DoD's $9.98M contract with Choctaw Management Services Enterprise for personal services shows a long duration

Contract Overview

Contract Amount: $9,985,547 ($10.0M)

Contractor: Choctaw Management Services Enterprise

Awarding Agency: Department of Defense

Start Date: 2004-09-28

End Date: 2010-03-29

Contract Duration: 2,008 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Plain-Language Summary

Department of Defense obligated $10.0 million to CHOCTAW MANAGEMENT SERVICES ENTERPRISE for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a broad search for qualified vendors. 2. The contract's duration of over 5 years indicates a need for sustained service delivery. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. No small business set-aside was utilized, potentially limiting opportunities for smaller firms. 5. The contract was awarded in 2004, with performance concluding in 2010, providing historical data for analysis. 6. The North American Industry Classification System (NAICS) code 812990 points to a service-oriented contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and market rates for 'All Other Personal Services' during the 2004-2010 period. The total award amount of approximately $9.98 million over more than five years suggests an average annual value of around $1.7 million. Without comparable contract data or detailed performance metrics, it's difficult to definitively assess value for money. However, the firm-fixed-price contract type generally aims for cost efficiency by placing risk on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that the Department of the Army sought proposals from all responsible sources. The presence of 3 bids suggests a moderate level of competition for this requirement. While more than one bidder participated, the exact number (3) doesn't necessarily indicate intense competition, which could potentially drive prices lower.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally provides a better opportunity for price discovery and ensures taxpayers are not overpaying due to restricted market access.

Public Impact

The primary beneficiaries are likely the Department of Defense personnel or entities requiring the 'All Other Personal Services' provided under this contract. The services delivered are broadly categorized under personal services, though specific details are not provided. The geographic impact is presumed to be within the operational areas of the Department of the Army. Workforce implications would involve the personnel employed by Choctaw Management Services Enterprise to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details makes it hard to evaluate the true value and necessity of the contract.
The duration of the contract (over 5 years) could indicate potential for vendor lock-in or reduced agility if needs change.
Limited competition (3 bidders) might have resulted in a higher price than a more competitive scenario.
No small business set-aside was applied, potentially missing opportunities to support small businesses.

Positive Signals

Awarded under full and open competition, ensuring a broad search for capable contractors.
Firm-fixed-price contract type aligns incentives and transfers risk to the contractor.
The contractor, Choctaw Management Services Enterprise, successfully performed the contract over its extended duration.

Sector Analysis

The contract falls under the broad 'Other Services' category within the federal procurement landscape, specifically NAICS code 812990. This code encompasses a wide array of non-classified personal services. Federal spending in this area is diverse, supporting various government functions. Benchmarking requires detailed understanding of the specific personal services rendered, as this category is highly variable.

Small Business Impact

This contract did not include a small business set-aside, as indicated by 'sb': false. Consequently, there are no direct subcontracting implications mandated by a set-aside provision for small businesses. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits, though Choctaw Management Services Enterprise itself may be a small business, which is not specified.

Oversight & Accountability

Oversight mechanisms for this contract would have been managed by the Department of the Army contracting officers and program managers. Accountability is typically ensured through contract clauses, performance monitoring, and payment schedules tied to deliverables. Transparency is facilitated by the Federal Procurement Data System (FPDS), which records contract actions. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Professional, Scientific, and Technical Services
Other Services
Personal Services Contracts
Department of Defense Services Contracts

Risk Flags

Potential for undefined scope creep given broad NAICS code.
Moderate competition level may have limited price optimization.
Long contract duration could mask performance degradation if not actively managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to CHOCTAW MANAGEMENT SERVICES ENTERPRISE. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CHOCTAW MANAGEMENT SERVICES ENTERPRISE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2004-09-28. End: 2010-03-29.

What specific 'All Other Personal Services' were provided under this contract?

The provided data does not specify the exact nature of the 'All Other Personal Services' rendered under contract number DCA. This NAICS code (812990) is broad and can encompass a wide range of services, such as laundry and dry-cleaning services, watch, clock, and jewelry repair, and other personal services not elsewhere classified. Without this detail, a precise assessment of the contract's necessity, value, and performance is significantly limited. Further investigation into the contract's statement of work would be required to understand the specific services delivered and their impact.

How does the $9.98 million award value compare to similar personal services contracts awarded by the DoD during the 2004-2010 period?

Comparing the $9.98 million award value for this contract requires access to a database of similar contracts awarded by the Department of Defense between 2004 and 2010, specifically those under NAICS code 812990 or closely related categories for personal services. The duration of over five years means the average annual value was approximately $1.7 million. Without specific details on the services provided, it's difficult to find direct comparables. However, if these services were routine or commodity-like, this annual value might be considered moderate. If they were highly specialized, it could be low. A comprehensive analysis would involve filtering for contracts with similar scopes of work and durations to establish a meaningful benchmark.

What was the track record of Choctaw Management Services Enterprise with federal contracts prior to and during this period?

Information on Choctaw Management Services Enterprise's prior federal contracting history is not detailed in the provided data. To assess their track record, one would need to examine their performance on other contracts, including any past performance evaluations, awards, or disputes. A review of their history would reveal their experience in delivering services, their compliance with contract terms, and their overall reliability as a government contractor. Understanding their broader federal footprint would provide context for their ability to successfully execute this $9.98 million contract over more than five years.

What are the potential risks associated with a firm-fixed-price contract of this duration for personal services?

Firm-fixed-price (FFP) contracts, while generally favorable for cost control, can carry risks, especially for long-duration personal services. If the scope of work is not precisely defined or if unforeseen circumstances arise, the contractor might face challenges in delivering services within the fixed price, potentially leading to cost overruns for them or reduced quality for the government. Conversely, if the contractor finds efficiencies not anticipated, they could realize significant profit. For the government, the risk lies in ensuring the contractor maintains quality and performance over the extended period without adequate mechanisms for price adjustment if market conditions change drastically or if the initial price was set too high due to incomplete information.

How did the 'full and open competition' with only 3 bidders impact price discovery and taxpayer value?

While 'full and open competition' is the preferred method, having only three bidders suggests a moderately competitive environment. Ideally, more bidders would increase the likelihood of competitive pricing. With three bidders, there's a chance that the lowest price offered was not the absolute lowest possible if more vendors had participated. However, it still provides a basis for price discovery, allowing the government to select the best value offer among the submitted proposals. The impact on taxpayer value depends on the thoroughness of the evaluation process and whether the selected offer represented a fair and reasonable price given the market and the specific services required. Without knowing the nature of the services, it's hard to say if three bidders were sufficient.

What is the significance of NAICS code 812990 ('All Other Personal Services') in the context of federal spending?

NAICS code 812990 represents a diverse category of personal services that do not fit into more specific classifications. Federal agencies utilize these services for a variety of operational needs, ranging from laundry and tailoring to repair services and other support functions. Spending under this code can vary significantly depending on the agency and its mission requirements. Its broad nature means that contracts awarded under 812990 often require careful definition of the Statement of Work to ensure clarity and prevent scope creep. It highlights the government's need for a wide array of support services to maintain its operations effectively.

Industry Classification

NAICS: Other Services (except Public Administration) › Other Personal Services › All Other Personal 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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 W ARKANSAS, DURANT, OK, 02

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline