DOT's $24.7M contract for acquisition support awarded to Competitive Vets LLC, a small business

Contract Overview

Contract Amount: $24,684,994 ($24.7M)

Contractor: Competitive Vets LLC

Awarding Agency: Department of Transportation

Start Date: 2015-12-15

End Date: 2021-06-30

Contract Duration: 2,024 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EFAST ACQUISITION AND PROGRAM SUPPORT IGF::OT::IGF

Place of Performance

Location: O FALLON, SAINT CLAIR County, ILLINOIS, 62269

State: Illinois Government Spending

Plain-Language Summary

Department of Transportation obligated $24.7 million to COMPETITIVE VETS LLC for work described as: EFAST ACQUISITION AND PROGRAM SUPPORT IGF::OT::IGF Key points: 1. The contract value of $24.7 million over its period of performance represents a significant investment in acquisition and program support services. 2. Competition dynamics indicate a full and open competition after exclusion of sources, suggesting a deliberate effort to ensure broad market access. 3. The contract type (Time and Materials) can present cost control challenges if not closely managed. 4. Performance context is provided by the 2015-2021 period, allowing for historical analysis of service delivery. 5. The award to a small business, Competitive Vets LLC, aligns with federal small business contracting goals. 6. The North American Industry Classification System (NAICS) code 561990 points to 'All Other Support Services', a broad category.

Value Assessment

Rating: fair

Benchmarking the value of this $24.7 million contract is challenging without specific service details and comparable contract data. However, the award to a small business suggests potential for competitive pricing. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost overruns if not meticulously monitored against established labor rates and estimated effort. Further analysis would require comparing the labor categories and rates to industry standards and other government T&M contracts for similar support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be broad, specific sources may have been excluded for defined reasons, possibly related to prior performance or specific capabilities. The presence of 3 bidders suggests a moderate level of competition, which is generally positive for price discovery but could be higher.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer competitive bids, potentially leading to better pricing and service quality.

Public Impact

Federal agencies, particularly the Department of Transportation and its Federal Aviation Administration, benefit from specialized acquisition and program support, enhancing operational efficiency. The services delivered likely encompass a range of support functions critical to the successful execution of federal acquisition programs. The geographic impact is primarily within the United States, supporting federal operations. Workforce implications include the creation or sustainment of jobs within the contracting company and potentially its subcontractors, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently, as it directly reimburses labor hours and material costs.
The broad NAICS code (561990) makes it difficult to assess the specific nature and value of the services provided without further detail.
The exclusion of sources in a 'full and open' competition warrants understanding the rationale to ensure fairness and optimal market engagement.
Limited information on the number of bidders (3) makes it hard to definitively assess the strength of the competition and its impact on pricing.
The contract's duration (2015-2021) means current market rates and performance expectations may have evolved significantly.

Positive Signals

Award to a small business (Competitive Vets LLC) supports federal small business contracting goals.
The contract was competed, indicating an effort to obtain services through a structured procurement process.
The definitive contract award type suggests a clear agreement for services.
The contract was awarded to a specific entity, Competitive Vets LLC, providing a clear point of accountability.
The contract was awarded by the Department of Transportation, a major federal agency.

Sector Analysis

The professional, scientific, and technical services sector, particularly within government contracting, is highly competitive. This contract falls under 'All Other Support Services' (NAICS 561990), a broad category encompassing a wide array of support functions. Government spending in this area is substantial, driven by the need for specialized expertise in areas like acquisition, program management, and administrative support. Benchmarks for similar contracts would typically focus on labor rates for specific skill sets and the overall value proposition relative to in-house capabilities.

Small Business Impact

This contract was awarded to Competitive Vets LLC, identified as a small business. This award directly contributes to the government's goal of awarding a percentage of its contracting dollars to small businesses. The implications for subcontracting are not explicitly detailed but are often a component of small business set-aside or sole-source contracts, though this was competed. The overall impact on the small business ecosystem is positive, providing a significant contract award to a small entity.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Federal Aviation Administration (FAA) or the Department of Transportation (DOT). Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal Acquisition Support Services
Program Management Support Contracts
Department of Transportation IT and Administrative Services
Small Business Administration Contracting Programs
Professional Services Contracts

Risk Flags

Contract Type Risk (Time and Materials)
Limited Competition Data
Broad NAICS Code
Historical Data Relevance

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24.7 million to COMPETITIVE VETS LLC. EFAST ACQUISITION AND PROGRAM SUPPORT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is COMPETITIVE VETS LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2015-12-15. End: 2021-06-30.

What specific services were provided under this $24.7 million contract?

The contract, identified by NAICS code 561990 ('All Other Support Services'), was awarded to Competitive Vets LLC for acquisition and program support. While the specific deliverables are not detailed in the provided data, such contracts typically encompass a range of services including strategic planning, policy development, program analysis, administrative support, logistical assistance, and potentially specialized technical support related to the acquisition lifecycle. The Federal Aviation Administration (FAA) likely utilized these services to enhance the efficiency and effectiveness of its procurement processes and program management activities. Without access to the contract's Statement of Work (SOW), a precise breakdown of services remains speculative but would generally align with supporting complex federal programs.

How does the Time and Materials (T&M) contract type compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the extent or duration of the work cannot be predetermined, such as for certain types of services or repairs. They reimburse the contractor for direct labor hours at specified fixed hourly rates and for the actual cost of materials. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers more flexibility but carries higher risk for the government regarding cost control, as the final price is not fixed upfront. Cost-Plus-Fixed-Fee (CPFF) contracts are another alternative where the contractor is reimbursed for costs plus a fixed fee representing profit. For acquisition and program support, FFP might be preferred if requirements are very well-defined, while T&M or CPFF might be chosen for evolving needs or when precise effort estimation is difficult. Effective management and oversight are crucial for T&M contracts to prevent cost overruns.

What is the significance of awarding this contract to a small business like Competitive Vets LLC?

Awarding a contract of this magnitude ($24.7 million) to a small business like Competitive Vets LLC is significant as it directly contributes to the federal government's statutory goal of awarding at least 23% of all federal contracting dollars to small businesses annually. Such awards help foster competition, innovation, and economic growth within the small business sector. It provides a substantial revenue stream and a track record for the small business, potentially enabling it to compete for larger contracts in the future. The government benefits by leveraging the agility and specialized focus that small businesses often bring to specific service areas, while also fulfilling its socioeconomic objectives.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for this contract?

This contract clause indicates that the procurement process was intended to be competitive among all responsible sources, but specific sources were excluded based on predefined criteria. This is distinct from a sole-source award where only one vendor is solicited, or a limited competition where only a few are invited. The exclusion of sources suggests that the agency identified potential bidders but determined that certain ones did not meet specific requirements (e.g., past performance, technical capability, or other eligibility criteria) or were removed for other justifiable reasons. This approach aims to balance broad competition with the need to ensure that only qualified and suitable contractors participate, potentially leading to better outcomes than a completely unrestricted competition if certain vendors pose higher risks.

How does the contract's duration (2015-2021) affect its relevance for current spending analysis?

The contract's performance period from December 15, 2015, to June 30, 2021, means that the spending data and service delivery occurred several years ago. This duration impacts its relevance for current spending analysis in several ways. Firstly, market rates for labor and services have likely changed since 2015-2021 due to inflation, economic shifts, and evolving demand. Secondly, the technologies, methodologies, and best practices in acquisition and program support may have advanced, making the services rendered potentially outdated compared to current standards. Therefore, while the historical spending provides a data point, it should not be directly extrapolated to current needs or costs without significant adjustments for market dynamics and technological evolution.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 640 PIERCE BLVD STE 101, O FALLON, IL, 62269

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,709,545

Exercised Options: $24,691,394

Current Obligation: $24,684,994

Actual Outlays: $9,481,974

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline