DoD's Air Force awards $69.4M for Organizational Planning Program Management to Serco Inc
Contract Overview
Contract Amount: $69,417,866 ($69.4M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2018-08-01
End Date: 2024-10-31
Contract Duration: 2,283 days
Daily Burn Rate: $30.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: Other
Official Description: IGF:CL:IGF ORGANIZATIONAL PLANNING PROGRAM MANAGEMENT USAFCENT
Place of Performance
Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152
Plain-Language Summary
Department of Defense obligated $69.4 million to SERCO INC for work described as: IGF:CL:IGF ORGANIZATIONAL PLANNING PROGRAM MANAGEMENT USAFCENT Key points: 1. Contract awarded via full and open competition, suggesting market availability of services. 2. Fixed Price Level of Effort contract type aims to control costs while ensuring service delivery. 3. The contract duration of over 6 years indicates a significant, long-term need. 4. No small business participation noted, potentially a missed opportunity for economic inclusion.
Value Assessment
Rating: good
The contract's fixed price structure provides cost certainty. Benchmarking against similar engineering services contracts is recommended to ensure competitive pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, allowing multiple vendors to bid. This method generally promotes competitive pricing and access to a wider range of capabilities.
Taxpayer Impact: The competitive nature of the award is expected to yield fair market value, benefiting taxpayers.
Public Impact
Supports critical organizational planning and program management functions for USAFCENT. Long-term contract ensures continuity of essential services for military operations. Potential for economic impact through Serco Inc.'s operations and employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could lead to scope creep or evolving needs not fully captured.
Positive Signals
- Full and open competition ensures market-driven pricing.
- Fixed Price contract type offers cost control.
Sector Analysis
This contract falls under Engineering Services, a broad category often supporting complex government operations. Spending in this sector is typically driven by specialized expertise and project management needs.
Small Business Impact
The contract data indicates no small business participation. Agencies should explore opportunities to set aside portions of contracts or seek out small businesses for future similar requirements.
Oversight & Accountability
The contract's long duration and significant value warrant regular oversight to ensure performance standards are met and costs remain justified.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns if scope is not tightly managed.
- Risk of vendor lock-in due to long contract duration.
- Dependence on a single contractor for critical functions.
- Lack of small business involvement.
Tags
engineering-services, department-of-defense, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.4 million to SERCO INC. IGF:CL:IGF ORGANIZATIONAL PLANNING PROGRAM MANAGEMENT USAFCENT
Who is the contractor on this award?
The obligated recipient is SERCO INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $69.4 million.
What is the period of performance?
Start: 2018-08-01. End: 2024-10-31.
How does the awarded price compare to industry benchmarks for similar program management services over a 6-year period?
A comprehensive analysis would involve comparing the total contract value ($69.4M) against average rates for program management and engineering services in the defense sector. Factors like specific skill sets, geographic location, and contract type (Fixed Price Level of Effort) influence pricing. Without detailed task breakdowns and market data, a precise benchmark is difficult, but the duration suggests a need for ongoing cost-effectiveness reviews.
What are the key performance indicators (KPIs) for this contract, and how is performance being monitored to mitigate risks?
The contract likely includes specific deliverables and performance standards tied to organizational planning and program management objectives for USAFCENT. Monitoring would typically involve regular progress reports, milestone reviews, and potentially quality assurance surveillance plans. Effective oversight is crucial to ensure Serco Inc. meets its obligations and to identify any deviations or emerging risks early.
Are there opportunities to incorporate small businesses into future contract phases or related efforts?
Given the absence of small business participation in this award, future solicitations should actively consider set-aside opportunities or subcontracting requirements. Identifying specific program management or engineering tasks suitable for small businesses could foster competition and support small business growth within the defense industrial base.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: 3
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $77,906,269
Exercised Options: $76,454,680
Current Obligation: $69,417,866
Actual Outlays: $16,484,196
Subaward Activity
Number of Subawards: 32
Total Subaward Amount: $81,161,446
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU132
IDV Type: IDC
Timeline
Start Date: 2018-08-01
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2024-03-15
More Contracts from Serco Inc
- -Pphf-2013-Eligibility Support — $1.2B (Department of Health and Human Services)
- Eligibility Support — $1.0B (Department of Health and Human Services)
- Eligibility Support — $589.3M (Department of Health and Human Services)
- Serco Management Services Inc for Area 5 Igf::ct::igf — $378.8M (Department of Transportation)
- J Plant Renovation — $327.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)