Department of the Army awarded $21.3M for miscellaneous intermediation services under full and open competition

Contract Overview

Contract Amount: $21,348,766 ($21.3M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2010-11-22

End Date: 2014-03-15

Contract Duration: 1,209 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: [PIIN: W5K9FH-11-C-0007] COMMERCIAL CONTRACT AWARD

Plain-Language Summary

Department of Defense obligated $21.3 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: [PIIN: W5K9FH-11-C-0007] COMMERCIAL CONTRACT AWARD Key points: 1. The contract value of $21.3 million for miscellaneous intermediation services represents a significant investment in support functions. 2. Full and open competition suggests a potentially robust bidding process, which can drive competitive pricing. 3. The contract duration of approximately 4 years (1209 days) indicates a need for sustained services. 4. The award was made to 'MISCELLANEOUS FOREIGN AWARDEES,' suggesting a broad pool of potential providers. 5. The NAICS code 523910 points to services related to financial investment activities, which can carry inherent risks. 6. The absence of small business set-aside flags indicates this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable contract data. The total award amount of $21.3 million over approximately four years suggests an average annual spend of around $5.3 million. This figure needs to be assessed against the scope and criticality of the 'miscellaneous intermediation' services provided. Without more granular information on the specific services rendered and their market rates, it is difficult to definitively assess value for money. However, the firm fixed-price contract type can offer cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. The presence of two bidders (no) suggests that while competition was allowed, the number of actual proposals received was limited. This level of competition could still yield competitive pricing, but a higher number of bidders would typically provide stronger assurance of optimal price discovery for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible prices through a wide range of potential providers. However, with only two bidders, the potential for significant cost savings might be constrained compared to a scenario with numerous competitive offers.

Public Impact

The primary beneficiaries are likely Department of the Army operations requiring specialized intermediation services. The services delivered are broadly categorized as 'Miscellaneous Intermediation,' which could encompass a range of financial or logistical support functions. The geographic impact is not specified but likely supports Army operations globally or within specific regions where foreign awardees operate. Workforce implications are unclear but may involve specialized personnel within the awarded foreign entities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details makes it hard to assess if the $21.3M award represents efficient use of funds.
The term 'Miscellaneous Intermediation' is vague and could mask services with higher inherent risks or costs.
Limited competition (2 bidders) may have prevented the government from achieving the lowest possible price.
The award to 'MISCELLANEOUS FOREIGN AWARDEES' raises questions about oversight and potential geopolitical risks.
The contract duration of nearly four years might lock the government into services that could become obsolete or less efficient over time.

Positive Signals

The contract was awarded through full and open competition, maximizing the pool of potential offerors.
The firm fixed-price contract type provides cost predictability for the Department of the Army.
The award indicates the Department of the Army has identified a need for these specific intermediation services.
The contract duration suggests a stable, ongoing requirement that has been met through this award.

Sector Analysis

The NAICS code 523910, 'Miscellaneous Intermediation,' falls within the broader financial services sector. This sector includes a wide array of activities, such as investment banking, financial planning, and other intermediation services not elsewhere classified. The market size for such services is substantial, driven by the complex financial needs of government agencies and private entities. This contract likely represents a niche requirement within the Department of the Army's broader financial or operational support structure, distinct from large-scale IT or defense procurement.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, its direct impact on small businesses through set-aside provisions is nil. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data. The award to 'MISCELLANEOUS FOREIGN AWARDEES' further suggests that the primary contractor is unlikely to be a U.S.-based small business, potentially limiting direct subcontracting pathways within the U.S. small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. However, as a Department of Defense contract, it would typically fall under the purview of the Department of Defense's internal audit and oversight functions, potentially including the Defense Contract Audit Agency (DCAA) and the Inspector General. Transparency regarding the specific services rendered and performance metrics would be crucial for effective oversight. The firm fixed-price nature may simplify some aspects of financial oversight but does not negate the need for performance monitoring.

Related Government Programs

Defense Logistics Agency Contracts
Department of the Army Financial Services
Miscellaneous Contract Awards
Foreign Military Sales Support

Risk Flags

Vague Service Description
Limited Competition
Foreign Awardee Concerns
Potential for Undefined Risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to MISCELLANEOUS FOREIGN AWARDEES. [PIIN: W5K9FH-11-C-0007] COMMERCIAL CONTRACT AWARD

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2010-11-22. End: 2014-03-15.

