DoD's $13.8M Engineering Services Contract Awarded to DEL-JEN, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $13,837,068 ($13.8M)
Contractor: Del-Jen, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-02-01
End Date: 2013-04-05
Contract Duration: 3,351 days
Daily Burn Rate: $4.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Place of Performance
Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731
Plain-Language Summary
Department of Defense obligated $13.8 million to DEL-JEN, INC. for work described as: Key points: 1. Contract value of $13.8M over 9 years. 2. Awarded under full and open competition, suggesting market availability. 3. Cost Plus Award Fee contract type can incentivize performance but requires careful monitoring. 4. Engineering Services sector, NAICS 541330, is a common area for government contracting.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) structure allows for contractor reimbursement of costs plus a fee that is based on performance. This can lead to higher overall costs compared to fixed-price contracts if performance targets are aggressively met or if costs are not tightly controlled.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: While competition is positive, the CPAF structure may lead to costs exceeding initial estimates if not managed effectively, impacting taxpayer funds.
Public Impact
Ensures availability of specialized engineering expertise for Air Force projects. Supports technological advancement and infrastructure development within the Department of Defense. Potential for job creation within the engineering services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to cost overruns.
- Long contract duration (9 years) may not adapt well to evolving technological needs.
- Lack of specific performance metrics in provided data makes assessing award fee justification difficult.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Contract supports critical Department of Defense engineering needs.
- DEL-JEN, INC. has a history of government contracting.
Sector Analysis
Engineering services are crucial for government infrastructure and defense projects. Benchmarks for similar contracts vary widely based on scope, complexity, and duration, but $13.8M over 9 years for specialized services suggests a significant, long-term engagement.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee, DEL-JEN, INC., is not identified as a small business. Therefore, this contract does not appear to directly benefit small businesses.
Oversight & Accountability
The use of a Cost Plus Award Fee contract requires robust oversight from the Department of Defense to ensure that performance incentives are met and that costs remain reasonable and allocable. Regular audits and performance reviews are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Long contract duration may lead to outdated technology or services.
- Lack of specific performance metrics hinders objective evaluation.
- Limited insight into the specific engineering services provided.
- No indication of small business participation.
Tags
engineering-services, department-of-defense, ma, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.8 million to DEL-JEN, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is DEL-JEN, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $13.8 million.
What is the period of performance?
Start: 2004-02-01. End: 2013-04-05.
What specific engineering services are covered under this contract, and how do they align with current Air Force priorities?
The provided data only specifies 'Engineering Services' under NAICS code 541330. To fully assess value, a detailed breakdown of the services is needed. Understanding how these services directly support current Air Force modernization, operational readiness, or infrastructure projects would clarify their strategic importance and justify the $13.8M expenditure over nine years.
What are the key performance criteria and award fee structure for DEL-JEN, INC. under this CPAF contract?
The effectiveness of the Cost Plus Award Fee (CPAF) contract hinges on clearly defined, measurable, and achievable performance criteria. Without knowing these metrics, it's impossible to assess if the award fee truly reflects exceptional performance or if it might be inadvertently encouraging cost escalation. Robust oversight is needed to ensure the fee is earned appropriately.
How does the $13.8M total contract value compare to industry benchmarks for similar long-term engineering support contracts?
Benchmarking this $13.8M contract, spanning 3351 days (over 9 years), requires detailed comparison with similar engineering services contracts. Factors like the specific technical expertise required, the complexity of the projects, and the geographic scope are critical. A preliminary assessment suggests a moderate annual spend, but a true benchmark requires deeper analysis of the service scope against market rates.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation (UEI: 006907190)
Address: 28441 HIGHRIDGE RD STE 40, ROLLING HILLS, CA, 36
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F1965002D0010
IDV Type: IDC
Timeline
Start Date: 2004-02-01
Current End Date: 2013-04-05
Potential End Date: 2013-04-05 00:00:00
Last Modified: 2013-11-13
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