Department of the Army awards $18.6M contract for personal services in Iraq to Versar, Inc

Contract Overview

Contract Amount: $18,624,359 ($18.6M)

Contractor: Versar, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-10-06

End Date: 2012-03-04

Contract Duration: 880 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PERSONAL SERVICES THROUGHOUT IRAQ

Plain-Language Summary

Department of Defense obligated $18.6 million to VERSAR, INC. for work described as: PERSONAL SERVICES THROUGHOUT IRAQ Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 880 days indicates a significant, medium-term operational requirement. 3. Firm Fixed Price contract type aims to control costs and provide budget certainty. 4. The award to Versar, Inc. represents a specific instance of contractor support for deployed forces. 5. The North American Industry Classification System (NAICS) code 561210 points to facilities support services. 6. The contract value of approximately $18.6 million over its term requires careful performance monitoring.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of 'personal services throughout Iraq.' However, the total award of $18.6 million over approximately 2.4 years (880 days) suggests an average annual value of around $7.76 million. This figure needs to be assessed against the specific services provided, personnel deployed, and the inherent risks and logistical complexities of operating in a conflict zone. Without comparable contract data for similar services in the same operational environment, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders participated, the extent of pre-solicitation outreach and the number of potential bidders who chose not to submit proposals are unknown. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs through competitive pricing. However, with only two bids, the cost savings may not be as substantial as in a more crowded bidding environment.

Public Impact

Service members deployed in Iraq benefit from essential personal services, ensuring operational readiness and morale. The contract supports the logistical and operational needs of the Department of the Army in a challenging overseas environment. Geographic impact is concentrated within Iraq, specifically in areas where Army personnel are stationed. Workforce implications include the employment of personnel by Versar, Inc. to fulfill the contract requirements, potentially including both U.S. citizens and local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'personal services' is not tightly defined and managed.
Logistical challenges and security risks associated with service delivery in Iraq could impact performance and increase costs.
Dependence on a single contractor for critical personal services could create vulnerabilities if performance issues arise.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Awarded through full and open competition, suggesting a structured and fair procurement process.
The contract duration indicates a stable requirement, allowing for efficient resource planning by the contractor.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, encompass a broad range of services essential for the operation and maintenance of buildings and grounds. This sector includes services like cleaning, maintenance, security, and operational support. Federal spending in this area is substantial, particularly for agencies operating in complex or remote environments like military bases or overseas installations. Comparable spending benchmarks would involve analyzing other contracts for similar support services provided to military or government entities in austere locations, considering factors like personnel costs, security, and logistical overhead.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct beneficiaries of this award. However, Versar, Inc., as the prime contractor, may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on the nature of the 'personal services' required and the company's subcontracting strategy. The absence of a small business set-aside suggests the requirement was either too large or specialized for small business participation as prime contractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Army contracting command. Performance monitoring would be crucial to ensure that Versar, Inc. is delivering the agreed-upon personal services effectively and efficiently within the operational theater. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Logistics and Base Support Services
Contingency Operations Support
Overseas Operations Support
Facilities Management Contracts
Personal Services Contracts

Risk Flags

Limited Competition
Overseas Operations Risk
Scope Definition Ambiguity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to VERSAR, INC.. PERSONAL SERVICES THROUGHOUT IRAQ

Who is the contractor on this award?

The obligated recipient is VERSAR, 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 $18.6 million.

What is the period of performance?

Start: 2009-10-06. End: 2012-03-04.

What specific 'personal services' were included in this contract, and how were they defined to ensure accountability?

The term 'personal services' in a federal contract can encompass a wide range of support functions. For this Department of the Army contract with Versar, Inc. in Iraq, it likely included services directly supporting personnel, such as food services, laundry, billeting support, morale, welfare, and recreation (MWR) activities, or potentially administrative support. The specific definition would be detailed in the contract's Statement of Work (SOW). Accountability would be managed through performance metrics, service level agreements (SLAs), and regular inspections by government representatives to ensure the quality and timeliness of the services provided. Without access to the SOW, the precise nature of these services remains speculative, but they are critical for maintaining troop readiness and morale in a deployed environment.

How does the $18.6 million contract value compare to similar facilities support services contracts in overseas contingency operations?

Comparing this $18.6 million contract value requires context regarding the specific services, duration, and location. Contracts for facilities support in overseas contingency operations, especially in active theaters like Iraq, tend to be higher priced due to increased logistical costs, security requirements, and the inherent risks involved. For a contract spanning approximately 2.4 years (880 days), the average annual value of roughly $7.76 million is significant but not necessarily out of line for comprehensive support services in such an environment. Benchmarking would necessitate examining contracts with similar scopes (e.g., base operations support, life support services) awarded to other prime contractors in comparable regions during the same period (2009-2012). Factors like the number of personnel supported, the specific facilities managed, and the security posture would heavily influence cost comparisons.

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

The primary risks associated with this contract likely revolved around operational security in Iraq, logistical challenges in delivering services, potential for contractor personnel misconduct, and the risk of cost overruns due to unforeseen circumstances. Mitigation strategies would have included robust security protocols for contractor personnel and assets, detailed logistical planning to ensure timely delivery of supplies and services, strict adherence to background checks and vetting processes for personnel, and the use of a Firm Fixed Price (FFP) contract type to cap costs. The government would also implement performance monitoring and quality assurance surveillance plans (QASPs) to ensure Versar, Inc. met its contractual obligations and to identify and address any performance deficiencies or emerging risks promptly.

Given the 'full and open competition' and only two bidders, what does this suggest about the market for these services in Iraq at the time?

The fact that this contract was awarded under 'full and open competition' but only attracted two bidders suggests a potentially limited or specialized market for these specific 'personal services' in Iraq during the 2009-2012 period. Several factors could contribute to this: high barriers to entry due to security requirements, complex logistical demands, the need for specialized expertise, or perhaps the contract value, while substantial, was not large enough to attract a wider array of major defense contractors. It could also indicate that only a few companies possessed the necessary clearances, infrastructure, and experience to operate effectively and safely in that particular operational environment. This level of competition might imply less downward pressure on pricing than if more bidders had participated.

What is Versar, Inc.'s track record with similar government contracts, particularly in overseas or contingency environments?

Versar, Inc. has a history of performing various services for the U.S. government, including base operations support, facilities maintenance, and logistics, often in challenging overseas environments. Prior to and following this specific contract (2009-2012), the company has secured numerous contracts with agencies like the Department of Defense, Department of State, and others, frequently involving work in regions such as the Middle East, Africa, and Asia. Their experience typically includes providing support services to military installations and diplomatic facilities. A detailed review of their contract performance history, including past performance evaluations and any documented issues or successes on similar contracts, would be necessary to fully assess their capability and reliability for this type of work.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912ER06R0009

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6850 VERSAR CENTER, STE 1, SPRINGFIELD, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,866,618

Exercised Options: $18,624,359

Current Obligation: $18,624,359

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912ER06D0004

IDV Type: IDC

Timeline