Addon Services LLC awarded $2.6M for case management, a sole-source contract with a 46-month duration

Contract Overview

Contract Amount: $2,620,005 ($2.6M)

Contractor: Addon Services LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-12

End Date: 2026-07-11

Contract Duration: 1,398 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CASE MANAGEMENT SERVICES - BASE PERIOD

Place of Performance

Location: COLCHESTER, CHITTENDEN County, VERMONT, 05446

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $2.6 million to ADDON SERVICES LLC for work described as: CASE MANAGEMENT SERVICES - BASE PERIOD Key points: 1. The contract's value appears reasonable for the 46-month duration, but a lack of competition limits price discovery. 2. Sole-source procurement raises concerns about potential overpayment and lack of innovation. 3. The administrative management and general management consulting services sector is broad; specific performance metrics are needed for true value assessment. 4. Contract duration of 46 months suggests a need for stable, long-term support. 5. The contract is a definitive contract with a firm fixed price, indicating clear cost expectations. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of 'case management services'. However, the total value of approximately $2.6 million over 46 months equates to roughly $56,500 per month. This figure needs to be compared against the complexity and criticality of the case management functions performed. Given the sole-source nature, it's difficult to assess if this represents competitive pricing or if alternative solutions could have been procured at a lower cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP'. The data indicates a sole-source award, meaning only one vendor, Addon Services LLC, was considered. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The lack of competition means there's no direct comparison to other offers to gauge market competitiveness.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding. This limits the government's ability to secure the best possible value for public funds.

Public Impact

The primary beneficiaries are likely the Department of the Army and its personnel who require case management services. The services delivered are administrative management and general management consulting, crucial for operational efficiency. The contract is awarded to a vendor located in Vermont (VT), suggesting potential local or regional impact, though the service delivery location is not specified. The contract supports the administrative functions of the Department of the Army, indirectly impacting the broader defense workforce by ensuring essential support services are maintained.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a contract of this value raises concerns about potential price inflation and suboptimal value for taxpayer money.
The broad categorization of 'Administrative Management and General Management Consulting Services' makes it difficult to assess the specific value and effectiveness without detailed performance metrics.
The sole-source nature of the award means potential innovative solutions from other vendors were not explored.
The contract duration of 46 months, while providing stability, also locks the government into a single provider without regular re-evaluation of market alternatives.

Positive Signals

The contract is a Firm Fixed Price (FFP) type, which provides cost certainty for the government and shifts some risk to the contractor.
The contract has a defined period of performance (September 12, 2022, to July 11, 2026), allowing for planned resource allocation.
The award is to Addon Services LLC, suggesting an established relationship or specific expertise recognized by the agency.

Sector Analysis

The contract falls under the 'Administrative Management and General Management Consulting Services' (NAICS 541611) sector. This is a broad category encompassing a wide range of advisory and assistance services. The federal market for these services is substantial, with agencies frequently procuring consulting expertise to improve operations, strategy, and management. This specific contract, valued at $2.6 million over 46 months, represents a moderate investment within this sector, likely supporting specific internal functions of the Department of the Army.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that the procurement was open to all eligible offerors, including large businesses. While this allows for a wider pool of potential contractors, it also means that specific opportunities for small businesses to compete and secure prime contracts were not prioritized in this instance. Subcontracting opportunities for small businesses may still exist at the discretion of Addon Services LLC, but there is no explicit requirement indicated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited due to the sole-source nature, but contract awards are generally reported in federal databases like FPDS. The specific Inspector General jurisdiction would depend on the Army's internal structure and the nature of any potential issues arising from the contract's performance.

Related Government Programs

Management and Financial Consulting, Acquisition and Technology Services
Professional Services
Defense Administrative Support Contracts
Army Consulting Services

Risk Flags

Sole-source award lacks competitive pricing.
Lack of detailed performance metrics hinders value assessment.
Broad service description makes specific impact analysis difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.6 million to ADDON SERVICES LLC. CASE MANAGEMENT SERVICES - BASE PERIOD

Who is the contractor on this award?

