DoD's $66M Army Consulting Contract with SRC Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $66,089,170 ($66.1M)
Contractor: SRC Inc
Awarding Agency: Department of Defense
Start Date: 2010-04-07
End Date: 2015-10-06
Contract Duration: 2,008 days
Daily Burn Rate: $32.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SAB SUPPORT SERVICES - BASE
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $66.1 million to SRC INC for work described as: SAB SUPPORT SERVICES - BASE Key points: 1. Contract Value: $66.1 million over 5 years. 2. Competition: Awarded under full and open competition, indicating a competitive bidding process. 3. Risk: Moderate risk due to the cost-plus-fixed-fee pricing structure. 4. Sector: Management Consulting Services (NAICS 541618).
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar consulting contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the cost-plus-fixed-fee nature may still allow for costs to exceed initial estimates.
Taxpayer Impact: Taxpayer funds are utilized for management consulting services. The effectiveness of competition in controlling costs for this type of service is a key consideration.
Public Impact
Provides essential management consulting services to the Department of the Army. Supports strategic planning and operational efficiency within the Army. Contract duration of over 5 years suggests a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee pricing can incentivize higher costs.
- Lack of specific performance metrics makes value assessment challenging.
- Limited transparency on how fixed fee was determined.
Positive Signals
- Awarded through full and open competition.
- Contract supports critical Army operations.
- Long-term contract indicates sustained demand.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. Spending in this area often supports government efficiency and strategic initiatives.
Small Business Impact
The contract was not awarded to small businesses, as indicated by 'sb: false'. This suggests larger, established firms were likely the primary bidders.
Oversight & Accountability
Oversight is crucial for cost-plus contracts to ensure funds are used efficiently and effectively. The Department of the Army is responsible for monitoring performance and costs.
Related Government Programs
- Other Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost-plus-fixed-fee pricing.
- Lack of detailed performance metrics.
- Potential for cost overruns.
- No small business participation.
Tags
other-management-consulting-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $66.1 million to SRC INC. SAB SUPPORT SERVICES - BASE
Who is the contractor on this award?
The obligated recipient is SRC INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $66.1 million.
What is the period of performance?
Start: 2010-04-07. End: 2015-10-06.
How effectively did the full and open competition process control costs given the cost-plus-fixed-fee structure?
While full and open competition generally promotes price discovery, the cost-plus-fixed-fee (CPFF) structure inherently shifts some cost risk to the government. The effectiveness in controlling costs depends heavily on the agency's oversight, the clarity of the fixed fee negotiation, and the contractor's efficiency. Without detailed cost data and performance metrics, it's difficult to definitively assess cost control effectiveness solely based on the competition type.
What are the primary risks associated with the cost-plus-fixed-fee pricing for these consulting services?
The primary risk with CPFF is the potential for cost escalation. The contractor is reimbursed for allowable costs plus a predetermined fixed fee. This can incentivize the contractor to incur higher costs, as their profit (the fixed fee) remains constant regardless of the actual costs incurred. Effective government oversight and robust auditing are essential to mitigate this risk and ensure costs remain reasonable and allocable.
How does the duration and value of this contract reflect the Army's ongoing need for management consulting?
The contract's duration of over five years (April 2010 - October 2015) and a value of approximately $66 million indicate a significant and sustained requirement for management consulting services within the Department of the Army. This suggests that these services are integral to the Army's operations, strategic planning, or modernization efforts, justifying a long-term investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management 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: W91CRB09R0040
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7502 ROUND POND RD, NORTH SYRACUSE, NY, 13212
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $88,877,509
Exercised Options: $88,313,811
Current Obligation: $66,089,170
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-04-07
Current End Date: 2015-10-06
Potential End Date: 2015-10-06 00:00:00
Last Modified: 2016-05-05
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