DoD's $29.8M Counterinsurgency Advisory Contract Awarded Sole-Source to Undisclosed Domestic Firm

Contract Overview

Contract Amount: $29,788,412 ($29.8M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2011-08-31

End Date: 2012-09-14

Contract Duration: 380 days

Daily Burn Rate: $78.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COUNTERINSURGENCY ADVISORY AND ASSITANCE TEAMS

Plain-Language Summary

Department of Defense obligated $29.8 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: COUNTERINSURGENCY ADVISORY AND ASSITANCE TEAMS Key points: 1. The contract's sole-source nature raises questions about potential price inflation and limited market engagement. 2. Lack of disclosed domestic awardees hinders transparency and the ability to assess contractor qualifications. 3. The high value of the contract, despite its short duration, warrants scrutiny of the services rendered. 4. Performance context is limited due to the undisclosed nature of the contractor and specific deliverables. 5. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad scope, requiring further definition. 6. The contract's cost-plus-fixed-fee structure can incentivize cost overruns if not closely monitored.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the undisclosed nature of the awardee and the specific services provided. The contract's value of approximately $29.8 million over a 380-day period suggests a significant per-diem cost. Without comparable contracts or detailed service descriptions, it's difficult to definitively assess if this represents good value for money. The cost-plus-fixed-fee pricing structure, while common, requires robust oversight to ensure costs remain reasonable and do not escalate unnecessarily.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of the Army did not solicit bids from multiple potential contractors. This approach significantly limits competition and raises concerns about whether the government obtained the best possible price and service. The absence of a competitive bidding process prevents a thorough evaluation of market alternatives and could lead to higher costs for taxpayers.

Taxpayer Impact: Sole-source awards can result in higher prices for taxpayers as the government lacks the leverage of competitive bidding to drive down costs. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The primary beneficiaries are likely the undisclosed domestic awardees who received a significant contract award. The services delivered are broadly categorized as 'Counterinsurgency Advisory and Assistance Teams,' suggesting support for military operations or strategic planning. The geographic impact is not specified but likely relates to areas where counterinsurgency operations are relevant. Workforce implications would involve the personnel employed by the contractor to deliver these advisory and assistance services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the awardee prevents assessment of past performance and potential conflicts of interest.
The sole-source nature limits opportunities for small businesses to participate in this contract.
The broad NAICS code and service description make it difficult to ascertain the specific value and necessity of the services.
Cost-plus-fixed-fee contracts require diligent oversight to prevent contractor inefficiencies from increasing costs.

Positive Signals

The contract was awarded to a domestic entity, potentially supporting U.S. businesses.
The fixed-fee component of the contract provides some level of cost predictability for the government.

Sector Analysis

The defense sector, particularly within the Army, often procures specialized advisory and technical services to support complex operational environments. Contracts like this fall under professional, scientific, and technical services, a broad category encompassing a wide range of expertise. The market for such services is competitive, but sole-source awards, as seen here, can bypass typical market dynamics. Comparable spending in this category can vary widely depending on the specific nature of the advisory services required, ranging from strategic planning to operational support.

Small Business Impact

This contract does not appear to have a small business set-aside, nor is there information indicating subcontracting opportunities for small businesses. The sole-source award to an undisclosed domestic entity further limits the visibility and potential for small business involvement in this specific procurement. Without explicit set-aside provisions or subcontracting plans, the impact on the small business ecosystem for this contract is likely minimal.

Oversight & Accountability

Oversight mechanisms for this contract would primarily fall under the Department of the Army's contracting and program management offices. Given the sole-source nature and the cost-plus-fixed-fee structure, rigorous oversight of contractor performance, cost reporting, and adherence to contract terms would be crucial. Transparency is limited due to the undisclosed awardee, making public accountability more challenging. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Military Consulting Services
Intelligence Support Services
Operational Planning and Support
Department of Defense Advisory Contracts
Professional and Technical Services

Risk Flags

Sole-source award
Undisclosed contractor
Broad service category (NAICS 541990)
Cost-plus-fixed-fee contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.8 million to DOMESTIC AWARDEES (UNDISCLOSED). COUNTERINSURGENCY ADVISORY AND ASSITANCE TEAMS

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.8 million.

What is the period of performance?

Start: 2011-08-31. End: 2012-09-14.

What specific counterinsurgency advisory and assistance services were rendered under this contract, and how were they measured for effectiveness?

The provided data offers limited insight into the specific services rendered under the "COUNTERINSURGENCY ADVISORY AND ASSISTANCE TEAMS" contract. The NAICS code 541990, "All Other Professional, Scientific, and Technical Services," is very broad and does not specify the nature of the support. Similarly, the contract type, "COST PLUS FIXED FEE," indicates the payment structure but not the deliverables. To assess effectiveness, one would need access to performance reports, milestone achievements, and any formal evaluations conducted by the Department of the Army. Without this detailed information, it is impossible to determine the precise value and impact of the services provided or how their success was measured.

Why was this contract awarded on a sole-source basis, and what justification was provided?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. Common reasons include unique capabilities, urgent and compelling needs, or specific research and development requirements. For this contract, the data does not provide the specific justification. However, sole-source awards are subject to Federal Acquisition Regulation (FAR) guidelines, which require detailed documentation and approval processes to ensure fair and reasonable pricing and to demonstrate that competition was not feasible or practicable. The lack of disclosed awardee information further obscures the rationale behind bypassing a competitive process.

What is the typical cost range for similar counterinsurgency advisory and assistance contracts within the Department of Defense?

Determining a typical cost range for "Counterinsurgency Advisory and Assistance Teams" is challenging without more specific service definitions and contract details. Contracts under NAICS code 541990 can vary dramatically in price depending on the expertise, duration, and geographic location of the services. However, given the approximately $29.8 million value over just over a year, this contract represents a significant investment. Benchmarking would require identifying contracts with similar scopes of work, such as strategic advisory, training, or operational support in complex environments, and comparing their total values, durations, and pricing structures (e.g., fixed-price vs. cost-reimbursable).

What is the track record of the undisclosed domestic awardee in providing similar services to the government?

The track record of the undisclosed domestic awardee cannot be assessed from the provided data. Since the contractor's identity is not revealed, it is impossible to search for past performance records, previous contract awards, or any publicly available information regarding their experience and capabilities. This lack of transparency is a significant limitation in evaluating the contractor's suitability and reliability for the services required under this contract. A thorough review would typically involve examining past performance evaluations and any history of contract disputes or successes.

How does the $29.8 million contract value compare to the total spending on 'All Other Professional, Scientific, and Technical Services' by the Department of the Army in fiscal year 2011-2012?

To compare this contract's value to the Department of the Army's total spending on NAICS code 541990, one would need access to comprehensive federal procurement data for the relevant fiscal years (2011-2012). This contract, valued at approximately $29.8 million, represents a single award within a broad service category. The Department of the Army, as a major component of the DoD, likely spends billions annually on professional, scientific, and technical services. This specific contract's proportion of the total spending would depend on the overall budget allocated to this NAICS code. Without aggregate spending data for this category, it's difficult to contextualize the significance of this $29.8 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,788,412

Exercised Options: $29,788,412

Current Obligation: $29,788,412

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline