DoD awards $63.4M contract for laboratory support, with potential for significant growth

Contract Overview

Contract Amount: $63,448,103 ($63.4M)

Contractor: SNA International LLC

Awarding Agency: Department of Defense

Start Date: 2022-05-23

End Date: 2026-05-20

Contract Duration: 1,458 days

Daily Burn Rate: $43.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: LABORATORY SUPPORT PROGRAM - FFP LOE

Place of Performance

Location: JBPHH, HONOLULU County, HAWAII, 96853

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $63.4 million to SNA INTERNATIONAL LLC for work described as: LABORATORY SUPPORT PROGRAM - FFP LOE Key points: 1. Contract value indicates a substantial need for ongoing laboratory services. 2. The 'FFP LOE' contract type suggests a fixed price for labor hours, which can offer cost predictability. 3. The award to SNA INTERNATIONAL LLC warrants a review of their past performance and capacity. 4. The duration of the contract (over 3 years) implies a long-term requirement. 5. The 'HI' status code might indicate a high-impact or high-priority contract. 6. The absence of small business set-asides should be noted for potential impacts on smaller firms.

Value Assessment

Rating: fair

The contract value of $63.4 million over approximately four years for laboratory support services appears to be within a reasonable range for a definitive contract of this nature. However, without specific details on the scope of work, the number of personnel, or the specific types of laboratory services required, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for laboratory support within the Department of Defense or other federal agencies would be necessary to determine if the pricing is competitive. The 'FFP LOE' (Firm Fixed Price Level of Effort) structure suggests a predictable cost for a defined set of labor hours, which can be advantageous if the effort is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This is generally a positive sign for price discovery and ensuring a competitive marketplace. The number of bidders is not specified in the provided data, which is a crucial factor in assessing the effectiveness of the competition. A robust competition with multiple qualified bidders typically leads to better pricing and terms for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential laboratory support services. These services are critical for various defense operations, potentially including research, testing, and medical diagnostics. The geographic impact is not specified but could be localized to specific DoD facilities or have a broader reach. The contract likely supports a workforce of skilled laboratory technicians, scientists, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of work makes it difficult to fully assess value for money.
The number of bidders in the full and open competition is not provided, hindering a complete assessment of competitive pressure.
The 'HI' status code requires further investigation to understand its implications for contract priority and potential risks.
The absence of small business participation details raises questions about opportunities for smaller enterprises in this contract.

Positive Signals

Awarded under full and open competition, suggesting a broad search for qualified contractors.
The 'FFP LOE' contract type provides a degree of cost predictability for the government.
The contract duration of over three years indicates a stable, long-term requirement being met.
The award to a single contractor (SNA INTERNATIONAL LLC) suggests they were deemed the most capable and competitive offeror.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on medical laboratories. The federal government is a significant consumer of such services, particularly within the Department of Defense and Health and Human Services. The market for laboratory support services is competitive, with numerous private companies offering specialized expertise. Benchmarking this contract against others in the sector would involve comparing the scope of services, personnel rates, and overall contract value relative to the deliverables.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that the competition was open to all responsible sources, including large businesses. While this ensures maximum competition, it also means that specific opportunities for small businesses to directly participate as prime contractors may be limited. However, the prime contractor, SNA INTERNATIONAL LLC, may engage small businesses as subcontractors to fulfill parts of the contract, depending on their subcontracting plans and the nature of the work.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency, the Washington Headquarters Services, within the Department of Defense. Mechanisms likely include regular performance reviews, milestone tracking, and financial audits. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Laboratory Services
Medical and Scientific Support Contracts
Federal Research and Development Support
Health Services Contracts
Professional and Technical Services

Risk Flags

Potential for cost overruns if level of effort is not accurately managed.
Lack of detailed scope of work hinders full value assessment.
Need to verify contractor's past performance in similar laboratory support roles.
Limited insight into the competitive landscape due to missing bidder count.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.4 million to SNA INTERNATIONAL LLC. LABORATORY SUPPORT PROGRAM - FFP LOE

Who is the contractor on this award?

