DoD's $8.8M accounting support contract awarded to AOC Solutions, Inc. with 5 bidders
Contract Overview
Contract Amount: $8,781,069 ($8.8M)
Contractor: AOC Solutions, Inc
Awarding Agency: Department of Defense
Start Date: 2023-11-01
End Date: 2026-12-31
Contract Duration: 1,156 days
Daily Burn Rate: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FIAR SOIDC SUPPORT TO
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $8.8 million to AOC SOLUTIONS, INC for work described as: FIAR SOIDC SUPPORT TO 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. Performance period spans over three years, indicating a sustained need for services. 4. The contract falls under 'Other Accounting Services', a broad category. 5. Awardee has a track record with government contracts, suggesting familiarity with requirements.
Value Assessment
Rating: good
The contract value of $8.8 million over approximately three years for accounting services appears reasonable given the scope. Benchmarking against similar 'Other Accounting Services' contracts within the Department of Defense is necessary for a definitive value assessment. However, the firm fixed-price structure provides cost certainty. The number of bidders (5) suggests a competitive environment that likely contributed to a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with five bids received. This level of competition is generally positive, as it allows multiple vendors to propose solutions and pricing, fostering a competitive environment that can lead to better value for the government. The existence of five bidders indicates a healthy market for these types of accounting services.
Taxpayer Impact: The full and open competition with multiple bidders suggests that taxpayer dollars are being used efficiently, as the government likely secured competitive pricing through this process.
Public Impact
The Department of Defense benefits from specialized accounting support, ensuring financial accuracy and compliance. Services delivered include 'Other Accounting Services', crucial for financial management and auditing. The contract is geographically located in Virginia, potentially impacting the local workforce. The award to AOC Solutions, Inc. supports a business providing essential back-office functions for a major federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on contracts are not competitively bid.
- Reliance on a single vendor for critical accounting functions could pose a risk if performance falters.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Firm Fixed Price contract type provides cost predictability.
- Multiple bidders (5) suggest a competitive market and potential for good value.
- Contract duration of over three years indicates a sustained and recognized need for the service.
Sector Analysis
The federal government's spending on professional services, including accounting, is substantial. This contract for 'Other Accounting Services' (NAICS 541219) fits within the broader professional, scientific, and technical services sector. The market for these services is competitive, with numerous firms capable of supporting federal agencies. Comparable spending benchmarks would involve analyzing other contracts for similar accounting and financial support services across various agencies.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have a small business subcontracting plan explicitly mentioned. The awardee, AOC Solutions, Inc., is not identified as a small business in this context. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this contract's performance.
Oversight & Accountability
Oversight for this contract would typically fall under the Defense Logistics Agency (DLA) and the Department of Defense's internal financial management and contracting oversight bodies. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases, though specific performance metrics and ongoing oversight activities are not detailed in the provided data.
Related Government Programs
- Defense Logistics Agency Support Contracts
- Department of Defense Financial Management Services
- Federal Accounting and Auditing Services
- Professional Services Contracts
Risk Flags
- Potential for performance issues
- Vendor lock-in risk
- Adequacy of competition for long-term needs
Tags
department-of-defense, defense-logistics-agency, accounting-services, professional-services, firm-fixed-price, full-and-open-competition, bpa-call, virginia, it-services, financial-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.8 million to AOC SOLUTIONS, INC. FIAR SOIDC SUPPORT TO
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 $8.8 million.
What is the period of performance?
Start: 2023-11-01. End: 2026-12-31.
What is the track record of AOC Solutions, Inc. with federal contracts, particularly within the Department of Defense?
AOC Solutions, Inc. has a history of receiving federal contracts, including those with the Department of Defense. Analyzing their past performance, including contract values, types, and agencies served, provides insight into their experience and reliability. A review of contract databases would reveal the extent of their involvement in similar accounting or financial support services. Positive past performance, especially in meeting deadlines and delivering quality services, would be a strong indicator of their capability to fulfill the current contract requirements effectively. Conversely, any history of performance issues or disputes would warrant closer scrutiny.
How does the pricing of this $8.8 million contract compare to similar accounting support contracts awarded by the DoD or other federal agencies?
Benchmarking this $8.8 million contract against similar 'Other Accounting Services' (NAICS 541219) contracts requires access to a broader dataset of federal procurements. Key comparison points include the contract duration (approx. 3 years), the specific services rendered, and the number of bidders. If comparable contracts for similar scope and duration were awarded at significantly lower or higher price points, it would indicate potential overpayment or exceptional value. The firm fixed-price nature helps in comparing total contract values, but understanding the labor mix and rates would provide deeper insights into cost efficiency. The fact that five bids were received suggests a competitive market that likely influenced the final price.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Primary risks include potential performance deficiencies by AOC Solutions, Inc., leading to disruptions in critical accounting functions for the DoD. Another risk is the potential for cost overruns if the firm fixed-price contract does not adequately account for unforeseen complexities, though this is less likely than with cost-reimbursement contracts. Over-reliance on a single vendor for essential services also poses a risk. Mitigation strategies likely involve robust contract management by the Defense Logistics Agency, including performance monitoring, clear deliverables, and defined remedies for non-performance. The competitive award process itself serves as a mitigation by selecting a vendor deemed capable.
How effective is the 'Other Accounting Services' category in meeting the specific financial support needs of the Department of Defense?
The 'Other Accounting Services' category (NAICS 541219) is broad and encompasses a wide range of financial support functions. Its effectiveness depends on how well the specific services procured under this contract align with the DoD's precise needs. These services could range from general ledger maintenance, accounts payable/receivable processing, financial reporting, to internal control assessments. The sustained award of such contracts suggests these services are necessary and that the category, when properly defined in the Statement of Work, can effectively meet agency requirements. The key to effectiveness lies in the clarity and specificity of the SOW and the contractor's ability to meet those defined requirements.
What are the historical spending patterns for 'Other Accounting Services' within the Department of Defense over the past five years?
Analyzing historical spending patterns for 'Other Accounting Services' within the DoD over the past five years would reveal trends in demand, average contract values, and key contractors. This data would help contextualize the current $8.8 million award. For instance, if spending in this category has been steadily increasing, it might indicate growing needs or a shift towards outsourcing these functions. Conversely, a decrease could suggest internal capacity building or reduced requirements. Understanding these patterns helps assess whether the current contract represents a typical investment or an anomaly, and informs future budget planning and procurement strategies.
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: 5
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: $14,311,745
Exercised Options: $8,781,069
Current Obligation: $8,781,069
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP470423A0500
IDV Type: BPA
Timeline
Start Date: 2023-11-01
Current End Date: 2026-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2026-02-18
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