DoD's $15.8M consulting contract with Analytic Services Inc. shows potential for cost overruns

Contract Overview

Contract Amount: $15,794,684 ($15.8M)

Contractor: Analytic Services Inc.

Awarding Agency: Department of Defense

Start Date: 2007-04-18

End Date: 2012-08-10

Contract Duration: 1,941 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SURGE (UP TO 10% OF THE TASK ORDER)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to ANALYTIC SERVICES INC. for work described as: SURGE (UP TO 10% OF THE TASK ORDER) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Time and Materials pricing structure carries inherent risk of cost escalation. 3. Contract duration of 1941 days (over 5 years) indicates a long-term need for services. 4. The contract falls under Administrative Management and General Management Consulting Services. 5. Awarded by Washington Headquarters Services, a key support entity within the DoD. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure presents a risk for cost control, as actual hours and material costs directly impact the final price. Without a clear ceiling or fixed price component, it's difficult to benchmark value against similar T&M contracts without detailed hour and rate data. The total award amount of $15.8 million over five years suggests a significant investment in consulting services, but the value proposition is contingent on the effective management of labor hours and resource utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This generally promotes a competitive environment, which can lead to better pricing and service quality. The fact that it was competed suggests that multiple firms likely vied for the opportunity, though the number of actual bidders is not specified.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overpayment.

Public Impact

The Department of Defense benefits from administrative and management consulting services to support its complex operations. Services likely contribute to improved organizational efficiency and strategic planning within the DoD. The geographic impact is primarily within the Washington D.C. metropolitan area, where Washington Headquarters Services is located. The contract supports professional services roles, potentially impacting a workforce of consultants and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type increases risk of cost overruns if not closely monitored.
Long contract duration (over 5 years) requires sustained oversight to ensure continued relevance and value.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
The 'SURGE' clause allowing up to 10% increase could lead to unexpected cost increases.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract is with a known entity (Analytic Services Inc.), implying some level of established performance.
The agency (DoD) has established procurement processes that should include oversight mechanisms.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is characterized by a wide range of service providers, from large established firms to niche specialists. The market size for government consulting services is substantial, with agencies like the DoD being significant clients. This contract represents a portion of the broader spending on advisory and assistance services within the federal government.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win the award. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Washington Headquarters Services. Accountability measures would be tied to the performance standards outlined in the contract's statement of work. Transparency is generally facilitated through contract award databases, though detailed performance data may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Management Consulting Services
Administrative and Support Services
Professional Services Contracts
Advisory and Assistance Services

Risk Flags

Time and Materials Pricing
Potential for Cost Overruns
Long Contract Duration
Lack of Specific Performance Metrics
Surge Clause

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to ANALYTIC SERVICES INC.. SURGE (UP TO 10% OF THE TASK ORDER)

Who is the contractor on this award?

The obligated recipient is ANALYTIC SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2007-04-18. End: 2012-08-10.

What is the typical performance history of Analytic Services Inc. on government contracts?

Analytic Services Inc. (ANSER) has a long history of serving government clients, particularly within the Department of Defense. They specialize in research, analysis, and support services. While specific performance metrics for this particular $15.8 million contract are not detailed here, ANSER is generally known for its technical expertise and analytical capabilities. Reviews of their past performance on similar contracts would typically be available through government past performance databases, which assess factors like quality, timeliness, cost control, and customer satisfaction. A thorough review would involve examining contract close-out reports and any formal performance evaluations to understand their track record comprehensively.

How does the Time and Materials (T&M) pricing structure compare to fixed-price contracts for similar consulting services?

Time and Materials (T&M) contracts, like the one awarded to Analytic Services Inc., offer flexibility but shift cost risk to the government. The government pays for the actual labor hours and materials used, plus a fixed fee or profit. This contrasts with fixed-price contracts, where the contractor agrees to a set price regardless of the actual costs incurred. For consulting services, T&M can be advantageous when the scope of work is not well-defined or is expected to evolve. However, it necessitates stringent oversight to prevent cost overruns. Fixed-price contracts provide greater cost certainty for the government but require a very clear and stable scope of work. Benchmarking value is more challenging with T&M as the final cost is variable.

What are the potential risks associated with the 'SURGE' clause allowing up to 10% increase in task orders?

The 'SURGE' clause, allowing for up to a 10% increase in the task order value, introduces a degree of uncertainty and potential for increased spending beyond the initially anticipated amount. While intended to provide flexibility for unforeseen requirements or increased workload, it can be a mechanism for cost escalation if not carefully managed and justified. This clause means the total contract value could potentially reach approximately $17.4 million ($15.8M + 10%). The risk lies in whether these surges are truly necessary and represent efficient use of funds, or if they are a result of scope creep or inadequate initial planning. Effective oversight is crucial to ensure surge capacity is exercised judiciously and remains within reasonable bounds.

What does the contract duration of 1941 days imply about the nature of the services provided?

A contract duration of 1941 days, which is approximately 5 years and 4 months, suggests that the services provided by Analytic Services Inc. are intended to support long-term, ongoing needs within the Department of Defense, specifically Washington Headquarters Services. This is not a short-term project but rather an engagement likely focused on sustained operational support, strategic planning, or continuous improvement initiatives. Such long durations are common for core administrative, management, or technical consulting functions that require deep integration with agency operations and institutional knowledge. It implies a stable requirement that the agency anticipates needing fulfilled consistently over an extended period.

How does the NAICS code 541611 (Administrative Management and General Management Consulting Services) typically translate into specific deliverables for the DoD?

The NAICS code 541611 encompasses a broad range of consulting services aimed at improving the efficiency and effectiveness of organizations. For the DoD, this could translate into various deliverables such as strategic planning support, organizational structure analysis, process improvement recommendations, policy development assistance, program management support, and human capital strategy development. Given the agency is Washington Headquarters Services, the consulting might focus on internal administrative functions, resource allocation, operational efficiency, or support services management. Specific deliverables would be detailed in the contract's Statement of Work (SOW), outlining tasks like conducting assessments, developing reports, providing expert advice, and potentially implementing recommended changes.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2900 S QUINCY ST STE 800, ARLINGTON, VA, 22206

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,745,516

Exercised Options: $15,794,684

Current Obligation: $15,794,684

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003407A1017

IDV Type: IDC

Timeline