DoD awards $6.8M contract for urgent service member support near Chicago, with 7 bidders

Contract Overview

Contract Amount: $6,821,161 ($6.8M)

Contractor: Response AI Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2025-10-15

End Date: 2025-12-04

Contract Duration: 50 days

Daily Burn Rate: $136.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS ACTION IS TO PROVIDE COMPREHENSIVE SUPPORT SERVICES, INCLUDING HOUSING, FOOD, AND WRAP AROUND SERVICES, TO MEMBERS OF THE DEPARTMENT OF DEFENSE (DOD) IN RESPONSE TO AN URGENT NEED FOR SERVICE MEMBER SUPPORT IN THE VICINITY OF CHICAGO, IL.

Place of Performance

Location: ELK GROVE VILLAGE, COOK County, ILLINOIS, 60007

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $6.8 million to RESPONSE AI SOLUTIONS, LLC for work described as: THIS ACTION IS TO PROVIDE COMPREHENSIVE SUPPORT SERVICES, INCLUDING HOUSING, FOOD, AND WRAP AROUND SERVICES, TO MEMBERS OF THE DEPARTMENT OF DEFENSE (DOD) IN RESPONSE TO AN URGENT NEED FOR SERVICE MEMBER SUPPORT IN THE VICINITY OF CHICAGO, IL. Key points: 1. Contract addresses an urgent need for comprehensive support services, including housing and food, for service members. 2. The award was made under full and open competition, indicating a competitive bidding process. 3. Seven potential bidders participated, suggesting a healthy level of interest and potential for price discovery. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. This action supports service members in the vicinity of Chicago, IL. 6. The duration of the contract is 50 days, reflecting a short-term, urgent requirement.

Value Assessment

Rating: good

The contract value of $6.82 million for 50 days of comprehensive support services appears reasonable given the urgent nature and scope, which includes housing, food, and wrap-around services for Department of Defense members. Benchmarking against similar rapid-response support contracts is challenging due to the specific nature of the requirement and location. However, the firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, with seven bidders submitting proposals. This indicates a robust competitive environment, which typically leads to better price discovery and value for the government. The participation of multiple bidders suggests that the requirement was well-defined and accessible to a range of qualified contractors.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs and ensured the government received competitive pricing for essential service member support.

Public Impact

Service members in the vicinity of Chicago, IL, will benefit from essential support services, including housing and food. The contract ensures the well-being and readiness of Department of Defense personnel. The services provided are critical for maintaining morale and operational effectiveness of military members and their families. This contract supports the Department of Defense's commitment to providing necessary resources to its personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Urgent need may imply rushed planning or execution, potentially leading to unforeseen costs or service gaps.
Short contract duration (50 days) might limit the ability to establish long-term, sustainable support solutions.
Reliance on a single contractor for critical support services, even for a short period, carries inherent risks if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
Firm Fixed Price contract type transfers cost overrun risk to the contractor.
Addressing an urgent need demonstrates responsiveness to critical service member requirements.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically logistics and support consulting. The market for such services is broad, encompassing numerous firms capable of providing rapid response support. The value of this specific award is moderate, but it highlights the government's reliance on specialized contractors to meet immediate operational needs, particularly for personnel support in diverse geographic locations.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses in their subcontracting plan. Further analysis would be needed to determine if small businesses were excluded or had the opportunity to participate.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command within the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics may not be publicly disclosed.

Related Government Programs

DoD Family Support Programs
Military Housing Assistance
Contingency Support Services
Logistics Consulting Services

Risk Flags

Urgent Need
Short Contract Duration
Potential for Service Gaps

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.8 million to RESPONSE AI SOLUTIONS, LLC. THIS ACTION IS TO PROVIDE COMPREHENSIVE SUPPORT SERVICES, INCLUDING HOUSING, FOOD, AND WRAP AROUND SERVICES, TO MEMBERS OF THE DEPARTMENT OF DEFENSE (DOD) IN RESPONSE TO AN URGENT NEED FOR SERVICE MEMBER SUPPORT IN THE VICINITY OF CHICAGO, IL.

Who is the contractor on this award?

The obligated recipient is RESPONSE AI 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 $6.8 million.

What is the period of performance?

Start: 2025-10-15. End: 2025-12-04.

What is the track record of RESPONSE AI SOLUTIONS, LLC in providing similar support services to the Department of Defense?

Information regarding the specific track record of RESPONSE AI SOLUTIONS, LLC in providing comprehensive support services, including housing and food, to the Department of Defense is not detailed in the provided data. A thorough review of past performance, including contract history, client feedback, and any past performance evaluations, would be necessary to assess their capability and reliability for this urgent requirement. Without this information, it is difficult to gauge their experience level with similar complex support operations, especially those involving rapid deployment and diverse service needs for military personnel.

How does the awarded price compare to similar contracts for service member support in the Chicago area?

Direct comparison of the $6.82 million award for 50 days of service member support to similar contracts in the Chicago area is difficult without specific benchmark data for comparable services. The "urgent need" aspect suggests a premium might be associated with rapid deployment and immediate availability of resources. Factors such as the exact scope of housing, food, and wrap-around services, the number of service members supported, and the specific duration are critical for a precise comparison. However, the firm fixed-price nature and the competitive bidding process involving seven bidders suggest an effort to achieve value within the constraints of the urgent requirement.

What are the primary risks associated with this contract, given its urgent nature and short duration?

The primary risks associated with this contract stem from its urgent nature and short 50-day duration. An urgent requirement may lead to expedited processes, potentially increasing the risk of overlooking critical details or encountering unforeseen logistical challenges. The short timeframe could also limit the contractor's ability to fully establish efficient operations or provide comprehensive, long-term solutions, potentially leading to service gaps or a need for follow-on contracts. Furthermore, even with competition, the rapid deployment aspect might necessitate higher operational costs for the contractor, which could be reflected in the pricing. Ensuring adequate oversight and performance monitoring within this compressed timeframe is also a key risk area.

How effective is the firm fixed-price contract type in managing costs for this urgent support requirement?

The firm fixed-price (FFP) contract type is generally effective in managing costs for urgent support requirements because it shifts the risk of cost overruns from the government to the contractor. The contractor is obligated to perform the specified services for the agreed-upon price, providing cost certainty for the government. For an urgent need like this, FFP helps prevent budget blowouts if the contractor encounters unexpected expenses during service delivery. However, the initial price must be set appropriately to account for the scope and urgency; if the FFP is too low, the contractor might cut corners on quality or service. Conversely, if it's too high, taxpayers may overpay.

What is the historical spending pattern for similar service member support contracts by the Department of the Army in Illinois?

The provided data does not include historical spending patterns for similar service member support contracts by the Department of the Army in Illinois. To assess this, one would need to analyze past contract awards for logistics, housing, food services, and wrap-around support specifically for military personnel in the Illinois region. Examining trends in contract values, durations, competition levels, and the types of services rendered over several fiscal years would provide context for the current $6.82 million award. Understanding this history could reveal whether this contract represents a typical expenditure, an increase, or a decrease in spending for such services in the area.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1530 WILSON BLVD STE 650, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $10,972,069

Exercised Options: $6,821,161

Current Obligation: $6,821,161

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002325D0075

IDV Type: IDC

Timeline