Army awards $9.9M contract for analytic services, highlighting need for specialized research support

Contract Overview

Contract Amount: $9,900,797 ($9.9M)

Contractor: Analytic Services Inc.

Awarding Agency: Department of Defense

Start Date: 2006-04-13

End Date: 2007-06-30

Contract Duration: 443 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200607!601848!2100!W81XWH!US ARMY MEDICAL RESEARCH ACQ ACT!W81XWH04D0011 !A!N! !N!0015 ! !20060413!20061231!077815736!077815736!077815736!N!ANALYTIC SERVICES INC !2900 SOUTH QUINCY ST STE 8!ARLINGTON !VA!22206!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000010000000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541710!E! !5!B!S! ! ! !99990909!B! ! !A! !A!U!U!2!007!B! !C!N!Z! ! !N!V!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22206

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to ANALYTIC SERVICES INC. for work described as: 200607!601848!2100!W81XWH!US ARMY MEDICAL RESEARCH ACQ ACT!W81XWH04D0011 !A!N! !N!0015 ! !20060413!20061231!077815736!077815736!077815736!N!ANALYTIC SERVICES INC !2900 SOUTH QUINCY ST STE 8!ARLINGTON !VA!22206!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000010000000!N!N!0000000… Key points: 1. Contract awarded through full and open competition, suggesting a robust bidding process. 2. The contract type is Cost Plus Fixed Fee, which can pose risks if costs are not well-managed. 3. The duration of the contract is 443 days, indicating a medium-term need for services. 4. The awardee, Analytic Services Inc., has a track record in providing professional services to the government. 5. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services', indicating a broad scope. 6. This contract falls under the 'Other Professional Services' Product Service Code (PSC).

Value Assessment

Rating: good

The contract value of $9.9 million for a 443-day period appears reasonable for specialized analytic services. Benchmarking against similar contracts for professional, scientific, and technical services suggests this is within a typical range. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, requires careful oversight to ensure costs remain controlled and provide good value for the fixed fee component.

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 had the opportunity to compete. The presence of 7 bids suggests a healthy level of interest and competition for this requirement. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government is not overpaying for the services rendered.

Public Impact

The primary beneficiary is the U.S. Army, which receives essential analytic support for its research and acquisition activities. Services delivered likely include data analysis, research support, and technical consulting to aid in decision-making. The geographic impact is centered around the Department of Defense's operational areas, with potential implications for national security research. The contract supports a specialized workforce in the professional, scientific, and technical services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The broad NAICS code suggests the scope could be subject to change or expansion, potentially impacting budget predictability.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
The contract is with a known entity, Analytic Services Inc., suggesting a degree of established capability.
The contract supports critical Army research and acquisition functions.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide range of specialized expertise. The U.S. government is a significant consumer of these services, particularly for defense, research, and development. Comparable spending benchmarks for analytic and research support services to federal agencies often range in the millions of dollars, depending on the complexity and duration.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract. Given the full and open competition and the nature of analytic services, it is possible that larger, established firms were the primary bidders. Subcontracting opportunities for small businesses may exist but are not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates robust financial oversight to monitor expenditures against the fixed fee. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General may have jurisdiction depending on the nature of any potential issues.

Related Government Programs

Army Research and Development Contracts
Professional Services Contracts
Scientific and Technical Services
Department of Defense Analytic Support
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Broad scope indicated by NAICS code may lead to scope creep if not managed.
Contract duration is relatively short, requiring efficient execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to ANALYTIC SERVICES INC.. 200607!601848!2100!W81XWH!US ARMY MEDICAL RESEARCH ACQ ACT!W81XWH04D0011 !A!N! !N!0015 ! !20060413!20061231!077815736!077815736!077815736!N!ANALYTIC SERVICES INC !2900 SOUTH QUINCY ST STE 8!ARLINGTON !VA!22206!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000010000000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541710!E! !5!B!S! ! ! !99990909!B! ! !A! !A!U!U!2!007!B! !C!N!Z! ! !N!V!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Who is the contractor on this award?

The obligated recipient is ANALYTIC SERVICES 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 $9.9 million.

What is the period of performance?

Start: 2006-04-13. End: 2007-06-30.

What is the specific nature of the 'analytic services' required under this contract?

The provided data indicates the contract falls under NAICS code 541990 (All Other Professional, Scientific, and Technical Services) and PSC code R499 (Other Professional Services). While the exact nature of the 'analytic services' is not detailed, it generally encompasses activities such as data analysis, research support, modeling, simulation, technical assessments, and strategic planning. Given the awardee and the awarding agency (U.S. Army Medical Research Acquisition Activity), these services likely support medical research, acquisition strategies, or operational analysis within the Army.

How does the $9.9 million award compare to typical spending for similar analytic services by the Army?

The $9.9 million award for a 443-day contract (approximately 1.2 years) is a significant but not unusually large sum for specialized analytic services within the Department of Defense. Federal agencies frequently award contracts in the multi-million dollar range for complex research, development, and technical support. Benchmarking against other Army contracts for similar professional and technical services suggests this falls within a reasonable range, especially considering the potential need for highly specialized expertise and the CPFF structure which can accommodate evolving project needs.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to a fixed-price contract, as costs are reimbursed. While the 'fixed fee' provides the contractor with a guaranteed profit margin, the government bears the risk of cost overruns. Effective management and oversight are crucial to ensure that costs remain reasonable and that the contractor operates efficiently to achieve the contract's objectives within the allocated budget. This requires diligent monitoring of expenditures and performance by the contracting officer's representative (COR).

What does the number of bids (7) indicate about the competition for this contract?

Receiving 7 bids for this contract signifies a healthy level of competition. It suggests that the requirement was well-defined and attractive enough to elicit interest from multiple qualified vendors in the market for professional, scientific, and technical services. A competitive environment like this generally benefits the government by driving down prices, encouraging innovation, and ensuring that the selected contractor offers the best value proposition in terms of both cost and technical capability.

What is the historical spending pattern for Analytic Services Inc. with the federal government?

While the provided data focuses on a single contract, Analytic Services Inc. (ASI) has a history of receiving federal contracts. A broader search of federal procurement data would reveal the extent and nature of their past awards. Typically, companies like ASI that specialize in professional, scientific, and technical services often secure multiple contracts across various agencies, particularly within the Department of Defense and other research-oriented federal bodies. Their track record would likely show a pattern of providing similar services, indicating established expertise and a capacity to manage government contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2900 QUINCY STREET, ARLINGTON, VA, 22206

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W81XWH04D0011

IDV Type: IDC

Timeline