DoD's $31.5M Engineering Services Contract Awarded to Value Recovery Holding Shows Fair Competition

Contract Overview

Contract Amount: $31,471,818 ($31.5M)

Contractor: Value Recovery Holding, Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2014-05-07

End Date: 2018-09-18

Contract Duration: 1,595 days

Daily Burn Rate: $19.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF LABOR

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to VALUE RECOVERY HOLDING, LIMITED LIABILITY COMPANY for work described as: IGF::OT::IGF LABOR Key points: 1. The contract was awarded under full and open competition, indicating a competitive bidding process. 2. The contract type, Cost Plus Fixed Fee, suggests potential for cost overruns if not managed closely. 3. The duration of the contract (1595 days) indicates a long-term need for these engineering services. 4. The award was made to a single entity, Value Recovery Holding, LLC. 5. The contract falls under the Engineering Services NAICS code (541330). 6. The contract was awarded by the Department of the Army, a component of the DoD. 7. The contract was active from May 2014 to September 2018.

Value Assessment

Rating: fair

Benchmarking the value of this $31.5 million contract is challenging without specific service details and comparable contract data. However, the Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if cost controls are not robust. The fixed fee component provides some predictability, but the variable cost component requires careful oversight to ensure value for money. Without more granular data on the specific engineering services rendered and their market rates, a definitive value assessment is difficult.

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. The presence of 6 bidders suggests a healthy level of competition for these engineering services. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition indicates that taxpayers benefited from a process designed to solicit the best possible offers, likely resulting in a more competitive price than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are likely the Department of the Army and potentially other Department of Defense entities requiring specialized engineering services. The services delivered are engineering services, crucial for military infrastructure, equipment, or operational support. The geographic impact is likely concentrated within areas where the Department of the Army operates or has facilities. Workforce implications could include employment for engineers and support staff employed by Value Recovery Holding, LLC and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to increase the fixed fee earned, if not properly managed.
The long duration of the contract (over 4 years) increases the risk of scope creep or evolving requirements not being adequately addressed.
Lack of specific details on the engineering services provided makes it difficult to assess the true value and necessity of the contract.
The contract was awarded in 2014, and current market rates or technological advancements may have changed significantly since then.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential contractors could compete.
The presence of 6 bidders indicates a competitive market for these services.
The contract was awarded to a single entity, suggesting a clear point of accountability for service delivery.
The contract was active for a significant period, implying a sustained need and potentially successful delivery of services over time.

Sector Analysis

The engineering services sector is a critical component of government contracting, supporting a wide array of federal agencies. This contract falls within the broader professional, scientific, and technical services industry. The Department of Defense is a major consumer of engineering services, utilizing them for everything from infrastructure development and maintenance to complex weapons systems design and analysis. Comparable spending benchmarks would typically involve analyzing other large-scale engineering service contracts awarded by the DoD or other federal agencies for similar types of support.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The contract was awarded to Value Recovery Holding, LLC, and information regarding subcontracting plans or performance with small businesses is not available. Without specific subcontracting goals or reporting, it's difficult to assess the impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and program managers responsible for monitoring performance, costs, and compliance. Accountability measures are inherent in the contract terms, particularly the fixed fee component and the potential for audits. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Engineering Services Contracts
Army Corps of Engineers Contracts
Professional, Scientific, and Technical Services Contracts
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Contract type (CPFF) may lead to cost overruns if not closely managed.
Lack of specific service details hinders comprehensive value assessment.
Contract awarded in 2014; current market relevance and pricing may differ.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to VALUE RECOVERY HOLDING, LIMITED LIABILITY COMPANY. IGF::OT::IGF LABOR

Who is the contractor on this award?

The obligated recipient is VALUE RECOVERY HOLDING, LIMITED LIABILITY COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2014-05-07. End: 2018-09-18.

What specific engineering services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541330 (Engineering Services) and was awarded by the Department of the Army. However, the specific nature of the engineering services rendered is not detailed. These could range broadly from civil engineering for infrastructure projects, mechanical or electrical engineering for facility support, to specialized engineering consulting for defense systems. Without further documentation or a detailed contract statement of work, the precise services remain unspecified. This lack of specificity makes it challenging to fully assess the contract's necessity, value, and performance outcomes.

How does the $31.5 million award compare to similar engineering service contracts awarded by the DoD?

Comparing this $31.5 million contract requires access to a database of similar DoD engineering service contracts, ideally those awarded around the same period (2014-2018) and for comparable scope. The Department of Defense awards numerous engineering service contracts annually, with values varying significantly based on project complexity and duration. A contract of $31.5 million over approximately four years is a substantial award, suggesting a significant project or ongoing support requirement. However, without specific details on the services and the number of bidders for comparable contracts, a direct value-for-money comparison is difficult. Generally, larger contracts may offer economies of scale but also carry higher risks if not managed effectively.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government pays the actual costs incurred plus a pre-determined fixed fee. For a $31.5 million contract, this could lead to significant cost overruns if the government's oversight is not rigorous. Potential risks include inefficient resource allocation, unnecessary expenditures, and scope creep where the project expands beyond its original intent without adequate cost adjustments. Effective risk mitigation requires strong government oversight, detailed cost tracking, and clear performance metrics to ensure the contractor operates efficiently and delivers value within the agreed-upon fee structure.

What was the contractor's track record prior to receiving this award?

Information regarding Value Recovery Holding, Limited Liability Company's track record prior to or during this specific contract award is not provided in the data. A comprehensive assessment of the contractor's performance would typically involve reviewing past performance evaluations, any history of contract disputes, financial stability, and experience with similar government contracts. Without this historical data, it is difficult to gauge their reliability, expertise, and past success in delivering engineering services under government contracts.

How did the competition level (6 bidders) influence the final contract price and terms?

A competition level of 6 bidders for a $31.5 million engineering services contract generally suggests a healthy market and a competitive environment. This level of competition typically exerts downward pressure on pricing, as contractors vie to win the award by offering competitive bids. It also increases the likelihood that the government will receive proposals that meet or exceed its requirements at a reasonable cost. The government's ability to select from multiple proposals allows for a more informed decision, potentially leading to better terms and conditions beyond just price, such as stronger performance guarantees or more favorable payment schedules.

What is the historical spending pattern for engineering services by the Department of the Army?

The Department of the Army, as a major component of the DoD, consistently spends significant amounts on engineering services annually. Historical spending patterns reveal a sustained demand for these services, covering a wide spectrum from infrastructure development and maintenance (e.g., base construction, facility upgrades) to specialized technical support for military equipment and systems. The total annual expenditure can fluctuate based on global security needs, infrastructure investment cycles, and specific modernization programs. This $31.5 million contract represents one component of that larger, ongoing investment in engineering capabilities necessary for military readiness and operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: W912DY14R0009

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Value Recovery Group, Inc (UEI: 181627048)

Address: 919 OLD HENDERSON RD, COLUMBUS, OH, 43220

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,623,614

Exercised Options: $31,471,818

Current Obligation: $31,471,818

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline