DOD awards $26.6M contract to Hydrogeologic, Inc. for convention services, raising questions on value
Contract Overview
Contract Amount: $26,589,233 ($26.6M)
Contractor: Hydrogeologic, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-16
End Date: 2014-09-30
Contract Duration: 2,205 days
Daily Burn Rate: $12.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: ER-SCOTT AFB, IL
Place of Performance
Location: SCOTT AFB, ST. CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $26.6 million to HYDROGEOLOGIC, INC. for work described as: ER-SCOTT AFB, IL Key points: 1. Contract value of $26.6M over 6 years. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. No small business participation noted. 4. Sector is convention and trade show organization.
Value Assessment
Rating: questionable
The contract's 'Cost No Fee' structure makes direct value assessment difficult without further details on the services provided and their necessity. Benchmarking against similar convention services is challenging due to the unique 'Cost No Fee' element.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition was 'Full and Open Competition After Exclusion of Sources,' indicating a limited initial pool of bidders. This method may have restricted price discovery and potentially led to a higher overall cost than a truly open competition.
Taxpayer Impact: The 'Cost No Fee' structure implies that the government pays the actual costs incurred by the contractor, plus a fee. Without knowing the fee structure or the total costs, the precise taxpayer impact is unclear but could be substantial if costs are not managed effectively.
Public Impact
Taxpayers may be paying for services that could be procured more cost-effectively through different means. The exclusion of sources in the competition raises concerns about fairness and potential missed savings. Lack of small business involvement limits opportunities for smaller enterprises in government contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Lack of small business participation
- Unclear value proposition due to 'Cost No Fee'
Positive Signals
- Contract awarded by Department of the Army
- Long-term contract duration may indicate sustained need
Sector Analysis
The convention and trade show organizer sector involves significant logistical and organizational efforts. Benchmarking spending in this niche sector is difficult without specific service details, but large contracts suggest substantial event management requirements.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that the prime contractor is likely a large business, and opportunities for small businesses to subcontract were either not pursued or not available under this contract.
Oversight & Accountability
The 'Full and Open Competition After Exclusion of Sources' method warrants further oversight to ensure the exclusion was justified and did not unduly limit competition. The 'Cost No Fee' structure also requires diligent monitoring of contractor expenses to ensure fiscal responsibility.
Related Government Programs
- Convention and Trade Show Organizers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Lack of small business participation
- Unclear cost controls with 'Cost No Fee'
- Potential for inflated costs due to excluded sources
Tags
convention-and-trade-show-organizers, department-of-defense, il, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.6 million to HYDROGEOLOGIC, INC.. ER-SCOTT AFB, IL
Who is the contractor on this award?
The obligated recipient is HYDROGEOLOGIC, 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 $26.6 million.
What is the period of performance?
Start: 2008-09-16. End: 2014-09-30.
What specific services were provided under this 'Cost No Fee' contract, and how was their necessity determined?
The contract details do not specify the exact services rendered, only the NAICS code for Convention and Trade Show Organizers. The 'Cost No Fee' structure implies the government reimburses the contractor's direct costs plus an agreed-upon fee. Understanding the scope of services and the justification for their procurement is crucial for assessing value and necessity, especially given the $26.6M total award.
How did the 'exclusion of sources' impact the final contract price and overall competition?
The 'Full and Open Competition After Exclusion of Sources' method suggests that while the competition was intended to be open, certain potential bidders were excluded from the outset. This limitation could have reduced the number of competitive bids received, potentially impacting price discovery and leading to a less favorable price for the government compared to a fully open process without exclusions.
What is the projected taxpayer impact given the 'Cost No Fee' structure and the contract's duration?
The 'Cost No Fee' structure means the government covers the contractor's actual costs plus a fee. Without knowing the contractor's actual incurred costs and the agreed-upon fee percentage or amount, the total taxpayer impact is indeterminate. The $26.6M award represents the ceiling, but actual spending could be lower or higher depending on cost management and the fee structure.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › Convention and Trade Show Organizers
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR RESTOR ACVIVS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 1155 HERNDON PKWY STE 900, HERNDON, VA, 11
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business
Financial Breakdown
Contract Ceiling: $26,589,233
Exercised Options: $26,589,233
Current Obligation: $26,589,233
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9123806D0021
IDV Type: IDC
Timeline
Start Date: 2008-09-16
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2011-10-21
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