DoD's $255M contract for program management services awarded to Integic Corp. shows potential value concerns

Contract Overview

Contract Amount: $25,545,244 ($25.5M)

Contractor: Integic

Awarding Agency: Department of Defense

Start Date: 2005-11-04

End Date: 2009-03-31

Contract Duration: 1,243 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Defense

Official Description: 200606!600288!2100!W81XWH!US ARMY MEDICAL RESEARCH ACQ ACT!W74V8H04D0028 !A!N! !Y!B304 !01 !20051104!20060930!603246695!603246695!603246695!N!INTEGIC CORPORATION !14585 AVION PKWY !CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIRFAX !VIRGINIA !+000008798937!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !000 !* !541512!E! !5!B!S!D! ! !99990909!B! ! !A! !A!N!Z!2!001!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to INTEGIC for work described as: 200606!600288!2100!W81XWH!US ARMY MEDICAL RESEARCH ACQ ACT!W74V8H04D0028 !A!N! !Y!B304 !01 !20051104!20060930!603246695!603246695!603246695!N!INTEGIC CORPORATION !14585 AVION PKWY !CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIR… Key points: 1. The contract's total value of $255 million over its period of performance raises questions about cost-effectiveness for program management support. 2. Awarded under full and open competition, the contract's pricing and value proposition warrant closer examination against industry benchmarks. 3. While competition was robust, the final negotiated price and the specific services delivered need to be assessed for optimal taxpayer return. 4. The contract's performance context, spanning over four years, provides a basis for evaluating the contractor's efficiency and impact. 5. Positioned within the professional services sector, this contract represents a significant investment in administrative and management support for defense initiatives. 6. The absence of small business set-asides suggests a focus on large-scale service providers for this particular requirement.

Value Assessment

Rating: fair

The total contract value of $255,452,435.55 for program management and support services appears substantial. Benchmarking this against similar contracts for administrative management and general management consulting services is crucial. Without specific details on the labor hours and the exact services rendered, it's difficult to definitively assess value for money. However, the sheer scale of the award suggests a need for rigorous oversight to ensure that the pricing reflects competitive market rates and that the services provided are essential and efficiently delivered.

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 were likely solicited. The number of bidders and the specific terms of the competition are not detailed in the provided data. However, full and open competition generally fosters a more competitive environment, which can lead to better pricing and service offerings for the government. The government's ability to secure favorable terms through this process is a positive indicator.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, thereby maximizing the value of government spending.

Public Impact

The primary beneficiaries are likely the various Army Medical Research Acquisition Activity programs that received program management and support services. Services delivered include administrative management and general management consulting, crucial for the efficient operation of complex research and acquisition projects. The geographic impact is primarily centered around the contractor's location in Chantilly, Virginia, and potentially extends to the various research facilities supported. Workforce implications include the direct employment by Integic Corporation and potentially indirect support roles within the defense acquisition ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not closely monitored.
Risk of scope creep without clear performance metrics.
Dependency on a single contractor for critical support functions.
Ensuring consistent quality of services over the contract duration.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract duration provides stability for program execution.
Contractor located in a key hub for government contracting (Virginia).

Sector Analysis

This contract falls within the professional services sector, specifically focusing on administrative management and general management consulting. This sector is vital for supporting government operations, particularly in complex areas like defense acquisition and research. The market for these services is large and competitive, with numerous firms capable of providing specialized support. The $255 million award to Integic Corporation represents a significant portion of spending within this niche, highlighting the importance of program management in defense initiatives.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was likely too large or specialized for small business capabilities alone, or that the competition was structured to attract larger, more established firms. Consequently, there may be limited direct subcontracting opportunities for small businesses unless Integic Corporation voluntarily includes them in its supply chain. This approach may prioritize large-scale efficiency over direct small business engagement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded in the contract's performance work statement, delivery schedules, and payment terms. Transparency is generally facilitated through contract award databases like FPDS, where basic details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Contract Management
Program Management Support Services
Federal IT and Professional Services
DoD Acquisition Support
Research and Development Support

