DoD's $18.8M contract for health system support services awarded to GEOLOGICS CORPORATION

Contract Overview

Contract Amount: $18,808,452 ($18.8M)

Contractor: Geologics Corporation

Awarding Agency: Department of Defense

Start Date: 2013-01-22

End Date: 2016-07-21

Contract Duration: 1,276 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE OBJECTIVE OF THIS TASK ORDER IS TO OBTAIN THE FULL RANGE OF PROGRAM MANAGEMENT, PROJECT AND FINANCIAL MANAGEMENT, ORGANIZATIONAL MANAGEMENT, QUALITY MANAGEMENT, PERFORMANCE MANAGEMENT, AND STRATEGIC PLANNING SUPPORT SERVICES TO ASSIST AND SUPPORT SSC ATLANTIC TO CARRY OUT ITS DUTIES AND RESPONSIBILITIES TO DELIVER SUPPORT TO HEALTH SYSTEMS AND VA CUSTOMERS.

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to GEOLOGICS CORPORATION for work described as: THE OBJECTIVE OF THIS TASK ORDER IS TO OBTAIN THE FULL RANGE OF PROGRAM MANAGEMENT, PROJECT AND FINANCIAL MANAGEMENT, ORGANIZATIONAL MANAGEMENT, QUALITY MANAGEMENT, PERFORMANCE MANAGEMENT, AND STRATEGIC PLANNING SUPPORT SERVICES TO ASSIST AND SUPPORT SSC ATLANTIC TO CARRY OUT ITS… Key points: 1. Contract provides comprehensive program, project, financial, organizational, quality, performance, and strategic planning support. 2. Services are critical for assisting SSC Atlantic in fulfilling its duties to health systems and VA customers. 3. The contract was awarded under full and open competition, suggesting a robust bidding process. 4. The duration of the contract is over three years, indicating a significant, long-term need for these services. 5. The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful cost oversight. 6. The contractor, GEOLOGICS CORPORATION, has been awarded this task order, implying prior performance or suitability. 7. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services, a broad category.

Value Assessment

Rating: fair

The contract value of $18.8 million over approximately 3.5 years averages to about $5.37 million per year. Without specific benchmarks for program management and strategic planning support services for health systems and VA customers, it's difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently, as it reimburses the contractor for allowable costs plus a fixed fee. Benchmarking against similar large-scale support service contracts for government health systems would be necessary for a more precise evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of four bidders (no) suggests a competitive environment, which typically benefits price discovery and can lead to more favorable pricing for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment that drives down prices and encourages innovation among bidders.

Public Impact

Beneficiaries include the Naval Sea Systems Command (SSC Atlantic) and indirectly, the health systems and VA customers they support. Services delivered encompass a wide range of management and planning functions crucial for operational efficiency. The geographic impact is primarily focused on supporting SSC Atlantic's mission, likely with a concentration in its operational areas. Workforce implications involve the personnel employed by GEOLOGICS CORPORATION to deliver these specialized support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to ensure costs remain reasonable and avoid potential overruns.
The broad scope of services could lead to challenges in performance monitoring and ensuring consistent quality across all areas.
Reliance on a single task order for such a wide array of support functions might indicate a lack of diversified contracting strategies.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a fair price.
The contract duration of over three years indicates a stable, long-term requirement, providing continuity of essential services.
The specific focus on supporting health systems and VA customers highlights the critical nature of the services provided.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a significant part of the federal contracting landscape, particularly for defense and health-related agencies. The market for program management, project management, and strategic planning support is substantial, with numerous firms competing for these types of services. The total federal spending on engineering services is in the tens of billions annually. This contract represents a specific, task-order level investment within that broader sector, aimed at enhancing the operational capabilities of a key naval command supporting health systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary focus is on large business competition for this particular task order.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would primarily fall under the purview of SSC Atlantic and the Department of the Navy. Robust financial and performance management are crucial to ensure the contractor is meeting objectives and managing costs effectively. Transparency would be facilitated through contract reporting mechanisms and potentially through the Federal Procurement Data System (FPDS). Specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues or audits initiated by the Department of Defense's IG.

