DoD's $37.5M staffing contract with Choctaw Staffing Solutions shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $37,530,132 ($37.5M)

Contractor: Choctaw Staffing Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-08-10

End Date: 2022-01-15

Contract Duration: 1,984 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF

Place of Performance

Location: FALLS CHURCH, FALLS CHURCH CITY County, VIRGINIA, 22040

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $37.5 million to CHOCTAW STAFFING SOLUTIONS, INC. for work described as: IGF::CL::IGF Key points: 1. Contract value of $37.5M over 5 years suggests a moderate annual spend for staffing services. 2. The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a potentially complex procurement history. 3. A single awardee suggests limited market engagement, potentially impacting price competitiveness. 4. The firm-fixed-price contract type shifts risk to the contractor, which is generally favorable for the government. 5. The contract duration of 1984 days (approx. 5.5 years) is typical for large-scale service contracts. 6. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

The contract's total value of $37.5M over nearly six years averages to approximately $6.5M annually. Without specific benchmarks for similar staffing services within the Department of Defense or Army, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract is a positive indicator, as it caps the government's financial exposure. The contract's duration and scale suggest it supports significant operational needs, and the price appears within a reasonable range for large-scale staffing solutions, though further benchmarking against market rates for comparable services would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method suggests that while the initial intent may have been broad competition, certain sources were excluded, leading to a more limited field. The data indicates only one awardee, Choctaw Staffing Solutions, Inc. This lack of multiple bidders in the final award stage raises questions about the effectiveness of the competition strategy and could potentially limit price discovery and innovation.

Taxpayer Impact: A limited number of bidders can lead to higher prices for taxpayers as competitive pressure is reduced. It also suggests that the procurement process may have inadvertently discouraged broader participation.

Public Impact

This contract primarily benefits the Department of the Army by providing essential staffing services to support its operations. The services delivered likely include personnel augmentation, recruitment, and potentially HR support functions. The geographic impact is likely concentrated where the Army has significant operational presence, potentially nationwide or at specific installations. Workforce implications include the creation of jobs by the contractor, Choctaw Staffing Solutions, Inc., and the integration of temporary or contract staff into Army operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing for the government.
The 'Exclusion of Sources' clause warrants further investigation into the reasons for limiting the competitive pool.
Lack of transparency in the specific services provided could obscure true value for money.

Positive Signals

Firm-fixed-price contract type effectively transfers cost overrun risk to the contractor.
The contract duration provides stability and predictability for staffing needs.
Awarding to a single entity can streamline management and oversight if performance is satisfactory.

Sector Analysis

Staffing and recruitment services represent a significant segment within the broader professional services sector. Federal agencies, particularly large ones like the Department of Defense, rely heavily on contractors for specialized skills and to manage fluctuating workforce demands. The market for federal staffing is competitive, with numerous large and small businesses vying for contracts. This particular contract, valued at $37.5M, falls into the mid-to-large size category for individual service contracts within this sector, indicating a substantial requirement.

Small Business Impact

The contract data indicates that this was not a small business set-aside, as 'sb' is false. Furthermore, the 'ss' (small business subcontracting) is also false, suggesting that there are no explicit requirements for the prime contractor to subcontract with small businesses. This means that the primary benefit to the small business ecosystem from this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which penalizes the contractor for cost overruns. Transparency could be enhanced by making detailed performance reports and pricing breakdowns publicly available. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Staffing Contracts
Army Human Resources Support Services
Professional Services Contracts
General Services Administration (GSA) Schedule Contracts (potential vehicle)
Other Individual and Family Services (NAICS Code)

Risk Flags

Limited Competition
Unclear Procurement History (FOUCAES)
Lack of Small Business Subcontracting Requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.5 million to CHOCTAW STAFFING SOLUTIONS, INC.. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is CHOCTAW STAFFING SOLUTIONS, 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 $37.5 million.

What is the period of performance?

Start: 2016-08-10. End: 2022-01-15.

What specific types of staffing services were procured under this contract, and how do they align with the Army's needs?

The NAICS code 624190, 'Other Individual and Family Services,' is broad and doesn't precisely define the staffing services. However, given the context of a large Department of Defense contract, these services likely encompass a range of support functions. This could include administrative support, IT personnel, specialized technical roles, or even personnel for non-combat support operations. The alignment with Army needs would depend on the specific task orders issued under the contract. Without access to the contract's statement of work or task orders, it's difficult to ascertain the exact alignment. However, the substantial value suggests critical and ongoing support requirements.

How does the $37.5M contract value compare to similar staffing contracts awarded by the DoD or other federal agencies?

A total contract value of $37.5M over approximately 5.5 years translates to an average annual value of roughly $6.8M. This is a significant but not extraordinary amount for large federal staffing contracts. Many federal agencies, including the DoD, award multi-million dollar contracts for various types of staffing and personnel augmentation. For instance, other DoD components or agencies like the General Services Administration (GSA) frequently issue contracts in this range for IT, administrative, and specialized professional services. Benchmarking against specific, comparable contracts for similar roles and durations would provide a more precise comparison, but the value appears consistent with substantial federal staffing requirements.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' (FOUCAES) award type suggests a complex procurement history. It implies that the contract was initially intended for full and open competition, but specific sources were later excluded. This exclusion could be due to various reasons, such as prior performance issues, specific technical requirements that only a limited number of vendors could meet, or even protests that led to a revised solicitation. The primary risk is that excluding sources, even if justified, inherently limits competition. This can lead to reduced price competition, potentially higher costs for the government, and a smaller pool of innovative solutions. It also raises questions about the fairness and transparency of the initial bidding process.

What is the track record of Choctaw Staffing Solutions, Inc. in performing federal contracts, particularly with the Department of Defense?

Information regarding the specific track record of Choctaw Staffing Solutions, Inc. on federal contracts, especially with the Department of Defense, is not detailed in the provided data snippet. A comprehensive assessment would require reviewing the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for past performance evaluations. Generally, agencies assess past performance as a key factor in award decisions. If this company was awarded a contract of this magnitude, it suggests they likely have some level of relevant experience and a satisfactory performance history, though the specifics of their performance quality, timeliness, and adherence to contract terms would need independent verification.

Given the firm-fixed-price contract type, what are the implications for contractor performance and government oversight?

A firm-fixed-price (FFP) contract type is generally advantageous for the government as it shifts the risk of cost overruns to the contractor. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For contractor performance, this incentivizes efficiency and cost control. However, it can also lead contractors to potentially cut corners on quality if not adequately monitored. For government oversight, it means focusing less on cost tracking and more on ensuring the contractor meets the defined scope, quality standards, and delivery schedules outlined in the contract. Robust performance monitoring and acceptance procedures are crucial to ensure the government receives the full value of the FFP agreement.

How has historical spending on similar staffing services by the Department of the Army evolved over the past five years?

The provided data focuses on a single contract and does not offer historical spending trends for the Department of the Army on similar staffing services. To analyze historical spending patterns, one would need to query federal procurement databases (like FPDS) for contracts with similar NAICS codes (e.g., 541612 - HR Consulting Services, 5613 - Employment Placement Agencies) and agencies (Department of the Army) over the last five fiscal years. Such an analysis would reveal whether spending in this category has increased, decreased, or remained stable, and identify major contractors and contract vehicles utilized. This context is essential for understanding the significance of the $37.5M contract within the broader spending landscape.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81XWH16R0010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Choctaw Nation of Oklahoma

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

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,802,205

Exercised Options: $37,530,132

Current Obligation: $37,530,132

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline