National Guard Bureau awards $2.36M exercise support contract to DEFTEC CORPORATION

Contract Overview

Contract Amount: $2,365,911 ($2.4M)

Contractor: Deftec Corporation

Awarding Agency: Department of Defense

Start Date: 2024-01-08

End Date: 2027-01-07

Contract Duration: 1,095 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NATIONAL GUARD BUREAU J347 JEP CEP NEP EXERCISE SUPPORT SERVICES CONTRACT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.4 million to DEFTEC CORPORATION for work described as: NATIONAL GUARD BUREAU J347 JEP CEP NEP EXERCISE SUPPORT SERVICES CONTRACT Key points: 1. Contract provides essential exercise support services for the National Guard Bureau. 2. DEFTEC CORPORATION, the sole awardee, has a history of supporting defense initiatives. 3. The contract is structured as Firm Fixed Price, indicating defined cost expectations. 4. Performance period spans three years, suggesting a need for sustained support. 5. The award was made under full and open competition after exclusion of sources, implying a specific justification for limited bidding. 6. This contract falls under Engineering Services, aligning with DEFTEC's core competencies.

Value Assessment

Rating: fair

The contract value of $2.36 million over three years is modest for specialized support services. Benchmarking against similar exercise support contracts is difficult without more detailed scope information. However, the Firm Fixed Price structure suggests that the government has a clear understanding of the required services and associated costs. The absence of a specific dollar amount for the base period and the presence of delivery orders make a precise per-period cost assessment challenging. Further analysis would require comparing the specific deliverables and labor rates to industry standards for similar support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method indicates that while the initial solicitation was open, certain sources were excluded, and the final award was made after a limited competition among the remaining eligible entities. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a narrowed field from a potentially broader initial interest. This approach can sometimes lead to less competitive pricing compared to truly full and open competition.

Taxpayer Impact: The limited competition may result in a higher cost to taxpayers than if a wider range of qualified vendors had been able to bid. It suggests that only a select few met the specific criteria for exclusion, potentially reducing the pressure on vendors to offer their most competitive pricing.

Public Impact

The National Guard Bureau's J347 JEP CEP NEP exercises will receive enhanced support. Military readiness and operational effectiveness are expected to improve through this contract. Personnel involved in these exercises will benefit from streamlined logistical and technical support. The contract supports the operational capabilities of the National Guard across various missions. Geographic impact is likely nationwide, supporting exercises conducted by the National Guard.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced value for taxpayer funds.
The 'exclusion of sources' justification needs further scrutiny to ensure it was appropriate and did not unduly restrict competition.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's past performance or potential future effectiveness.
The contract's reliance on delivery orders could lead to unpredictable spending patterns and potential cost overruns if not managed carefully.

Positive Signals

DEFTEC CORPORATION's specialization in engineering services aligns well with the contract's stated needs.
The Firm Fixed Price contract type provides cost certainty for the government, assuming the scope is well-defined.
A three-year performance period indicates a stable, long-term need for these services, suggesting a recognized value.
The contract supports critical readiness exercises for the National Guard, a vital component of national security.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a significant part of the federal contracting landscape, particularly for defense and national security agencies. The market for exercise support services is specialized, often requiring deep understanding of military operations, logistics, and technical requirements. Comparable spending benchmarks would typically be found within broader defense support services categories, where contracts can range from hundreds of thousands to tens of millions of dollars, depending on the scope and duration.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of a small business set-aside. Consequently, the impact on the small business ecosystem is likely minimal, as the contract was awarded to a larger entity. Subcontracting opportunities for small businesses are not detailed here but would depend on DEFTEC CORPORATION's own subcontracting plan, which is not provided.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the National Guard Bureau's J347 directorate. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract award notice, but detailed performance reporting and Inspector General jurisdiction would depend on the specific terms and conditions outlined in the full contract document and any established performance monitoring protocols.

Related Government Programs

National Guard Readiness Exercises
Military Training and Simulation Services
Defense Logistics Support Contracts
Engineering Consulting Services for Government

Risk Flags

Limited competition may lead to higher costs.
Justification for exclusion of sources requires scrutiny.
Scope of services and performance metrics not fully detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.4 million to DEFTEC CORPORATION. NATIONAL GUARD BUREAU J347 JEP CEP NEP EXERCISE SUPPORT SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is DEFTEC CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2024-01-08. End: 2027-01-07.

What is the specific nature of the 'exercise support services' provided under this contract?

