DOD's $12M sustainment trainer contract awarded to INTEGIC for consulting services

Contract Overview

Contract Amount: $11,983,353 ($12.0M)

Contractor: Integic

Awarding Agency: Department of Defense

Start Date: 2006-04-20

End Date: 2011-02-15

Contract Duration: 1,762 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SUSTAINMENT TRAINER PART 2

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to INTEGIC for work described as: SUSTAINMENT TRAINER PART 2 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1762 days indicates a long-term need for sustainment training. 3. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services. 4. Awarded by the Department of the Army, this contract supports military readiness. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The contractor, INTEGIC, received this award valued at over $11.9 million.

Value Assessment

Rating: fair

The contract value of $11.98 million for sustainment trainer services over approximately 4.8 years appears reasonable given the scope of technical consulting. However, without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. Benchmarking against similar long-term sustainment training contracts would provide better context for pricing.

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 presence of 6 bidders suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and potentially achieving better value for the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of the Army personnel who will receive sustainment training. The services delivered are likely related to maintaining and operating complex military systems. The contract was performed in Texas, indicating a geographic focus for service delivery. This contract supports specialized technical consulting roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically consulting. The defense consulting market is substantial, with significant government spending allocated to specialized technical support for military systems and operations. Comparable spending benchmarks would involve analyzing other long-term training and sustainment contracts within the Department of Defense.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, and the prime contractor is INTEGIC. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. Accountability measures would be tied to the contract's performance requirements and delivery schedules. Transparency is facilitated by the Federal Procurement Data System (FPDS) where contract awards are reported.

Related Government Programs

Risk Flags

Tags

defense, department-of-defense, department-of-the-army, consulting-services, time-and-materials, full-and-open-competition, sustainment-training, texas, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to INTEGIC. SUSTAINMENT TRAINER PART 2

Who is the contractor on this award?

The obligated recipient is INTEGIC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2006-04-20. End: 2011-02-15.

What is INTEGIC's track record with the Department of Defense?

INTEGIC has a history of receiving contracts from the Department of Defense, including this specific award for sustainment trainer services. Analyzing their past performance on similar contracts, including any reported issues or successes, would provide a clearer picture of their reliability and capability. Reviewing contract close-out data and any past performance evaluations would be crucial for a comprehensive assessment. Their ability to successfully deliver on this $11.98 million contract over its multi-year duration is a key indicator of their experience within the defense sector.

How does the $11.98 million value compare to similar sustainment training contracts?

Benchmarking this $11.98 million contract against similar sustainment training contracts awarded by the Department of Defense or other federal agencies is essential for a value-for-money assessment. Factors such as contract duration, scope of services (e.g., type of equipment trained on, complexity of systems), and geographic location play a significant role in cost variations. Without specific comparable data, it's difficult to definitively state if this contract represents excellent or fair value. However, the full and open competition with 6 bidders suggests a competitive pricing environment.

What are the primary risks associated with a Time and Materials contract of this magnitude?

The primary risk associated with a Time and Materials (T&M) contract of this $11.98 million magnitude is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not well-defined or if project management is weak, the contractor could incur more hours or material costs than initially anticipated, leading to a higher final price for the government. Robust oversight, clear task definitions, and diligent monitoring of labor hours and material expenses are critical to mitigate these risks.

How effective is sustainment training in improving military readiness?

Sustainment training is critically important for maintaining and improving military readiness by ensuring personnel are proficient in operating and maintaining complex equipment and systems throughout their lifecycle. Effective sustainment training directly translates to reduced equipment downtime, improved operational effectiveness, and enhanced safety. The Department of Defense invests heavily in such training to ensure that service members can effectively utilize and preserve valuable military assets, thereby maximizing their return on investment and ensuring mission accomplishment in diverse operational environments.

What has been the historical spending trend for sustainment trainer services by the Department of the Army?

Historical spending trends for sustainment trainer services by the Department of the Army reveal a consistent and significant investment in ensuring operational readiness. While specific figures fluctuate year-to-year based on evolving defense needs, technological advancements, and budget allocations, the Army generally prioritizes training contracts to maintain its vast array of equipment. Analyzing past FPDS data for similar NAICS codes and contract types would illustrate whether this $11.98 million award is in line with historical spending patterns or represents an increase or decrease in investment for such services.

What is the significance of the 'Other Scientific and Technical Consulting Services' NAICS code for this contract?

The NAICS code 541690, 'Other Scientific and Technical Consulting Services,' signifies that this contract is for specialized expertise that doesn't fit into more specific consulting categories. For this $11.98 million Department of Defense contract, it implies that INTEGIC is providing highly specific technical advice, analysis, or support related to sustainment, likely involving complex systems or processes. This broad classification allows for flexibility in contracting for unique or emerging technical needs that are crucial for military operations but may not align with predefined service areas.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesOther Scientific and Technical 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: W81XWH06R0012

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 14585 AVION PKWY, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,983,353

Exercised Options: $11,983,353

Current Obligation: $11,983,353

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2006-04-20

Current End Date: 2011-02-15

Potential End Date: 2011-02-15 00:00:00

Last Modified: 2012-07-06

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