DoD's $40.2M contract for WICO support services awarded to Choctaw Contracting Services Inc

Contract Overview

Contract Amount: $40,214,432 ($40.2M)

Contractor: Choctaw Contracting Services Inc

Awarding Agency: Department of Defense

Start Date: 2011-06-02

End Date: 2016-09-15

Contract Duration: 1,932 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BASE PERIOD WICO SUPPORT SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $40.2 million to CHOCTAW CONTRACTING SERVICES INC for work described as: BASE PERIOD WICO SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is over 1900 days, indicating a long-term need for these services. 4. The contract was awarded by the Department of the Army, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 624190 points to services related to individual and family support. 6. The contract value is substantial, reflecting a significant investment in these support services.

Value Assessment

Rating: fair

Benchmarking the value of this $40.2 million contract is challenging without specific performance metrics or comparable service contracts. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's costs plus a fixed fee, which can sometimes incentivize higher spending if cost controls are not robust. Without detailed breakdowns of labor, materials, and overhead, it's difficult to definitively assess if the pricing represents good value for money. However, the duration and scope suggest a significant need that the Army was willing to fund.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was generally open, specific sources may have been excluded for particular reasons, which warrants further investigation. The fact that it was open competition suggests multiple bidders likely participated, which typically drives better pricing and service offerings. The exclusion of sources, however, could limit the pool of potential offerors and potentially impact the level of competition achieved.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by fostering price discovery and encouraging contractors to offer their best terms. However, the specific reasons for excluding sources could have implications for the final price and the range of innovative solutions considered.

Public Impact

This contract likely benefits military personnel and their families by providing essential support services. The services delivered are categorized under 'Other Individual and Family Services,' suggesting a focus on well-being and assistance. The contract was awarded to Choctaw Contracting Services Inc., a company with a presence in Virginia. The duration of the contract implies a sustained impact on the recipients of these services. The funding originates from the Department of the Army, indicating a focus on military-related support infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' designation requires scrutiny to understand the rationale behind source exclusions and their potential impact on competition.
The Cost Plus Fixed Fee (CPFF) contract type necessitates diligent oversight to ensure costs remain reasonable and the fixed fee adequately compensates the contractor without excessive profit.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided under this contract.
The substantial contract value over a long duration warrants a review of whether alternative, potentially more cost-effective solutions were considered.

Positive Signals

The award was made through a full and open competition, indicating a broad solicitation for offers.
The contract is with Choctaw Contracting Services Inc., suggesting a potentially established relationship or capability.
The contract duration of over 1900 days points to a consistent and ongoing need for the services, implying a level of reliability.
The NAICS code suggests a focus on essential social services, aligning with governmental support functions.

Sector Analysis

The contract falls under the 'Other Individual and Family Services' sector, a broad category within the social services industry. This sector encompasses a wide range of support functions, often government-funded, aimed at improving the well-being of individuals and families. Comparable spending in this sector can vary widely depending on the specific services offered, but contracts of this magnitude often indicate significant programmatic needs. The market for such services is typically characterized by a mix of non-profit organizations, specialized private companies, and government-affiliated entities.

Small Business Impact

The provided 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 small business set-aside. The prime contractor, Choctaw Contracting Services Inc., is likely a larger entity, and any subcontracting opportunities would depend on their procurement practices rather than a mandated set-aside.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor costs incurred by the contractor and ensure the fixed fee is appropriate. Transparency would depend on the Army's reporting practices regarding contract performance and expenditures. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Military Family Support Programs
Individual and Family Services Contracts
Department of Defense Support Services
Army Community Services
Social Welfare Services Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Limited competition due to source exclusion
Lack of detailed performance metrics for value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.2 million to CHOCTAW CONTRACTING SERVICES INC. BASE PERIOD WICO SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CHOCTAW CONTRACTING SERVICES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $40.2 million.

What is the period of performance?

Start: 2011-06-02. End: 2016-09-15.

What is the specific nature of the 'WICO Support Services' and who are the primary beneficiaries?

The contract data indicates the NAICS code is 624190, which falls under 'Other Individual and Family Services.' While 'WICO' is not explicitly defined in the provided data, these services typically encompass a range of support functions aimed at enhancing the well-being of individuals and families. Given the awarding agency is the Department of the Army, the primary beneficiaries are likely military personnel, their families, and potentially civilian employees associated with the Army. These services could include anything from counseling and childcare assistance to relocation support and community outreach programs designed to improve quality of life and readiness.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types in terms of cost control and risk for the government?

Cost Plus Fixed Fee (CPFF) contracts are used when the scope of work is not precisely defined, or when there's uncertainty about the costs involved. In a CPFF contract, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts much of the cost risk to the government, as the final price is not fixed. While it allows for flexibility and can be suitable for research and development or complex services, it requires robust government oversight to control costs and ensure the fee remains fair. Compared to Firm-Fixed-Price (FFP) contracts, where the price is set regardless of costs, CPFF offers less cost certainty for the government but can encourage contractors to undertake challenging projects. It is generally considered less cost-effective than FFP if the scope is well-defined.

What does 'Full and Open Competition After Exclusion of Sources' imply about the bidding process and potential impact on pricing?

The term 'Full and Open Competition After Exclusion of Sources' suggests a nuanced bidding process. Initially, the solicitation was intended to be fully open, allowing all responsible sources to submit offers. However, specific sources were subsequently excluded. The reasons for exclusion can vary, including national security concerns, past performance issues, or specific statutory limitations. While the 'full and open' aspect implies a broad initial reach, the exclusion of sources could potentially limit the number of bidders. A reduced number of bidders might lessen competitive pressure, potentially leading to higher prices than if all potential sources had been allowed to compete. Understanding the rationale behind the exclusions is key to assessing the true level of competition and its impact on taxpayer value.

What is the typical performance period and value range for similar 'Other Individual and Family Services' contracts within the Department of the Army?

Contracts under NAICS code 624190, 'Other Individual and Family Services,' within the Department of the Army can vary significantly in value and duration. Contracts can range from a few hundred thousand dollars for localized, short-term services to tens or even hundreds of millions for large-scale, long-term programs supporting entire military communities. Performance periods often extend over multiple years, sometimes with options for renewal, reflecting the ongoing need for such support. The $40.2 million value and 5-year duration (approximately 1932 days) for this specific contract appear to be within the upper-middle range for significant support service contracts within the Army, indicating a substantial program.

Can the contractor, Choctaw Contracting Services Inc., provide insights into their track record with similar government contracts?

Without access to a detailed contract database or specific performance reports for Choctaw Contracting Services Inc., it is difficult to definitively assess their track record. However, being awarded a $40.2 million contract by the Department of the Army suggests they possess the capability and experience to manage significant government projects. Companies that successfully execute CPFF contracts often demonstrate strong project management, financial accountability, and adherence to regulatory requirements. Further investigation into their past performance ratings on federal contracts, any awards or commendations received, or any documented issues or disputes would provide a more comprehensive understanding of their reliability and effectiveness as a government contractor.

Industry Classification

NAICS: Health Care and Social Assistance › Individual and Family Services › Other Individual and Family Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81XWH11R0004

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Choctaw Nation of Oklahoma (UEI: 080735806)

Address: 2101 W ARKANSAS ST, DURANT, OK, 74701

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Sole Proprietorship, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,245,866

Exercised Options: $40,214,432

Current Obligation: $40,214,432

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline