Dod's $101.5M Engineering Services Contract Awarded to Dynamics Research Corporation
Contract Overview
Contract Amount: $10,149,900 ($10.1M)
Contractor: Dynamics Research Corporation
Awarding Agency: Department of Defense
Start Date: 2004-12-29
End Date: 2014-09-14
Contract Duration: 3,546 days
Daily Burn Rate: $2.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $10.1 million to DYNAMICS RESEARCH CORPORATION for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 3546 days (over 9 years) indicates a long-term need for engineering services. 3. The Cost Plus Fixed Fee (CPFF) contract type may present cost control challenges if not managed diligently. 4. The award was made under the MAS Schedule, a common contracting vehicle for IT and professional services. 5. The contract's value of over $101 million signifies a substantial investment in engineering support for the Navy. 6. The absence of small business set-aside suggests the primary contractor is not a small business, and subcontracting opportunities for small businesses are not explicitly mandated by this award.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. However, the duration and total value suggest a significant commitment. The CPFF structure requires careful oversight to ensure costs remain reasonable and fixed fees are justified by performance. Comparing this to similar long-term engineering support contracts for the Navy would provide better context on value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this significant engineering services requirement. This competitive process is generally favorable for price discovery and achieving a fair market price.
Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs through bidding.
Public Impact
The Department of the Navy benefits from sustained engineering services to support its operations and acquisition programs. This contract likely supports various naval engineering projects, potentially including design, development, and sustainment activities. The geographic impact is likely concentrated around Navy facilities where these engineering services are rendered, potentially across multiple states. The contract may have implications for the engineering workforce, both within the contractor organization and potentially through subcontracting opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to achieve a higher fee if not properly managed.
- Long contract durations (over 9 years) can lead to potential scope creep and challenges in adapting to evolving technological needs.
- The lack of explicit small business set-aside may limit direct subcontracting opportunities for small businesses on this prime contract.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The contract duration suggests a stable, long-term need for critical engineering services.
- The MAS schedule is a streamlined contracting vehicle, potentially leading to faster service delivery.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional services market supporting government and defense needs. The market for engineering services is substantial, with significant government spending directed towards defense, infrastructure, and technology development. This contract represents a notable portion of spending within this specific sub-sector for the Department of the Navy.
Small Business Impact
The contract was not awarded as a small business set-aside, and the 'sb' field is false. This suggests that the primary award was made to a large business. While not explicitly mandated here, large prime contractors often utilize small businesses for subcontracting, which could provide opportunities for the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Performance reviews, audits, and adherence to the Cost Plus Fixed Fee terms would be key accountability measures. Transparency would be facilitated through contract reporting mechanisms, though specific public access to detailed performance data may vary.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Department of Defense Engineering Support Services
- Professional Services Schedule (PSS) Contracts
- Cost-Plus-Fixed-Fee Contracts
- Long-Term Government Service Contracts
Risk Flags
- Potential for cost overruns due to CPFF structure
- Risk of scope creep over long contract duration
- Technological obsolescence over 9+ years
- Need for diligent performance monitoring and oversight
Tags
engineering-services, department-of-defense, department-of-the-navy, cost-plus-fixed-fee, full-and-open-competition, mas-schedule, long-term-contract, professional-services, defense-contracting, dynamics-research-corporation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.1 million to DYNAMICS RESEARCH CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is DYNAMICS RESEARCH CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $10.1 million.
What is the period of performance?
Start: 2004-12-29. End: 2014-09-14.
What specific engineering services are being provided under this contract?
The provided data indicates the contract is for 'Engineering Services' (NAICS 541330) awarded to DYNAMICS RESEARCH CORPORATION by the Department of the Navy. However, the specific nature of these services is not detailed. Typically, engineering services for the Navy can encompass a wide range of activities, including systems engineering, design, development, testing, integration, maintenance, and lifecycle support for naval platforms, weapons systems, and associated infrastructure. Without further documentation, the precise scope remains undefined, but it is substantial given the contract's value and duration.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar services?
The Cost Plus Fixed Fee (CPFF) contract type is common for research and development or complex services where the scope is not fully defined at the outset. It allows the contractor to recover all allowable costs plus a predetermined fixed fee, which represents profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for evolving requirements but carries higher risk for the government regarding cost overruns if not managed tightly. Fixed-Price Incentive (FPI) contracts offer a middle ground, sharing cost savings and overruns. For long-term, potentially evolving engineering needs like those of the Navy, CPFF can be appropriate, but it necessitates robust government oversight to control costs and ensure the fixed fee remains a fair incentive.
What is the historical spending trend for engineering services by the Department of the Navy?
The provided data focuses on a single contract award. To assess historical spending trends for engineering services by the Department of the Navy, a broader analysis of contract databases (like FPDS or USASpending) would be required. This would involve aggregating spending across various NAICS codes related to engineering services (e.g., 541330) and filtering by the Department of the Navy over multiple fiscal years. Such an analysis would reveal patterns in contract values, types of services procured, dominant contractors, and overall budget allocation towards engineering support, providing context for the significance of this $101.5 million award.
What are the potential risks associated with a contract duration of over 9 years?
A contract duration of 3546 days (over 9 years) presents several potential risks. Firstly, the risk of scope creep is significant; requirements may evolve substantially over such a long period, potentially leading to cost increases if not managed through formal contract modifications. Secondly, technological obsolescence is a concern; the services or systems supported may become outdated, requiring costly upgrades or replacements. Thirdly, maintaining contractor performance and motivation over an extended period can be challenging. Finally, long-term contracts can reduce flexibility for the agency to adopt new technologies or approaches that emerge during the contract's life, potentially locking the government into less optimal solutions.
How does the MAS schedule facilitate contracting for services like these?
The MAS (Multiple Award Schedule) program, managed by the General Services Administration (GSA), provides federal agencies with a streamlined way to procure a wide range of commercial items and services. For engineering services, MAS contracts offer pre-competed pricing and terms, reducing the time and effort required for individual contract awards. Agencies can issue task orders against existing MAS contracts, leveraging the initial competition that established the schedule. This approach allows for faster acquisition, often with better pricing due to the large number of schedule holders and the competitive nature of the initial schedule awards. The 'aw' field indicating 'DO' likely signifies a DoD-specific order under the MAS.
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
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 60 FRONTAGE ROAD, ANDOVER, MA, 06
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001404D0508
IDV Type: IDC
Timeline
Start Date: 2004-12-29
Current End Date: 2014-09-14
Potential End Date: 2014-09-14 00:00:00
Last Modified: 2010-11-23
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