Risk Flags

Potential for cost overruns
Scope creep risk
Contractor performance variability
Dependency on single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to INTEGIC. 200606!600288!2100!W81XWH!US ARMY MEDICAL RESEARCH ACQ ACT!W74V8H04D0028 !A!N! !Y!B304 !01 !20051104!20060930!603246695!603246695!603246695!N!INTEGIC CORPORATION !14585 AVION PKWY !CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIRFAX !VIRGINIA !+000008798937!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !000 !* !541512!E! !5!B!S!D! ! !999

Who is the contractor on this award?

The obligated recipient is INTEGIC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $25.5 million.

What is the period of performance?

Start: 2005-11-04. End: 2009-03-31.

What is Integic Corporation's track record with similar government contracts, particularly in program management and defense support?

Integic Corporation has a history of securing government contracts, primarily within the defense and federal sectors. Their experience often centers around program management, administrative support, and IT services. Analyzing their past performance on contracts of similar size and scope would provide insight into their reliability, efficiency, and ability to meet complex requirements. A review of past performance evaluations and any documented issues or successes would be critical to assessing their suitability for this significant award. Their presence in the Northern Virginia 'Beltway' region, a hub for federal contracting, suggests familiarity with government procurement processes and client needs.

How does the $255 million contract value compare to industry benchmarks for similar program management services?

Benchmarking the $255 million contract value requires a detailed understanding of the specific services rendered, the labor categories involved, and the contract duration (approximately 4 years). General industry benchmarks for program management and administrative support services vary widely based on complexity, required expertise, and geographic location. However, for a contract of this magnitude within the Department of Defense, it suggests a substantial and ongoing need for support. Comparing the average hourly rates or total contract values for similar services procured by other federal agencies or even within the private sector could reveal whether this award represents a competitive price point or potentially an area for cost savings through more aggressive negotiation or alternative service models.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how has Integic Corporation performed against them?

The provided data does not specify the key performance indicators (KPIs) established for this contract. Typically, for program management and support services, KPIs would include metrics related to on-time delivery of milestones, adherence to budget, quality of reports and documentation, responsiveness to requests, and overall client satisfaction. Assessing Integic Corporation's performance would require access to contract performance reports, quality assurance surveillance plans (QASPs), and any formal evaluations conducted by the contracting officer or technical monitors. Without this information, it's impossible to definitively gauge the contractor's success in meeting the government's objectives.

What is the historical spending trend for program management and administrative support services within the Army Medical Research Acquisition Activity?

To analyze historical spending trends for program management and administrative support services within the Army Medical Research Acquisition Activity (AMRAA), one would need to examine contract data over several fiscal years. This would involve querying databases like FPDS or USAspending for contracts awarded by AMRAA or its parent organizations that fall under relevant Product Service Codes (PSCs) such as R408 (Program Management/Support Services) or NAICS codes like 541611 (Administrative Management and General Management Consulting Services). Observing trends in total spending, the number of contracts awarded, and the average contract value would reveal whether this $255 million award is an anomaly, a consistent level of investment, or an increase in spending for these types of services.

Are there any identified risks associated with Integic Corporation's performance or the nature of the services provided under this contract?

Potential risks associated with this contract could include contractor performance issues, such as delays, quality deficiencies, or cost overruns, which are inherent in large-scale service contracts. The nature of program management support, while critical, can also be susceptible to scope creep if not tightly managed, leading to increased costs. Furthermore, reliance on a single contractor for extensive support functions can pose a risk if the contractor faces financial instability or operational challenges. A thorough risk assessment would involve reviewing past performance data, financial health indicators of Integic Corporation, and the specific vulnerabilities within the program management functions being supported.

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: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 14585 AVION PKWY, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W74V8H04D0028

IDV Type: IDC

Timeline