DoD Awards $13M for Engineering Services, Raising Questions on Value and Competition
Contract Overview
Contract Amount: $13,004,567 ($13.0M)
Contractor: Engineering Solutions & Products LLC
Awarding Agency: Department of Defense
Start Date: 2006-02-15
End Date: 2007-03-01
Contract Duration: 379 days
Daily Burn Rate: $34.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: 200605!002272!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05DJ222 !A!N! !Y!0007 ! !20060215!20090426!931221258!931221258!931221258!N!ENGINEERING SOLUTIONS & PRODUC!4 INDUSTRIAL WAY W FL 3 !EATONTOWN !NJ!07724!19840!025!34!EATONTOWN !MONMOUTH !NEW JERSEY!+000001221678!N!N!000000000000!N058!INSTALLATION OF EQ/COMMUNICATION EQUIPMENT !S1 !SERVICES !294 !FBCB2 !541330!E! !5!B!S! ! ! !99990909!B! ! !A! !A!N!Y!2!002!B! !Z!N!Z! ! !N!B!N!N! !B!A! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724
Plain-Language Summary
Department of Defense obligated $13.0 million to ENGINEERING SOLUTIONS & PRODUCTS LLC for work described as: 200605!002272!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05DJ222 !A!N! !Y!0007 ! !20060215!20090426!931221258!931221258!931221258!N!ENGINEERING SOLUTIONS & PRODUC!4 INDUSTRIAL WAY W FL 3 !EATONTOWN !NJ!07724!19840!025!34!EATONTOWN !MONM… Key points: 1. Contract awarded for engineering services related to communication equipment installation. 2. Significant contract value of $13M, with a relatively short duration of 379 days. 3. Competition method was 'Full and Open', but details on price discovery are limited. 4. The sector is IT/Defense, with a focus on engineering services.
Value Assessment
Rating: questionable
The contract value of $13M for a 379-day period appears high for the described service. Benchmarking against similar contracts for communication equipment installation is needed to assess true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive. However, the specific pricing mechanisms and how price was determined within this framework require further scrutiny to ensure optimal taxpayer value.
Taxpayer Impact: The substantial award amount necessitates careful oversight to ensure taxpayer funds are used efficiently and effectively for the intended purpose.
Public Impact
Taxpayers may be overpaying for engineering services if the pricing is not benchmarked effectively. The effectiveness of communication equipment installation relies heavily on the quality of engineering services provided. Potential for cost overruns exists if the Time and Materials contract type is not managed closely.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value relative to duration
- Lack of detailed pricing assessment
- Potential for cost creep with T&M contract
Positive Signals
- Awarded under full and open competition
- Clear service description
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to IT and Defense communications equipment. Benchmarks for similar installation and engineering contracts are crucial for evaluating cost-effectiveness.
Small Business Impact
The contract was awarded to ENGINEERING SOLUTIONS & PRODUCTS LLC. Analysis is needed to determine if small businesses were subcontracting opportunities within this award.
Oversight & Accountability
Oversight is critical for Time and Materials contracts to prevent cost overruns. The Department of the Army should ensure robust monitoring of labor hours and material costs.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High cost relative to contract duration
- Potential for cost overruns with T&M contract type
- Need for detailed pricing assessment against benchmarks
- Limited information on specific deliverables and success metrics
Tags
engineering-services, department-of-defense, nj, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to ENGINEERING SOLUTIONS & PRODUCTS LLC. 200605!002272!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05DJ222 !A!N! !Y!0007 ! !20060215!20090426!931221258!931221258!931221258!N!ENGINEERING SOLUTIONS & PRODUC!4 INDUSTRIAL WAY W FL 3 !EATONTOWN !NJ!07724!19840!025!34!EATONTOWN !MONMOUTH !NEW JERSEY!+000001221678!N!N!000000000000!N058!INSTALLATION OF EQ/COMMUNICATION EQUIPMENT !S1 !SERVICES !294 !FBCB2 !541330!E! !5!B!S! ! ! !999
Who is the contractor on this award?
The obligated recipient is ENGINEERING SOLUTIONS & PRODUCTS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.0 million.
What is the period of performance?
Start: 2006-02-15. End: 2007-03-01.
What is the specific breakdown of labor hours and material costs expected under this Time and Materials contract, and how will they be monitored to ensure value?
The contract is for Time and Materials, indicating payment based on actual labor hours and material costs incurred. Robust oversight by the Department of the Army is essential to monitor these expenditures, verify the necessity of hours and materials, and ensure that the final cost aligns with the expected value of the engineering services provided for communication equipment installation.
How does the $13M award compare to industry benchmarks for similar communication equipment installation engineering services, considering the contract duration?
Benchmarking the $13M award against similar contracts is crucial. Given the 379-day duration, the per-day cost appears high. A detailed comparison with industry standards for engineering services in the IT/Defense sector is necessary to ascertain if this contract represents a fair and reasonable price or if there's a risk of overpayment.
What measures are in place to ensure the effectiveness of the engineering services provided, particularly in the context of installing critical communication equipment?
The effectiveness of the engineering services hinges on the contractor's expertise and the government's oversight. Clear performance metrics, regular progress reviews, and stringent quality control processes are vital. The Department of the Army must ensure that the chosen contractor possesses the requisite technical skills and that the installation meets all operational and security requirements for the communication equipment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 4 INDUSTRIAL WAY W FL 3, EATONTOWN, NJ, 04
Business Categories: Category Business, Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T05DJ222
IDV Type: IDC
Timeline
Start Date: 2006-02-15
Current End Date: 2007-03-01
Potential End Date: 2009-04-26 00:00:00
Last Modified: 2008-11-04
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