DoD's $28.7M contract for support specialists awarded to ADC Management Services, Inc. shows fair value

Contract Overview

Contract Amount: $28,672,129 ($28.7M)

Contractor: ADC Management Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-09-30

End Date: 2022-10-31

Contract Duration: 2,222 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF ANG YRRP SUPPORT SPECIALISTS

Place of Performance

Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to ADC MANAGEMENT SERVICES, INC. for work described as: IGF::OT::IGF ANG YRRP SUPPORT SPECIALISTS Key points: 1. The contract demonstrates a reasonable value for the services provided, with costs aligning with benchmarks. 2. Full and open competition was utilized, suggesting a healthy market dynamic for these specialized support services. 3. While no specific risk indicators are immediately apparent, ongoing performance monitoring is crucial. 4. The contract's duration and firm-fixed-price structure provide cost predictability. 5. This contract falls within the broader IT and professional services sector for the Department of Defense. 6. The award to a single entity suggests a focused approach to acquiring specific expertise.

Value Assessment

Rating: good

The total award amount of $28.7 million over approximately six years suggests a fair price point for specialized support services. Benchmarking against similar contracts for IT and administrative support within the Department of Defense indicates that the per-year cost is within an acceptable range. The firm-fixed-price contract type further supports cost control and predictability 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, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of 14 bidders suggests a competitive marketplace for these services, which generally leads to better pricing and quality for the government. The exclusion of sources clause might indicate specific technical requirements that narrowed the initial pool but still allowed for broad competition.

Taxpayer Impact: The robust competition level is beneficial for taxpayers as it likely drove down prices and encouraged innovation among bidders, ensuring the government received the best possible value for its investment.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who receive essential support services. Services delivered include specialized support functions crucial for the efficient operation of military units. The geographic impact is primarily within Maryland, where the contractor is based and services are likely rendered. Workforce implications include the creation of jobs for support specialists employed by ADC Management Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is highly concentrated.
Dependence on a single contractor for critical support functions.
Need for robust performance monitoring to ensure service quality.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract provides cost certainty.
Contract duration allows for stable service delivery.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting government administrative and operational functions. The market for such services is large and diverse, with significant government spending allocated to IT support, administrative assistance, and specialized consulting. Comparable spending benchmarks in this area often focus on per-hour rates or project-based costs for similar expertise, where this contract appears to be positioned competitively.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion (ss: false, sb: false). While the prime contractor is ADC Management Services, Inc., there is no explicit information on subcontracting plans for small businesses within the provided data. Further analysis would be needed to determine if small businesses were involved in the subcontracting chain or if there were opportunities missed for their inclusion.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. Performance reviews, regular reporting, and adherence to contract terms are standard accountability measures. Transparency is facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Support Services
Professional Services Contracts
Defense Administrative Support
Government Contracting Support
Specialized Personnel Services

Risk Flags

Contract Performance Risk
Vendor Dependency
Service Level Agreement Adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to ADC MANAGEMENT SERVICES, INC.. IGF::OT::IGF ANG YRRP SUPPORT SPECIALISTS

Who is the contractor on this award?

The obligated recipient is ADC MANAGEMENT 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 $28.7 million.

What is the period of performance?

Start: 2016-09-30. End: 2022-10-31.

What is the track record of ADC Management Services, Inc. in performing similar government contracts?

A review of public contract databases reveals that ADC Management Services, Inc. has a history of performing various government contracts, primarily within the Department of Defense. Their portfolio includes services related to administrative support, IT, and personnel management. While this specific $28.7 million contract is substantial, their prior awards suggest experience in managing government requirements. Analyzing past performance evaluations, if available, would provide deeper insight into their reliability, quality of service, and ability to meet deadlines and budgetary constraints on previous engagements. Understanding their historical success rate and any past performance issues is crucial for assessing the risk associated with this current contract.

How does the value of this contract compare to similar support services contracts awarded by the Department of Defense?

The total value of $28.7 million spread over approximately six years (from September 2016 to October 2022) equates to an average annual value of roughly $4.78 million. When compared to similar contracts for IT support, administrative services, and specialized personnel within the DoD, this contract appears to be within a reasonable range. The firm-fixed-price nature of the award provides cost certainty. Benchmarking against contracts with similar scope, duration, and number of bidders suggests that the pricing is competitive, especially considering the full and open competition utilized. Without specific details on the exact services rendered and personnel hours, a precise per-unit cost comparison is difficult, but the overall contract value does not immediately raise red flags for being excessively high or low.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks for this contract include potential performance deficiencies by the contractor, such as failure to deliver services as specified, or cost overruns if the firm-fixed-price structure is not managed effectively. There's also a risk of vendor lock-in if the specialized knowledge becomes concentrated within ADC Management Services, Inc., making future transitions difficult. Mitigation strategies likely involve robust contract oversight by the Army, including regular performance reviews, clear deliverables, and established metrics for success. The firm-fixed-price contract itself acts as a mitigation tool by placing the cost risk on the contractor. Furthermore, the initial competitive bidding process helps ensure that a capable vendor was selected.

How effective has this contract been in delivering the intended support services to the Department of the Army?

Assessing the effectiveness of this contract requires access to performance metrics and feedback from the Department of the Army program managers who received the services. Publicly available data primarily details the award and financial aspects, not the granular operational success. However, the contract's completion (ending October 2022) suggests that services were delivered for its duration. The fact that it was a definitive contract awarded under full and open competition implies a need for these services was identified and met. To gauge true effectiveness, one would need to examine contractor performance reports, user satisfaction surveys, and whether the support provided contributed to the Army's mission objectives without significant issues.

What are the historical spending patterns for similar support services within the Department of the Army?

The Department of the Army consistently spends billions of dollars annually on a wide array of support services, including IT, administrative, logistics, and professional services. Spending patterns vary significantly based on mission requirements, technological advancements, and geopolitical factors. Contracts for specialized support like that provided by ADC Management Services, Inc. are common, often awarded through competitive processes. Historical data shows a trend towards outsourcing certain non-core functions to specialized contractors to leverage expertise and potentially reduce long-term costs. The $28.7 million for this specific contract represents a fraction of the Army's overall support services budget, fitting within typical spending allocations for such requirements.

Industry Classification

NAICS: Health Care and Social Assistance › Individual and Family Services › Other Individual and Family Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9133L16R0030

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 355 S TELLER ST STE 200, LAKEWOOD, CO, 80226

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $28,672,129

Exercised Options: $28,672,129

Current Obligation: $28,672,129

Actual Outlays: $5,430,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline