DoD awards $48.1M for Engineering Services to Serco Inc., raising value and competition concerns
Contract Overview
Contract Amount: $48,153,215 ($48.2M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2006-09-28
End Date: 2007-04-30
Contract Duration: 214 days
Daily Burn Rate: $225.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: 200612!661454!1700!N66001!SPACE AND NAVAL WARFARE SYSTEMS !N6600101D5020 !A!N! !Y!0119 !01 !20060928!20060928!097773022!097773022!077846090!N!RESOURCE CONSULTANTS, INC !2650 PARK TOWER DR STE 800!VIENNA !VA!22180!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000043974!N!N!000000000000!J058!MAINT & REPAIR OF EQ/COMMUNICATION EQUIPMENT !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M!C!B! !99990909!B!E!N!A! !A!N!R!2!006!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y!1700!N66001!0001! !
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110
Plain-Language Summary
Department of Defense obligated $48.2 million to SERCO INC for work described as: 200612!661454!1700!N66001!SPACE AND NAVAL WARFARE SYSTEMS !N6600101D5020 !A!N! !Y!0119 !01 !20060928!20060928!097773022!097773022!077846090!N!RESOURCE CONSULTANTS, INC !2650 PARK TOWER DR STE 800!VIENNA !VA!22180!66000!073!06!SAN DIEGO !SAN … Key points: 1. The contract value of $48.1M for engineering services is substantial. 2. Serco Inc. is a significant player in government contracting. 3. The contract's full and open competition raises questions about price discovery. 4. The sector is Engineering Services, a common area for DoD spending.
Value Assessment
Rating: questionable
The contract value of $48.1M appears high for engineering services, especially given the relatively short duration. Benchmarking against similar contracts is needed to assess if this represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While awarded under full and open competition, the specific pricing structure (Cost Plus Award Fee) can sometimes lead to less aggressive bidding and potentially higher costs if not managed tightly.
Taxpayer Impact: Taxpayer funds are being used for this contract, and ensuring cost-effectiveness is crucial for responsible spending.
Public Impact
Significant taxpayer investment in engineering services for the Department of the Navy. Potential for cost overruns if award fee criteria are not strictly managed. Impact on the competitive landscape for engineering service providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract value vs. duration
- Cost Plus Award Fee structure
- Potential for contractor performance incentives to inflate costs
Positive Signals
- Full and open competition utilized
- Established contractor with experience
Sector Analysis
This contract falls within the Engineering Services sector, a critical area for the Department of Defense. Spending in this sector is consistently high, and benchmarks are essential for evaluating individual contract values.
Small Business Impact
There is no indication that small businesses were involved in this specific award, which is common for large, complex service contracts. Further analysis would be needed to determine the overall impact on small business participation within this procurement category.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The Cost Plus Award Fee structure necessitates robust performance monitoring to ensure value for money and prevent unnecessary cost escalation.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High contract value for the duration.
- Potential for cost creep with CPAF.
- Lack of specific performance metrics in provided data.
- Limited insight into the competitive bidding process beyond 'full and open'.
Tags
engineering-services, department-of-defense, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.2 million to SERCO INC. 200612!661454!1700!N66001!SPACE AND NAVAL WARFARE SYSTEMS !N6600101D5020 !A!N! !Y!0119 !01 !20060928!20060928!097773022!097773022!077846090!N!RESOURCE CONSULTANTS, INC !2650 PARK TOWER DR STE 800!VIENNA !VA!22180!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000043974!N!N!000000000000!J058!MAINT & REPAIR OF EQ/COMMUNICATION EQUIPMENT !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M!C!B! !999
Who is the contractor on this award?
The obligated recipient is SERCO 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 $48.2 million.
What is the period of performance?
Start: 2006-09-28. End: 2007-04-30.
What is the typical cost range for similar engineering services contracts awarded by the Department of the Navy?
Determining the typical cost range for similar engineering services contracts requires access to historical procurement data and analysis of contract scope, duration, and complexity. Without specific benchmarks, it's difficult to definitively assess if $48.1M is high or low. Factors like specialized expertise, security requirements, and geographic location can significantly influence pricing.
How effectively does the Cost Plus Award Fee structure incentivize performance while controlling costs in this specific contract?
The effectiveness of a Cost Plus Award Fee (CPAF) structure hinges on the clarity and attainability of the award criteria. If well-defined and rigorously evaluated, CPAF can drive high performance. However, poorly defined criteria or lenient evaluations can incentivize cost-reimbursement without commensurate performance gains, leading to inflated costs for taxpayers.
What is the strategic importance of these engineering services to the Space and Naval Warfare Systems Command?
These engineering services are crucial for the maintenance and repair of essential communication equipment, directly supporting the operational readiness of naval forces. The Space and Naval Warfare Systems Command relies on such services to ensure the functionality and reliability of critical systems, underpinning the Navy's technological superiority and mission effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Serco Group PLC (UEI: 298452707)
Address: 20 CLEMENTON RD E 102S, GIBBSBORO, NJ, 01
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600101D5020
IDV Type: IDC
Timeline
Start Date: 2006-09-28
Current End Date: 2007-04-30
Potential End Date: 2007-04-30 00:00:00
Last Modified: 2009-04-01
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