DoD's $13.5M management support contract with Analytic Services Inc. awarded via full and open competition

Contract Overview

Contract Amount: $13,548,513 ($13.5M)

Contractor: Analytic Services Inc.

Awarding Agency: Department of Defense

Start Date: 2008-07-03

End Date: 2011-06-30

Contract Duration: 1,092 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to ANALYTIC SERVICES INC. for work described as: MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded for management support services, indicating a need for specialized expertise. 2. The contract duration of 1092 days suggests a long-term requirement for these services. 3. Awarded by the Defense Logistics Agency, highlighting its role in supporting defense operations. 4. The firm-fixed-price contract type suggests that cost risks are largely borne by the contractor. 5. The North American Industry Classification System (NAICS) code 541618 points to a focus on other management consulting services. 6. The contract was awarded in Virginia, a common hub for government contracting activities.

Value Assessment

Rating: fair

The total contract value of $13.5 million over approximately three years averages to about $4.5 million annually. Benchmarking this against similar management consulting contracts is challenging without more specific service details. However, the number of bids received (2) suggests a potentially limited pool of qualified contractors for this specific niche, which could influence pricing. Further analysis would require comparing the specific deliverables and labor categories to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Two bids were received, which is on the lower end for a full and open competition. While this indicates some level of competition, it might suggest that the market for these specific management support services is relatively concentrated or that the requirements were highly specialized, potentially limiting the number of interested and capable bidders.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally provides a better opportunity for price discovery and achieving a fair market price for taxpayers compared to sole-source or limited competitions.

Public Impact

The Department of Defense benefits from specialized management support services to enhance operational efficiency. Personnel within the Defense Logistics Agency likely receive direct support from the contractor's expertise. The contract's execution in Virginia has potential implications for the local economy and workforce. Improved management processes could indirectly benefit military readiness and logistical capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in a higher price than if more firms had participated.
The specific nature of 'Other Management Consulting Services' can sometimes lead to scope creep if not tightly managed.

Positive Signals

Awarded under full and open competition, ensuring a broad search for qualified contractors.
Firm-fixed-price contract type shifts cost overrun risk to the contractor.
Long contract duration (1092 days) suggests a stable, ongoing need and potential for contractor efficiency through familiarity.

Sector Analysis

The management consulting services sector is a significant part of the professional services industry, supporting various government functions. This contract falls under the 'Other Management Consulting Services' category (NAICS 541618), which encompasses a broad range of advisory and assistance services. Government spending in this area is often driven by the need for specialized expertise, process improvement, and strategic planning that internal government resources may not possess. Comparable spending benchmarks would depend heavily on the specific sub-services provided, but the overall market for management consulting is substantial.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The prime contractor, Analytic Services Inc., is likely a mid-to-large-sized firm, and their engagement does not inherently create opportunities for small business subcontractors unless specified in their own business development strategies or through broader agency initiatives not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Defense Logistics Agency. Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. As a Department of Defense contract, it may also be subject to review by the Department of Defense Office of Inspector General (DoD OIG) for potential fraud, waste, or abuse, depending on specific risk assessments or audits.

Related Government Programs

Management and Financial Consulting, Acquisition and Technology Services
Professional, Scientific, and Technical Services
Defense-Wide Contract Operations
Logistics and Supply Chain Management Support

Risk Flags

Limited competition may impact price competitiveness.
Scope definition clarity is crucial for firm-fixed-price contracts in service industries.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to ANALYTIC SERVICES INC.. MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ANALYTIC SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2008-07-03. End: 2011-06-30.

What is the track record of Analytic Services Inc. with the Department of Defense and similar contracts?

Analytic Services Inc. (ANSER) has a long history of supporting government agencies, particularly in defense and national security. Their work often involves complex analysis, research, and program management support. For the Department of Defense, ANSER has been involved in numerous contracts covering areas like strategic planning, wargaming, policy analysis, and systems engineering. Their experience typically involves providing high-level advisory services and technical expertise. The specific contract data provided (DCA award, 2008-2011) indicates a past engagement with the Defense Logistics Agency. A deeper dive into their contract history would reveal the breadth and depth of their involvement across various DoD components and the types of services rendered, allowing for a more robust assessment of their performance and suitability for similar future requirements.

How does the $13.5 million value compare to other management consulting contracts awarded by the Defense Logistics Agency?

The $13.5 million total value for this contract, awarded over approximately three years (July 2008 - June 2011), positions it as a moderately sized engagement within the broader landscape of defense contracting. The Defense Logistics Agency (DLA) manages a vast portfolio of contracts, many of which are significantly larger, particularly in areas like procurement, sustainment, and infrastructure. However, for specialized management consulting services, $13.5 million represents a substantial investment. To provide a precise comparison, one would need to analyze DLA's historical spending on NAICS code 541618 (Other Management Consulting Services) during that period. Contracts of this value typically involve significant scope, requiring dedicated teams and long-term strategic support, suggesting this was a critical function for DLA at the time.

What are the primary risks associated with a firm-fixed-price contract for management consulting services?

The primary risk associated with a firm-fixed-price (FFP) contract for management consulting services lies in the potential for the contractor to cut corners or reduce service quality to maintain profitability if costs exceed initial estimates. While FFP shifts cost risk to the contractor, it requires very clear and well-defined scope of work. If the scope is ambiguous or changes frequently, the contractor may resist necessary adjustments without additional funding, or the government may not receive the full value of services intended. Another risk is that the contractor might prioritize profit over optimal solutions if not carefully managed and monitored. Effective government oversight is crucial to ensure the quality and completeness of services delivered under an FFP arrangement, mitigating the risk of receiving substandard support.

What does the limited competition (2 bidders) imply about the market for these specific management support services?

The fact that only two bids were received for this 'full and open' competition suggests that the market for these specific management support services may be relatively niche or concentrated. This could be due to several factors: the highly specialized nature of the required expertise, stringent qualification requirements that only a few firms could meet, or perhaps the timing and geographic location of the requirement were not conducive to broader participation. A limited number of bidders can sometimes indicate less competitive pricing, as the potential pool of alternatives for the government is smaller. It might also suggest that the incumbent contractor (if applicable) had a strong advantage, or that the solicitation was structured in a way that inadvertently discouraged wider interest. Understanding the specific requirements and the contractor landscape is key to fully interpreting this limited competition.

How has federal spending on 'Other Management Consulting Services' (NAICS 541618) trended historically?

Federal spending on 'Other Management Consulting Services' (NAICS 541618) has generally shown an upward trend over the past two decades, reflecting a consistent demand for specialized advisory and assistance services across various government agencies. This category encompasses a wide array of services, including strategic planning, organizational improvement, process re-engineering, and program management support. Agencies often utilize these services to augment internal capabilities, address complex challenges, or implement new initiatives without increasing permanent staff. While specific year-over-year fluctuations occur based on budget cycles, agency priorities, and national events, the overall trajectory indicates a sustained reliance on external expertise to enhance government operations and effectiveness. This trend is observable across major spending departments like Defense, Health and Human Services, and Homeland Security.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP060008R0510

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2900 S QUINCY ST STE 800, ARLINGTON, VA, 08

Business Categories: Category Business, Corporate Entity Tax Exempt, Federally Funded Research and Development Corp, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,548,513

Exercised Options: $13,548,513

Current Obligation: $13,548,513

Contract Characteristics

Cost or Pricing Data: NO

Timeline