The obligated recipient is SNA INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $63.4 million.

What is the period of performance?

Start: 2022-05-23. End: 2026-05-20.

What is the specific scope of 'LABORATORY SUPPORT PROGRAM - FFP LOE' services required under this contract?

The provided data identifies the contract as 'LABORATORY SUPPORT PROGRAM - FFP LOE' (Firm Fixed Price Level of Effort). However, the specific details of the laboratory support services are not elaborated. This could encompass a wide range of activities, including but not limited to, clinical diagnostics, biological testing, chemical analysis, environmental monitoring, or research and development support. The 'FFP LOE' structure implies that the contractor is paid a fixed price for a defined level of effort (labor hours) dedicated to performing these services. To fully understand the contract's purpose and value, a detailed statement of work (SOW) would be necessary, outlining the precise tasks, deliverables, quality standards, and any specialized equipment or expertise required.

How does the awarded amount of $63.4 million compare to similar laboratory support contracts within the DoD?

Comparing the $63.4 million award to similar contracts requires access to a broader dataset of federal procurements. However, for a definitive contract spanning approximately four years (May 2022 to May 2026), this value suggests a significant and ongoing requirement for laboratory services. Contracts for laboratory support can vary widely in cost depending on the complexity of the tests, the volume of samples, the required turnaround time, and the level of scientific expertise involved. Without knowing the specific services rendered, it's difficult to benchmark precisely. Generally, contracts involving highly specialized testing, advanced research, or large-scale diagnostic operations would command higher values. A thorough comparison would involve analyzing contracts with similar scope, duration, and agency for a more accurate assessment of value for money.

What is SNA INTERNATIONAL LLC's track record with federal contracts, particularly in laboratory support?

Assessing SNA INTERNATIONAL LLC's track record requires examining their past performance on federal contracts. This includes reviewing their history of successful contract completions, any instances of performance issues or disputes, and their experience specifically within the laboratory support domain. Data from the Federal Procurement Data System (FPDS) or similar databases would be crucial here. Key indicators to look for include the number and value of previous contracts, the agencies they have served, and any performance evaluations or ratings. A strong track record with similar services would increase confidence in their ability to successfully execute this $63.4 million contract. Conversely, a history of performance problems could indicate potential risks.

What are the potential risks associated with a 'FFP LOE' contract type for laboratory support?

The 'Firm Fixed Price Level of Effort' (FFP LOE) contract type, while offering cost predictability, carries specific risks. For the government, a primary risk is that the contractor may not be sufficiently motivated to control costs or improve efficiency if they are guaranteed payment for a set number of labor hours, regardless of the actual effort expended. If the level of effort is underestimated, the government might end up paying more than necessary for the work performed. Conversely, if the level of effort is overestimated, the contractor might not be incentivized to complete the work efficiently. Another risk is ensuring that the defined 'level of effort' accurately reflects the actual work required to meet the program's objectives. Scope creep or unforeseen complexities in the laboratory work could necessitate contract modifications, potentially increasing costs.

How does the 'HI' status code impact the interpretation of this contract award?

The 'HI' status code in federal contract data often signifies a 'High Impact' or 'High Importance' designation. While the exact definition can vary slightly by agency or system, it generally indicates that the contract is considered critical to the agency's mission, has significant financial implications, or involves sensitive operations. For this $63.4 million laboratory support contract, a 'HI' status suggests it is a priority for the Department of Defense and Washington Headquarters Services. This could mean increased oversight, expedited processing, or a greater focus on ensuring successful performance. It also implies that any disruptions or failures in service delivery could have substantial negative consequences for DoD operations.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003421R0100

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 500 MONTGOMERY ST STE 500, ALEXANDRIA, VA, 22314

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $82,555,357

Exercised Options: $65,664,103

Current Obligation: $63,448,103

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline