and-open-competition, bpa-call, financial-improvement-and-audit-readiness, virginia, professional-scientific-and-technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.8 million to AOC SOLUTIONS, INC. FIAR ERM RMIC SUPPORT
Who is the contractor on this award?
The obligated recipient is AOC SOLUTIONS, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $13.8 million.
What is the period of performance?
Start: 2023-09-30. End: 2025-09-29.
What is the track record of AOC Solutions, Inc. with federal contracts, particularly in accounting and financial services?
AOC Solutions, Inc. has a history of performing federal contracts, including those related to accounting and financial services. While specific details on past performance metrics for this particular contract are not provided, their ability to win this award suggests they meet the necessary qualifications and experience requirements set by the Defense Logistics Agency. Further analysis would involve reviewing their past performance evaluations and contract history across various agencies to assess their reliability and effectiveness in delivering similar services.
How does the awarded price compare to similar government contracts for FIAR ERM RMIC support?
Direct comparison of the $13.8 million contract value to similar contracts is challenging without access to a comprehensive database of comparable procurements. However, the contract was awarded under full and open competition with 6 bidders, and it is a firm fixed-price BPA Call. This suggests that the pricing was likely competitive and reflects market rates for specialized accounting services supporting financial improvement and audit readiness. Benchmarking would ideally involve analyzing the per-unit costs or labor rates against other contracts of similar scope and duration within the DoD or other federal agencies.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks include potential performance issues by the contractor, changes in government requirements, or unforeseen cost escalations (though mitigated by FFP). The firm fixed-price (FFP) structure inherently shifts cost risk to the contractor. Mitigation strategies likely involve robust performance monitoring by the Defense Logistics Agency, clear contract deliverables, and regular communication channels. The competitive award process also serves as a risk mitigation tool, as it selects a contractor deemed capable of meeting requirements. The contract's duration of two years allows for periodic reassessment of performance and needs.
How effective is the Defense Logistics Agency in leveraging competition for accounting services?
The award of this contract through full and open competition with six bidders indicates a strong commitment by the Defense Logistics Agency (DLA) to leveraging competition for accounting services. This approach is generally effective in driving down prices, fostering innovation, and ensuring that the government receives high-quality services. The presence of multiple bidders suggests a healthy market for these services and allows the DLA to select the offer that provides the best overall value, balancing cost, technical approach, and past performance.
What is the historical spending pattern for FIAR ERM RMIC support by the Defense Logistics Agency?
Historical spending patterns for FIAR ERM RMIC support by the Defense Logistics Agency (DLA) would require a detailed analysis of past contract awards within this specific service category. This $13.8 million contract represents a significant investment over its two-year period. Understanding the trend would involve examining whether DLA's spending on such services has increased, decreased, or remained stable over previous fiscal years, and whether this contract is part of a larger, ongoing initiative or a standalone requirement. Analyzing prior contract values and durations would provide context for this current award.
What are the implications of the 'Other Accounting Services' classification on the scope and nature of the work?
The classification 'Other Accounting Services' (NAICS 541219) is broad and suggests the contract encompasses a range of accounting-related activities beyond standard bookkeeping or tax preparation. For a contract supporting FIAR ERM RMIC, this likely includes services related to financial reporting, audit readiness, enterprise resource management (ERM), risk management, internal controls, and potentially data analysis and reconciliation to ensure compliance with financial regulations and audit standards. The broad classification allows flexibility to address evolving financial management needs within the agency.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11350 RANDOM HILLS RD STE 400, FAIRFAX, VA, 22030
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $22,385,559
Exercised Options: $13,786,922
Current Obligation: $13,822,744
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP470423A0500
IDV Type: BPA
Timeline
Start Date: 2023-09-30
Current End Date: 2025-09-29
Potential End Date: 2028-09-29 00:00:00
Last Modified: 2026-02-18
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