DoD's $25.5M Engineering Services Contract Awarded to Gauss Management Research and Engineering Inc

Contract Overview

Contract Amount: $25,471,886 ($25.5M)

Contractor: Gauss Management Research and Engineering Inc

Awarding Agency: Department of Defense

Start Date: 2014-05-01

End Date: 2019-01-09

Contract Duration: 1,714 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF ENGINEERING AND RELATED SERVICES FOR AATC-NATIONAL GUARD

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85706

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to GAUSS MANAGEMENT RESEARCH AND ENGINEERING INC for work described as: IGF::OT::IGF ENGINEERING AND RELATED SERVICES FOR AATC-NATIONAL GUARD Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract was 1714 days, indicating a long-term need for these engineering services. 4. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite delivery contract. 5. The contractor, Gauss Management Research and Engineering Inc., has a track record with the Department of Defense. 6. The contract was awarded to a single entity, raising questions about potential alternatives or broader market engagement. 7. The contract was not set aside for small businesses, indicating it was likely awarded based on best value or technical merit.

Value Assessment

Rating: fair

Benchmarking the value of this $25.5 million contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) contract type inherently carries risks of cost escalation, as the contractor is reimbursed for actual costs plus a fixed fee. While CPFF can be appropriate for research and development or when costs are uncertain, it requires robust oversight to ensure cost efficiency. Comparing this to similar engineering services contracts would require detailed analysis of scope, complexity, and contractor performance history. The absence of a specific price per unit or clear performance benchmarks makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this specific award. While multiple bidders are positive, the exact number does not guarantee the most competitive pricing without further analysis of the bids received and the evaluation criteria. The agency's choice to compete broadly is a good sign for potential price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to bid, which can drive down prices and improve service quality. A competitive process helps ensure that the government is not overpaying for services.

Public Impact

The Department of Defense benefits from specialized engineering and related services to support its national security missions. The contract likely supports the Air National Guard's facilities and infrastructure needs through engineering expertise. The geographic impact is centered in Arizona (AZ), where the contractor is based, but the services may support national guard operations nationwide. The contract supports a workforce of engineers and technical specialists employed by Gauss Management Research and Engineering Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
The long contract duration (1714 days) may indicate a lack of flexibility or potential for scope creep.
Limited competition (3 bidders) might suggest that the market for these specialized services is concentrated or that the requirements were highly specific.

Positive Signals

Awarded under full and open competition, indicating a fair and accessible bidding process.
The contract was awarded to a single entity, suggesting they met the specific technical and performance requirements.
The contract supports critical engineering services for the Department of Defense, contributing to national security.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant market supporting government and private industry with specialized technical expertise. The federal government is a major consumer of engineering services, particularly for defense, infrastructure, and research projects. Spending in this sector is often driven by large-scale government initiatives and modernization efforts. Comparable spending benchmarks would typically involve analyzing the average contract values for similar engineering support to military branches or large federal agencies.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. This suggests that the procurement was likely focused on obtaining the best value or technical solution from a broader range of contractors, potentially including large businesses. There is no explicit information on subcontracting plans for small businesses within the provided data, which would typically be a consideration in larger federal contracts to ensure small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and the Department of Defense's contracting and financial management offices. The Cost Plus Fixed Fee structure necessitates diligent oversight to monitor costs, ensure adherence to the fixed fee, and verify the necessity and reasonableness of all incurred expenses. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be less public.

Related Government Programs

Department of Defense Engineering Services
Air National Guard Support Contracts
Indefinite Delivery Contracts (IDCs)
Cost-Reimbursement Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may increase risk of scope creep and obsolescence.
Limited number of bidders could impact competitive pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to GAUSS MANAGEMENT RESEARCH AND ENGINEERING INC. IGF::OT::IGF ENGINEERING AND RELATED SERVICES FOR AATC-NATIONAL GUARD

Who is the contractor on this award?

The obligated recipient is GAUSS MANAGEMENT RESEARCH AND ENGINEERING INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $25.5 million.

What is the period of performance?

Start: 2014-05-01. End: 2019-01-09.

What is the track record of Gauss Management Research and Engineering Inc. with the Department of Defense?

Gauss Management Research and Engineering Inc. has a history of contracts with the Department of Defense, as evidenced by this award. To fully assess their track record, a deeper dive into their past performance ratings, any past disputes or contract terminations, and the types and values of previous contracts would be necessary. Analyzing their success in delivering similar engineering services on time and within budget for the DoD would provide crucial context. Without more specific data on their historical performance, it's difficult to definitively state their overall reliability and effectiveness for the DoD.

How does the Cost Plus Fixed Fee (CPFF) structure impact the value for money in this contract?

The CPFF contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While this structure can be useful when the scope of work is not well-defined or involves significant uncertainty (like R&D), it carries inherent risks to value for money. The contractor has less incentive to control costs aggressively, as their profit (the fee) is fixed regardless of the final cost. This necessitates strong government oversight to scrutinize costs, ensure efficiency, and prevent unnecessary expenditures. If costs escalate significantly, the total contract value can exceed initial estimates, potentially diminishing the value for money compared to a fixed-price contract, assuming the scope was well-defined.

What are the potential risks associated with a 1714-day contract duration?

A contract duration of 1714 days (approximately 4.7 years) presents several potential risks. Firstly, it increases the likelihood of scope creep, where the project's objectives or requirements may evolve over time, potentially leading to cost increases or delays if not managed through formal contract modifications. Secondly, the longer the contract, the greater the chance of encountering unforeseen technical challenges or changes in technology that could render the original approach less effective or obsolete. Thirdly, maintaining consistent oversight and contractor performance over such an extended period requires sustained effort and resources from the government. Finally, market conditions and pricing for materials or labor can fluctuate significantly over nearly five years, impacting the original cost assumptions.

How does the level of competition (3 bidders) influence price discovery for this contract?

Having three bidders for this contract suggests a moderate level of competition. While more bidders generally lead to better price discovery, three offers provide a basis for comparison. The government can evaluate these bids against each other and potentially against independent cost estimates. However, the quality and competitiveness of the bids are crucial. If the three bidders were all very similar in their offerings and pricing, the price discovery might be less robust than if there were a wider range of proposals. The agency's evaluation process, including negotiation strategies if applicable, will determine how effectively these three bids translate into optimal price discovery for the taxpayer.

What are the implications of awarding this contract as a Delivery Order?

Awarding this contract as a Delivery Order implies it is likely a task or order placed against a pre-existing Indefinite Delivery Vehicle (IDV), such as an Indefinite Delivery/Indefinite Quantity (IDIQ) contract. This approach allows the government to procure services incrementally as needed, providing flexibility. For the contractor, it means they have secured a potential stream of work, but the exact volume and timing are subject to the government's orders. The implications for value include potentially faster procurement cycles for individual orders and the ability to leverage competition established during the IDV's award. However, the overall value and cost-effectiveness depend on the terms negotiated for the IDV itself and how effectively individual delivery orders are managed.

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: 1464 E RIDGELINE DR STE 202, OGDEN, UT, 84405

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $32,875,380

Exercised Options: $26,389,244

Current Obligation: $25,471,886

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA822212D0010

IDV Type: IDC

Timeline