DoD's $145.8M contract for DCGS-A support shows mixed value and limited competition

Contract Overview

Contract Amount: $145,779,662 ($145.8M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-09-29

End Date: 2017-01-07

Contract Duration: 2,292 days

Daily Burn Rate: $63.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SYSTEM ENGINEERING, INTEGRATED LOGISTICS AND FIELDING/TRAINING SUPPORT SERVICES FOR PROJECT MANAGER, DISTRIBUTED COMMON GROUND SYSTEM-ARMY (PM-DCGS-A)

Place of Performance

Location: KILLEEN, BELL County, TEXAS, 76549

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $145.8 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: SYSTEM ENGINEERING, INTEGRATED LOGISTICS AND FIELDING/TRAINING SUPPORT SERVICES FOR PROJECT MANAGER, DISTRIBUTED COMMON GROUND SYSTEM-ARMY (PM-DCGS-A) Key points: 1. Value for money appears fair, with a significant portion of the total contract value awarded through competitive bidding. 2. Competition dynamics were mixed, with a substantial portion of the contract value awarded under full and open competition, but also a notable amount through other means. 3. Risk indicators are moderate, given the long duration and cost-plus contract type, which can incentivize cost overruns. 4. Performance context is tied to critical intelligence systems, highlighting the importance of reliable support services. 5. Sector positioning is within defense engineering services, a crucial area for military technological advancement. 6. The contract's duration and cost-plus structure warrant close monitoring for cost efficiency.

Value Assessment

Rating: fair

The total contract value of $145.8 million over approximately 6.4 years suggests a moderate annual spend. Benchmarking against similar large-scale defense IT and engineering support contracts is challenging without more granular data on specific services rendered. However, the Cost Plus Fixed Fee (CPFF) structure, while common for complex R&D and support, carries inherent risks of cost escalation if not managed tightly. The contract's value appears reasonable given the scope of supporting a critical intelligence system like DCGS-A, but detailed cost breakdowns would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. However, the data indicates two delivery orders were issued, suggesting the overall contract vehicle may have been established through a broader competitive process, with these orders representing specific taskings. The presence of full and open competition is generally positive for price discovery and ensuring a competitive market.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value through an open process.

Public Impact

The primary beneficiaries are the U.S. Army personnel who rely on the Distributed Common Ground System-Army (DCGS-A) for intelligence analysis and dissemination. Services delivered include crucial system engineering, integrated logistics, and fielding/training support, ensuring the operational readiness of a key intelligence platform. The geographic impact is likely nationwide, supporting Army units across various installations, and potentially extending to deployed forces. Workforce implications include the creation and sustainment of specialized technical and logistical jobs within the defense contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contract type can lead to higher costs if not managed effectively.
Long contract duration increases the risk of scope creep and potential inefficiencies.
Dependence on a single contractor for critical system support can create vendor lock-in.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Support for a critical intelligence system ensures operational capabilities.
Contract includes essential logistics and training, vital for system effectiveness.

Sector Analysis

This contract falls within the Defense Engineering Services sector, a significant segment of the federal IT and defense market. The market for such specialized support services is characterized by high barriers to entry due to security clearances, technical expertise, and established relationships with government agencies. Spending in this area is driven by the continuous need to modernize and maintain complex military systems. Comparable spending benchmarks would typically involve other large-scale system support contracts for major defense platforms.

Small Business Impact

The provided data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses (ss: false, sb: false). This suggests that the prime contractor, MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC., likely performed the majority of the work. There is no explicit information on subcontracting plans or performance related to small businesses within this data snippet. Therefore, the direct impact on the small business ecosystem appears minimal for this specific contract award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the contract's performance requirements and payment terms. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Intelligence Systems Support
Defense IT Services
Army Logistics Support
System Engineering Contracts
Ground Systems Development

Risk Flags

Cost-Plus Contract Type
Long Contract Duration
Critical System Support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $145.8 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. SYSTEM ENGINEERING, INTEGRATED LOGISTICS AND FIELDING/TRAINING SUPPORT SERVICES FOR PROJECT MANAGER, DISTRIBUTED COMMON GROUND SYSTEM-ARMY (PM-DCGS-A)

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $145.8 million.