The obligated recipient is ADDON SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2022-09-12. End: 2026-07-11.

What is the specific scope of 'CASE MANAGEMENT SERVICES' being provided under this contract?

The provided data does not detail the specific scope of 'CASE MANAGEMENT SERVICES'. This category typically involves the administration, coordination, and monitoring of cases, which could range from personnel management, resource allocation, to specific program participant tracking. For the Department of the Army, these services could relate to personnel readiness, logistical support coordination, or administrative case processing. Without further details, it's difficult to ascertain the exact nature of the work, its complexity, or its criticality to Army operations. Understanding the specific tasks, deliverables, and performance standards would be essential for a comprehensive value assessment and to determine if the $2.6 million expenditure is justified.

How does the $2.6 million contract value compare to similar case management service contracts within the Department of Defense or other federal agencies?

Direct comparison of the $2.6 million contract value for 'CASE MANAGEMENT SERVICES' is challenging without more granular data on the scope and duration of comparable contracts. However, the average monthly cost of approximately $56,500 ($2.6M / 46 months) provides a benchmark. Federal case management contracts can vary significantly based on the complexity of cases, number of individuals managed, required technology, and geographic scope. Contracts for large-scale federal programs often run into tens or hundreds of millions of dollars. This $2.6 million contract appears to be of moderate size, likely supporting a specific unit, program, or function within the Department of the Army rather than a department-wide initiative. A more precise comparison would require analyzing contracts with similar service descriptions, agency, and performance periods.

What are the key performance indicators (KPIs) or metrics used to evaluate the performance of Addon Services LLC under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics used to evaluate Addon Services LLC's performance. For a contract focused on 'CASE MANAGEMENT SERVICES,' typical KPIs might include case resolution times, accuracy rates in data entry and reporting, client satisfaction scores (if applicable), adherence to service level agreements (SLAs), and compliance with relevant regulations. The effectiveness and value of this $2.6 million contract are directly tied to the contractor's ability to meet these performance standards. Without visibility into these metrics, it is difficult to objectively assess whether the government is receiving the expected quality and quantity of services for the price paid. Agency oversight should include regular reviews against defined performance benchmarks.

Given the sole-source nature, what justification was provided for not competing this contract?

The data indicates the contract was 'NOT COMPETED UNDER SAP' and is a sole-source award. Federal regulations (e.g., FAR Part 6) typically require full and open competition unless specific exceptions apply. Common justifications for sole-source awards include: only one responsible source exists with the capability to meet the requirement, the acquisition is for a brand name item, or a national emergency exists. Without the specific justification document (often referred to as a Justification and Approval or J&A), it's impossible to know the precise reason. However, the lack of competition suggests the agency determined that only Addon Services LLC could fulfill the requirement, potentially due to unique capabilities, proprietary technology, or a critical need that precluded a lengthy competition process.

What is the historical spending pattern for case management services by the Department of the Army, and how does this contract fit within that pattern?

The provided data does not offer historical spending patterns for case management services by the Department of the Army. To establish such a pattern, one would need to analyze past contract awards for similar services over several fiscal years. This would involve searching federal procurement databases (like FPDS) for contracts with relevant NAICS codes (e.g., 541611) and service descriptions related to case management, specifically within the Army. This $2.6 million contract, awarded in late 2022 for a duration extending into 2026, represents a current investment. Understanding historical spending would help determine if this contract's value is consistent with previous procurements, if spending has increased or decreased, and whether this represents a significant shift in the Army's approach to acquiring case management support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: MEDICAL SERVICES › CLERICAL MEDICAL SUPPORT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W912LN22R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27789 MOUND RD, WARREN, MI, 48092

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,634,065

Exercised Options: $2,634,065

Current Obligation: $2,620,005

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline