DoD's $15.6M contract for strategic planning services awarded to Geologics Corporation shows fair value

Contract Overview

Contract Amount: $15,654,666 ($15.7M)

Contractor: Geologics Corporation

Awarding Agency: Department of Defense

Start Date: 2008-12-19

End Date: 2013-01-09

Contract Duration: 1,482 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: STRATEGIC PLANNING, ADMINISTRATIVE, AND PROGRAM MANAGEMENT SERVICES SUPPORT

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to GEOLOGICS CORPORATION for work described as: STRATEGIC PLANNING, ADMINISTRATIVE, AND PROGRAM MANAGEMENT SERVICES SUPPORT Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The duration of the contract (1482 days) indicates a long-term need for these services. 3. The contract type (Cost No Fee) requires careful monitoring of costs to ensure value. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, which aligns with strategic planning support. 5. The award was made by the Department of the Navy, a major component of the Department of Defense. 6. The contract was issued as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract's value of approximately $15.6 million over its 1482-day duration suggests a reasonable annual cost for strategic planning and program management services. While specific benchmarks for this exact service mix are difficult to ascertain without more granular data, the competitive award process likely contributed to a fair price. The Cost No Fee (CNF) contract type, though less common for services, implies that the contractor's fee is fixed and not directly tied to costs incurred, which can incentivize efficiency. However, it necessitates robust oversight to ensure the scope of work is met without cost overruns impacting the fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it was competed suggests that multiple companies likely vied for this opportunity, which typically drives down prices and encourages innovation. The specific number of bidders is not provided, but the designation implies a robust competitive process was initiated.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a wide range of offers and competitive pricing.

Public Impact

The Department of the Navy benefits from enhanced strategic planning and program management capabilities. Services delivered likely include analysis, policy development, and operational support for naval programs. The geographic impact is primarily within the operational areas of the Department of the Navy, with potential implications for personnel in South Carolina. Workforce implications may include the need for skilled analysts and program managers, both within the contractor's organization and potentially within the Navy itself.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type requires diligent oversight to ensure contractor efficiency and adherence to scope.
Lack of specific performance metrics makes it challenging to quantitatively assess value for money.
The duration of the contract (over 4 years) means potential for scope creep if not managed tightly.

Positive Signals

Awarded via full and open competition, indicating a competitive environment that should yield fair pricing.
The contract supports critical strategic planning and program management functions for a major defense agency.
The contractor, Geologics Corporation, has a track record of performing government contracts.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is crucial for government operations, providing specialized expertise that agencies may not possess internally. The market for these services is large and competitive, with numerous firms capable of supporting defense and other federal agencies. Benchmarking this contract's value against similar strategic planning or program management support contracts within the DoD would provide further context on its cost-effectiveness.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of strategic planning and program management services, it is possible that larger firms with specialized expertise were the primary bidders. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. Performance monitoring, invoice review, and ensuring adherence to the contract terms are key oversight functions. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Strategic Planning Support
Navy Program Management Services
Engineering Services Contracts
Professional and Technical Services

Risk Flags

Contract duration exceeds 4 years, requiring sustained oversight.
Cost No Fee contract type necessitates careful monitoring of contractor efficiency.
Lack of specific performance metrics makes objective value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to GEOLOGICS CORPORATION. STRATEGIC PLANNING, ADMINISTRATIVE, AND PROGRAM MANAGEMENT SERVICES SUPPORT

Who is the contractor on this award?

The obligated recipient is GEOLOGICS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2008-12-19. End: 2013-01-09.

What is the track record of Geologics Corporation in performing similar government contracts?

Geologics Corporation has a history of performing various government contracts, primarily within the professional, scientific, and technical services domain. Data from contract databases indicates they have secured awards across multiple federal agencies, including the Department of Defense, Department of Justice, and others. These contracts often involve support services such as program management, administrative support, and technical assistance. While specific performance ratings for individual contracts are not publicly detailed, their continued success in winning competitive bids suggests a satisfactory performance history. Further investigation into past performance evaluations, if available, would provide a more granular understanding of their capabilities and reliability in delivering on complex government requirements.

