DoD's $26.5M administrative support contract with Global Support Services LLC raises value concerns

Contract Overview

Contract Amount: $26,512,415 ($26.5M)

Contractor: Global Support Services LLC

Awarding Agency: Department of Defense

Start Date: 2013-02-28

End Date: 2017-10-31

Contract Duration: 1,706 days

Daily Burn Rate: $15.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF ARL ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to GLOBAL SUPPORT SERVICES LLC for work described as: IGF::OT::IGF ARL ADMINISTRATIVE SUPPORT SERVICES Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can incentivize higher spending. 2. Limited competition due to sole-source award potentially impacting price discovery. 3. Long contract duration of over 1700 days may not reflect current market needs. 4. No small business set-aside, raising questions about broader economic impact. 5. Performance context is limited without specific metrics on service delivery. 6. Sector positioning within facilities support services requires further benchmarking.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, combined with a lack of competitive bidding, makes a direct value-for-money assessment difficult. Without clear performance benchmarks or comparisons to similar administrative support services contracts, it's challenging to determine if the $26.5 million expenditure represents a fair price. The extended duration also raises concerns about whether the services remained optimized and cost-effective throughout the contract period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits the government's ability to leverage market forces to achieve the best possible pricing and service terms. The absence of multiple bidders means potential cost savings that could arise from a competitive bidding process were not realized.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition, as the contractor faced no pressure to offer the most competitive price.

Public Impact

The primary beneficiaries are the administrative support staff employed by Global Support Services LLC. Services delivered include general administrative, clerical, and potentially specialized support functions for the Department of the Army. Geographic impact is concentrated in Maryland, where the contract was performed. Workforce implications include the employment of personnel to fulfill the contract's requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Cost-plus-fixed-fee contract type can incentivize increased spending.
Long contract duration may not align with evolving needs or market efficiencies.
Absence of performance metrics makes value assessment difficult.

Positive Signals

Contract provided essential administrative support to a military branch.
Long-term relationship with a single contractor may indicate consistent service delivery.
Fixed fee component provides some cost predictability for the government.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a range of services necessary for the operation and maintenance of buildings and grounds. The market for these services is competitive, with numerous providers ranging from small businesses to large corporations. Benchmarking this contract's value is difficult without specific service details, but typical administrative support contracts can vary widely in cost depending on scope and duration.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small business participation were likely limited, and the primary contract value flowed to a large business. This could represent a missed opportunity to support the small business ecosystem within the facilities support services sector.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and potentially program managers. Accountability measures would be tied to the terms and conditions of the definitive contract, including performance expectations and payment schedules. Transparency is limited due to the sole-source nature and lack of publicly available performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for administrative services
Department of Defense facilities maintenance and operations contracts
Other agency-specific administrative support service contracts

Risk Flags

Sole-source award lacks competitive pricing.
Cost-plus-fixed-fee structure may incentivize higher costs.
Extended contract duration may not reflect current market conditions.
Lack of performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to GLOBAL SUPPORT SERVICES LLC. IGF::OT::IGF ARL ADMINISTRATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is GLOBAL SUPPORT SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2013-02-28. End: 2017-10-31.

What specific administrative support services were provided under this contract?

The contract data indicates 'ARL ADMINISTRATIVE SUPPORT SERVICES' and a North American Industry Classification System (NAICS) code of 561210 for Facilities Support Services. While the specific tasks are not detailed in the provided data, this typically encompasses a range of functions such as clerical support, record keeping, scheduling, communication management, and potentially specialized administrative functions supporting the Army Research Laboratory (ARL) operations. The cost-plus-fixed-fee (CPFF) award type suggests that the scope might have been somewhat flexible or difficult to define precisely at the outset, requiring the contractor to incur costs which are then reimbursed, plus a fixed fee for profit.

How does the $26.5 million total contract value compare to similar administrative support contracts?

Direct comparison of the $26.5 million total contract value is challenging without knowing the exact services rendered, the duration of the services, and the specific geographic location. However, for a contract spanning over 1700 days (approximately 4.6 years), this equates to an average annual spend of roughly $5.7 million. This figure needs to be benchmarked against similar administrative support contracts awarded by the Department of Defense or other federal agencies for comparable services. Given the sole-source nature and CPFF structure, there's a risk that this value may be higher than what could have been achieved through competitive bidding for similar services.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract of this magnitude?

The primary risks associated with this contract are twofold. Firstly, the sole-source award eliminates competition, which is a key mechanism for ensuring fair and reasonable pricing. Without competing bids, the government lacks a strong basis to negotiate the lowest possible price. Secondly, the cost-plus-fixed-fee (CPFF) structure, while providing flexibility, can incentivize the contractor to incur higher costs, as their fee is fixed regardless of the actual costs incurred (within reason). This can lead to cost overruns and reduced value for money if not managed diligently through robust oversight and performance monitoring.

What was the justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the rationale behind bypassing the competitive bidding process for these administrative support services.

What is the track record of Global Support Services LLC in performing federal contracts?

Information on the track record of Global Support Services LLC is not detailed in the provided data snippet. A comprehensive assessment would require reviewing their past performance on federal contracts, including client feedback, any past performance issues or awards, and their history with similar types of services. Given this is a definitive contract awarded in 2013 and ending in 2017, their performance history prior to and during this period would be relevant. Without access to performance evaluations or contract databases, their specific track record remains unknown.

How does the duration of this contract (over 1700 days) impact its overall value and relevance?

A contract duration of over 1700 days (approximately 4.6 years) for administrative support services can have mixed impacts on value and relevance. On one hand, a longer duration can provide stability and continuity for the government agency, ensuring consistent support without frequent re-competition. It can also allow the contractor to build institutional knowledge and efficiencies. However, it also carries risks: market needs and technologies can evolve significantly over such a period, potentially making the contracted services or pricing outdated. Furthermore, long-term contracts, especially sole-source ones, can reduce opportunities for innovation and cost savings that might arise from periodic re-competition with updated requirements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4600 DEBARR RD STE 200, ANCHORAGE, AK, 99508

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,632,838

Exercised Options: $26,632,838

Current Obligation: $26,512,415

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline