DoD awards $57.8M task order to ManTech for intelligence system support, raising value-for-money questions

Contract Overview

Contract Amount: $57,831,176 ($57.8M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-02-01

End Date: 2008-03-10

Contract Duration: 403 days

Daily Burn Rate: $143.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: AWARD OF TASK ORDER TO STI FOR SUPPORT OF THE JOINT INTELLIGENCE OPERATIONS CAPABILITY-IRAQ (JIIOC-I) AND DISTRIBUTED COMMON GROUND STATION-ARMY (DCGS-A) VIA PROVIDING INTEGRATED MAINTENANCE AND TECHNICAL SUPPORT TO DCGS-A SYSTEMS WORLDWIDE.

Place of Performance

Location: RED BANK, MONMOUTH County, NEW JERSEY, 07701

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $57.8 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: AWARD OF TASK ORDER TO STI FOR SUPPORT OF THE JOINT INTELLIGENCE OPERATIONS CAPABILITY-IRAQ (JIIOC-I) AND DISTRIBUTED COMMON GROUND STATION-ARMY (DCGS-A) VIA PROVIDING INTEGRATED MAINTENANCE AND TECHNICAL SUPPORT TO DCGS-A SYSTEMS WORLDWIDE. Key points: 1. The contract's value, while substantial, requires deeper analysis to determine if it represents optimal use of taxpayer funds. 2. Competition dynamics for this task order were robust, suggesting a potentially competitive pricing environment. 3. Performance risks appear moderate, given the nature of technical support services for complex intelligence systems. 4. The contract duration of approximately 13 months provides a limited timeframe for assessing long-term system performance and support effectiveness. 5. This contract falls within the broader Defense sector, specifically supporting intelligence and ground station systems. 6. The use of a Time and Materials contract type warrants scrutiny for cost control and efficiency.

Value Assessment

Rating: fair

The award of $57.8 million for intelligence system support requires careful benchmarking against similar contracts. Without specific details on the scope of work and deliverables, it is difficult to definitively assess value for money. The Time and Materials (T&M) pricing structure can sometimes lead to higher costs if not managed closely, as it reimburses direct labor and indirect costs plus a fee. Comparing this to fixed-price contracts for similar support services would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a degree of competition, but the specific number of proposals received and the evaluation process are crucial for understanding the extent of price discovery. A higher number of bidders generally leads to more competitive pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially driving down prices and ensuring the government receives the best value.

Public Impact

This contract directly benefits the Department of Defense by providing essential maintenance and technical support for critical intelligence systems. The services delivered are crucial for the operational readiness and effectiveness of the Joint Intelligence Operations Capability-Iraq (JIIOC-I) and Distributed Common Ground Station-Army (DCGS-A). The geographic impact is worldwide, indicating support for deployed systems and personnel across various global locations. Workforce implications include the potential for skilled technical personnel to be engaged in maintaining and supporting these advanced systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can incentivize contractor inefficiency if not closely monitored, potentially leading to cost overruns.
The duration of the contract (approx. 13 months) may limit the ability to fully assess long-term system performance and the effectiveness of the support provided.
Lack of detailed performance metrics in the provided data makes it challenging to evaluate the contractor's performance objectively.
The specific nature of intelligence systems support can involve inherent security and operational risks that require robust management.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield reasonable pricing.
The contractor, ManTech Advanced Systems International, Inc., is likely experienced in providing technical support for defense systems.
The contract addresses critical intelligence capabilities, indicating its importance to national security operations.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market focused on providing specialized technical and engineering expertise. The defense intelligence systems market is characterized by high technical complexity and substantial government investment. Comparable spending benchmarks would involve analyzing other contracts for similar intelligence, surveillance, and reconnaissance (ISR) systems support, as well as ground station maintenance and sustainment.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The prime contractor, ManTech, may engage small businesses as subcontractors, but this information is not detailed in the award data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet contractual requirements and performance standards. Accountability measures would be tied to the contract's performance metrics and deliverables. Transparency is facilitated through contract award databases, though detailed performance reports may be less publicly accessible due to the sensitive nature of intelligence systems.