The contract, identified as J347 JEP CEP NEP EXERCISE SUPPORT SERVICES CONTRACT, implies services crucial for the planning, execution, and post-exercise analysis of military exercises conducted by the National Guard Bureau. These services could encompass a wide range of activities, including logistical support, technical assistance for simulation and communication systems, scenario development, subject matter expertise, and potentially administrative functions related to exercise management. The 'J347' designation likely refers to a specific directorate within the National Guard Bureau responsible for joint, expeditionary, or contingency planning and operations, suggesting the exercises are complex and operationally focused. Without the full contract statement of work, the precise deliverables remain generalized, but the core purpose is to enhance the effectiveness and realism of National Guard training events.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact the value proposition for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method is a deviation from standard full and open competition. It implies that while the initial solicitation might have been broad, specific criteria were used to exclude certain potential offerors before the final evaluation. This exclusion could be based on factors like specialized capabilities, security clearances, or prior performance requirements that only a limited number of contractors could meet. While it aims to ensure specialized needs are met, it inherently reduces the pool of competitors. For taxpayers, this can mean a less competitive bidding environment, potentially leading to higher prices than if all capable sources were allowed to compete. The justification for exclusion must be robust to ensure that the government is still achieving best value and not unnecessarily limiting competition.

What is DEFTEC CORPORATION's track record with similar government contracts, particularly within the National Guard Bureau?

DEFTEC CORPORATION has a history of providing services to government entities, often within the defense sector. While specific details on their past performance with the National Guard Bureau for exercise support services are not provided in this summary, their designation under NAICS code 541330 (Engineering Services) suggests a capability relevant to military support. A comprehensive assessment would require reviewing their contract history, past performance evaluations (e.g., CPARS reports), and any prior awards related to military exercises or operational support. Their ability to secure this contract indicates they met the criteria set forth by the National Guard Bureau, but a deeper dive into their specific experience and performance on comparable contracts is necessary for a full understanding of their reliability and effectiveness in this role.

Can the $2.36 million contract value be considered competitive for three years of exercise support services?

The $2.36 million contract value, spread over three years (approximately $787,000 per year), appears to be on the lower end for comprehensive exercise support services, especially if these exercises are large-scale or require significant technical and logistical expertise. However, competitiveness is highly dependent on the scope of work, the number of exercises supported, the level of detail required, and the specific services rendered. If the contract covers a limited number of smaller exercises or focuses on specific niche support, the value might be appropriate. Conversely, if it involves extensive planning, simulation, and on-site support for major training events, it could indicate either highly efficient service delivery by DEFTEC CORPORATION or potentially insufficient funding for the full scope of requirements. A direct comparison with similar contracts, adjusted for scope and duration, is essential for a definitive assessment.

What are the potential risks associated with a contract awarded under 'Full and Open Competition After Exclusion of Sources'?

The primary risk associated with 'Full and Open Competition After Exclusion of Sources' is reduced competition, which can lead to higher costs for the government and taxpayers. When fewer bidders are involved, there is less pressure on each bidder to offer their most competitive pricing. Additionally, the exclusion criteria themselves can be a point of risk; if they are too narrow or improperly justified, they might unfairly prevent capable small businesses or innovative new entrants from participating. This can stifle innovation and limit the government's access to the best possible solutions. There's also a risk that the excluded sources might have offered unique capabilities or lower prices, meaning the government may not be achieving the best overall value. Transparency in the justification for exclusion is crucial to mitigate these risks.

How does this contract fit into the broader spending patterns for National Guard Bureau support services?

This $2.36 million contract represents a specific allocation for exercise support services within the larger budget of the National Guard Bureau (NGB). The NGB's overall budget encompasses personnel, training, readiness, equipment, and infrastructure. Support services like those provided by DEFTEC CORPORATION are typically categorized under operational support or readiness programs. Annual spending on such services can fluctuate based on training cycles, global security environments, and specific mission requirements. While this single contract value is modest in the context of the entire NGB budget (which runs into billions), it highlights a consistent need for specialized external support to enhance training effectiveness. Understanding its place requires comparing it to historical spending on similar services and the overall allocation towards training and readiness initiatives within the NGB.

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: W9133L24R3000

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 WESTSIDE SQ STE 950, HUNTSVILLE, AL, 35801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,013,270

Exercised Options: $2,365,911

Current Obligation: $2,365,911

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,826,820

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1169

IDV Type: IDC

Timeline