DoD's $21M Defense CBRN Response Force contract awarded to Interfuze Corp. for logistics support

Contract Overview

Contract Amount: $21,071,807 ($21.1M)

Contractor: Interfuze Corporation

Awarding Agency: Department of Defense

Start Date: 2019-03-08

End Date: 2023-10-31

Contract Duration: 1,698 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DEFENSE CBRN RESPONSE FORCE (DCRF) SUSTAINMENT AND REFRESH CONTRACTOR LOGISTICS SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to INTERFUZE CORPORATION for work described as: DEFENSE CBRN RESPONSE FORCE (DCRF) SUSTAINMENT AND REFRESH CONTRACTOR LOGISTICS SUPPORT Key points: 1. Contract provides essential logistics support for the Defense CBRN Response Force, enhancing national security capabilities. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight to manage costs. 4. The duration of the contract (nearly 4 years) indicates a long-term need for these services. 5. The services provided are critical for maintaining the readiness of a specialized military unit. 6. The contract's focus on repair and maintenance aligns with ensuring operational effectiveness of CBRN equipment.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee (CPFF) structure necessitates diligent oversight to ensure value for money, as it can incentivize cost escalation if not managed properly. Benchmarking CPFF contracts for similar logistics support services is challenging without more detailed cost breakdowns. However, the total award amount of approximately $21 million over nearly four years suggests a moderate investment for specialized military support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the breadth of competition. The specific reasons for exclusion are not detailed, which could impact price discovery and the number of potential bidders.

Taxpayer Impact: The exclusion of sources, even in an otherwise open competition, may have limited the number of competitive bids, potentially leading to a higher price for taxpayers than if all qualified sources were allowed to compete.

Public Impact

The primary beneficiaries are the members of the Defense CBRN Response Force (DCRF), who receive essential logistical support to maintain their equipment and readiness. Services delivered include contractor logistics support, crucial for the operational effectiveness of specialized CBRN response capabilities. The geographic impact is likely national, supporting a critical response force that can be deployed anywhere in the U.S. or its territories. Workforce implications include the employment of skilled personnel in logistics, maintenance, and technical support roles, potentially both within the contractor's organization and in supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) contract type if not rigorously monitored.
Limited competition due to 'exclusion of sources' could impact overall value for money.
Dependence on a single contractor for critical logistics support could pose a risk if performance falters.

Positive Signals

Awarded under a competitive process, indicating some level of market vetting.
Contract duration suggests a stable and predictable support structure for the DCRF.
Focus on repair and maintenance ensures readiness of specialized equipment.

Sector Analysis

This contract falls within the broader defense logistics and maintenance sector, a significant segment of federal spending. The market for specialized CBRN response support is niche, requiring contractors with specific expertise and security clearances. Comparable spending benchmarks would typically involve other contracts for military equipment sustainment and readiness support, which can range widely in value depending on the equipment and scope.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary focus or requirement for this specific award. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, Interfuze Corporation, is likely a larger entity, and the contract's scope may not have been structured to facilitate significant small business involvement.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would primarily reside with the Department of the Army contracting and program management offices. Accountability measures would involve regular performance reviews, audits of costs incurred, and adherence to contract terms. Transparency is facilitated through contract award databases, but detailed cost breakdowns and performance metrics may be less publicly accessible due to the nature of defense contracts.

Related Government Programs

Department of Defense Logistics Support Contracts
CBRN Preparedness Programs
Military Equipment Maintenance and Repair Services
Rapid Response Force Sustainment

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition due to source exclusion.
Dependence on contractor for critical logistics.
Need for robust government oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to INTERFUZE CORPORATION. DEFENSE CBRN RESPONSE FORCE (DCRF) SUSTAINMENT AND REFRESH CONTRACTOR LOGISTICS SUPPORT

Who is the contractor on this award?

The obligated recipient is INTERFUZE CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2019-03-08. End: 2023-10-31.

What is the track record of Interfuze Corporation in performing similar defense logistics contracts?

Interfuze Corporation has a history of performing various contracts, including logistics support, IT services, and base operations support for government agencies. Specific to defense logistics, their experience often involves maintaining and sustaining military equipment and infrastructure. Analyzing their past performance on similar contracts, particularly those involving specialized units like the DCRF, would involve reviewing past performance evaluations (e.g., CPARS reports), any past disputes or contract terminations, and their demonstrated ability to meet cost, schedule, and performance requirements. A review of their financial stability and capacity to handle large-scale logistics operations is also crucial for assessing their track record.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in government contracting, especially for services where the scope of work might evolve or is difficult to define precisely at the outset, such as complex logistics support. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While flexible, CPFF contracts carry a higher risk of cost overruns if not managed diligently by the government. Industry standards suggest that for well-defined services, fixed-price contracts often offer better value. However, for specialized, evolving support like CBRN logistics, CPFF can be appropriate if robust oversight mechanisms are in place to control costs and ensure the fixed fee remains reasonable relative to the effort.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key performance indicators (KPIs) for a contract like the Defense CBRN Response Force (DCRF) Sustaining and Refresh Contractor Logistics Support would likely focus on readiness, response times, equipment availability, and cost control. Specific KPIs might include: Mean Time Between Failures (MTBF) for critical CBRN equipment, Mean Time To Repair (MTTR), on-time delivery rates for parts and services, percentage of equipment ready for deployment, and adherence to budget targets. The contract's success would be measured by the contractor's ability to ensure the DCRF maintains a high level of operational readiness through effective logistics and maintenance support, as documented in performance reports and potentially through government acceptance testing and inspections.

What is the historical spending trend for DCRF logistics support, and how does this contract fit?

Historical spending data for DCRF logistics support prior to this contract would provide context for the $21 million award. If previous support was fragmented, handled internally, or through different contract vehicles, this contract represents a consolidation or specific approach to sustainment. Analyzing past spending would reveal if this award is an increase, decrease, or consistent with previous investment levels for similar capabilities. Understanding the evolution of DCRF requirements and the associated funding trends is crucial. This contract appears to be a significant, multi-year investment aimed at ensuring the long-term readiness and refresh of critical CBRN response assets, fitting into a broader DoD strategy for maintaining specialized response capabilities.

Are there any identified risks associated with the 'exclusion of sources' in the competition process?

The primary risk associated with 'exclusion of sources' in a competitive process is the potential for reduced competition, which can lead to higher prices and potentially lower quality or innovation. If legitimate, capable sources were excluded without clear justification, the government may not have received the best possible offer. This practice can also raise concerns about fairness and transparency in the procurement process. While sometimes necessary for specific technical requirements or national security reasons, the exclusion should be well-documented and justified to mitigate risks to the taxpayer and ensure the government obtains optimal value. Without knowing the specific reasons for exclusion, it's difficult to quantify the precise risk, but it inherently limits the competitive landscape.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911SR15R0002

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 675 DISCOVERY DR NW STE 200, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,971,556

Exercised Options: $21,971,556

Current Obligation: $21,071,807

Actual Outlays: $229,724

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $476,376

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SR16D0010

IDV Type: IDC

Timeline