DoD's $27.6M Administrative Support Contract with Infused Solutions Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $27,618,514 ($27.6M)
Contractor: Infused Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2012-04-05
End Date: 2015-12-31
Contract Duration: 1,365 days
Daily Burn Rate: $20.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 80
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ADMINSTRATIVE SUPPORT SERVICES
Place of Performance
Location: FORT KNOX, HARDIN County, KENTUCKY, 40121
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $27.6 million to INFUSED SOLUTIONS, LLC for work described as: ADMINSTRATIVE SUPPORT SERVICES Key points: 1. Contract awarded to Infused Solutions, LLC for administrative support services. 2. Total contract value of $27.6 million over 1365 days. 3. Competition method was 'Full and Open Competition After Exclusion of Sources', raising questions about true market reach. 4. The contract falls under the Office Administrative Services NAICS code (561110). 5. No indication of small business participation.
Value Assessment
Rating: questionable
The contract's pricing is difficult to assess without detailed breakdowns or benchmarks for similar administrative support services. The firm fixed-price structure suggests cost predictability, but the overall value proposition requires further analysis against market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method, 'Full and Open Competition After Exclusion of Sources,' implies that while the competition was technically open, specific sources were excluded, potentially limiting the competitive landscape and impacting price discovery.
Taxpayer Impact: The limited competition may have resulted in a higher cost to taxpayers than a fully open and unrestricted process would have yielded.
Public Impact
Taxpayers may have overpaid due to restricted competition. Lack of transparency in the exclusion of sources hinders public trust. Potential for improved efficiency and cost savings through broader competition in future contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about best value.
- Lack of small business participation.
- Unclear justification for excluding sources.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Contract duration is clearly defined.
Sector Analysis
Administrative support services are crucial for government operations, encompassing a wide range of functions. Spending in this sector can vary significantly based on agency needs and contract scope. Benchmarks for these services are often tied to labor costs and service level agreements.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests that opportunities for small businesses to compete or subcontract on this contract were either not pursued or not mandated.
Oversight & Accountability
Oversight of this contract would involve monitoring performance against the firm fixed-price terms and ensuring that the exclusion of sources was justified and did not unduly restrict competition. Accountability rests with the Department of the Army to validate the necessity and cost-effectiveness of the chosen procurement method.
Related Government Programs
- Office Administrative Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may have inflated costs.
- Lack of transparency regarding excluded sources.
- No small business participation noted.
- Potential for better value through broader competition.
Tags
office-administrative-services, department-of-defense, ky, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.6 million to INFUSED SOLUTIONS, LLC. ADMINSTRATIVE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is INFUSED SOLUTIONS, 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 $27.6 million.
What is the period of performance?
Start: 2012-04-05. End: 2015-12-31.
What was the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact the final price?
The justification for excluding sources is critical for understanding the procurement's integrity. If the exclusion was not based on compelling technical or programmatic reasons, it could indicate a non-optimal competitive environment. This limitation might have led to higher pricing than achievable in a truly open market, potentially costing taxpayers more than necessary.
What are the key performance indicators (KPIs) for these administrative support services, and how effectively were they met under this contract?
Understanding the KPIs is essential to evaluate the contract's effectiveness. Without specific performance metrics, it's challenging to determine if Infused Solutions, LLC delivered services that met or exceeded expectations. Effective oversight would involve tracking these KPIs to ensure value for money and service quality, regardless of the competition structure.
Given the contract's value and duration, what is the estimated cost savings or loss to taxpayers due to the limited competition approach?
Estimating the precise cost impact of limited competition is complex. However, a 'Full and Open Competition After Exclusion of Sources' inherently carries a risk of reduced price competition compared to a fully unrestricted process. A thorough analysis would involve benchmarking against similar contracts awarded under open competition to quantify potential overspending.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9124D12R0001
Offers Received: 80
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 22636 DAVIS DR STE 100, STERLING, VA, 20164
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,771,794
Exercised Options: $27,771,794
Current Obligation: $27,618,514
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2012-04-05
Current End Date: 2015-12-31
Potential End Date: 2015-12-31 00:00:00
Last Modified: 2016-04-14
More Contracts from Infused Solutions, LLC
- Facilities and Administrative Support Services — $19.2M (Federal Communications Commission)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)