Navy Awards $144.7M Engineering Services Contract to Advanced Marine Enterprises, Inc

Contract Overview

Contract Amount: $144,727,721 ($144.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-08-01

End Date: 2017-09-30

Contract Duration: 5,174 days

Daily Burn Rate: $28.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200312!037745!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401D7017 !A!N! !N!001902 !20030801!20050605!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. !+000000427470!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M!C!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 $144.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200312!037745!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401D7017 !A!N! !N!001902 !20030801!20050605!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. !+000000427470… Key points: 1. Contract awarded for Engineering Services (PSC 541330) to Advanced Marine Enterprises, Inc. 2. The contract value is $144,727,721.06 over a duration of 5174 days. 3. Competition was full and open, indicating a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can pose cost control risks. 5. The awardee is a small business located in Falls Church, VA.

Value Assessment

Rating: fair

The contract value of $144.7M for engineering services over approximately 14 years suggests a significant but potentially reasonable investment for specialized support. Benchmarking against similar large-scale, long-term engineering contracts is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for services.

Public Impact

Supports critical naval engineering and technical services, impacting fleet readiness and modernization. The long duration suggests a sustained need for these specialized services within the Department of the Navy. Potential for follow-on work or expansion of services based on performance. Economic impact on the small business awardee and its employees in the DC metro area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Long contract duration (over 14 years) may present challenges in adapting to evolving technological needs.
Reliance on a single awardee for such a long period could limit future competitive opportunities.

Positive Signals

Award to a small business supports federal small business contracting goals.
Full and open competition indicates a healthy market and competitive pricing.
The contract addresses a clear need for specialized engineering services within the Navy.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Department of the Navy. Spending in this sector is often driven by defense modernization, maintenance, and research and development needs, with significant government investment.

Small Business Impact

The awardee, Advanced Marine Enterprises, Inc., is a small business. This award contributes to the government's goal of supporting small businesses and fostering competition within the federal contracting landscape.

Oversight & Accountability

The contract's long duration and Cost Plus Fixed Fee structure necessitate robust oversight from the Naval Sea Systems Command to ensure cost control, performance standards, and adherence to contract terms.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (over 14 years).
Potential for cost overruns without strong oversight.
Limited visibility into specific services provided.
Risk of contractor lock-in over the long term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $144.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200312!037745!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401D7017 !A!N! !N!001902 !20030801!20050605!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. !+000000427470!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M!C!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 $144.7 million.

What is the period of performance?

Start: 2003-08-01. End: 2017-09-30.

What specific engineering services are being provided under this contract, and how do they align with current and future naval requirements?

The contract is for 'OTHER PROFESSIONAL SERVICES' with a NAICS code of 541330 (Engineering Services). While the data doesn't detail the specific services, it's likely related to naval architecture, marine engineering, systems engineering, or technical support for naval platforms. These services are crucial for maintaining fleet readiness, developing new technologies, and ensuring the operational effectiveness of naval assets in a dynamic geopolitical environment.

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

Cost Plus Fixed Fee (CPFF) contracts carry inherent risks of cost overruns if the government's oversight is insufficient. The contractor has an incentive to incur costs to achieve the fixed fee, and if the initial cost estimate is inaccurate, the final price could exceed expectations. For a contract spanning over 14 years, managing scope creep and ensuring the fixed fee remains appropriate relative to the work performed requires diligent monitoring and potential contract modifications.

How effectively does this contract leverage competition to ensure value for taxpayer dollars over its extended period?

The initial award was made under 'FULL AND OPEN COMPETITION,' which is a positive indicator for initial price discovery and value. However, the contract's extended duration (over 14 years) raises questions about sustained competition. While the base contract may have been competitively awarded, subsequent modifications or the need for specialized services over such a long period could limit future competitive opportunities, potentially impacting long-term value realization.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002403R7013

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

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

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

Financial Breakdown

Contract Ceiling: $190,100

Exercised Options: $190,100

Current Obligation: $144,727,721

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002401D7017

IDV Type: IDC

Timeline