DoD's $22.5M intelligence support contract to Credence Management Solutions shows fair value despite limited competition

Contract Overview

Contract Amount: $22,480,767 ($22.5M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2019-10-15

End Date: 2024-12-31

Contract Duration: 1,904 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Defense

Official Description: ADVISORY AND ASSISTANCE SERVICES (A&AS) AND DELIVERABLES IN SUPPORT OF THE USAFCENT INTELLIGENCE DIRECTORATE DIRECTORATE MISSION IN THE UNITED STATES CENTRAL COMMAND (USCENTCOM) AREA OF RESPONSIBILITY (AOR) AND SHAW AIR FORCE BASE (AFB).

Place of Performance

Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: ADVISORY AND ASSISTANCE SERVICES (A&AS) AND DELIVERABLES IN SUPPORT OF THE USAFCENT INTELLIGENCE DIRECTORATE DIRECTORATE MISSION IN THE UNITED STATES CENTRAL COMMAND (USCENTCOM) AREA OF RESPONSIBILITY (AOR) AND SHAW AIR FORCE BASE (AFB). Key points: 1. The contract's value appears reasonable when benchmarked against similar intelligence support services. 2. Competition was limited, raising questions about optimal price discovery for taxpayer funds. 3. Performance risk appears moderate, given the fixed-price contract type and defined scope. 4. The contract supports critical intelligence functions within the USCENTCOM area of responsibility. 5. Credence Management Solutions is a relatively small player in the large federal A&AS market. 6. The contract duration and delivery order structure suggest flexibility in meeting evolving intelligence needs.

Value Assessment

Rating: fair

The total value of $22.5 million over approximately five years suggests a per-year spend of around $4.5 million. This figure appears to be within a reasonable range when compared to other federal contracts for advisory and assistance services supporting intelligence directorates. Without specific line-item details or more granular market data, a precise value-for-money assessment is challenging, but the overall expenditure does not immediately indicate overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while full and open competition was intended, certain sources were excluded. The record shows 4 bidders, which is a moderate level of competition. This suggests that while multiple companies could bid, the pool of potential offerors was restricted, potentially impacting the competitiveness of the pricing and the range of innovative solutions considered.

Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as it reduces the pressure on contractors to offer their most competitive rates. The exclusion of certain sources may have prevented potentially lower-cost bids from entering the evaluation process.

Public Impact

Intelligence analysts and decision-makers within the USCENTCOM area of responsibility benefit from enhanced support services. The contract delivers critical advisory and assistance services essential for mission success in a complex geopolitical region. Geographic impact is focused on the USCENTCOM AOR, including support at Shaw Air Force Base. The contract supports a specialized workforce of analysts and support personnel, contributing to the federal intelligence community's capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than could have been achieved through broader solicitation.
The exclusion of sources, while potentially justified, warrants scrutiny to ensure fairness and maximize taxpayer value.
Reliance on a single contractor for critical intelligence support in a sensitive region could pose a risk if performance falters.

Positive Signals

The fixed-price contract type provides cost certainty for the government.
The contract is structured as delivery orders against a base contract, allowing for flexibility in tasking and funding.
The contract duration extends through late 2024, indicating a stable, ongoing need for these services.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on engineering and management consulting for defense intelligence. The federal market for advisory and assistance services (A&AS) is substantial, with significant spending allocated to intelligence support. Benchmarking this contract's value against the overall A&AS spending within the Department of Defense provides context, suggesting it represents a focused investment in a critical capability rather than a large-scale, broad-service procurement.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, Credence Management Solutions LLC, is a small business. However, the contract type and scope do not appear to include specific subcontracting requirements aimed at further engaging the small business ecosystem beyond the prime contractor's own size. The impact on the broader small business ecosystem is likely minimal, as this appears to be a direct award to a small business entity for specialized services.

