DoD's $41.9M PEO Soldier HQ Support Contract Awarded to Janus Research Group

Contract Overview

Contract Amount: $41,907,606 ($41.9M)

Contractor: Janus Research Group, LLC

Awarding Agency: Department of Defense

Start Date: 2019-10-23

End Date: 2025-09-21

Contract Duration: 2,160 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SUPPORT SERVICES FOR PROGRAM EXECUTIVE OFFICE SOLDIER HEADQUARTERS (PEO HQ)

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.9 million to JANUS RESEARCH GROUP, LLC for work described as: SUPPORT SERVICES FOR PROGRAM EXECUTIVE OFFICE SOLDIER HEADQUARTERS (PEO HQ) Key points: 1. Contract provides crucial support services for Program Executive Office Soldier Headquarters. 2. Awarded through full and open competition, indicating a broad market search. 3. Contract type is Cost Plus Fixed Fee, which can incentivize cost control. 4. Performance period spans over two years, suggesting a need for sustained support. 5. The North American Industry Classification System (NAICS) code points to R&D services. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 7. The contractor, Janus Research Group, LLC, has a track record with federal contracts. 8. Virginia is the primary state for contract performance.

Value Assessment

Rating: good

The contract's value of approximately $41.9 million over its period of performance appears reasonable for specialized support services to a Program Executive Office. Benchmarking against similar contracts for program management and R&D support within the Department of Defense is necessary for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, requires careful monitoring to ensure costs remain within acceptable parameters and that the fixed fee is commensurate with the effort and risk involved. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money judgment is challenging, but the competitive award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 10 bidders indicates a healthy level of interest and competition for this requirement. A competitive environment like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award. The number of bidders suggests that the market has sufficient capacity and interest in providing these specialized support services to the Department of the Army.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies competed to offer the best value. This process helps prevent overpayment and encourages contractors to submit competitive pricing.

Public Impact

The primary beneficiaries are the Program Executive Office Soldier (PEO Soldier) and its mission to equip soldiers. Services delivered include critical support for program management, research, and development activities. The contract supports the Department of the Army's modernization and readiness efforts. Workforce implications include employment opportunities for personnel with expertise in R&D and program support. Geographic impact is primarily centered in Virginia, where the contractor will perform services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs and ensure the fixed fee remains appropriate for the effort.
The duration of the contract (over two years) necessitates ongoing performance monitoring to ensure continued value.
Reliance on a single delivery order under a larger IDIQ structure means future task orders will depend on the IDIQ's overall performance and scope.

Positive Signals

Awarded through full and open competition with 10 bidders, indicating strong market interest and competitive pricing.
The contract supports a critical PEO Soldier mission, aligning with Army modernization goals.
Janus Research Group, LLC, is an established entity with prior federal contract experience.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers R&D in physical, engineering, and life sciences. This sector is characterized by innovation and specialized expertise. The Department of Defense is a significant investor in R&D to maintain technological superiority. Comparable spending in this area often involves contracts for scientific research, engineering services, and technical support, with values varying widely based on project scope and duration. The market for such services is competitive, with numerous firms offering specialized capabilities.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the prime contractor, Janus Research Group, LLC, is not explicitly identified as a small business in the provided data, the contract's structure allows for subcontracting opportunities. The extent to which small businesses will participate as subcontractors will depend on the prime contractor's strategy and the specific needs of the PEO Soldier support services. Further analysis would be needed to determine if subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Army contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is essential to monitor expenditures against the estimated cost and ensure the fixed fee is justified. Transparency is facilitated through contract reporting mechanisms and potential reviews by the Government Accountability Office (GAO) or the Department of Defense Inspector General (IG) if performance or cost issues arise. The contract's performance period and delivery order structure will be subject to regular reviews.

Related Government Programs

Program Executive Office Soldier (PEO Soldier) Programs
Department of the Army Research and Development Contracts
Defense-wide R&D Support Services
Cost Plus Fixed Fee Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Vehicles

Risk Flags

Cost Overruns Risk (CPFF)
Performance Monitoring Necessity
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.9 million to JANUS RESEARCH GROUP, LLC. SUPPORT SERVICES FOR PROGRAM EXECUTIVE OFFICE SOLDIER HEADQUARTERS (PEO HQ)

Who is the contractor on this award?

