DoD's $61.5M Army Support Services Contract Awarded via Full and Open Competition

Contract Overview

Contract Amount: $61,456,790 ($61.5M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2017-04-15

End Date: 2019-04-14

Contract Duration: 729 days

Daily Burn Rate: $84.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF MISTF-A SWA THEATER SUPPORT SERVICES

Plain-Language Summary

Department of Defense obligated $61.5 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: IGF::OT::IGF MISTF-A SWA THEATER SUPPORT SERVICES Key points: 1. Contract awarded for broad professional, scientific, and technical services, indicating a wide scope of support. 2. The firm-fixed-price contract type suggests a defined scope and predictable costs for the government. 3. With 8 bidders, the competition level appears healthy, potentially leading to competitive pricing. 4. The contract duration of 729 days (2 years) provides a stable period for service delivery. 5. Services are for the Army, supporting operations within a theater, implying a critical role. 6. The absence of small business set-aside suggests the primary focus was on best value regardless of business size.

Value Assessment

Rating: fair

Benchmarking the value of this $61.5 million contract for theater support services is challenging without specific performance metrics or detailed service breakdowns. The firm-fixed-price structure is generally favorable for cost control. However, the broad nature of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) makes direct comparison difficult. Without knowing the specific deliverables, it's hard to assess if the price reflects optimal value for the services rendered compared to similar, more narrowly defined support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bidders participating. This indicates a robust bidding process where all responsible sources were encouraged to submit proposals. The presence of multiple bidders generally fosters price discovery and allows the government to select the offer that provides the best overall value, considering both price and technical factors. The level of competition suggests that the market has sufficient capacity to meet the government's needs.

Taxpayer Impact: The full and open competition with 8 bidders is positive for taxpayers, as it likely drove down prices through competitive pressure and allowed the Army to secure services at a potentially more favorable rate than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential support services for its operations. Services delivered likely encompass a range of professional, scientific, and technical support critical for theater operations. The geographic impact is focused on a specific theater of operations, supporting military readiness and effectiveness. Workforce implications include the potential for employment of skilled professionals in scientific, technical, and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Broad service category (541990) makes it difficult to assess specific value for money without detailed performance data.
Lack of disclosed domestic awardees prevents specific analysis of contractor track record or potential conflicts.
Contract duration of two years, while providing stability, might not be optimal for rapidly evolving support needs.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace and potential for good pricing.
Firm-fixed-price contract type provides cost certainty for the government.
Eight bidders participated, suggesting a healthy level of market interest and capability.

Sector Analysis

The contract falls under the broad category of professional, scientific, and technical services, a significant sector supporting government operations. NAICS code 541990 encompasses a wide array of services not elsewhere classified, often including specialized consulting, research, and technical support. Spending in this sector is substantial across federal agencies, with significant portions allocated to defense and intelligence support. This contract represents a portion of the Department of Defense's overall investment in maintaining operational readiness and effectiveness through external expertise.

Small Business Impact

This contract did not include a small business set-aside, as indicated by 'sb': false. The award was made under full and open competition, suggesting that the primary evaluation criteria focused on the best overall value rather than reserving a portion for small businesses. This implies that large businesses were likely the primary participants or recipients of this award. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is limited by the lack of disclosed domestic awardees and specific performance details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Theater Support Services
Professional and Technical Services
Department of Defense Contracts
Army Operational Support
Logistics and Readiness Support

Risk Flags

Broad NAICS code may obscure specific service details and performance metrics.
Lack of disclosed domestic awardees limits transparency and specific contractor assessment.
Theater support services can be inherently complex and carry operational risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.5 million to DOMESTIC AWARDEES (UNDISCLOSED). IGF::OT::IGF MISTF-A SWA THEATER SUPPORT SERVICES

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 $61.5 million.

What is the period of performance?

Start: 2017-04-15. End: 2019-04-14.

What specific types of professional, scientific, and technical services were included under this contract?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category that can encompass a wide range of activities not specified under other, more defined NAICS codes. Without further details from the contract award or associated documentation, it is impossible to specify the exact services. However, given the context of 'MISTF-A SWA THEATER SUPPORT SERVICES,' these services likely relate to operational support, logistics, intelligence analysis, technical assistance, or other specialized functions required to support military operations within a designated theater. The broadness suggests flexibility but also necessitates careful oversight to ensure alignment with specific mission needs.

How does the $61.5 million contract value compare to similar theater support services contracts awarded by the Department of the Army?

Comparing this $61.5 million contract value requires identifying contracts with similar scope, duration, and service categories (NAICS 541990) awarded by the Department of the Army for theater support. The contract duration is approximately two years (729 days). Without access to a comprehensive database of historical Army contracts for theater support, a precise benchmark is difficult. However, for large-scale operational support in complex environments, multi-million dollar contracts are common. The value appears substantial but not necessarily an outlier, depending heavily on the specific geographic theater, the intensity of operations, and the breadth of services required. Further analysis would involve comparing unit costs for specific services if available.

What are the primary risks associated with a contract for 'All Other Professional, Scientific, and Technical Services' in a theater of operations?

The primary risks associated with a contract for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) in a theater of operations include scope creep, performance deficiencies, and security vulnerabilities. The broad nature of the NAICS code means the specific deliverables might not be clearly defined, increasing the risk of disagreements over scope and potentially leading to cost overruns or schedule delays, despite the firm-fixed-price structure. Performance risk is high, as the effectiveness of military operations can depend on the quality of these support services. Security risks are also significant, given the sensitive nature of theater operations and the potential for unauthorized access to information or facilities.

What does the firm-fixed-price contract type imply about the management and oversight of this contract?

A firm-fixed-price (FFP) contract type implies that the contractor bears the primary responsibility for cost overruns, while the government is obligated to pay the agreed-upon price regardless of the contractor's actual costs. This structure incentivizes the contractor to manage its costs efficiently and perform the work within the agreed budget. For the government, it provides cost certainty. However, it also means that oversight must focus heavily on ensuring the contractor meets the defined performance standards and specifications. The government's role shifts from managing costs to ensuring quality and compliance with the contract's technical requirements.

Given the 'full and open competition' and 8 bidders, what is the likely impact on the contractor's profit margins?

When a contract is awarded under full and open competition with a significant number of bidders (like the 8 in this case), it typically intensifies competitive pressure. This pressure generally leads to lower prices being offered by contractors aiming to win the award. Consequently, contractors' profit margins are likely to be constrained compared to sole-source or limited-competition scenarios. To remain competitive, bidders must carefully estimate their costs and factor in a reasonable, but not excessive, profit margin. The winning contractor likely submitted a bid that balanced competitive pricing with their ability to deliver the required services profitably.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

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: $112,590,833

Exercised Options: $61,456,790

Current Obligation: $61,456,790

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline