Air National Guard Spends $50M on Drug Demand Reduction Specimen Collection Services with Loyal Source
Contract Overview
Contract Amount: $50,198,009 ($50.2M)
Contractor: Loyal Source Government Services LLC
Awarding Agency: Department of Defense
Start Date: 2019-09-30
End Date: 2024-09-29
Contract Duration: 1,826 days
Daily Burn Rate: $27.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: AIR NATIONAL GUARD DRUG DEMAND REDUCTION PROGRAM (DDRP) SPECIMEN COLLECTION SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $50.2 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: AIR NATIONAL GUARD DRUG DEMAND REDUCTION PROGRAM (DDRP) SPECIMEN COLLECTION SERVICES Key points: 1. Spending of $50.2M over 5 years for specimen collection services. 2. Loyal Source Government Services LLC is the sole awardee. 3. Contract awarded under Full and Open Competition. 4. Services support the Air National Guard's Drug Demand Reduction Program.
Value Assessment
Rating: good
The contract's total value of $50.2M over five years appears reasonable for specialized specimen collection services supporting a national program. Benchmarking against similar DoD contracts for medical laboratory services suggests this pricing is within expected ranges, though specific service inclusions would refine this assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust process for soliciting bids and ensuring fair market pricing. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure services at the best possible price for the Air National Guard's critical drug demand reduction efforts.
Public Impact
Ensures the integrity of drug testing for military personnel. Supports readiness and health within the Air National Guard. Provides essential services for a national security program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation noted.
- Contract duration of 5 years may limit future competition.
Positive Signals
- Awarded under full and open competition.
- Supports a vital national security program.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically related to medical laboratories. Spending benchmarks for similar services within the Department of Defense can vary widely based on scope, but $50M over five years for a national program suggests a significant but potentially justified investment.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract award, as the 'sb' field is false. Efforts to ensure small business participation in future contract vehicles or subcontracting opportunities should be explored to promote equitable distribution of federal dollars.
Oversight & Accountability
The contract was awarded by the Department of the Army for the Air National Guard, indicating inter-service collaboration. Oversight would typically involve the contracting officer's representative (COR) ensuring service delivery and compliance with contract terms.
Related Government Programs
- Medical Laboratories
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- No small business participation.
- Long contract duration (5 years) may limit future competition.
- Potential for vendor lock-in with a single awardee.
- Specific service details and performance metrics are not provided.
Tags
medical-laboratories, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.2 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. AIR NATIONAL GUARD DRUG DEMAND REDUCTION PROGRAM (DDRP) SPECIMEN COLLECTION SERVICES
Who is the contractor on this award?
The obligated recipient is LOYAL SOURCE GOVERNMENT 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 $50.2 million.
What is the period of performance?
Start: 2019-09-30. End: 2024-09-29.
What specific services are included in the specimen collection and how do they align with the $50.2M cost?
The contract details for specimen collection services are not fully elaborated in the provided data. A comprehensive understanding of the scope, including the types of tests, frequency of collection, geographic coverage, and laboratory analysis, is necessary to fully assess the value proposition. Without this granular detail, it's challenging to definitively state if the $50.2M represents optimal value, though it appears within a reasonable range for a national program.
What are the potential risks associated with a single awardee for such a critical program over five years?
A single awardee for a critical program over five years presents risks such as potential complacency, reduced incentive for innovation, and vulnerability if the contractor faces performance issues or financial instability. This could lead to service disruptions or increased costs if a new procurement is suddenly required. The government should maintain strong oversight and performance management to mitigate these risks.
How effective is the Drug Demand Reduction Program in achieving its stated goals, and how does this contract contribute to that effectiveness?
The effectiveness of the Drug Demand Reduction Program (DDRP) itself is not detailed in this data. However, reliable and efficient specimen collection services are foundational to the program's success. This contract ensures the logistical and analytical backbone for drug testing is in place, contributing to the DDRP's ability to monitor, deter, and address substance abuse issues within the Air National Guard, thereby supporting overall force readiness and health.
Industry Classification
NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories
Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9133L19R0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12612 CHALLENGER PARKWAY SUITE 365, ORLANDO, FL, 32826
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $50,198,009
Exercised Options: $50,198,009
Current Obligation: $50,198,009
Actual Outlays: $31,417,212
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,705,264
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-30
Current End Date: 2024-09-29
Potential End Date: 2024-09-29 00:00:00
Last Modified: 2024-04-16
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