DoD's Air Force Awards $15.3M Engineering Services Contract to DEL-JEN, Inc. for Option Year 4

Contract Overview

Contract Amount: $15,331,807 ($15.3M)

Contractor: Del-Jen, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-02-01

End Date: 2013-07-25

Contract Duration: 2,366 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: EXERCISE THE FINAL OPTION YEAR - OPTION YEAR 4.

Place of Performance

Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $15.3 million to DEL-JEN, INC. for work described as: EXERCISE THE FINAL OPTION YEAR - OPTION YEAR 4. Key points: 1. Contract awarded to DEL-JEN, Inc. for engineering services. 2. The contract is for the final option year, indicating a mature service. 3. The award value is $15.3 million. 4. The contract falls under the Engineering Services sector. 5. The procurement method was full and open competition.

Value Assessment

Rating: good

The contract type is Cost Plus Award Fee (CPAF), which can incentivize performance but requires careful oversight to manage costs effectively. The award value of $15.3 million for the final option year suggests a potentially reasonable price for ongoing services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Taxpayers benefit from competitive bidding for engineering services. The Department of Defense continues to receive engineering support. The contract duration spans over 13 years, indicating long-term reliance on the vendor. The award supports the Air Force's operational needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for government infrastructure, defense, and research projects. Spending benchmarks in this sector vary widely based on project complexity and duration, but competitive awards like this are generally positive.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The use of a Cost Plus Award Fee contract necessitates strong oversight from the Department of the Air Force to ensure that award fees are justified and that costs remain reasonable and allocable to the contract's objectives.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-defense, ma, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to DEL-JEN, INC.. EXERCISE THE FINAL OPTION YEAR - OPTION YEAR 4.

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 $15.3 million.

What is the period of performance?

Start: 2007-02-01. End: 2013-07-25.

What specific engineering services were provided under this contract, and how did they contribute to the Air Force's mission objectives?

The provided data identifies the service category as 'Engineering Services' (NAICS 541330) but does not detail the specific tasks performed. These services likely supported various Air Force programs, potentially including design, analysis, testing, or technical support for aircraft, systems, or infrastructure. Understanding the precise nature of the services is key to assessing their value and impact on mission accomplishment.

Given the Cost Plus Award Fee structure and the contract's long duration, what mechanisms are in place to mitigate cost overruns and ensure performance remains high?

The Cost Plus Award Fee (CPAF) structure inherently involves performance incentives tied to award fees. Effective oversight by the Air Force contracting officers and technical monitors is critical. This includes rigorous evaluation of performance against defined criteria to justify award fees, regular audits of costs, and proactive communication with DEL-JEN, Inc. to address any potential issues early.

How does the $15.3 million award for the final option year compare to industry benchmarks for similar long-term engineering support contracts?

Benchmarking this $15.3 million award requires detailed comparison with contracts for similar engineering services, considering factors like scope, duration, complexity, and the specific agency. While the 'full and open competition' suggests competitive pricing, the Cost Plus Award Fee structure adds complexity. A comprehensive benchmark would involve analyzing historical data for comparable CPAF contracts within the defense sector.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING 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

Financial Breakdown

Contract Ceiling: $16,395,140

Exercised Options: $16,395,140

Current Obligation: $15,331,807

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F1965002D0010

IDV Type: IDC

Timeline

Start Date: 2007-02-01

Current End Date: 2013-07-25

Potential End Date: 2013-07-25 00:00:00

Last Modified: 2013-10-29

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