DoD Awards $87.6M Engineering Services Contract to Serco Inc. via Full and Open Competition
Contract Overview
Contract Amount: $87,583,799 ($87.6M)
Contractor: Serco Inc.
Awarding Agency: Department of Defense
Start Date: 2016-12-01
End Date: 2022-02-28
Contract Duration: 1,915 days
Daily Burn Rate: $45.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF BASE YEAR - MAJOR PROGRAM SUPPORT (MPS) TASK ORDER 0001 CONTRACT AWARD.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $87.6 million to SERCO INC. for work described as: IGF::OT::IGF BASE YEAR - MAJOR PROGRAM SUPPORT (MPS) TASK ORDER 0001 CONTRACT AWARD. Key points: 1. Significant contract value of $87.6 million for major program support. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is Engineering Services, crucial for defense operations.
Value Assessment
Rating: fair
The contract value of $87.6 million for engineering services is substantial. Benchmarking against similar large-scale engineering support contracts is necessary to fully assess value, as specific deliverables and scope are not detailed here.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure may incentivize higher costs than a fixed-price contract.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense engineering services. The competitive award aims to ensure reasonable pricing, but the CPFF structure warrants careful monitoring.
Public Impact
Supports major defense programs, contributing to national security. The award to Serco Inc. highlights a key contractor in the defense services sector. Engineering services are vital for the development and maintenance of complex military systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost uncertainty.
- Long contract duration (over 5 years) increases risk exposure.
- No small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Contract supports critical defense functions.
Sector Analysis
This contract falls within the Engineering Services sector, which is a significant area of government spending, particularly within the Department of Defense. Benchmarks for similar large-scale engineering support contracts are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award (ss: false, sb: false). This suggests that the prime contractor, Serco Inc., is a large business, and subcontracting opportunities for small businesses are not explicitly detailed in this award notice.
Oversight & Accountability
The award was made by the Department of Defense, specifically Washington Headquarters Services. Oversight would typically involve contract management teams within DoD to ensure performance and cost control, especially given the CPFF structure.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- No explicit small business participation.
- Potential for cost overruns.
Tags
engineering-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.6 million to SERCO INC.. IGF::OT::IGF BASE YEAR - MAJOR PROGRAM SUPPORT (MPS) TASK ORDER 0001 CONTRACT AWARD.
Who is the contractor on this award?
The obligated recipient is SERCO INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $87.6 million.
What is the period of performance?
Start: 2016-12-01. End: 2022-02-28.
What specific engineering services are being provided under this task order, and how do they align with the core mission of the Washington Headquarters Services?
The task order is for Major Program Support (MPS). While the specific engineering services are not detailed, they likely encompass technical analysis, system design, integration, testing, and lifecycle support for major defense programs managed or overseen by the Washington Headquarters Services. This ensures critical defense initiatives receive necessary engineering expertise.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this $87.6 million award, and how are they being mitigated?
The CPFF structure carries a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies typically involve stringent oversight, detailed cost tracking, performance metrics, and clear definition of allowable costs to prevent contractor inefficiency from inflating the final price.
How does the $87.6 million award compare to typical spending on similar engineering support contracts within the Department of Defense, and what does this suggest about its effectiveness?
An $87.6 million award for major program support is substantial but not unusual for large defense contracts. Its effectiveness hinges on the successful delivery of engineering services that contribute to program milestones and overall defense readiness. A comparative analysis with similar contracts would reveal if the pricing is competitive and if the scope adequately addresses DoD needs.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HQ003416R0133
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1400 CRYSTAL DR SUITE 1400, ARLINGTON, VA, 22202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $93,146,887
Exercised Options: $93,146,887
Current Obligation: $87,583,799
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $6,050,295
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ003417D0002
IDV Type: IDC
Timeline
Start Date: 2016-12-01
Current End Date: 2022-02-28
Potential End Date: 2022-02-28 00:00:00
Last Modified: 2025-06-20
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