Domex Services Contract Awarded to Eiden Systems Consulting, LLC for Over $31.9M, Spanning 4 Years

Contract Overview

Contract Amount: $31,973,370 ($32.0M)

Contractor: Eiden Systems Consulting, LLC

Awarding Agency: Department of Defense

Start Date: 2012-09-07

End Date: 2016-09-06

Contract Duration: 1,460 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: DOMEX SERVICES

Place of Performance

Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22911

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.0 million to EIDEN SYSTEMS CONSULTING, LLC for work described as: DOMEX SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of consulting services. 2. Full and open competition after exclusion of sources suggests a competitive bidding process. 3. Potential risks include cost overruns inherent in Cost Plus Fixed Fee contracts. 4. Performance context is within scientific and technical consulting services for the Department of the Army. 5. Sector positioning is within the broader IT and professional services market for government contracts.

Value Assessment

Rating: good

The contract value of approximately $31.9 million over four years for 'Other Scientific and Technical Consulting Services' suggests a moderate annual spend. Benchmarking against similar large-scale consulting contracts within the Department of Defense would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) pricing structure, while offering flexibility, requires careful monitoring to ensure costs remain aligned with the fixed fee and overall project objectives. Without specific performance metrics or detailed cost breakdowns, a precise value assessment is challenging, but the overall spend is within expected ranges for such services.

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,' indicating that while the competition was open, specific sources may have been excluded prior to the final award. This suggests a deliberate selection process, potentially based on prior performance or specific capabilities. With four bidders identified, the competition level appears adequate, likely contributing to price discovery. However, the 'after exclusion of sources' clause warrants further investigation to understand the rationale behind any exclusions and their potential impact on the breadth of competition.

Taxpayer Impact: The competitive nature of this award, despite potential source exclusions, suggests that taxpayers likely benefited from a degree of price negotiation and selection of qualified vendors, rather than a sole-source situation.

Public Impact

The Department of the Army benefits from specialized scientific and technical consulting services. Services delivered likely support critical defense-related research, development, or operational analysis. Geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include employment opportunities for consultants with specialized technical skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The 'after exclusion of sources' clause raises questions about the full extent of competition.
Lack of specific performance data makes it difficult to fully assess the value delivered.
The contract duration of four years requires ongoing oversight to ensure continued relevance and effectiveness.

Positive Signals

Awarded through a competitive process, indicating multiple vendors vied for the contract.
The contract value is substantial, suggesting a significant need for the services provided.
The contractor, EIDEN SYSTEMS CONSULTING, LLC, has secured a multi-year award, implying a level of trust and capability.
The services fall under a broad category (Other Scientific and Technical Consulting Services), allowing for adaptability.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on scientific and technical consulting. This market is characterized by specialized expertise and often involves supporting government agencies in complex research, development, and analysis. The annual spending on such services within the Department of Defense can be substantial, reflecting the need for external expertise to augment internal capabilities. Comparable spending benchmarks would involve analyzing other large consulting contracts awarded by DoD agencies for similar technical services.

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 set-aside provision. The focus remains on larger, established firms capable of fulfilling the contract requirements under full and open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs against the fixed fee. Transparency is facilitated through contract award databases, but detailed performance and cost data may be less accessible to the public. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Consulting Services
Scientific and Technical Services Contracts
Cost Plus Fixed Fee Contracts
Professional Services Contracts
Army IT and Technical Support

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
The 'after exclusion of sources' clause warrants further examination regarding competition breadth.
Lack of detailed performance metrics makes value assessment challenging.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.0 million to EIDEN SYSTEMS CONSULTING, LLC. DOMEX SERVICES

Who is the contractor on this award?

The obligated recipient is EIDEN SYSTEMS CONSULTING, 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 $32.0 million.

What is the period of performance?

Start: 2012-09-07. End: 2016-09-06.

What is the track record of EIDEN SYSTEMS CONSULTING, LLC with federal contracts, particularly within the Department of Defense?

EIDEN SYSTEMS CONSULTING, LLC has a history of securing federal contracts, primarily within the Department of Defense. Analyzing their past performance on similar contracts, including their success in meeting deadlines, staying within budget (especially relevant for CPFF contracts), and delivering on technical requirements, is crucial. Information on contract modifications, past performance reviews, and any disputes or terminations would provide a comprehensive view of their reliability and capability. A review of their contract portfolio can indicate specialization and experience relevant to the 'Other Scientific and Technical Consulting Services' category.

How does the $31.9 million contract value compare to similar 'Other Scientific and Technical Consulting Services' contracts awarded by the Department of the Army?

To benchmark the $31.9 million contract value, one would compare it against other definitive contracts awarded by the Department of the Army for 'Other Scientific and Technical Consulting Services' (NAICS code 541690) over a similar timeframe (e.g., 2012-2016). Key comparison points include contract duration, number of bidders, and the specific nature of the services rendered. If this contract represents a significant outlier in terms of cost per year or total value compared to similar procurements, it might warrant further scrutiny regarding pricing or scope. Conversely, if it aligns with the market rate for comparable services, it suggests reasonable value.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific service?

The primary risk with a CPFF contract for scientific and technical consulting is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, there's less direct incentive to minimize costs compared to fixed-price contracts. If the scope of work expands or unforeseen technical challenges arise, costs can escalate, potentially exceeding initial projections. Effective oversight, detailed cost tracking, and robust change management processes are essential to mitigate these risks and ensure the government receives value for its investment. The fixed fee itself needs to be justified based on the estimated effort and risk.

What does 'Full and Open Competition After Exclusion of Sources' imply for the effectiveness of the bidding process and taxpayer value?

This award type suggests that while the competition was intended to be open, certain pre-qualified or previously considered sources were excluded before the final bidding stage. This could be due to various reasons, such as past performance issues, specific technical requirements that only a subset of vendors could meet, or consolidation of requirements. While it implies a competitive process with multiple bidders (four in this case), the exclusion of sources might limit the pool of potential offerors. Taxpayers benefit from competition, but the effectiveness is maximized when the broadest possible range of qualified vendors can participate. Understanding the rationale for exclusions is key to assessing if the best possible value was achieved.

How has spending on 'Other Scientific and Technical Consulting Services' by the Department of the Army trended historically, and where does this contract fit?

Analyzing historical spending trends for 'Other Scientific and Technical Consulting Services' (NAICS 541690) by the Department of the Army would reveal patterns in demand, average contract values, and key service providers. This contract, valued at over $31.9 million over four years, represents a significant but potentially typical investment for specialized technical support. Understanding if this spending aligns with or deviates from historical averages, and whether it reflects an increasing reliance on external consultants for specific technical domains, provides context for its significance and potential future spending patterns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting 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: ALTERNATIVE SOURCES

Solicitation ID: W911W512R0004

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1001 RESEARCH PARK BLVD STE 110, CHARLOTTESVILLE, VA, 22911

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $41,055,226

Exercised Options: $33,089,865

Current Obligation: $31,973,370

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline