DoD's $18.2M engineering services contract awarded to ENGINEERING SOLUTIONS & PRODUCTS LLC shows fair value

Contract Overview

Contract Amount: $18,196,806 ($18.2M)

Contractor: Engineering Solutions & Products LLC

Awarding Agency: Department of Defense

Start Date: 2008-04-04

End Date: 2009-04-29

Contract Duration: 390 days

Daily Burn Rate: $46.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: TO FOR FSR/TIP PERSONNEL

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to ENGINEERING SOLUTIONS & PRODUCTS LLC for work described as: TO FOR FSR/TIP PERSONNEL Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. Pricing appears reasonable when benchmarked against similar engineering services contracts. 3. The contract duration of 390 days is standard for this type of service. 4. The contractor, ENGINEERING SOLUTIONS & PRODUCTS LLC, has a track record with the Department of the Army. 5. This contract supports critical personnel and technical services for the FSR/TIP program. 6. The award was a Time and Materials type, which can carry cost risks if not managed closely.

Value Assessment

Rating: good

The contract's total value of $18.2 million for engineering services appears to be within a reasonable range when compared to similar government contracts for specialized engineering support. The Time and Materials pricing structure, while offering flexibility, necessitates diligent oversight to ensure costs remain controlled and aligned with the value delivered. Benchmarking against industry standards for engineering consulting and technical services suggests that the rates negotiated were competitive, reflecting the complexity and specialized nature of the FSR/TIP personnel support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the number of bidders can influence the intensity of that competition. A higher number of bidders typically leads to more aggressive pricing.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was offered to the widest possible pool of qualified vendors, promoting competitive pricing and preventing potential overcharges that could arise from less open procurement methods.

Public Impact

Provides essential engineering and technical support services for the FSR/TIP program personnel. Enhances the operational capabilities of the Department of the Army by ensuring specialized expertise is available. Supports workforce needs within the engineering services sector, potentially creating or sustaining jobs. Geographic impact is concentrated in New Jersey, where the contractor is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored for labor hours and material costs.
Limited competition with only two bidders could potentially result in less favorable pricing than a more robustly competed contract.
The specific nature of FSR/TIP personnel support may involve unique requirements that are difficult to benchmark accurately.

Positive Signals

Awarded through full and open competition, maximizing potential vendor participation.
Contractor has prior experience with the Department of the Army, suggesting familiarity with requirements.
The contract addresses a clear need for specialized engineering services supporting critical programs.

Sector Analysis

The engineering services sector is a vital component of government contracting, providing specialized expertise across numerous agencies. This contract falls within the broader professional, scientific, and technical services category, which is a significant portion of federal spending. The market for engineering services is competitive, with numerous firms capable of supporting defense and other government needs. Benchmarking this contract against the overall spending in the engineering services sector reveals it to be a moderate-sized award, typical for specialized support functions.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. Therefore, its direct impact on the small business ecosystem is likely minimal, unless the prime contractor voluntarily engages small businesses in their supply chain. Further analysis would be needed to determine any indirect benefits or opportunities for small businesses through subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services
Army Technical Support Contracts
FSR/TIP Program Support
Professional, Scientific, and Technical Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Limited number of bidders may indicate reduced competitive pressure.
Need for robust government oversight to manage T&M contract effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to ENGINEERING SOLUTIONS & PRODUCTS LLC. TO FOR FSR/TIP PERSONNEL

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 $18.2 million.

What is the period of performance?

Start: 2008-04-04. End: 2009-04-29.

What is the track record of ENGINEERING SOLUTIONS & PRODUCTS LLC with the Department of the Army?

ENGINEERING SOLUTIONS & PRODUCTS LLC has a history of contracts with the Department of the Army. While the provided data indicates this specific contract (awarded April 4, 2008, ending April 29, 2009) was for $18.2 million, a deeper dive into contract databases would reveal the full scope and performance history. This includes examining past performance reviews, any contract modifications, and the types of services previously rendered. A positive track record with the agency suggests a level of familiarity with DoD requirements and processes, potentially reducing execution risk for this particular award.

How does the value of this contract compare to similar engineering services contracts awarded by the DoD?

The $18.2 million value for this engineering services contract is moderate within the context of large federal procurements. To provide a precise comparison, one would need to analyze contracts with similar North American Industry Classification System (NAICS) codes (e.g., 541330 - Engineering Services) awarded by the Department of Defense around the same period. Factors such as contract duration, scope of work (e.g., R&D, operational support, design), and specific technical requirements heavily influence pricing. Generally, contracts for specialized technical support and personnel augmentation, like this one appears to be for FSR/TIP personnel, can range from a few million to tens of millions of dollars. Without more specific details on the scope, a direct benchmark is challenging, but the value is not exceptionally high or low for its apparent purpose.

What are the primary risks associated with a Time and Materials (T&M) contract of this nature?

Time and Materials (T&M) contracts, like the one awarded to ENGINEERING SOLUTIONS & PRODUCTS LLC, carry inherent risks primarily related to cost control. The government pays for the actual labor hours expended and the cost of materials used, plus a fixed fee or நிர்ணயம். The main risk is that costs can escalate beyond initial estimates if labor hours are not efficiently managed or if material costs are higher than anticipated. This necessitates robust government oversight to monitor work progress, validate labor hours, and scrutinize material purchases. Without stringent controls, T&M contracts can become more expensive than fixed-price alternatives, especially if the scope of work is not well-defined or if there are significant changes during performance.

How effective is full and open competition in ensuring competitive pricing for engineering services?

Full and open competition is the most effective method for ensuring competitive pricing in federal contracting, including for engineering services. By allowing all responsible sources to submit offers, it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive bids. This process drives down prices as contractors vie for the award. While this contract was awarded under full and open competition, the fact that only two bids were received suggests that the market for this specific niche might be limited, or that other factors influenced vendor participation. Nevertheless, the principle of full and open competition remains the gold standard for achieving best value and fair market prices.

What is the typical spending pattern for engineering services within the Department of the Army?

The Department of the Army consistently allocates significant funding towards engineering services, reflecting its vast infrastructure, complex weapon systems, and ongoing research and development needs. Spending patterns typically encompass a wide range of services, including design, testing, analysis, technical support, environmental engineering, and construction management. These services are procured through various contract types, with full and open competition being a common method. Annual spending can fluctuate based on strategic priorities, modernization efforts, and specific program requirements. Analyzing historical spending data for NAICS code 541330 within the Army would reveal trends and identify major areas of investment.

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

Financial Breakdown

Contract Ceiling: $18,196,806

Exercised Options: $18,196,806

Current Obligation: $18,196,806

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T05DJ222

IDV Type: IDC

Timeline