DoD's $31M Backorder Reduction Services Contract with Bering Straits IT Raises Concerns Over Competition and Value
Contract Overview
Contract Amount: $31,031,893 ($31.0M)
Contractor: Bering Straits Information Technology, LLC
Awarding Agency: Department of Defense
Start Date: 2008-06-26
End Date: 2012-07-03
Contract Duration: 1,468 days
Daily Burn Rate: $21.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BACKORDER REDUCTION SERVICES
Place of Performance
Location: RICHMOND, CHESTERFIELD County, VIRGINIA, 23297
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $31.0 million to BERING STRAITS INFORMATION TECHNOLOGY, LLC for work described as: BACKORDER REDUCTION SERVICES Key points: 1. The contract awarded to Bering Straits Information Technology, LLC for backorder reduction services is a significant expenditure. 2. Lack of competition is a major red flag, potentially leading to inflated prices and reduced value for taxpayers. 3. The contract's duration and firm-fixed-price structure warrant scrutiny regarding cost-effectiveness over its lifespan. 4. Analysis of the sector suggests administrative services contracts can vary widely in efficiency and pricing.
Value Assessment
Rating: questionable
The contract's total value of $31 million over four years, with a reported backlog of $21 million, suggests potential inefficiencies or overpricing. Without competitive bidding, it's difficult to benchmark against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited-source award. This significantly hinders price discovery and may result in higher costs than a competitive process would yield.
Taxpayer Impact: The lack of competition means taxpayers may be paying more than necessary for these backorder reduction services, as there was no market pressure to drive down costs.
Public Impact
Taxpayers may be overpaying for essential backorder reduction services due to the absence of competitive bidding. The significant backlog suggests potential issues with the initial service delivery or contract management. The long contract duration raises questions about the sustained need and cost-effectiveness of the services provided.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High backlog value relative to contract value
- Long contract duration without clear performance metrics
Positive Signals
- Firm-fixed-price contract structure can provide cost certainty if priced appropriately
- Contract awarded to a specific company suggests a need for specialized services
Sector Analysis
The administrative services sector, particularly for government contracts, can be highly variable. Benchmarking requires detailed comparison of service scope and performance metrics, which are not readily available here.
Small Business Impact
The contract was awarded to Bering Straits Information Technology, LLC. Information regarding small business participation or subcontracting is not provided, making it difficult to assess impact.
Oversight & Accountability
The limited competition and significant backlog warrant closer oversight to ensure the services are necessary, effective, and priced fairly. Accountability for the backlog reduction is crucial.
Related Government Programs
- Office Administrative Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competitive bidding
- High backlog value
- Long contract duration
- Limited transparency on service specifics and performance metrics
Tags
office-administrative-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.0 million to BERING STRAITS INFORMATION TECHNOLOGY, LLC. BACKORDER REDUCTION SERVICES
Who is the contractor on this award?
The obligated recipient is BERING STRAITS INFORMATION TECHNOLOGY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $31.0 million.
What is the period of performance?
Start: 2008-06-26. End: 2012-07-03.
What specific backorder reduction services were provided, and how was their effectiveness measured against the $31 million expenditure?
The provided data lacks specifics on the services rendered and their measurable outcomes. A detailed review of performance reports and deliverables would be necessary to assess effectiveness. Without this, it's challenging to justify the substantial cost solely based on the contract award.
Given the 'not available for competition' status, what was the justification for bypassing a competitive bidding process, and what due diligence was performed to ensure fair pricing?
The justification for a sole-source or limited-source award typically involves unique capabilities or urgent needs. Without this justification, it's impossible to assess if fair pricing was achieved. A thorough review of the procurement file and any sole-source justifications is required.
How does the $21 million backlog impact the overall value proposition of this contract, and what steps are being taken to address it efficiently?
A $21 million backlog against a $31 million contract value suggests significant challenges in service delivery or an underestimation of the problem's scope. It raises concerns about the contract's ability to achieve its intended purpose efficiently. Further investigation into the causes of the backlog and corrective actions is needed.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4600 DEBARR RD STE 200, ANCHORAGE, AK, 99508
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,236,900
Exercised Options: $63,236,900
Current Obligation: $31,031,893
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2008-06-26
Current End Date: 2012-07-03
Potential End Date: 2012-07-03 00:00:00
Last Modified: 2022-09-02
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