DoD's $5.4M contract for administrative support to NSWC Corona awarded to VSOLVIT LLC

Contract Overview

Contract Amount: $5,399,502 ($5.4M)

Contractor: Vsolvit LLC

Awarding Agency: Department of Defense

Start Date: 2018-12-28

End Date: 2026-06-27

Contract Duration: 2,738 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ADMINISTRATIVE SUPPORT SERVICES FOR NSWC CORONA AND ITS' DETACHMENTS.

Place of Performance

Location: CORONA, RIVERSIDE County, CALIFORNIA, 92878

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $5.4 million to VSOLVIT LLC for work described as: ADMINISTRATIVE SUPPORT SERVICES FOR NSWC CORONA AND ITS' DETACHMENTS. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of nearly 7.5 years indicates a long-term need for these services. 3. The award to VSOLVIT LLC, a company with a track record in government contracting, warrants further examination of performance. 4. The use of a Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to control costs. 5. The contract is for administrative support, a critical but often overlooked function for operational efficiency. 6. The geographic location in California may have implications for local workforce and economic impact.

Value Assessment

Rating: fair

The contract value of $5.4 million over approximately 7.5 years averages to roughly $720,000 annually. Benchmarking this against similar administrative support contracts for naval facilities is challenging without more specific service details. The CPFF structure means costs can fluctuate, making a direct value-for-money assessment difficult without detailed cost breakdowns and performance metrics. However, the competitive award process provides some assurance that the initial pricing was considered reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 12 bidders participated, suggesting a robust level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged innovative solutions from multiple vendors, ensuring the government received competitive value.

Public Impact

Naval Surface Warfare Center (NSWC) Corona and its detachments benefit from essential administrative support services. The contract ensures the smooth functioning of critical naval operations and research activities. The primary geographic impact is in California, where NSWC Corona is located. The contract likely supports a workforce involved in administrative and support roles, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF pricing structure can lead to cost overruns if not managed diligently.
Long contract duration requires ongoing performance monitoring to ensure continued value.
Reliance on a single contractor for administrative support could create dependency.
The specific nature of 'administrative support' is broad and may encompass varying levels of complexity and cost.

Positive Signals

Awarded through full and open competition with multiple bidders, indicating a competitive process.
The contractor, VSOLVIT LLC, has experience in government contracting.
The contract duration suggests a stable, long-term requirement met by this award.
The contract is for essential administrative functions supporting a key naval facility.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically supporting defense operations. The market for administrative and support services to government agencies is substantial, with numerous firms competing for these contracts. The $5.4 million value over its term places it as a mid-sized contract within this domain. Comparable spending benchmarks would depend on the precise scope of administrative tasks, but contracts for similar support functions at other naval facilities would offer the closest comparison.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The primary contractor, VSOLVIT LLC, is likely a mid-sized or large business, and their engagement does not inherently create opportunities for small business subcontractors unless specified in their own subcontracting plan, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers at NSWC Corona. Performance reviews, financial audits, and adherence to contract terms would be key oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Surface Warfare Center (NSWC) Operations Support
Department of Defense Administrative Services
Engineering Services Contracts
Cost Plus Fixed Fee Contracts
Federal Administrative Support

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires diligent oversight to prevent cost overruns.
Long contract duration necessitates continuous performance monitoring.
Potential for contractor complacency over the extended period.
Broad definition of 'administrative support' may obscure specific cost drivers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.4 million to VSOLVIT LLC. ADMINISTRATIVE SUPPORT SERVICES FOR NSWC CORONA AND ITS' DETACHMENTS.

Who is the contractor on this award?

The obligated recipient is VSOLVIT LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2018-12-28. End: 2026-06-27.

What is the track record of VSOLVIT LLC with the Department of Defense and specifically with NSWC Corona?

VSOLVIT LLC has a history of performing contracts with the Department of Defense. While specific details on their performance with NSWC Corona for this particular administrative support contract require deeper analysis of past performance reviews and award data, their presence as a bidder and awardee in competitive DoD solicitations suggests a level of established capability. Further investigation into their contract history, including any past issues or commendations, would provide a more complete picture of their reliability and effectiveness in fulfilling government requirements. Examining their performance on similar administrative or technical support contracts across different DoD agencies could also offer valuable insights into their operational strengths and potential weaknesses.

How does the average annual cost of this contract compare to similar administrative support contracts at other Naval facilities?

The average annual cost for this contract is approximately $720,000 ($5.4M / 7.5 years). Benchmarking this against similar administrative support contracts at other Naval facilities is complex due to variations in scope, location, and specific services required. However, this figure appears within a reasonable range for comprehensive administrative support at a significant naval installation. Contracts for facilities management, base operations support, or specialized administrative functions at comparable naval commands could serve as benchmarks. Without access to detailed service level agreements and performance metrics for comparable contracts, a precise value-for-money comparison is difficult, but the competitive award process suggests the initial pricing was deemed fair.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure for this contract?

The primary risk with a CPFF contract is the potential for cost overruns. While the 'fixed fee' component provides the contractor with a guaranteed profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If costs escalate beyond initial projections due to inefficiencies, scope creep, or unforeseen circumstances, the total contract value can increase significantly. This necessitates robust government oversight to scrutinize all claimed costs, ensure they are reasonable and allocable to the contract, and prevent unnecessary expenditures. Effective management and clear definition of work are crucial to mitigate these risks and ensure the government receives good value.

How effective is the competition level (12 bidders) in ensuring optimal pricing and service quality for NSWC Corona?

A competition level of 12 bidders is generally considered strong and is highly effective in promoting optimal pricing and service quality. This high number of participants indicates significant market interest and suggests that multiple capable firms were willing to invest resources in preparing proposals. Such robust competition typically drives down prices as bidders strive to offer the most attractive terms to win the contract. Furthermore, it encourages innovation and a wider range of solutions, increasing the likelihood that NSWC Corona will receive high-quality services tailored to its needs. The government's ability to select from a diverse pool of qualified vendors enhances the probability of securing the best overall value.

What are the potential implications of the long contract duration (nearly 7.5 years) on contractor performance and government flexibility?

The long contract duration of nearly 7.5 years offers stability and continuity for NSWC Corona, ensuring uninterrupted administrative support. For the contractor, it provides a predictable revenue stream, potentially encouraging investment in specialized staff and resources. However, a long duration also presents risks. Contractor performance may degrade over time if not actively managed, leading to complacency. It also reduces the government's flexibility to adapt to changing needs or to capitalize on new technologies or more competitive market offerings that may emerge. Regular performance reviews and clear contract modification clauses are essential to manage these long-term engagements effectively and maintain optimal service delivery.

What is the historical spending pattern for administrative support services at NSWC Corona or similar naval commands?

Analyzing historical spending patterns for administrative support at NSWC Corona or similar naval commands requires access to detailed procurement data over multiple fiscal years. This specific contract, valued at $5.4 million over approximately 7.5 years, represents a significant but potentially consistent investment in these functions. Without prior data, it's difficult to establish a trend. However, naval commands typically require substantial administrative support due to their complex operational and research missions. Consistent funding for such services is common, reflecting their essential nature. Examining past contracts for similar support roles at other Naval Warfare Centers or fleet commands would provide a clearer picture of historical spending levels and trends in this category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6426718R3014

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4171 MARKET STREET SUITE 2, VENTURA, CA, 93003

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

Financial Breakdown

Contract Ceiling: $6,943,453

Exercised Options: $6,943,453

Current Obligation: $5,399,502

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017815D8491

IDV Type: IDC

Timeline