DoD's $38M Engineering Services Contract Awarded to Dynetics, Inc. for Alabama-Based Operations

Contract Overview

Contract Amount: $37,961,902 ($38.0M)

Contractor: Dynetics, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-02-12

End Date: 2015-08-11

Contract Duration: 2,006 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: BASIC

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $38.0 million to DYNETICS, INC. for work described as: BASIC Key points: 1. The contract's value of approximately $38 million over its period of performance suggests a significant investment in engineering services. 2. Awarded under full and open competition, the contract indicates a market where multiple vendors could potentially bid. 3. The use of a Time and Materials contract type may introduce cost escalation risks if not closely managed. 4. The duration of the contract, spanning over five years, implies a need for sustained engineering support. 5. The specific North American Industry Classification System (NAICS) code 541330 points to a focus on engineering services. 6. The contract was awarded to a single entity, Dynetics, Inc., highlighting their role in fulfilling this specific requirement.

Value Assessment

Rating: fair

Benchmarking the value of this $38 million contract is challenging without more specific details on the engineering services rendered. However, the duration of over five years suggests a substantial, ongoing need. The Time and Materials pricing structure, while flexible, can lead to higher overall costs compared to fixed-price contracts if not managed diligently. Comparing this to similar large-scale engineering support contracts within the Department of Defense would provide better context for value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that the Department of the Army sought bids from all responsible sources. The presence of three bidders indicates a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive offers. However, the specific number of bids received does not inherently guarantee the best possible price without further analysis of the bidding process and the nature of the services required.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. This approach aims to ensure that the government is not overpaying for services and that the most capable contractors are selected.

Public Impact

The primary beneficiaries are likely components within the Department of the Army requiring specialized engineering expertise. The services delivered are categorized under engineering services (NAICS 541330), which could encompass design, analysis, testing, and technical support. The contract's performance is geographically tied to Alabama (ST/SN), indicating a focus on operations or facilities within that state. The contract likely supports a workforce of engineers and technical professionals employed by Dynetics, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not strictly monitored.
The duration of the contract (over 5 years) necessitates ongoing vigilance to ensure continued value and performance.
Limited information on specific deliverables makes it difficult to assess performance against expectations.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified contractors.
The contract supports critical engineering services for the Department of the Army.
The contractor, Dynetics, Inc., is based in Alabama, potentially supporting local economic activity.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, providing essential support for military platforms, research, and development. This contract, falling under NAICS code 541330, represents spending within a segment of the broader professional, scientific, and technical services market. The defense sector's demand for specialized engineering expertise often drives significant contract values, with comparable contracts for similar services potentially ranging from tens to hundreds of millions of dollars depending on scope and duration.

Small Business Impact

The data indicates this contract was awarded under 'FULL AND OPEN COMPETITION' and does not specify any small business set-aside provisions (ss:false, sb:false). Therefore, there is no direct indication of small business participation through set-asides. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Dynetics, Inc., but are not explicitly detailed in this award information. The impact on the small business ecosystem would depend on whether Dynetics actively seeks small business subcontractors for specialized tasks.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined by the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is facilitated by the public nature of contract awards, though detailed performance data and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services Contracts
Army Research, Development, and Engineering Command Contracts
Professional, Scientific, and Technical Services Contracts
Time and Materials Contracts

Risk Flags

Time and Materials contract type carries inherent cost escalation risk.
Lack of specific performance metrics in award data hinders detailed value assessment.
Limited competition information beyond the number of bidders requires further investigation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.0 million to DYNETICS, INC.. BASIC

Who is the contractor on this award?

The obligated recipient is DYNETICS, 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 $38.0 million.

What is the period of performance?

Start: 2010-02-12. End: 2015-08-11.

What specific types of engineering services were provided under this contract?

The contract falls under NAICS code 541330, which designates 'Engineering Services.' This broad category can encompass a wide range of activities, including research and development, design, analysis, testing, systems integration, and technical support for various military systems and platforms. Without more specific task orders or statements of work, the precise nature of the engineering services rendered remains undefined. However, given the Department of the Army as the awarding agency, these services likely supported military readiness, technological advancement, or operational requirements specific to Army programs.

How does the $38 million contract value compare to similar engineering services contracts awarded by the Department of Defense?

The $38 million value over a period of approximately five years places this contract in the mid-to-large tier for engineering services within the Department of Defense. DoD frequently awards contracts in the hundreds of millions, and sometimes billions, for large-scale engineering support, research, and development programs. However, for specific, focused engineering tasks or support for particular systems, $38 million is a substantial commitment. Benchmarking requires comparing the scope, duration, and complexity of services. Contracts for similar duration and complexity could range from $10 million to over $100 million, depending on the specialization and criticality of the engineering expertise required.

What are the potential risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. If the effort required is underestimated, or if inefficiencies arise, the total cost to the government can escalate beyond initial projections. Effective management, close monitoring of labor hours, material costs, and clear definition of work are crucial to mitigate these risks and ensure the government receives good value.

What is Dynetics, Inc.'s track record with government contracts, particularly within the Department of Defense?

Dynetics, Inc. has a significant history of performing contracts for the Department of Defense and other federal agencies. They are known for providing advanced engineering, technology integration, and research services across various defense programs. Their portfolio often includes work in areas such as aerospace, defense systems, cybersecurity, and advanced materials. While specific performance details for individual contracts are not always public, Dynetics generally has a reputation as a capable and experienced defense contractor, often involved in complex and innovative projects.

How has federal spending on engineering services (NAICS 541330) trended over the past decade?

Federal spending on engineering services, categorized under NAICS 541330, has generally remained robust, particularly driven by defense and infrastructure needs. Over the past decade, spending has fluctuated based on budget priorities, geopolitical events, and major acquisition programs. The Department of Defense is consistently one of the largest purchasers of engineering services, followed by agencies involved in transportation, energy, and research. While specific year-over-year trends require detailed analysis of federal procurement data, the overall demand for specialized engineering expertise from the government sector has shown resilience.

What oversight mechanisms are in place to ensure the effective performance and financial accountability of this contract?

Oversight for this contract is managed by the Department of the Army's program and contracting officials. Key mechanisms include regular progress reports from Dynetics, Inc., performance reviews against contract milestones and deliverables, and potentially site visits or technical evaluations. The Time and Materials nature of the contract necessitates stringent oversight of labor hours and material expenditures. Financial accountability is ensured through invoicing procedures, audits, and the contract's defined payment terms. Any deviations from expected performance or cost controls would trigger corrective actions managed by the contracting officer.

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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1000 EXPLORER BLVD NW, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,192,853

Exercised Options: $37,961,902

Current Obligation: $37,961,902

Parent Contract

Parent Award PIID: W31P4Q10A0010

IDV Type: IDC

Timeline