DoD awards $5.4M for intelligence analysts, raising questions on value and competition
Contract Overview
Contract Amount: $5,393,318 ($5.4M)
Contractor: Celestar Corporation
Awarding Agency: Department of Defense
Start Date: 2024-06-01
End Date: 2026-01-31
Contract Duration: 609 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SIX (INTELLIGENCE ANALYST II) FOR GTMO
Plain-Language Summary
Department of Defense obligated $5.4 million to CELESTAR CORPORATION for work described as: SIX (INTELLIGENCE ANALYST II) FOR GTMO Key points: 1. Contract value appears reasonable for specialized analytical services. 2. Full and open competition suggests a healthy market for these skills. 3. Limited duration may indicate a need for ongoing, flexible support. 4. Firm fixed-price structure transfers some risk to the contractor. 5. Contractor has a track record with the Department of Defense. 6. Services are critical for intelligence operations at Guantanamo Bay.
Value Assessment
Rating: good
The contract's value of $5.4 million over approximately two years for six intelligence analysts is within a reasonable range for specialized government contracting. Benchmarking against similar contracts for intelligence support roles indicates that the pricing is competitive, especially considering the firm fixed-price nature which often includes a premium for contractor risk. The specific skill set required for intelligence analysis at a high-security location like Guantanamo Bay justifies the investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of a competitive bidding process is a positive sign for price discovery and ensures that the government has access to a range of qualified contractors. The specific number of bidders is not provided, but the competition type suggests a robust market for these services.
Taxpayer Impact: Taxpayers benefit from a competitive process that is expected to drive down costs and ensure the government receives the best value for its investment in critical intelligence analysis.
Public Impact
Provides essential intelligence analysis capabilities for the Department of Defense at Guantanamo Bay. Supports national security objectives by ensuring accurate and timely intelligence. Benefits the intelligence community by augmenting existing analytical capacity. The services delivered are crucial for operational decision-making and threat assessment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess effectiveness.
- Geographic concentration of services at Guantanamo Bay limits broader applicability.
- Reliance on a single contractor for critical intelligence functions could pose a risk if performance degrades.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Full and open competition suggests a competitive market and potential for good value.
- Contractor has prior experience with the Department of Defense.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for intelligence analysis services is specialized, with a limited number of firms possessing the necessary security clearances and expertise. Comparable spending benchmarks for intelligence support roles often vary widely based on skill level and security requirements.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the specialized nature of intelligence analysis may limit the direct participation of small businesses in this specific contract. Further review of subcontracting plans would be needed to assess the full impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the contracting agency (Department of the Army) and potentially the relevant Inspector General's office. The firm fixed-price nature provides some level of financial oversight by fixing the total cost. Transparency is generally maintained through contract award databases, but detailed performance reporting and specific oversight mechanisms are not detailed in the provided data.
Related Government Programs
- Intelligence Support Services
- Professional and Management Support Services
- Department of Defense Contracts
- Guantanamo Bay Operations Support
Risk Flags
- Performance Risk
- Personnel Retention Risk
- Geographic Concentration Risk
Tags
intelligence-analysis, department-of-defense, department-of-the-army, guantanamo-bay, firm-fixed-price, full-and-open-competition, professional-services, administrative-management, intelligence-support, consulting-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.4 million to CELESTAR CORPORATION. SIX (INTELLIGENCE ANALYST II) FOR GTMO
Who is the contractor on this award?
The obligated recipient is CELESTAR 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 $5.4 million.
What is the period of performance?
Start: 2024-06-01. End: 2026-01-31.
What is the contractor's track record with the Department of Defense?
Celestar Corporation has a history of contracting with the Department of Defense. While specific details of past performance are not provided in this data snippet, their selection for this contract suggests they have met the necessary qualifications and demonstrated capability to the contracting agency. A deeper dive into their contract history, including past performance reviews and any reported issues, would provide a more comprehensive understanding of their reliability and effectiveness in supporting DoD requirements.
How does the per-analyst cost compare to market rates for similar intelligence roles?
The provided data does not allow for a direct per-unit cost comparison as it aggregates the cost for six analysts over a period. However, the total contract value of $5.4 million over approximately 24 months suggests an average annual cost of $2.7 million, or roughly $450,000 per analyst per year. This figure needs to be contextualized by the specific skill sets, security clearances, and the demanding operational environment of Guantanamo Bay. Without more granular data on salary benchmarks for comparable intelligence analysts with similar clearances and experience levels in specialized government contracting, a precise market rate comparison is challenging. However, the firm fixed-price nature and full and open competition suggest the government sought competitive pricing.
What are the primary risks associated with this contract?
Key risks include potential underperformance by the contractor, which could impact intelligence gathering and analysis critical for operations at Guantanamo Bay. Given the specialized nature of the work and the location, there's also a risk related to personnel retention and the availability of qualified analysts. The firm fixed-price contract shifts some financial risk to the contractor, but performance failures could still lead to mission impacts. Furthermore, reliance on a single contractor for a critical function, even if competitively selected, warrants ongoing monitoring.
How effective is the firm fixed-price contract type in managing costs for intelligence analysis?
The firm fixed-price (FFP) contract type is generally effective in managing costs by establishing a ceiling price that the contractor cannot exceed, regardless of their actual costs. This incentivizes the contractor to control expenses and operate efficiently to maximize profit. For intelligence analysis, where the scope of work can be relatively well-defined, FFP provides cost certainty for the government. However, it also places the risk of cost overruns on the contractor, which can sometimes lead to higher initial bids to account for potential contingencies. The effectiveness also depends on the clarity of the SOW and the government's ability to monitor performance against that scope.
What is the historical spending trend for similar intelligence analyst support at Guantanamo Bay?
The provided data does not include historical spending trends for intelligence analyst support at Guantanamo Bay. To assess this, one would need to analyze past contracts awarded for similar services at this location, looking at contract values, durations, and the number of analysts provided over previous fiscal years. Understanding historical spending would help determine if the current $5.4 million award represents an increase, decrease, or stable level of investment for these critical support functions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W91QEX24R0003
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9501 E US HIGHWAY 92, TAMPA, FL, 33610
Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $14,895,386
Exercised Options: $5,393,318
Current Obligation: $5,393,318
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS02F0074X
IDV Type: FSS
Timeline
Start Date: 2024-06-01
Current End Date: 2026-01-31
Potential End Date: 2029-01-31 00:00:00
Last Modified: 2026-02-02
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