Related Government Programs

Intelligence Systems Support
Ground Station Maintenance
Defense IT Services
Logistics and Technical Support
Joint Intelligence Operations Capability-Iraq (JIIOC-I)
Distributed Common Ground Station-Army (DCGS-A)

Risk Flags

Time and Materials Pricing Structure
Potential for Cost Overruns
Limited Competition (2 Bidders)
Cybersecurity Risks
Performance Monitoring Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.8 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. AWARD OF TASK ORDER TO STI FOR SUPPORT OF THE JOINT INTELLIGENCE OPERATIONS CAPABILITY-IRAQ (JIIOC-I) AND DISTRIBUTED COMMON GROUND STATION-ARMY (DCGS-A) VIA PROVIDING INTEGRATED MAINTENANCE AND TECHNICAL SUPPORT TO DCGS-A SYSTEMS WORLDWIDE.

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, 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 $57.8 million.

What is the period of performance?

Start: 2007-02-01. End: 2008-03-10.

What is ManTech's track record with similar Department of Defense intelligence system support contracts?

ManTech Advanced Systems International, Inc. has a significant history of supporting Department of Defense (DoD) programs, including those related to intelligence, surveillance, and reconnaissance (ISR) systems, command and control (C2) platforms, and various IT infrastructure services. Their experience often spans system integration, sustainment, modernization, and operational support. Analyzing their past performance on contracts with similar scope, complexity, and security requirements, such as those involving ground systems or intelligence processing, would provide context for their capability to execute this specific task order. A review of past performance evaluations and any contract disputes or awards would be pertinent to assessing their reliability and effectiveness in this domain.

How does the $57.8 million award compare to the typical cost of similar intelligence system support contracts?

Benchmarking the $57.8 million award requires comparing it against contracts for similar intelligence system support, considering factors like system complexity, scope of services (maintenance, technical support, upgrades), duration, and geographic coverage. Contracts for sustaining complex ISR platforms or ground stations can range widely, from tens of millions to hundreds of millions of dollars over several years. The duration of this task order (approximately 13 months) suggests a significant annual cost. Without more granular data on the specific systems supported and the exact services rendered, a precise comparison is challenging. However, the award appears substantial for a task order of this duration, necessitating a review of its cost-effectiveness relative to industry standards and other government procurements for comparable capabilities.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential cost overruns due to the Time and Materials (T&M) pricing structure, performance failures that could impact critical intelligence operations, and cybersecurity vulnerabilities inherent in supporting sensitive defense systems. Mitigation strategies would typically involve robust contract oversight by the Defense Contract Management Agency (DCMA), including detailed monitoring of labor hours and costs, regular performance reviews against defined metrics, and strict adherence to cybersecurity protocols. The limited competition (two bidders) could also pose a risk if it leads to less competitive pricing or limited innovation. The government's mitigation would involve ensuring clear performance standards and exercising options judiciously.

How effective is the Time and Materials (T&M) contract type for ensuring value for money in this context?

The Time and Materials (T&M) contract type is often used when the scope of work is not clearly defined or is expected to change, as is common in complex technical support scenarios. While it offers flexibility, it carries a higher risk of cost escalation if not managed diligently, as the contractor is reimbursed for labor hours and materials plus a fee. For ensuring value for money, the government must implement stringent oversight, including detailed tracking of hours, verification of materials, and establishing labor rate ceilings. Regular performance reviews and clear deliverables are essential to ensure the contractor remains efficient and focused on achieving program objectives. Without such controls, T&M contracts can be less cost-effective than fixed-price alternatives.

What is the historical spending pattern for DCGS-A and JIIOC-I system support?

Historical spending on the Distributed Common Ground Station-Army (DCGS-A) and Joint Intelligence Operations Capability-Iraq (JIIOC-I) systems likely reflects significant, ongoing investment by the Department of Defense. These systems are critical for intelligence gathering, processing, and dissemination, requiring continuous sustainment, upgrades, and technical support. Spending patterns would typically show multi-year commitments, with substantial annual outlays for maintenance, software updates, hardware replacements, and specialized technical services. Analyzing prior contract awards for these specific systems, including their total value, duration, and the contractors involved, would reveal trends in investment and identify periods of increased or decreased spending, potentially influenced by operational tempo, technological advancements, or strategic shifts.

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: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation (UEI: 053518312)

Address: 12015 LEE JACKSON MEMORIAL HWY, FAIRFAX, VA, 22033

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

Financial Breakdown

Contract Ceiling: $57,831,176

Exercised Options: $57,831,176

Current Obligation: $57,831,176

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE403

IDV Type: IDC

Timeline