Oversight & Accountability

Oversight is likely managed by the contracting officer's representative (COR) within the Air Force Intelligence Directorate, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are embedded in the fixed-price contract structure, linking payment to deliverables. Transparency is facilitated through contract databases like FPDS, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Intelligence Support Services
Defense Intelligence Agency Contracts
USCENTCOM Support Contracts
Air Force Intelligence Directorate Contracts
Advisory and Assistance Services (A&AS)

Risk Flags

Limited competition
Potential for price inefficiency
Reliance on contractor performance for critical functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. ADVISORY AND ASSISTANCE SERVICES (A&AS) AND DELIVERABLES IN SUPPORT OF THE USAFCENT INTELLIGENCE DIRECTORATE DIRECTORATE MISSION IN THE UNITED STATES CENTRAL COMMAND (USCENTCOM) AREA OF RESPONSIBILITY (AOR) AND SHAW AIR FORCE BASE (AFB).

Who is the contractor on this award?

The obligated recipient is CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY.

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 $22.5 million.

What is the period of performance?

Start: 2019-10-15. End: 2024-12-31.

What is Credence Management Solutions' track record with the Department of Defense and specifically the Air Force?

Credence Management Solutions LLC has a history of receiving federal contracts, primarily within the Department of Defense. While specific details on past performance for this exact intelligence support role are not publicly detailed in this summary, their presence as a recipient of this contract suggests they have met the necessary qualifications and past performance requirements set forth by the Air Force. Federal procurement databases would contain a more comprehensive list of their awards and potentially performance evaluations, which are crucial for assessing their reliability in delivering complex services.

How does the $22.5 million contract value compare to similar intelligence support contracts awarded by the DoD?

The $22.5 million total contract value, spread over approximately five years, averages around $4.5 million annually. This figure appears moderate within the context of federal intelligence support contracts. Larger, more comprehensive intelligence analysis and support contracts can run into hundreds of millions or even billions of dollars. However, contracts focused on specific directorates or specialized advisory roles, like this one for USAFCENT Intelligence Directorate, often fall within this multi-million dollar range. A precise comparison would require analyzing contracts with similar scopes, durations, and specific service requirements within the intelligence community.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance shortfalls in delivering critical intelligence support, which could impact national security decision-making. Another risk is the limited competition, which might lead to suboptimal pricing. Mitigation strategies likely include robust oversight by a Contracting Officer's Representative (COR), clearly defined performance standards and deliverables within the fixed-price contract, and regular performance reviews. The limited competition risk is partially addressed by the 'full and open competition after exclusion of sources' approach, which, while not fully open, still allows for multiple bidders.

How effective is this contract in supporting the USAFCENT Intelligence Directorate's mission?

The effectiveness of this contract is directly tied to the quality and timeliness of the advisory and assistance services provided by Credence Management Solutions. These services are intended to enhance the intelligence directorate's capabilities in analyzing threats, supporting operations, and informing strategic decisions within the USCENTCOM AOR. While the contract's existence indicates a recognized need, its true effectiveness would be measured by the actionable intelligence derived from the support, the impact on operational planning, and the overall contribution to mission success. This is typically assessed through internal government performance metrics and feedback.

What are the historical spending patterns for intelligence support services within USCENTCOM or the Air Force?

Historical spending on intelligence support services within USCENTCOM and the Air Force has been substantial and generally increasing, reflecting the persistent need for advanced intelligence capabilities in dynamic geopolitical environments. This specific contract represents a portion of that broader spending. Analyzing historical data would reveal trends in contract types (e.g., fixed-price vs. cost-plus), competition levels, and the types of services most frequently procured. Such analysis helps in understanding budget allocation priorities and identifying potential areas for cost savings or efficiency improvements in future procurements.

What is the significance of the contract being a 'Delivery Order' type?

The contract being structured with 'Delivery Orders' against a base contract signifies a flexible acquisition approach. Instead of procuring all services upfront, the government can issue specific orders for tasks as needed throughout the contract period. This is particularly useful for services like intelligence support, where requirements can evolve rapidly. It allows the Air Force to adapt to changing intelligence needs and manage funding more dynamically, ordering services only when they are required, which can be more efficient than a large, monolithic upfront contract.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA489019RA028

Offers Received: 4

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Address: 8609 WESTWOOD CTR DR STE 300, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,629,152

Exercised Options: $23,629,152

Current Obligation: $22,480,767

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS112

IDV Type: IDC

Timeline