DoD's $30.7M engineering services contract with Envisioneering Inc. shows fair value despite limited competition

Contract Overview

Contract Amount: $30,712,225 ($30.7M)

Contractor: Envisioneering Inc

Awarding Agency: Department of Defense

Start Date: 2006-02-14

End Date: 2012-05-31

Contract Duration: 2,298 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING AND TECHNICAL SERVICES

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22303

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.7 million to ENVISIONEERING INC for work described as: ENGINEERING AND TECHNICAL SERVICES Key points: 1. The contract's total value of $30.7 million over its 6-year duration suggests a moderate annual spend. 2. While Envisioneering Inc. secured this contract, the competition dynamics are not fully detailed, raising questions about price discovery. 3. The Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns, a common risk indicator in complex service contracts. 4. Performance context is limited, but the contract's duration implies a sustained need for engineering and technical services by the Defense Contract Management Agency. 5. This contract falls within the broader Engineering Services sector, a critical component of defense procurement. 6. The absence of small business set-asides indicates a focus on larger, specialized firms for these technical requirements.

Value Assessment

Rating: fair

Benchmarking the value of this $30.7 million contract is challenging without specific deliverables or comparable contracts. The CPFF pricing structure, while common for R&D or uncertain scope work, can lead to higher costs compared to fixed-price contracts if not managed diligently. The total value over six years averages around $5.1 million annually, which appears reasonable for specialized engineering services, but a detailed cost breakdown and comparison to industry standards would be necessary for a definitive value assessment.

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 offers. However, the number of bids received (21) is not explicitly stated as the number of bidders, making it difficult to fully assess the level of competition. A high number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that it was competed broadly is a positive sign for taxpayer value.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best value.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, receiving essential engineering and technical support. Services delivered likely include design, analysis, testing, and technical consultation crucial for defense systems and operations. The geographic impact is centered around the Defense Contract Management Agency's operational areas, primarily in Virginia. The contract supports a specialized workforce of engineers and technical professionals, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize fee.
Limited public information on specific performance metrics makes it difficult to assess the contractor's effectiveness.
The duration of the contract (over 6 years) could lead to scope creep or evolving requirements that may not be optimally priced.
Lack of explicit detail on the number of bidders makes it hard to confirm the intensity of competition.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential contractors could compete.
The contract duration suggests a stable, long-term need for critical engineering services within the DoD.
The contractor, Envisioneering Inc., has secured this award, indicating they met the government's technical and capability requirements.
The contract is managed by the Defense Contract Management Agency, a body responsible for oversight and ensuring contract compliance.

Sector Analysis

The engineering services sector is a vital part of the defense industrial base, providing specialized expertise for complex military systems. This contract, valued at $30.7 million, represents a significant but not exceptionally large award within this sector. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by the DoD or other federal agencies for similar services, which often range from tens to hundreds of millions of dollars depending on scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. This suggests that the requirements were likely too specialized or the contract value too high to be effectively competed solely among small businesses. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this critical defense need.

Oversight & Accountability

Oversight for this contract is provided by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance, compliance, and adherence to contract terms. The CPFF structure necessitates close monitoring of costs and effort to prevent overruns. Transparency is facilitated through contract awards databases, but detailed performance reports and Inspector General involvement would depend on specific agency policies and any identified issues.

Related Government Programs

Defense Engineering Services
Technical Support Services
Department of Defense Contracts
Cost Plus Fixed Fee Contracts
Engineering Services (NAICS 541330)

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Limited detail on specific performance metrics hinders full assessment of value.
Competition level, while 'full and open', lacks specific bidder count for definitive analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.7 million to ENVISIONEERING INC. ENGINEERING AND TECHNICAL SERVICES

Who is the contractor on this award?

The obligated recipient is ENVISIONEERING INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $30.7 million.

What is the period of performance?

Start: 2006-02-14. End: 2012-05-31.

What specific engineering and technical services were delivered under this contract?

While the contract falls under the broad category of 'ENGINEERING AND TECHNICAL SERVICES' (NAICS 541330), the specific deliverables are not detailed in the provided data. Typically, such contracts with the Department of Defense (DoD) and managed by the Defense Contract Management Agency (DCMA) would encompass a range of activities. These could include systems engineering, design and development support, technical analysis, testing and evaluation, logistics support analysis, and program management support for various defense platforms or systems. The Cost Plus Fixed Fee (CPFF) pricing structure suggests that the scope might have involved some level of uncertainty or evolving requirements, common in research, development, or complex integration projects where precise outcomes are difficult to define upfront.

How does the $30.7 million total contract value compare to similar engineering services contracts within the DoD?

The total contract value of $30.7 million over approximately six years (February 2006 to May 2012) translates to an average annual spend of roughly $5.1 million. This figure is moderate within the context of large federal contracts, particularly for defense engineering services. The DoD procures a vast array of engineering support, with contracts ranging from a few million dollars for specific tasks to hundreds of millions or even billions for major system development and sustainment. Therefore, $30.7 million is a substantial sum, indicating a significant scope of work, but it is not at the highest end of DoD engineering procurements. Benchmarking would require comparing it to contracts with similar service descriptions, duration, and agency (e.g., other DCMA or service-specific contracts).

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used here?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This structure can incentivize the contractor to increase costs, as the fee (profit) remains constant regardless of the total cost. While the government aims to control costs through oversight and audits of allowable expenses, there's a potential for less cost-consciousness from the contractor compared to fixed-price contracts. For the government, this means a higher risk of the total expenditure exceeding initial estimates if costs escalate. Effective management, clear definition of allowable costs, and robust oversight are crucial to mitigate these risks.

What does the 'full and open competition' designation imply for the value received by taxpayers?

The 'full and open competition' designation is generally positive for taxpayers. It means that the solicitation was made available to all responsible sources, maximizing the potential pool of bidders. This increased competition typically drives down prices as contractors vie for the award. It also ensures that the government has a wider selection of qualified vendors, increasing the likelihood of selecting a contractor that offers the best combination of technical capability and price. While the specific number of bids isn't detailed, the principle of broad competition is a cornerstone of efficient government procurement and taxpayer value.

How has Envisioneering Inc.'s track record influenced their ability to secure contracts like this one?

The provided data indicates that Envisioneering Inc. was awarded this specific contract, suggesting they met the technical qualifications and requirements set forth by the Department of Defense during the full and open competition process. Securing a contract of this nature, valued at $30.7 million over six years, implies a demonstrated capability in providing engineering and technical services. While this data point alone doesn't detail their entire track record, successful past performance is a critical factor in federal contracting evaluations. Agencies often consider past performance ratings, experience with similar contract types and scopes, and overall reliability when making award decisions.

What is the significance of the contract being managed by the Defense Contract Management Agency (DCMA)?

The Defense Contract Management Agency (DCMA) plays a crucial role in overseeing contract execution on behalf of the DoD. When DCMA manages a contract, it signifies that the agency is responsible for critical functions such as monitoring contractor performance, ensuring compliance with contract terms and conditions, verifying quality assurance, approving payments, and managing post-award administration. For this $30.7 million engineering services contract, DCMA's involvement suggests a focus on ensuring that Envisioneering Inc. delivers the required technical services effectively and efficiently, while also managing the financial aspects, particularly given the CPFF structure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Envisioneering, Inc. (UEI: 842080921)

Address: 5904 RICHMOND HWY #310, ALEXANDRIA, VA, 22303

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4047

IDV Type: IDC

Timeline