How does the value of this contract compare to similar strategic planning contracts within the DoD?

Directly comparing the $15.6 million value of this contract to similar strategic planning contracts within the DoD is challenging without access to a comprehensive database of comparable awards, including their scope, duration, and specific services rendered. However, the annual value of this contract is approximately $3.8 million ($15.6M / 4 years), which falls within a common range for significant support service contracts awarded to large federal agencies. Contracts for strategic planning and program management can vary widely based on the complexity of the programs supported, the level of expertise required, and the duration. The fact that this contract was awarded under full and open competition suggests that the pricing was deemed competitive at the time of award. Benchmarking against contracts with similar NAICS codes (e.g., 541330 - Engineering Services, or 541611 - Administrative Management and General Management Consulting Services) and similar agencies would provide a more robust comparison.

What are the primary risks associated with a Cost No Fee (CNF) contract type for strategic planning services?

The primary risk associated with a Cost No Fee (CNF) contract type, like the one awarded to Geologics Corporation, is ensuring that the contractor remains motivated to perform efficiently and effectively without direct financial incentive tied to cost savings. In a CNF structure, the contractor is reimbursed for allowable costs, and a fixed fee is paid regardless of the final cost. For strategic planning services, this means the government bears the risk of cost overruns if the contractor is inefficient or if unforeseen complexities arise. The government's main mitigation strategy is robust oversight, including detailed review of incurred costs, monitoring of progress against the statement of work, and ensuring that the contractor's management is actively controlling expenses. Without careful management, there's a risk that the contractor might not prioritize cost efficiency as strongly as they would in a fixed-price or incentive-fee contract.

How effective are strategic planning services in improving Department of the Navy program outcomes?

The effectiveness of strategic planning services in improving Department of the Navy program outcomes is contingent upon several factors, including the quality of the planning itself, the clarity of the objectives set, and the successful implementation of the strategic recommendations. When executed well, strategic planning can lead to better resource allocation, clearer mission focus, improved operational efficiency, and enhanced adaptability to evolving threats and technological advancements. These services can help the Navy anticipate future challenges, identify opportunities for innovation, and align its various programs and initiatives towards overarching goals. However, the true measure of effectiveness lies in the tangible improvements observed in program performance, cost savings, or mission success metrics over time, which are often difficult to directly attribute solely to the planning services rendered.

What is the historical spending trend for strategic planning and program management services within the Department of the Navy?

Historical spending trends for strategic planning and program management services within the Department of the Navy are generally substantial, reflecting the complexity and scale of naval operations and acquisitions. While specific figures for 'strategic planning' as a distinct category can be elusive due to its integration into broader program management and support services, the Navy consistently invests billions annually in contracting for professional, administrative, and technical support. Spending in this area tends to fluctuate based on defense budgets, major acquisition programs, and shifts in strategic priorities. Analyzing broader categories like 'Management and Financial Consulting Services' (NAICS 541611) or 'Engineering Services' (NAICS 541330) within the Navy's contract data can reveal trends. Increased spending often correlates with periods of significant modernization, force structure changes, or responses to new geopolitical challenges.

What is the significance of the contract being awarded as a Delivery Order?

The significance of this contract being awarded as a Delivery Order (DO) is that it is likely a task order issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for services or supplies over a period, allowing the government to issue multiple DOs or Task Orders (TOs) up to a specified ceiling amount. This approach provides flexibility for the agency, enabling them to procure needed services incrementally as requirements arise, without needing to conduct a full competitive procurement for each individual need. For the contractor, it signifies a potential for ongoing work within the scope of the parent IDIQ. The specific value of this DO ($15.6M) represents the funding allocated for this particular delivery of services.

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: N0002409R3110

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 5285 SHAWNEE RD, SUITE 300, ALEXANDRIA, VA, 22312

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,640,254

Exercised Options: $16,640,254

Current Obligation: $15,654,666

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4341

IDV Type: IDC

Timeline