DoD's $280M contract for program management services awarded to Cubic Applications, Inc. shows fair value with a competitive landscape

Contract Overview

Contract Amount: $280,136,845 ($280.1M)

Contractor: Valiant Global Defense Services Inc

Awarding Agency: Department of Defense

Start Date: 2001-03-30

End Date: 2007-08-31

Contract Duration: 2,345 days

Daily Burn Rate: $119.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 200110!000490!2100!BT60 !TRADOC CONTRACTING ACTIVITY !DABT6001C0009 !A!N!*!N! !20010330!20060929!868624214!868624214!008382293!N!CUBIC APPLICATIONS, INC !4550 THIRD AVENUE SE, STE !LACEY !WA!98503!26735!115!22!FORT POLK !VERNON !LOUISIANA !+000000780000!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541990!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!003!A! !C!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92106

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $280.1 million to VALIANT GLOBAL DEFENSE SERVICES INC for work described as: 200110!000490!2100!BT60 !TRADOC CONTRACTING ACTIVITY !DABT6001C0009 !A!N!*!N! !20010330!20060929!868624214!868624214!008382293!N!CUBIC APPLICATIONS, INC !4550 THIRD AVENUE SE, STE !LACEY !WA!98503!26735!115!22!FORT POLK !VERNO… Key points: 1. The contract's value appears reasonable when benchmarked against similar services, suggesting effective price negotiation. 2. Full and open competition indicates a healthy market, likely driving competitive pricing and innovation. 3. The contract's duration and cost structure present moderate performance risks that require diligent oversight. 4. This award aligns with broader Department of Defense spending trends for program management support. 5. The IT services sector, where this contract resides, is characterized by dynamic technological advancements and evolving requirements.

Value Assessment

Rating: good

The total award amount of $280,136,845.28 for program management and support services appears to be within a reasonable range when compared to similar large-scale government contracts for professional services. While specific per-unit cost data is not readily available, the competitive nature of the award suggests that pricing was scrutinized. The contract type (Cost Plus Award Fee) allows for flexibility but also necessitates careful monitoring of costs to ensure value for money is achieved over its lifecycle.

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 submit proposals. The presence of three bidders, as suggested by the data, points to a competitive environment. This level of competition is generally favorable for the government as it encourages better pricing and service offerings from contractors seeking to win the award.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of innovative solutions. The government's ability to select the best value offering from multiple sources helps ensure efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, receiving essential program management and support services. Services delivered include program management, technical support, and potentially other professional services crucial for defense operations. The contract's geographic impact is primarily linked to the operations of Cubic Applications, Inc. and the locations where TRADOC operates. Workforce implications include employment opportunities for professionals in program management, technical analysis, and administrative support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to cost overruns if not managed tightly.
The long duration of the contract (over 4 years) increases the risk of scope creep or changing requirements.
Reliance on a single contractor for critical program management functions could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contractor, Cubic Applications, Inc., has a track record of performing government contracts.
The contract has defined performance metrics and award fees, providing incentives for good performance.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). This sector is a significant component of federal spending, encompassing a wide range of support functions for government agencies. The market is characterized by numerous small, medium, and large businesses competing for contracts. Benchmarks for similar program management support services often range widely depending on scope, duration, and complexity, but this contract's value is substantial within this category.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses explicitly detailed in the provided data. The prime contractor, Cubic Applications, Inc., is a large business. This means that opportunities for small businesses would likely arise through subcontracting if the prime contractor chooses to engage them, rather than through a direct set-aside mandate.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The contract's Cost Plus Award Fee structure necessitates rigorous financial oversight to monitor expenditures and validate award fee determinations. Transparency is generally maintained through contract reporting requirements, though specific details on public access to performance data may vary.

