Naval Sea Systems Command contract for engineering services awarded to Advanced Marine Enterprises, Inc. for over $104 million

Contract Overview

Contract Amount: $104,360,630 ($104.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-02-06

End Date: 2017-07-17

Contract Duration: 5,275 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200306!033818!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401D7017 !A!N! !N!0016 !20030206!20040205!040546988!040546988!009581091!N!ADVANCED MARINE ENTERPRISES, I!3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !DC!22042!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000001400000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M! !A!D!20060331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $104.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200306!033818!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401D7017 !A!N! !N!0016 !20030206!20040205!040546988!040546988!009581091!N!ADVANCED MARINE ENTERPRISES, I!3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !DC!22042!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000001400000!N… Key points: 1. Contract value exceeds $104 million, indicating a significant investment in engineering services. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract spans over 14 years, from 2003 to 2017, implying long-term service needs. 4. The primary contractor is Advanced Marine Enterprises, Inc., with General Dynamics Information Technology, Inc. also listed. 5. The contract falls under the 'Engineering Services' category, with a PSC code of R499. 6. The contract was awarded as a Delivery Order under a larger contract vehicle.

Value Assessment

Rating: fair

The total award amount of $104,360,629.59 over a period of 14 years suggests a substantial but potentially reasonable annual expenditure for specialized engineering services. Benchmarking against similar long-term, complex engineering contracts within the Department of Defense would be necessary for a definitive value assessment. The cost-plus-fixed-fee (CPFF) pricing structure can sometimes lead to cost overruns if not managed tightly, but it also allows for flexibility in scope.

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 bids. This suggests a robust competitive environment, which typically drives better pricing and innovation. The presence of multiple bidders, though not explicitly detailed in the provided data, is implied by the nature of full and open competition. The specific number of bidders would provide further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better value for the government's investment.

Public Impact

The primary beneficiary is the Department of the Navy, receiving critical engineering support for its operations. Services delivered likely include design, development, testing, and integration of naval systems and platforms. The geographic impact is centered around the Naval Sea Systems Command's operational areas, potentially nationwide or even global. The contract supports a workforce skilled in engineering, naval architecture, and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 14 years) may present risks related to evolving technology and changing requirements.
Cost-plus-fixed-fee contract type can incentivize cost increases if not rigorously monitored.
The data does not specify the number of bidders, making it difficult to fully assess the competitive landscape.
Potential for scope creep over such an extended period, impacting final costs.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
The significant award amount indicates a high level of trust and capability attributed to the contractor.
The contract supports critical naval engineering functions, aligning with defense objectives.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader defense industrial base. The market for specialized naval engineering services is often dominated by a few key players due to the high technical expertise and security clearances required. Spending in this area is directly tied to naval modernization, maintenance, and operational readiness. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the Navy or other branches of the DoD.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large-value contract likely requiring extensive resources and specialized expertise, it may be less conducive to direct small business participation unless through subcontracting. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Naval Sea Systems Command (NAVSEA) contracting and program management offices. Accountability measures would be embedded in the contract's performance metrics and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may be restricted. The Inspector General for the Department of Defense would have jurisdiction for audits and investigations.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Cost Plus Fixed Fee Contracts
Delivery Orders
Defense Procurement

Risk Flags

Long-term contract duration may increase risk of obsolescence or changing requirements.
Cost-plus contract type requires diligent oversight to manage costs effectively.
Limited detail on number of bidders impacts full assessment of competition effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $104.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200306!033818!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401D7017 !A!N! !N!0016 !20030206!20040205!040546988!040546988!009581091!N!ADVANCED MARINE ENTERPRISES, I!3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !DC!22042!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000001400000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M! !A!D!20060331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $104.4 million.

What is the period of performance?

Start: 2003-02-06. End: 2017-07-17.

What specific engineering services were provided under this contract?

While the contract is broadly categorized under 'Engineering Services' (NAICS 541330) and has a PSC code of R499 (OTHER PROFESSIONAL SERVICES), the precise nature of the engineering services rendered is not detailed in the provided data. Given the awarding agency (Naval Sea Systems Command), these services likely encompassed a wide range of activities related to the design, development, integration, testing, maintenance, and modernization of naval vessels, systems, and platforms. This could include areas such as naval architecture, marine engineering, systems engineering, combat systems engineering, and lifecycle support. The long duration of the contract suggests a sustained need for these specialized technical capabilities.

How does the $104 million award compare to typical spending for similar naval engineering contracts?

The $104.36 million award for engineering services over a 14-year period represents an average annual expenditure of approximately $7.45 million. This figure is substantial but falls within the range of large-scale, long-term support contracts common within the Department of Defense, particularly for major naval platforms and systems managed by NAVSEA. To provide a precise comparison, one would need to benchmark against contracts with similar scope, duration, and technical complexity awarded to other prime contractors or for comparable naval systems. However, the scale suggests a significant and ongoing requirement for specialized engineering expertise.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for evolving requirements, carry inherent risks, especially for long-duration, high-value awards like this one. The primary risk is that the 'cost' component can escalate beyond initial projections if contractor cost control is weak or if unforeseen technical challenges arise. The 'fixed fee' provides the contractor with a guaranteed profit margin, which might reduce the incentive to aggressively manage costs. Over a 14-year period, the potential for scope creep, changes in technology, and evolving operational needs can further complicate cost management and potentially lead to budget overruns if not meticulously overseen by the government.

What does the 'full and open competition' designation imply about the contractor selection process?

The designation 'full and open competition' signifies that the Naval Sea Systems Command followed a procurement process designed to maximize competition. This means that all responsible sources, regardless of size or previous relationship with the government, were encouraged and permitted to submit proposals. This approach is generally favored as it is intended to result in the best value for the government by fostering a competitive environment that drives down prices and encourages innovation. The absence of restrictive barriers suggests that Advanced Marine Enterprises, Inc. was selected based on the merits of its proposal against other potential bidders.

What is the significance of this contract being a 'Delivery Order'?

This contract being a 'Delivery Order' indicates that it was issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) or other type of multiple-award contract vehicle. Instead of awarding a new, standalone contract, the Navy exercised an option or placed an order against an established contract. This procurement method is often used to streamline the acquisition process for services that are needed over a period of time but where the exact quantity or timing may not be known upfront. It allows for faster procurement and can leverage pre-negotiated terms and conditions from the parent contract.

How has spending on 'Engineering Services' by the Department of the Navy trended historically?

Historical spending data for 'Engineering Services' (NAICS 541330) by the Department of the Navy shows a consistent and significant investment over the years, driven by the need to maintain, modernize, and develop complex naval platforms and systems. While specific year-over-year trends for this particular contract are not available, overall Navy spending in this category typically fluctuates based on major shipbuilding programs, fleet readiness initiatives, and technological upgrades. The substantial award to Advanced Marine Enterprises reflects the ongoing demand for specialized engineering expertise within the naval domain, aligning with broader defense spending patterns.

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

Solicitation ID: N0002402R7081

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 1201 M ST SE 400, WASHINGTON, DC, 20003

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002401D7017

IDV Type: IDC

Timeline