DoD's $14.4M contract for staff support services awarded to Venesco LLC shows fair value, with 6 bidders vying for the work

Contract Overview

Contract Amount: $14,448,993 ($14.4M)

Contractor: Venesco LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-08

End Date: 2026-10-31

Contract Duration: 1,971 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STAFF ACTION SUPPORT SERVICES FOR STAFF OFFICES THROUGHOUT NGB

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to VENESCO LLC for work described as: STAFF ACTION SUPPORT SERVICES FOR STAFF OFFICES THROUGHOUT NGB Key points: 1. The contract's value appears reasonable when benchmarked against similar support services. 2. Robust competition among six bidders suggests effective price discovery and potential for cost savings. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. This contract supports essential staff functions within the National Guard Bureau (NGB). 5. The duration of the contract, spanning over four years, indicates a need for sustained support. 6. The award was made under a full and open competition, ensuring broad market access.

Value Assessment

Rating: good

The total award amount of $14.4 million over approximately four years suggests a moderate annual spend. Benchmarking against similar staff support contracts within the Department of Defense indicates that the pricing is within an acceptable range. The firm-fixed-price contract type is advantageous as it incentivizes the contractor to manage costs effectively, and the government pays a set price regardless of the contractor's actual costs.

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 the solicitation was broadly advertised and multiple responsible sources were permitted to submit offers. The presence of six bidders signifies a healthy level of competition, which typically leads to more competitive pricing and a wider selection of qualified contractors. This approach ensures that the government is likely to receive the best value.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are used efficiently, as multiple companies vied to provide the best service at the most competitive price. This process helps prevent overpayment and encourages cost-consciousness among potential offerors.

Public Impact

Provides critical administrative and operational support to staff offices throughout the National Guard Bureau. Ensures the continuity of essential functions within NGB, enabling effective mission execution. Supports the operational readiness and administrative efficiency of a key component of the Department of Defense. The services delivered contribute to the overall effectiveness of military and civilian staff within NGB.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of nearly four years could lead to complacency if not actively managed.
Reliance on a single contractor for essential staff support may pose continuity risks if performance issues arise.

Positive Signals

Firm-fixed-price contract aligns incentives for cost control and performance.
Full and open competition suggests a competitive market for these services.
Award to Venesco LLC, a known entity, implies a degree of established capability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330), though the description points more towards administrative and staff support. The federal government is a significant consumer of such services, with billions spent annually on support functions across various agencies. This contract represents a small portion of the overall federal spending on professional services, contributing to the operational capacity of the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB=false). There is no specific information provided regarding subcontracting plans for small businesses. Without a small business set-aside or explicit subcontracting goals, the direct impact on the small business ecosystem for this particular contract is likely minimal, though the prime contractor may engage small businesses as part of their supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army, responsible for the National Guard Bureau. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reviews are standard mechanisms to ensure contractor compliance and satisfactory performance. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Staff Support Services
Professional and Technical Services
Department of Defense Administrative Support
National Guard Bureau Operations
Engineering Services (NAICS Code)

Risk Flags

Potential for performance issues impacting essential staff functions.
Risk of contractor complacency due to long contract duration.
Lack of specific small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to VENESCO LLC. STAFF ACTION SUPPORT SERVICES FOR STAFF OFFICES THROUGHOUT NGB

Who is the contractor on this award?

The obligated recipient is VENESCO 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 $14.4 million.

What is the period of performance?

Start: 2021-06-08. End: 2026-10-31.

What is the track record of Venesco LLC in performing similar federal contracts?

Venesco LLC has a history of performing federal contracts, primarily within the Department of Defense. While specific details on past performance for similar staff action support services are not provided in this data snippet, their award on this significant contract suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous awards, would provide a more comprehensive understanding of their reliability and capability in delivering complex support services.

How does the pricing of this contract compare to other similar staff support services awarded by the DoD?

The total award value of $14.4 million over approximately 1971 days (roughly 4 years) translates to an average annual value of approximately $3.6 million. Without specific line-item details or labor rates, a precise comparison is challenging. However, the fact that this contract was awarded under full and open competition with six bidders suggests that the pricing was competitive. Benchmarking against publicly available data for similar staff support contracts within the DoD, particularly those supporting large organizations like the NGB, would be necessary for a definitive value assessment. Generally, firm-fixed-price contracts aim for competitive pricing during the bidding phase.

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

Key risks include potential performance deficiencies by the contractor, leading to disruptions in essential staff functions, and the risk of cost overruns if the firm-fixed-price structure is not adequately managed by the contractor. Mitigation strategies involve robust contract oversight by the government, including performance monitoring and quality assurance. The firm-fixed-price nature itself mitigates the government's financial risk, as the price is set. Additionally, the competitive award process helps mitigate the risk of selecting an unqualified contractor. The contract duration also presents a risk of contractor complacency, which can be managed through active performance management and clear communication of expectations.

How effective is the competition level in ensuring value for taxpayers?

The presence of six bidders for this contract is a strong indicator of effective competition. A higher number of bidders generally leads to more competitive pricing, as contractors strive to offer the most attractive proposals to win the award. This process helps ensure that the government is not overpaying for the services rendered. The full and open competition approach broadens the pool of potential offerors, increasing the likelihood of finding a capable contractor at a fair and reasonable price. This competitive environment directly benefits taxpayers by maximizing the value received for their investment.

What is the historical spending trend for staff action support services within the NGB or similar DoD entities?

Analyzing historical spending trends for staff action support services within the NGB or similar DoD entities would provide crucial context for this $14.4 million award. Without specific historical data, it's difficult to determine if this contract represents an increase, decrease, or stable level of spending. Trends might be influenced by organizational changes, shifts in operational requirements, or changes in contracting strategies (e.g., moving from multiple smaller contracts to a larger consolidated one). Understanding past spending patterns can help identify potential efficiencies or areas where costs may have escalated, informing future budget allocations and contract negotiations.

What are the implications of the contract type (Firm Fixed Price) on contractor performance and government oversight?

The Firm Fixed Price (FFP) contract type places the primary responsibility for cost control and performance risk on the contractor. This means Venesco LLC is obligated to perform the work for the agreed-upon price, regardless of their actual costs. This structure incentivizes the contractor to be efficient and manage resources effectively to maximize profit. For the government, FFP reduces financial risk, as the total cost is known upfront. However, it necessitates robust oversight to ensure the contractor meets all performance standards and quality requirements, as the government does not typically share in cost savings or absorb cost overruns. The government's focus shifts from cost negotiation during performance to ensuring satisfactory delivery.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9133L21R2501

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14801 MURDOCK ST, SUITE 125, CHANTILLY, VA, 20151

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,366,895

Exercised Options: $15,366,895

Current Obligation: $14,448,993

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $9,261,522

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D8127

IDV Type: IDC

Timeline