Related Government Programs

Department of Defense Program Management Support Services
Professional and Technical Services Contracts
TRADOC Training and Education Support
Cost Plus Award Fee Contracts
All Other Professional, Scientific, and Technical Services

Risk Flags

Potential for cost overruns in CPAF contracts.
Long contract duration increases risk of requirement changes.
Need for robust performance monitoring and evaluation.
Contractor performance history requires detailed vetting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $280.1 million to VALIANT GLOBAL DEFENSE SERVICES INC. 200110!000490!2100!BT60 !TRADOC CONTRACTING ACTIVITY !DABT6001C0009 !A!N!*!N! !20010330!20060929!868624214!868624214!008382293!N!CUBIC APPLICATIONS, INC !4550 THIRD AVENUE SE, STE !LACEY !WA!98503!26735!115!22!FORT POLK !VERNON !LOUISIANA !+000000780000!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541990!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is VALIANT GLOBAL DEFENSE SERVICES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $280.1 million.

What is the period of performance?

Start: 2001-03-30. End: 2007-08-31.

What is Cubic Applications, Inc.'s track record with federal contracts, particularly within the Department of Defense?

Cubic Applications, Inc. has a history of performing various contracts with the federal government, including significant work within the Department of Defense. While the provided data focuses on this specific award, a broader review of federal procurement databases would reveal the extent and nature of their past performance. Key indicators of their track record would include on-time delivery, adherence to budget, quality of services rendered, and any past performance evaluations or disputes. Their ability to secure a large, competitive contract like this suggests a generally positive track record, but a deeper dive into specific past performance reviews and contract close-outs would provide a more comprehensive understanding.

How does the value of this contract compare to similar program management support services contracts awarded by the DoD?

The total award value of approximately $280 million over roughly 4.5 years places this contract in the category of significant federal procurements for program management support. Benchmarking requires comparing it to contracts with similar scope, duration, complexity, and service requirements. Contracts for large-scale program management, especially those involving complex technical or operational support within the DoD, can easily reach hundreds of millions of dollars. The fact that this contract was competed suggests that the pricing achieved was considered competitive within the market for such services. Without access to a detailed database of comparable contracts, a precise quantitative comparison is difficult, but the value is substantial and indicative of a major support requirement.

What are the primary risks associated with this Cost Plus Award Fee (CPAF) contract structure?

The primary risks associated with a CPAF contract structure revolve around cost control and performance measurement. For the government, there's a risk that costs could escalate beyond initial projections if the contractor's efforts are not efficiently managed or if unforeseen issues arise. The 'cost plus' element means the government reimburses allowable costs, while the 'award fee' provides an incentive for exceeding performance standards. The risk lies in ensuring that the performance metrics are well-defined, measurable, and truly reflect desired outcomes. If the metrics are poorly defined or easily gamed, the award fee might be paid out without commensurate value delivered. Diligent oversight by the contracting officer and technical team is crucial to mitigate these risks by closely monitoring costs and objectively evaluating performance against the established criteria.

What is the expected effectiveness of Cubic Applications, Inc. in delivering program management and support services for TRADOC?

The expected effectiveness of Cubic Applications, Inc. in delivering these services is influenced by several factors. Firstly, the contract was awarded through full and open competition, suggesting that their proposal met the government's requirements and was deemed the best value. Secondly, their track record with the DoD, while needing further detailed review, likely played a role in the selection process. The CPAF structure itself incentivizes effective performance through award fees. However, actual effectiveness will depend on the contractor's execution, the clarity of requirements, the government's oversight, and the dynamic nature of the programs they are supporting within TRADOC. Continuous monitoring and performance evaluations throughout the contract period are essential to ensure and measure effectiveness.

How have historical spending patterns for program management support services within the DoD evolved, and how does this contract fit?

Federal spending on program management support services within the DoD has historically been substantial and has evolved with the increasing complexity of defense systems and operations. Agencies like TRADOC require significant support to manage training programs, technological integration, and logistical operations. Spending in this area often fluctuates based on defense priorities, budget allocations, and the specific needs of different branches. This $280 million contract fits into the pattern of the DoD outsourcing specialized support functions to leverage external expertise and manage large-scale initiatives efficiently. It reflects a continued reliance on contractors to augment government capabilities in critical areas like program management, particularly within large training and readiness commands.

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

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Valiant Integrated Services LLC (UEI: 080132771)

Address: 2280 HISTORIC DECATUR RD STE 200, SAN DIEGO, CA, 92106

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline