Department of the Army awards $27.2M contract to Integral Federal, Inc. for consulting services

Contract Overview

Contract Amount: $27,201,679 ($27.2M)

Contractor: Integral Federal, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-06

End Date: 2014-09-04

Contract Duration: 728 days

Daily Burn Rate: $37.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LABOR - BASE PERIOD

Place of Performance

Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22911

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.2 million to INTEGRAL FEDERAL, INC. for work described as: LABOR - BASE PERIOD Key points: 1. Contract awarded for scientific and technical consulting services. 2. Integral Federal, Inc. is the prime contractor. 3. The contract falls under the Other Scientific and Technical Consulting Services category. 4. This is a Delivery Order under a larger contract. 5. The contract duration is 728 days. 6. The contract type is Cost Plus Fixed Fee. 7. The contract was awarded following full and open competition after exclusion of sources.

Value Assessment

Rating: fair

The contract value of $27.2 million for a 728-day period suggests a daily rate of approximately $37,365. This rate needs to be benchmarked against similar consulting services contracts to determine value for money. Without specific deliverables and performance metrics, a precise value assessment is challenging. The Cost Plus Fixed Fee structure can sometimes lead to cost overruns if not managed tightly.

Cost Per Unit: Approximately $37,365 per day (based on base period value and duration).

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was open, certain sources were initially excluded before the final award. The number of bidders is not explicitly stated but the 'full and open' nature suggests multiple potential offerors were considered. This approach aims to ensure a competitive landscape.

Taxpayer Impact: This competitive process is intended to secure the best possible pricing and service quality for taxpayers by allowing multiple qualified vendors to bid on the requirement.

Public Impact

The Department of the Army benefits from specialized consulting services. Services likely support scientific and technical initiatives within the Army. The geographic impact is primarily within the agency's operational areas. Workforce implications include the engagement of specialized consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively.
The 'after exclusion of sources' clause warrants understanding the rationale for initial exclusions.
Benchmarking the daily rate against industry standards is crucial for value assessment.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract is for specialized scientific and technical consulting, indicating a need for expertise.
Delivery Order structure implies it's part of a larger, potentially pre-competed framework.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide range of specialized expertise. The market for such services is competitive, with numerous firms offering consulting in areas like engineering, research, and management. The Department of the Army's spending in this area is typical for large federal agencies requiring specialized support for complex missions.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided in the data. Further analysis would be needed to determine if small businesses were involved in the bidding process or if subcontracting opportunities were mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Army. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Department of Defense Consulting Services
Scientific and Technical Services Contracts
Army IT and Professional Services
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires vigilant cost oversight.
Rationale for 'exclusion of sources' needs clarification.
Benchmarking daily rate against market standards is essential for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.2 million to INTEGRAL FEDERAL, INC.. LABOR - BASE PERIOD

Who is the contractor on this award?

The obligated recipient is INTEGRAL FEDERAL, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.2 million.

What is the period of performance?

Start: 2012-09-06. End: 2014-09-04.

What specific scientific and technical consulting services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541690, 'Other Scientific and Technical Consulting Services.' While the specific services are not detailed, this category typically includes expert advice, analysis, and technical support in areas such as engineering, environmental science, research and development, and specialized technical fields. The Department of the Army likely utilized these services to support specific projects, research initiatives, or operational requirements that demanded specialized external expertise beyond their organic capabilities. A deeper dive into the contract's statement of work would reveal the precise nature of the consulting provided.

How does the daily rate of $37,365 compare to industry benchmarks for similar consulting services?

The calculated daily rate of approximately $37,365 is substantial and requires careful benchmarking. Industry rates for high-level scientific and technical consulting can vary significantly based on the specialization, experience of the consultants, and the complexity of the project. For highly specialized roles, such rates might be within the upper range of market norms, especially for Cost Plus Fixed Fee contracts where the government agrees to cover allowable costs plus a fixed fee. However, without knowing the specific skill sets required and the level of expertise provided, it's difficult to definitively assess if this rate represents excellent value, fair market price, or an inflated cost. Comparison against other government contracts for similar services and private sector benchmarks would be necessary for a conclusive assessment.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. While the 'fixed fee' provides some cost certainty for the contractor's profit, the government bears the risk of escalating costs. Effective oversight, rigorous auditing of expenses, and a clearly defined scope of work are critical to mitigate this risk. If the scope expands or unforeseen challenges arise, costs can increase significantly. Additionally, the contractor may have less incentive to control costs compared to fixed-price contracts, although the fixed fee itself is not subject to increase. The government must ensure robust contract management to monitor expenditures and ensure they remain reasonable and allocable to the contract.

What does 'full and open competition after exclusion of sources' imply for the bidding process?

This procurement method suggests an initial phase where certain potential sources were excluded from consideration, followed by a period of full and open competition among the remaining eligible sources. The reasons for the initial exclusion would need to be documented and justified, often related to specific capabilities, past performance, or other criteria outlined in the Federal Acquisition Regulation (FAR). After this exclusion, the solicitation was open to all responsible sources that met the stated requirements. This approach aims to balance the need for specialized capabilities with ensuring a competitive environment, potentially narrowing the field to a more manageable set of highly qualified bidders while still allowing for broad competition.

What is the historical spending pattern for Integral Federal, Inc. with the Department of the Army or DoD?

To assess Integral Federal, Inc.'s track record, historical spending data with the Department of the Army and the broader Department of Defense would need to be analyzed. This would involve examining the total value of contracts awarded to the company, the types of services rendered, contract performance history (e.g., on-time delivery, quality of work, any disputes or terminations), and the consistency of their engagement. Significant and consistent awards could indicate a strong relationship and satisfactory performance. Conversely, a review might reveal patterns of cost issues, performance deficiencies, or a limited scope of work, which would raise concerns. Without this historical data, it's difficult to gauge their established performance and reliability within the DoD.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911W512R0003

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 704 QUINCE ORCHARD RD STE 290, GAITHERSBURG, MD, 20878

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $27,201,679

Exercised Options: $27,201,679

Current Obligation: $27,201,679

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911W512D0002

IDV Type: IDC

Timeline