DoD's Navy awards $61.6M contract for Engineering Services to VSE Corporation, utilizing full and open competition
Contract Overview
Contract Amount: $61,577,754 ($61.6M)
Contractor: VSE Corporation
Awarding Agency: Department of Defense
Start Date: 2010-12-01
End Date: 2012-01-30
Contract Duration: 425 days
Daily Burn Rate: $144.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: ENGINEERING SERVICES
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $61.6 million to VSE CORPORATION for work described as: ENGINEERING SERVICES Key points: 1. The contract value of $61.6 million represents a significant investment in specialized engineering support. 2. VSE Corporation, a known entity in defense contracting, secured this award. 3. The use of 'Full and Open Competition After Exclusion of Sources' suggests a competitive process with specific justifications. 4. The sector is dominated by large prime contractors, with VSE operating within this landscape.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if performance incentives are aggressively met. Benchmarking CPAF contracts is complex due to variable fee structures.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific limitations. This method aims for best value while potentially excluding some bidders based on defined criteria, impacting price discovery.
Taxpayer Impact: While competition was utilized, the specific exclusion of sources may have limited the full potential for cost savings for taxpayers.
Public Impact
Ensures continued operational readiness and technical expertise for naval vessels. Supports critical shipbuilding and repair activities, impacting fleet maintenance. Provides specialized engineering knowledge to the Department of the Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources.
- Cost Plus Award Fee structure can inflate final costs.
- Lack of clear small business participation noted.
Positive Signals
- Utilized a competitive bidding process.
- Awarded to an established defense contractor.
- Supports critical naval operations.
Sector Analysis
The shipbuilding and repair sector (NAICS 336611) is a critical component of national defense, characterized by high technical barriers and significant government spending. Benchmarks vary widely based on contract scope and duration.
Small Business Impact
The provided data does not indicate any specific set-aside for small businesses, nor does it mention subcontracting goals. This suggests a potential lack of direct small business participation in this specific award.
Oversight & Accountability
The award falls under the Department of the Navy's procurement oversight. The use of CPAF and limited competition warrants scrutiny to ensure fair pricing and effective performance.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Limited competition may have reduced price competitiveness.
- Lack of explicit small business participation.
- Contract duration and delivery order nature require ongoing monitoring.
Tags
ship-building-and-repairing, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.6 million to VSE CORPORATION. ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is VSE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $61.6 million.
What is the period of performance?
Start: 2010-12-01. End: 2012-01-30.
What specific criteria led to the exclusion of certain sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did this impact the final price?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements are necessary, and only a limited number of contractors can meet them. This can reduce the number of bidders, potentially leading to less aggressive pricing than a truly unrestricted full and open competition. Detailed justification for the exclusion is crucial for assessing its impact on price discovery and taxpayer value.
How does the Cost Plus Award Fee (CPAF) structure for this $61.6 million contract ensure cost control and incentivize efficient performance for the Department of the Navy?
CPAF contracts aim to incentivize contractor performance by allowing for award fees based on achieving specific metrics and objectives. However, the 'cost plus' element means the government reimburses allowable costs plus a fee, which can be a percentage of costs or a fixed amount. Effective cost control relies heavily on robust government oversight, clear performance metrics, and a well-defined fee structure that genuinely rewards efficiency rather than just cost incurrence.
What is the long-term strategic value of awarding this engineering services contract to VSE Corporation, considering the competitive landscape and potential for future needs?
The long-term value depends on VSE Corporation's sustained performance, innovation, and ability to adapt to evolving naval requirements. While this award provides immediate support, the Department of the Navy must continuously assess the competitive landscape to ensure it can access the best capabilities and pricing for future engineering needs. Reliance on a single contractor, even with award fees, warrants periodic re-evaluation of the market.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002404R4206
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 6348 WALKER LANE, ALEXANDRIA, VA, 22310
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $61,577,754
Exercised Options: $61,577,754
Current Obligation: $61,577,754
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002405D4204
IDV Type: IDC
Timeline
Start Date: 2010-12-01
Current End Date: 2012-01-30
Potential End Date: 2012-02-29 00:00:00
Last Modified: 2017-12-05
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