DoD awards $11.2M contract for Yellow Ribbon Events, raising questions about competition and value

Contract Overview

Contract Amount: $11,198,872 ($11.2M)

Contractor: Government Solutions Group, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: YELLOW RIBBON EVENTS - BASE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to GOVERNMENT SOLUTIONS GROUP, LLC for work described as: YELLOW RIBBON EVENTS - BASE Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. The contract duration of 729 days suggests a need for sustained support services. 3. Fixed-price contract type aims to control costs, but the lack of competition is a concern. 4. The specific service code (624190) points to individual and family services, likely supporting military families. 5. Awarded by the Department of the Army, indicating a focus on military personnel support. 6. The contractor, Government Solutions Group, LLC, has secured this award without a competitive process.

Value Assessment

Rating: questionable

Without competitive bids, it is difficult to benchmark the value for money. The $11.2 million award for Yellow Ribbon Events over two years lacks comparative data. The fixed-price nature is positive for cost control, but the absence of competition prevents an assessment of whether the pricing is fair market value. Further analysis would require understanding the scope of services provided and comparing them to similar non-competitive awards or industry standards for event management and support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'NOT AVAILABLE FOR COMPETITION' justification, indicating that a full and open competition was not conducted. This sole-source award means that only one contractor, Government Solutions Group, LLC, was solicited and awarded the contract. The lack of multiple bidders means there was no opportunity for price negotiation or for other qualified vendors to offer their services, potentially leading to a higher price than if the contract had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competition. Without competing bids, the government cannot be assured it received the best possible price for these essential support services.

Public Impact

Military personnel and their families are the primary beneficiaries, receiving support through Yellow Ribbon Events. These events are crucial for pre- and post-deployment support, aiding in the transition and well-being of service members and their families. The geographic impact is likely nationwide, as Yellow Ribbon Events are a Department of Defense-wide initiative. The contract supports a specific segment of the defense workforce by ensuring the availability of critical support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
Sole-source awards can limit innovation by excluding potentially more efficient or effective service providers.
Transparency is reduced when contracts are not openly competed, making oversight more challenging.

Positive Signals

The contract is for a critical support program (Yellow Ribbon Events) vital for military family readiness.
The fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
The award is to a single contractor, potentially indicating a specialized capability or a long-standing relationship for these services.

Sector Analysis

The defense sector relies heavily on contractors for a wide range of support services, including event management and family readiness programs. The Yellow Ribbon Program is a significant initiative within the Department of Defense aimed at supporting service members and their families during deployments. Spending in this area is crucial for morale and retention. While specific benchmarks for 'Yellow Ribbon Events' contracts are not readily available, comparable contracts for large-scale event planning and logistical support can range significantly based on scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, there is no subcontracting plan explicitly mentioned or required through competition. This means opportunities for small businesses to participate in delivering these services are limited unless the prime contractor voluntarily includes them in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected. The fixed-price nature implies that performance monitoring will focus on delivery of services rather than cost accumulation.

Related Government Programs

Yellow Ribbon Reintegration Program
Military Family Readiness Programs
Department of Defense Support Services
Event Management Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-competitive pricing.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to GOVERNMENT SOLUTIONS GROUP, LLC. YELLOW RIBBON EVENTS - BASE

Who is the contractor on this award?

The obligated recipient is GOVERNMENT SOLUTIONS GROUP, 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 $11.2 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is the specific scope of services covered under this $11.2 million contract for Yellow Ribbon Events?

The provided data does not detail the specific scope of services. However, Yellow Ribbon Events are typically designed to support service members and their families before, during, and after deployments. Services often include logistical support for events, educational resources, counseling referrals, and community resource information. The $11.2 million award over two years suggests a comprehensive program management and execution role for Government Solutions Group, LLC, likely encompassing planning, coordination, and delivery of these support functions across various locations or for a significant number of participants.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract was awarded under 'NOT AVAILABLE FOR COMPETITION' (CT: 'NOT AVAILABLE FOR COMPETITION'), which is a justification for a sole-source award. This typically occurs when a government agency determines that only one responsible source can provide the required supplies or services. Reasons can include urgent and compelling needs, unique capabilities of a single contractor, or situations where a full and open competition is not feasible or cost-effective. Without further documentation from the agency, the precise justification remains unknown, but it implies a determination that competition was not viable.

What is the track record of Government Solutions Group, LLC in providing similar services?

The provided data identifies Government Solutions Group, LLC as the contractor but does not offer details on their specific track record or past performance. To assess their capability, one would need to review contract databases for previous awards to this company, particularly those related to event management, military family support, or similar service categories. Information on past performance, client satisfaction, and successful delivery of comparable contracts would be crucial for evaluating their suitability and reliability in executing this $11.2 million award.

How does the $11.2 million award compare to historical spending on Yellow Ribbon Events?

The provided data includes a single award of $11.2 million for the period ending September 29, 2026. It does not offer historical spending data for Yellow Ribbon Events. To compare, one would need to access historical contract databases to identify previous awards for this program, their values, durations, and the contractors involved. This comparison would reveal trends in spending, identify potential increases or decreases in program costs, and highlight any shifts in contracting strategies over time.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude include the potential for inflated pricing due to the lack of competitive pressure, reduced innovation as alternative solutions are not explored, and a lack of transparency in the procurement process. Taxpayers may not receive the best value for their money. Furthermore, over-reliance on a single contractor can create dependency and limit the government's flexibility if the contractor fails to perform adequately or if circumstances change requiring different capabilities.

Industry Classification

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

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9133L24R3019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 JOHN SAXON BLVD, NORMAN, OK, 73071

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,937,848

Exercised Options: $17,211,008

Current Obligation: $11,198,872

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline