DoD's $29M contract for consulting services awarded to INNOVATE INTERNATIONAL INTELLIGENCE AND INTEGRATION, LLC shows fair value
Contract Overview
Contract Amount: $29,023,545 ($29.0M)
Contractor: Innovate International Intelligence and Integration, LLC
Awarding Agency: Department of Defense
Start Date: 2011-03-31
End Date: 2017-12-31
Contract Duration: 2,467 days
Daily Burn Rate: $11.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LABOR
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $29.0 million to INNOVATE INTERNATIONAL INTELLIGENCE AND INTEGRATION, LLC for work described as: LABOR Key points: 1. The contract demonstrates a reasonable value for the services provided, aligning with industry benchmarks. 2. Competition was robust, suggesting effective price discovery and potential for cost savings. 3. No significant risk indicators were identified in the contract's performance or execution. 4. The contract's duration and firm-fixed-price structure suggest predictable cost management. 5. This contract falls within the broader category of scientific and technical consulting services for the defense sector. 6. The contractor has a history of performance within the federal sector, indicating reliability.
Value Assessment
Rating: good
The total award amount of $29,023,545.22 over approximately 6.7 years suggests a moderate annual spend for specialized consulting. Benchmarking against similar contracts for 'Other Scientific and Technical Consulting Services' indicates that the pricing is competitive. The firm-fixed-price nature of the contract further supports predictable cost management, implying good value for the services rendered. The contract's value appears to be in line with market rates for similar expertise within the federal government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery, as it incentivizes bidders to offer competitive pricing to secure the award. The agency's decision to pursue full and open competition likely resulted in a more optimal price for the government.
Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which helps ensure that the government is not overpaying for essential consulting services. The presence of multiple bidders drives down costs and promotes efficiency.
Public Impact
The Department of the Army benefits from specialized consulting services aimed at enhancing intelligence and integration capabilities. The services delivered likely support strategic planning, operational analysis, and technological integration within defense initiatives. The geographic impact is primarily within the Department of Defense's operational areas, potentially supporting national security objectives. The contract supports a specialized workforce of consultants with expertise in intelligence and technical integration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract type provides cost certainty.
- Contract duration aligns with the scope of services.
- Contractor has prior federal contract experience.
Sector Analysis
This contract falls under the 'Other Scientific and Technical Consulting Services' sector, a broad category encompassing a wide range of specialized advisory and analytical support. The federal market for such services is substantial, with agencies like the Department of Defense frequently procuring expertise to address complex challenges. This specific contract likely supports the agency's need for advanced analytical capabilities and strategic guidance in areas critical to national security. Comparable spending benchmarks in this sector often reflect the specialized nature of the work and the high demand for expert knowledge.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements specifically targeting small businesses. This suggests that the primary focus was on securing the most qualified large business or specialized firm for the services required. The impact on the small business ecosystem is minimal in this instance, as the procurement did not prioritize small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements, although specific performance details may be sensitive.
Related Government Programs
- Defense Consulting Services
- Intelligence Support Services
- Technical Advisory Services
- Scientific Consulting
Tags
department-of-defense, department-of-the-army, consulting-services, scientific-and-technical-services, firm-fixed-price, full-and-open-competition, definitive-contract, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.0 million to INNOVATE INTERNATIONAL INTELLIGENCE AND INTEGRATION, LLC. LABOR
Who is the contractor on this award?
The obligated recipient is INNOVATE INTERNATIONAL INTELLIGENCE AND INTEGRATION, 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 $29.0 million.
What is the period of performance?
Start: 2011-03-31. End: 2017-12-31.
What is the track record of INNOVATE INTERNATIONAL INTELLIGENCE AND INTEGRATION, LLC with federal contracts?
INNOVATE INTERNATIONAL INTELLIGENCE AND INTEGRATION, LLC has a history of performing federal contracts, primarily within the Department of Defense. While specific details on past performance metrics for this particular contract are not publicly detailed in this summary, the award itself suggests a level of qualification and capability recognized by the agency. Federal procurement databases would offer a more granular view of their past awards, contract types, and agencies served, allowing for a comprehensive assessment of their track record and reliability in delivering services.
How does the value of this contract compare to similar federal consulting engagements?
The total award of approximately $29 million over nearly seven years for 'Other Scientific and Technical Consulting Services' appears reasonable when benchmarked against similar contracts. The annual average spend is around $4.3 million, which is within the typical range for specialized consulting support to large federal agencies like the Department of Defense. Factors such as the specific expertise required, the duration of the engagement, and the firm-fixed-price structure contribute to this valuation. Without access to proprietary pricing data, a precise comparison is difficult, but the overall award size does not immediately suggest overpricing relative to the market for such services.
What are the primary risks associated with this type of consulting contract?
The primary risks associated with this type of consulting contract often revolve around scope creep, contractor performance, and the alignment of delivered services with evolving agency needs. For a firm-fixed-price contract, there's a risk that the contractor may cut corners to maintain profitability if not adequately monitored. Ensuring the consultants possess the necessary security clearances and maintain up-to-date knowledge in rapidly changing technical fields is also crucial. Furthermore, the effectiveness of the advice provided and its actual impact on agency decision-making and operational improvements represent a key performance risk that requires diligent oversight.
How effective are firm-fixed-price contracts for specialized consulting services?
Firm-fixed-price (FFP) contracts are generally effective for specialized consulting services when the scope of work is well-defined and unlikely to change significantly. They provide cost certainty for the government and incentivize the contractor to manage costs efficiently. However, for highly specialized or R&D-intensive consulting where requirements may evolve, FFP contracts can sometimes stifle innovation or lead to disputes if the scope needs adjustment. In this case, with a duration of over six years, the agency likely had a clear understanding of the long-term needs, making FFP a suitable choice for managing budget predictability.
What is the historical spending trend for 'Other Scientific and Technical Consulting Services' within the Department of Defense?
The Department of Defense historically represents one of the largest federal spenders on 'Other Scientific and Technical Consulting Services.' This category encompasses a wide array of support, from strategic analysis and policy development to technical assessments and program management assistance. Spending in this area often fluctuates based on geopolitical conditions, emerging technological needs, and specific program requirements. While this specific contract represents a portion of that spending, the overall trend indicates a consistent and significant reliance by the DoD on external expertise to supplement its internal capabilities across various domains.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9133L11R0018
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 466 S HOUSTON LAKE RD STE D, WARNER ROBINS, GA, 31088
Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $29,023,545
Exercised Options: $29,023,545
Current Obligation: $29,023,545
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2011-03-31
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 00:00:00
Last Modified: 2018-11-15
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