Related Government Programs

SSC Atlantic Program Management Support
Department of Defense Health System Support
VA Customer Support Services
Engineering and Management Consulting Services
Federal Health IT Support Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Broad scope of services necessitates robust performance monitoring to ensure quality and effectiveness across all areas.
Potential for contractor performance issues if not adequately managed throughout the contract lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to GEOLOGICS CORPORATION. THE OBJECTIVE OF THIS TASK ORDER IS TO OBTAIN THE FULL RANGE OF PROGRAM MANAGEMENT, PROJECT AND FINANCIAL MANAGEMENT, ORGANIZATIONAL MANAGEMENT, QUALITY MANAGEMENT, PERFORMANCE MANAGEMENT, AND STRATEGIC PLANNING SUPPORT SERVICES TO ASSIST AND SUPPORT SSC ATLANTIC TO CARRY OUT ITS DUTIES AND RESPONSIBILITIES TO DELIVER SUPPORT TO HEALTH SYSTEMS AND VA CUSTOMERS.

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 $18.8 million.

What is the period of performance?

Start: 2013-01-22. End: 2016-07-21.

What is the track record of GEOLOGICS CORPORATION in performing similar program management and strategic planning services for the Department of Defense or other federal health agencies?

Assessing GEOLOGICS CORPORATION's track record requires a deep dive into their past performance on similar contracts. While this specific task order was awarded in 2013, their history with the government, particularly within the Department of Defense and for health system support, would be a key indicator of their capability. Information on past performance, including client satisfaction, adherence to schedule and budget, and the quality of deliverables on previous contracts, is typically available through sources like the Contractor Performance Assessment Reporting System (CPARS). A review of CPARS data, if available and accessible, would reveal ratings and feedback from previous government contracting officers. Additionally, examining other contracts awarded to GEOLOGICS CORPORATION for similar services, even if not directly for health systems, could provide insights into their broader expertise in program management, financial management, and strategic planning.

How does the average annual cost of this contract compare to similar program management support contracts for federal health systems?

The annual cost for this contract, approximately $5.37 million ($18.8M / 3.5 years), needs to be benchmarked against comparable federal health system support contracts. Without access to a database of specific contract values for similar services, a precise comparison is challenging. However, factors influencing cost include the scope of services (program management, project management, financial management, organizational management, quality management, performance management, and strategic planning), the complexity of the supported systems, the level of expertise required, and the duration. Contracts for large-scale IT support, system integration, or comprehensive operational management within federal health agencies often run into millions of dollars annually. A detailed analysis would involve identifying contracts with similar NAICS codes (e.g., 541330, 541611, 541612) and service descriptions, then comparing their total values, durations, and contract types (e.g., CPFF, FFP) to establish a relevant benchmark.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for these types of services, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the government reimburses the contractor for allowable costs plus a predetermined fixed fee. This can incentivize contractors to incur higher costs if oversight is not rigorous, as their fee remains constant regardless of the actual costs incurred. Mitigation strategies include strong government oversight of all incurred costs to ensure they are allowable, allocable, and reasonable. Detailed performance metrics and regular reviews are essential to ensure the contractor is meeting objectives efficiently. Clear definition of the 'fixed fee' and robust negotiation during the award phase are also critical. Furthermore, the contract should include provisions for cost controls and regular reporting to allow the government to monitor spending against projections and identify potential issues early.

How effective has SSC Atlantic been in managing its support services contracts, and does this contract represent a continuation or a change in strategy?

Evaluating the effectiveness of SSC Atlantic's management of support services contracts requires historical data on their contracting performance, including metrics on contract delivery, cost performance, and user satisfaction. This specific task order, awarded in 2013 and ending in 2016, represents a specific instance of their contracting strategy during that period. Without further information on SSC Atlantic's overall contracting portfolio and performance trends, it's difficult to definitively state whether this contract represents a continuation or a change. However, the award under full and open competition and the CPFF structure suggest a standard approach for acquiring complex support services. Analyzing trends in their contract types, competition levels, and spending patterns over time would provide a clearer picture of their evolving strategy and management effectiveness.

What is the historical spending pattern for program management and engineering support services by SSC Atlantic or similar naval commands?

To understand the historical spending patterns for program management and engineering support services by SSC Atlantic or similar naval commands, one would need to analyze federal procurement databases like FPDS-NG or USAspending.gov. This analysis would involve filtering contracts by the relevant agency (Department of the Navy, specifically SSC Atlantic if data is granular enough), NAICS codes (e.g., 541330 for Engineering Services, 541611 for Administrative Management and General Management Consulting Services, 541612 for Human Resources Consulting Services), and contract types. Looking at spending trends over the past 5-10 years would reveal the typical annual expenditure on such services, the prevalence of different contract types (FFP, CPFF, T&M), and the level of competition. This would help contextualize the $18.8 million awarded to GEOLOGICS CORPORATION within the broader spending landscape for these types of critical support functions.

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: N0002412R3332

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

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: $21,606,718

Exercised Options: $21,606,718

Current Obligation: $18,808,452

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4341

IDV Type: IDC

Timeline