What is the period of performance?

Start: 2010-09-29. End: 2017-01-07.

What is the historical spending trend for DCGS-A support services over the past decade?

Analyzing historical spending for DCGS-A support services over the past decade reveals a significant and sustained investment by the Department of the Army. While this specific contract (Award ID: Not Provided, but associated with PM-DCGS-A) represents a substantial outlay of approximately $145.8 million from 2010 to 2017, it is part of a larger, ongoing lifecycle cost for this critical intelligence system. Preceding and subsequent contracts would likely show similar or potentially higher annual expenditures, reflecting the system's evolving requirements, upgrades, and the need for continuous logistical, engineering, and training support. Fluctuations in spending could be attributed to major program milestones, technological refresh cycles, or shifts in operational tempo and intelligence demands. A comprehensive review would require aggregating data from multiple contract awards related to PM-DCGS-A across different fiscal years.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types used for similar defense system support?

The Cost Plus Fixed Fee (CPFF) pricing structure, utilized in this $145.8 million contract for DCGS-A support, is common for complex, research-intensive, or developmental projects where the scope of work is not precisely defined at the outset. In CPFF contracts, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to other contract types, CPFF offers flexibility but can incentivize cost overruns as the contractor is guaranteed cost recovery. Firm-Fixed-Price (FFP) contracts, conversely, offer greater cost certainty for the government but are less suitable for undefined scopes. Cost-Plus-Incentive-Fee (CPIF) contracts aim to balance flexibility with cost control by adjusting the fee based on performance against cost targets. For mature, well-defined support services, FFP or fixed-price incentive contracts are often preferred to maximize cost efficiency. The choice of CPFF here suggests the Army anticipated significant unknowns or evolving requirements during the contract period.

What are the key performance indicators (KPIs) typically associated with system engineering and logistics support contracts of this magnitude?

Key Performance Indicators (KPIs) for large-scale system engineering and logistics support contracts like the $145.8 million DCGS-A support agreement typically focus on reliability, availability, maintainability, and responsiveness. For system engineering, KPIs might include adherence to design specifications, successful integration of new capabilities, and timely resolution of technical issues. For logistics support, critical metrics often involve system uptime/availability rates, mean time between failures (MTBF), mean time to repair (MTTR), inventory accuracy, on-time delivery of parts and services, and training completion rates. Responsiveness KPIs would measure the contractor's ability to address reported issues or fulfill support requests within agreed-upon timeframes. The effectiveness of these KPIs is crucial for ensuring the operational readiness and effectiveness of the DCGS-A system for Army intelligence personnel.

What is the track record of MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. in delivering similar complex defense system support services?

MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. has a history of performing various defense-related contracts, including those involving system engineering, integration, and support services. While specific details on their performance for the PM-DCGS-A contract (2010-2017) require deeper investigation into contract performance reports and any associated award modifications or disputes, their continued presence in the defense contracting space suggests a capacity to meet government requirements. Analyzing their broader portfolio, including contracts with other branches of the military or defense agencies, would provide a more comprehensive view of their track record. Key aspects to examine would include past performance ratings, any instances of contract disputes or terminations, and their success in delivering complex technological solutions within budget and schedule constraints.

How has the total spending on DCGS-A evolved since the completion of this contract in 2017?

Since the completion of this $145.8 million contract in January 2017, the total spending on the Distributed Common Ground System-Army (DCGS-A) has likely continued, and potentially increased, reflecting the ongoing importance of intelligence systems. The DCGS-A program has undergone significant modernization efforts and platform evolutions, including the development of DCGS-A Increment 2 and subsequent iterations aimed at enhancing its capabilities and addressing emerging threats. Subsequent contracts would have been awarded to provide continued system engineering, software development, fielding, training, and sustainment support. Analyzing contract databases for awards made after 2017 under the PM-DCGS-A portfolio or its successor programs would reveal the trend in annual and total spending, likely showing substantial continued investment to maintain and upgrade this critical intelligence infrastructure.

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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

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: $145,779,662

Exercised Options: $145,779,662

Current Obligation: $145,779,662

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $30,084,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE403

IDV Type: IDC

Timeline