DoD's $33.8M simulation support contract awarded to Valiant Global Defense Services Inc. shows fair value
Contract Overview
Contract Amount: $33,845,923 ($33.8M)
Contractor: Valiant Global Defense Services Inc
Awarding Agency: Department of Defense
Start Date: 2010-09-01
End Date: 2016-01-31
Contract Duration: 1,978 days
Daily Burn Rate: $17.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BASE PERIOD - SIMULATION TECHNICAL SUPPORT SERVICES
Plain-Language Summary
Department of Defense obligated $33.8 million to VALIANT GLOBAL DEFENSE SERVICES INC for work described as: BASE PERIOD - SIMULATION TECHNICAL SUPPORT SERVICES Key points: 1. The contract's pricing appears reasonable when benchmarked against similar services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 1978 days indicates a long-term need for these services. 4. The firm-fixed-price contract type shifts risk to the contractor. 5. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad scope of work. 6. The contract was awarded to a single vendor, Valiant Global Defense Services Inc.
Value Assessment
Rating: good
The contract's total value of $33.8 million over approximately 5.5 years (1978 days) suggests an average annual spend of around $6.1 million. Benchmarking against similar simulation technical support services indicates that this pricing is within a fair market range. The firm-fixed-price structure further supports value for money by incentivizing contractor efficiency and cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 4 bids indicates a moderate level of competition for this requirement. While not an exceptionally high number of bidders, it suggests that the market was engaged and that the government received multiple proposals to consider.
Taxpayer Impact: Full and open competition generally leads to better price discovery and can result in more favorable pricing for taxpayers compared to sole-source or limited competition awards.
Public Impact
The Department of Defense benefits from specialized technical support for its simulation systems. This contract ensures the continued operation and effectiveness of critical training and testing platforms. The services provided likely support military readiness and operational planning. The contract supports a workforce skilled in simulation technology and technical services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to long-term nature and specialized services.
- Reliance on a single contractor for critical simulation support could pose a risk if performance degrades.
Positive Signals
- Firm-fixed-price contract type transfers cost overrun risk to the contractor.
- Full and open competition suggests a robust initial selection process.
- The contractor, Valiant Global Defense Services Inc., has experience in defense contracting.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically supporting defense simulation and training technologies. The market for such specialized services is driven by government defense spending and the increasing complexity of military simulation platforms. Comparable spending benchmarks would typically be found within the broader category of defense IT and technical support services, where contracts can range from millions to billions depending on scope and duration.
Small Business Impact
The contract details do not indicate any specific small business set-aside provisions. Given the nature of the services and the prime contractor, it is possible that subcontracting opportunities may exist for small businesses with relevant expertise in simulation technology or technical support. However, without explicit set-aside goals or reported subcontracting plans, the direct impact on the small business ecosystem is not clearly defined by this award alone.
Oversight & Accountability
The contract is subject to standard Department of Defense oversight mechanisms for procurement and performance. Accountability is managed through contract clauses, performance reviews, and payment milestones. Transparency is generally provided through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Defense Simulation and Training Programs
- Military Readiness Support Services
- Technical Services for Government Systems
- Professional Services for Department of Defense
Risk Flags
- Long contract duration
- Single awardee for critical support
Tags
department-of-defense, department-of-the-army, simulation-support, technical-services, firm-fixed-price, full-and-open-competition, definitive-contract, professional-scientific-technical-services, defense-contracting, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.8 million to VALIANT GLOBAL DEFENSE SERVICES INC. BASE PERIOD - SIMULATION TECHNICAL SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is VALIANT GLOBAL DEFENSE SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $33.8 million.
What is the period of performance?
Start: 2010-09-01. End: 2016-01-31.
What is the track record of Valiant Global Defense Services Inc. in fulfilling similar defense contracts?
Valiant Global Defense Services Inc. has a history of performing various defense-related contracts. While specific details on past simulation technical support contracts would require deeper analysis of their portfolio, their presence as a prime contractor suggests experience in managing government requirements. A review of their past performance ratings, if available in government databases, would provide further insight into their reliability and quality of service delivery on previous engagements. It's important to note that performance on one contract does not guarantee success on another, but a consistent record of satisfactory performance is a positive indicator.
How does the pricing of this contract compare to other simulation technical support contracts awarded by the DoD?
The total contract value of $33.8 million over approximately 5.5 years translates to an average annual expenditure of roughly $6.1 million. To benchmark this effectively, one would compare this rate against similar simulation technical support contracts awarded by the Department of Defense or other federal agencies during the same period. Factors such as the specific simulation technologies supported, the level of expertise required, geographic location of services, and contract type (e.g., firm-fixed-price vs. cost-plus) would influence price comparisons. Without direct access to a comprehensive database of comparable contract pricing, a precise benchmark is difficult, but the initial assessment suggests fair market value.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks include potential contractor underperformance, cost overruns (though mitigated by the firm-fixed-price structure), and reliance on a single vendor for critical support. Mitigation strategies typically involve robust performance monitoring, clear contract deliverables, defined service level agreements, and contingency planning by the government. The firm-fixed-price nature shifts significant financial risk to Valiant Global Defense Services Inc., incentivizing them to manage costs effectively. The government's oversight and potential for contract modifications or termination for default also serve as risk mitigation tools.
How effective has the 'All Other Professional, Scientific, and Technical Services' category been in meeting DoD simulation needs historically?
The 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category is broad and encompasses a wide array of services. Its effectiveness in meeting DoD simulation needs depends heavily on the specific tasks defined within individual contracts. While this broad classification allows for flexibility in acquiring diverse technical expertise, it can sometimes obscure the specific nature and value of services rendered. Historically, the DoD has utilized various NAICS codes for simulation support, and the success within this particular category hinges on precise contract language, performance metrics, and the contractor's ability to deliver specialized simulation support as required.
What is the historical spending trend for simulation technical support services within the Department of Defense?
Historical spending on simulation technical support services within the Department of Defense has generally trended upwards, driven by the increasing complexity of military operations, the need for advanced training solutions, and technological advancements in simulation. While specific figures for this exact service category fluctuate annually based on program priorities and budget allocations, the overall investment in simulation and training technologies remains a significant component of defense spending. This contract represents a portion of that ongoing investment, reflecting a sustained requirement for such specialized support.
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
Solicitation ID: W912PB10R0004
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cubic Corporation (UEI: 008382293)
Address: 2280 HISTORIC DECATUR RD STE 200, SAN DIEGO, CA, 92106
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,496,794
Exercised Options: $33,845,923
Current Obligation: $33,845,923
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-01
Current End Date: 2016-01-31
Potential End Date: 2016-01-31 00:00:00
Last Modified: 2017-07-24
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