The obligated recipient is JANUS RESEARCH 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 $41.9 million.

What is the period of performance?

Start: 2019-10-23. End: 2025-09-21.

What is the track record of Janus Research Group, LLC with federal contracts, particularly within the Department of Defense?

Janus Research Group, LLC has a history of performing federal contracts, including those with the Department of Defense. While specific details on past performance metrics are not provided in this summary, their selection for this significant contract suggests they have met the necessary qualifications and demonstrated capability. Federal procurement databases often contain detailed award histories, including contract values, agencies served, and performance periods, which would offer a more comprehensive view of their track record. Their ability to secure this contract, awarded under full and open competition, implies a level of experience and success in navigating the federal acquisition process and delivering required services.

How does the approximate $41.9 million contract value compare to similar R&D support services contracts for PEOs within the DoD?

The $41.9 million value for this contract, spanning approximately two years, positions it as a moderately sized award for specialized R&D support services within a Program Executive Office. Contracts for similar functions, such as program management, systems engineering, and technical assistance for major defense programs, can range significantly. Larger, more complex programs might see R&D support contracts in the hundreds of millions or even billions over longer periods. Conversely, smaller, more focused R&D efforts or shorter-term support might be valued in the single-digit millions. This contract's value appears aligned with providing sustained, dedicated support to a specific PEO's headquarters functions, suggesting a fair market price was likely achieved through competition.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of R&D support?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for R&D support is the potential for cost overruns, as the government agrees to reimburse the contractor for all allowable costs incurred, plus a predetermined fixed fee. While the fixed fee incentivizes the contractor to control costs to maximize their profit, there's a risk that the initial cost estimates may be inaccurate, especially in R&D where outcomes can be uncertain. This can lead to the government paying more than anticipated if costs escalate significantly. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value. The contractor bears the risk of the fixed fee becoming insufficient if costs rise unexpectedly, but the government bears the risk of overall cost escalation.

How effective is full and open competition in ensuring value for money for R&D support services like these?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for R&D support services. By allowing all responsible sources to compete, it fosters a robust marketplace where contractors are incentivized to offer competitive pricing and innovative solutions to win the award. The presence of 10 bidders in this case suggests a healthy competitive environment, which typically drives down prices and improves the quality of services offered. This process allows the government to select the offer that represents the best overall value, considering both cost and technical factors, rather than simply the lowest price.

What are the historical spending patterns for PEO Soldier headquarters support services within the Department of the Army?

Historical spending patterns for PEO Soldier headquarters support services within the Department of the Army would typically show a consistent need for program management, technical, and administrative support. Such spending often fluctuates based on Army modernization priorities, budget allocations, and the lifecycle of specific soldier systems programs. Contracts in this category are frequently awarded through competitive processes, often utilizing IDIQ vehicles to streamline future task orders. Analyzing past awards, including their values, durations, and contractors, would reveal trends in how the Army procures these essential services and the typical cost structures involved. This specific contract represents a continuation of such support.

What are the implications of this contract being a delivery order under a larger IDIQ contract?

This contract being a delivery order under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract means that the foundational contract vehicle was previously competed and awarded. The IDIQ establishes the terms and conditions, and potentially ceiling prices, for a range of services over a period. This specific delivery order represents a task that falls within the scope of that IDIQ. The implications are that the competition for this specific task order may have been streamlined (e.g., competed among IDIQ holders), and the overall scope and value are managed within the parameters of the parent IDIQ. It allows for flexibility and efficiency in procuring services as needed, but the initial competition for the IDIQ itself is critical for ensuring overall value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 600 PONDER PLACE DR, EVANS, GA, 30809

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,797,249

Exercised Options: $50,987,476

Current Obligation: $41,907,606

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $6,081,437

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0068

IDV Type: IDC

Timeline