DoD's $79.9M contract for administrative management services in Iraq shows significant spending in a high-risk environment

Contract Overview

Contract Amount: $79,866,826 ($79.9M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2007-09-17

End Date: 2008-06-05

Contract Duration: 262 days

Daily Burn Rate: $304.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: {PIIN: W91GDW07D2012} RAMADI TIFRIC

Plain-Language Summary

Department of Defense obligated $79.9 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GDW07D2012} RAMADI TIFRIC Key points: 1. Contract awarded for administrative management and general management consulting services. 2. Significant expenditure of nearly $80 million allocated for services in Ramadi, Iraq. 3. Contract duration was relatively short, spanning 262 days. 4. Awarded under full and open competition, suggesting a broad search for qualified contractors. 5. The contract was a firm-fixed-price type, which shifts cost risk to the contractor. 6. No small business set-aside was utilized for this contract. 7. The contract was awarded to a foreign entity, indicating global sourcing for specialized services.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its specific geographic location (Ramadi, Iraq) and the nature of the services provided (administrative management in a foreign theater). The firm-fixed-price structure is generally favorable for cost control, but the overall cost of $79.9 million for less than a year of service in a complex operational environment warrants scrutiny. Without comparable contracts for similar services in similar high-risk, foreign locations, it's difficult to definitively assess if this represents excellent value for money. The lack of detailed performance metrics in the provided data also hinders a thorough value assessment.

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 offers. This suggests a deliberate effort to solicit a wide range of potential contractors to ensure competitive pricing and service quality. However, the data does not specify the number of bids received or the evaluation process, which are crucial for understanding the effectiveness of this competition. A robust competition typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to secure the best possible price and quality by allowing a wide pool of contractors to bid. This approach increases the likelihood that the government is not overpaying for services and receives optimal value.

Public Impact

The primary beneficiaries of this contract were likely military or governmental operations in Ramadi, Iraq, through the provision of essential administrative and management support. Services delivered included general management consulting and administrative support, crucial for the functioning of operations in a deployed environment. The geographic impact was concentrated in Ramadi, Iraq, a region known for its complex security and operational challenges. Workforce implications would involve personnel deployed to Iraq to fulfill the contract requirements, potentially including both local hires and expatriate staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost for a relatively short contract duration in a challenging operational environment.
Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the services rendered.
The foreign awardee status, while potentially cost-effective, may raise questions about oversight and local economic impact.
Limited information on the competitive process beyond 'full and open' makes it hard to gauge the true level of competition and its impact on price.

Positive Signals

Firm-fixed-price contract type shifts cost risk to the contractor, potentially protecting the government from cost overruns.
Awarded under full and open competition, which theoretically promotes competitive pricing and service quality.
The contract addressed a specific need for administrative and management services in a critical operational area.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is broad and encompasses a wide range of services critical to government operations, especially in complex environments like post-conflict zones. Spending in this category can fluctuate significantly based on geopolitical events and operational needs. Comparable spending benchmarks are difficult to establish without more specific details on the exact nature of the consulting services and the operational context.

Small Business Impact

This contract did not include a small business set-aside, nor is there any indication of subcontracting requirements for small businesses in the provided data. The award was made to a foreign entity, which further suggests that the focus was not on engaging the U.S. small business ecosystem for this particular procurement. The impact on small businesses is therefore likely negligible.

Oversight & Accountability

Oversight mechanisms for a contract of this nature, particularly one awarded to a foreign entity and executed in a deployed theater like Ramadi, Iraq, would typically involve contracting officers, quality assurance personnel, and potentially Inspector General (IG) oversight. Transparency would be enhanced through detailed reporting requirements and performance evaluations. However, the limited data provided does not offer specific details on the oversight structure or accountability measures implemented for this particular contract.

Related Government Programs

Department of Defense Administrative Support Contracts
Consulting Services for Overseas Operations
Logistics and Support Services in Conflict Zones
Foreign Military Sales Support

Risk Flags

High-risk operational environment
Foreign awardee
Limited performance data
Broad contractor description

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.9 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GDW07D2012} RAMADI TIFRIC

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $79.9 million.

What is the period of performance?

Start: 2007-09-17. End: 2008-06-05.

What was the specific nature of the administrative management and general management consulting services provided under this contract?

The provided data classifies the contract under NAICS code 541611 (Administrative Management and General Management Consulting Services). While specific details are limited, this typically encompasses a range of services such as organizational planning, business process improvement, human resource management, and general operational support. In the context of Ramadi, Iraq, during the period of performance (2007-2008), these services likely supported military or reconstruction efforts by providing essential administrative functions, strategic planning advice, or operational efficiency improvements for deployed units or governmental agencies operating in the region. The exact scope would have been detailed in the contract's Statement of Work (SOW).

How does the $79.9 million cost compare to similar contracts for administrative support in high-risk overseas environments?

Direct comparison is challenging due to the unique nature of operating in Ramadi, Iraq, during that period. Contracts in high-risk environments often incur significant premiums for logistical support, security, hazard pay, and specialized personnel. The $79.9 million for approximately 9 months of service (262 days) represents a substantial investment. While firm-fixed-price aims for cost certainty, the overall expenditure needs to be evaluated against the specific operational requirements and the risks involved. Without access to a database of comparable contracts executed under similar conditions (e.g., security levels, geographic remoteness, specific service scope), a precise value-for-money assessment relative to benchmarks is difficult. However, the amount suggests a significant operational footprint requiring extensive support.

What were the primary risks associated with this contract, and how were they managed?

Key risks for this contract likely included operational security (threats to personnel and assets in Ramadi), logistical challenges (transportation, supply chain in a conflict zone), political instability, currency fluctuations, and potential for fraud or mismanagement. The firm-fixed-price contract structure mitigates financial risk for the government by capping costs. Management of operational and security risks would have involved robust security protocols, coordination with military forces, and adherence to stringent safety procedures. Contract oversight by the Department of the Army would also be crucial for monitoring performance and addressing any emerging issues. The foreign awardee status might introduce additional complexities in oversight and compliance.

What was the track record of the contractor (MISCELLANEOUS FOREIGN AWARDEES) prior to or during this contract?

The designation 'MISCELLANEOUS FOREIGN AWARDEES' is a broad category and does not refer to a single, identifiable contractor with a specific track record. This suggests that the award may have been made to a foreign entity or a group of entities that do not fit into standard reporting categories, or it could represent a placeholder for multiple smaller foreign awards aggregated under this description. Without a specific contractor name, it is impossible to assess their past performance, experience, or reliability. This lack of specificity raises concerns about due diligence and the ability to hold a particular entity accountable for performance.

What is the historical spending pattern for administrative management and general management consulting services by the Department of the Army in similar overseas locations?

Historical spending patterns for administrative management and general management consulting services by the Department of the Army in overseas locations, particularly in conflict zones like Iraq, have historically been substantial. During periods of significant military engagement, such as the mid-2000s when this contract was awarded, the demand for support services, including administrative and management consulting, surged. Spending often correlates with the level of military presence and the complexity of reconstruction or stabilization efforts. While specific figures for Ramadi are not provided, overall DoD spending on services in Iraq and Afghanistan during this era ran into billions of dollars annually, encompassing a wide array of 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: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $79,866,826

Exercised Options: $79,866,826

Current Obligation: $79,866,826

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W91GDW07D2012

IDV Type: IDC

Timeline