What specific 'miscellaneous intermediation' services were procured under this contract?

The provided data identifies the contract under NAICS code 523910 (Miscellaneous Intermediation) and describes it as a 'COMMERCIAL CONTRACT AWARD' by the Department of the Army. However, the specific nature of the intermediation services is not detailed. This could range from financial advisory, brokering services, facilitation of transactions, or other support functions that act as intermediaries. Without further documentation or a detailed statement of work, the exact services remain ambiguous. This ambiguity makes it difficult to assess the necessity, efficiency, and value for money of the procurement.

How does the $21.3 million contract value compare to similar intermediation services procured by the Department of Defense or other federal agencies?

Benchmarking the $21.3 million contract value against similar 'miscellaneous intermediation' services is challenging due to the broad and often non-standard nature of such procurements. Federal agencies procure a wide variety of intermediation services, from financial advisory for complex acquisitions to logistical support coordination. Without knowing the specific services rendered under W5K9FH-11-C-0007, direct comparisons are difficult. However, for context, large-scale financial advisory contracts can run into tens or hundreds of millions, while smaller, specialized support roles might be in the low millions. The approximately $5.3 million annual spend for this contract suggests a significant, ongoing need for these services.

What are the potential risks associated with awarding a contract for 'miscellaneous intermediation' to 'MISCELLANEOUS FOREIGN AWARDEES'?

Awarding contracts to 'MISCELLANEOUS FOREIGN AWARDEES' for intermediation services can introduce several risks. These include potential challenges in oversight and enforcement due to differing legal jurisdictions and regulatory environments. There may be increased geopolitical risks, currency exchange rate fluctuations, and difficulties in ensuring compliance with U.S. ethical standards and data security protocols. Furthermore, the lack of specific identification for the awardees makes it harder to assess their past performance, financial stability, and potential conflicts of interest, which are critical considerations for sensitive intermediation roles.

Given the firm fixed-price contract type, what is the government's exposure to cost overruns or performance issues?

A firm fixed-price (FFP) contract type generally shifts the risk of cost overruns to the contractor. The government agrees to pay a set price regardless of the contractor's actual costs. This provides budget certainty for the Department of the Army. However, the government's exposure shifts from cost overruns to potential performance deficiencies. If the contractor fails to deliver the required intermediation services adequately under the fixed price, the government may face issues with service quality, timeliness, or completeness, potentially requiring contract modifications, disputes, or even termination for default, which can lead to delays and additional costs to find a replacement.

What does the limited competition (2 bidders) imply for the government's ability to secure optimal pricing and innovation?

The fact that only two bids were received under 'full and open competition' suggests that the market for these specific 'miscellaneous intermediation' services might be limited, or that the solicitation was structured in a way that deterred broader participation. Limited competition generally reduces the government's leverage in price negotiations and can lessen the incentive for contractors to offer innovative solutions to gain a competitive edge. While the government secured a contract, the potential for achieving the absolute best value, both in terms of price and innovative approaches, may have been constrained compared to a scenario with a larger number of robust bids.

How has the Department of the Army's spending on 'Miscellaneous Intermediation' (NAICS 523910) evolved over time, and does this contract represent a significant portion of that spending?

Analyzing the historical spending trends for NAICS 523910 by the Department of the Army requires access to comprehensive federal procurement databases. The provided data only pertains to a single contract (W5K9FH-11-C-0007) awarded in 2010. Without broader data, it's impossible to determine if this $21.3 million award is representative of typical spending levels, an outlier, or part of a larger trend. Factors influencing historical spending could include shifts in operational needs, changes in financial regulations, or the outsourcing of previously in-house functions. This specific contract's duration (ending in 2014) means it reflects past spending patterns.

Industry Classification

NAICS: Finance and Insurance › Other Financial Investment Activities › Miscellaneous Intermediation

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

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

Financial Breakdown

Contract Ceiling: $21,348,766

Exercised Options: $21,348,766

Current Obligation: $21,348,766

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $225,456

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline