USAF contract for advisory and assistance services awarded to Credence Dynamo Solutions LLC for over $24M

Contract Overview

Contract Amount: $24,126,394 ($24.1M)

Contractor: Credence Dynamo Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2020-09-15

End Date: 2024-12-08

Contract Duration: 1,545 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: USAF NC3 ADVISORY AND ASSISTANCE SERVICES

Place of Performance

Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731

State: Massachusetts Government Spending

Plain-Language Summary

General Services Administration obligated $24.1 million to CREDENCE DYNAMO SOLUTIONS LLC for work described as: USAF NC3 ADVISORY AND ASSISTANCE SERVICES Key points: 1. The contract value of $24.1 million over its period of performance suggests a significant need for specialized engineering and advisory support. 2. The use of a Cost Plus Fixed Fee (CPFF) contract type indicates that while costs are reimbursed, the profit margin is fixed, requiring careful monitoring of expenses. 3. The contract was awarded under Full and Open Competition after Exclusion of Sources, suggesting a competitive process but with specific criteria for eligible bidders. 4. The duration of the contract (1545 days) points to a long-term requirement for these advisory services. 5. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) places this contract within a well-defined professional services sector. 6. The awarding agency, General Services Administration (GSA), often manages large-scale contracts for various federal departments, indicating a standardized procurement approach.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of advisory and assistance services provided. The CPFF structure necessitates close oversight to ensure costs remain reasonable and do not escalate beyond the fixed fee. Comparing this to similar contracts for engineering advisory services would require access to detailed performance metrics and pricing structures of other awards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was open to all eligible sources, there were specific criteria or exclusions applied, potentially limiting the pool of bidders. The number of bids received (9) suggests a moderate level of competition for this specific requirement.

Taxpayer Impact: A moderate level of competition can help ensure a fair price, but the 'exclusion of sources' aspect warrants scrutiny to confirm that the exclusions were justified and did not unduly restrict competition, potentially impacting taxpayer value.

Public Impact

The primary beneficiaries are the United States Air Force (USAF) units requiring specialized advisory and assistance in areas related to Nuclear Command, Control, and Communications (NC3). The services delivered are expected to support critical functions within the USAF, likely involving strategic planning, technical analysis, and program management. The geographic impact is likely concentrated around USAF installations or operational areas where NC3 advisory services are needed. Workforce implications may include the engagement of highly skilled engineers, analysts, and subject matter experts, potentially impacting the availability of such talent in the broader market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize cost overruns if not managed diligently.
The 'Exclusion of Sources' in the competition method requires verification to ensure it did not limit fair market access.
The specific nature of 'Advisory and Assistance Services' can sometimes lead to scope creep if not precisely defined.
Reliance on a single contractor for critical advisory functions could pose a risk if performance falters.

Positive Signals

The contract was awarded through a competitive process, indicating multiple entities vied for the opportunity.
The long duration suggests a stable and ongoing need for these services, implying a well-defined requirement.
The involvement of GSA suggests adherence to established procurement best practices and oversight.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's complex needs in areas like Nuclear Command, Control, and Communications (NC3). The market for such specialized advisory and assistance services is characterized by high barriers to entry due to technical expertise requirements and security clearances. Comparable spending benchmarks would typically be found within large defense contracts requiring similar levels of technical consultation and strategic support.

Small Business Impact

The contract details indicate that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this award. This suggests the contract was likely awarded to a large business or that subcontracting opportunities for small businesses were not explicitly mandated or tracked in this specific award notice. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA) and the specific Air Force program offices that are the end-users of the advisory services. Accountability measures are inherent in the CPFF contract type, requiring detailed cost reporting and performance reviews. Transparency is facilitated through contract award databases, though detailed performance reports may be less accessible to the public.

Related Government Programs

USAF NC3 Modernization Programs
Defense Advisory and Assistance Services
Engineering Services for National Security
Federal IT and Engineering Support Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition due to 'Exclusion of Sources'.
Risk of scope creep in long-duration advisory services.
Ensuring continued relevance of advice over contract duration.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24.1 million to CREDENCE DYNAMO SOLUTIONS LLC. USAF NC3 ADVISORY AND ASSISTANCE SERVICES

Who is the contractor on this award?

The obligated recipient is CREDENCE DYNAMO SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $24.1 million.

What is the period of performance?

Start: 2020-09-15. End: 2024-12-08.

What specific advisory and assistance services are being provided under this contract to the USAF NC3 program?

The contract, awarded to Credence Dynamo Solutions LLC, focuses on providing advisory and assistance services to the United States Air Force's Nuclear Command, Control, and Communications (NC3) enterprise. While the specific deliverables are not detailed in the provided data, such services typically encompass strategic planning, technical analysis, program management support, policy development, and subject matter expertise to aid in the modernization, sustainment, and operational effectiveness of the NC3 systems. This could involve advising on system upgrades, cybersecurity enhancements, operational procedures, and long-term strategic roadmaps for the NC3 infrastructure, ensuring its readiness and reliability.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact cost control and contractor incentives for this $24M USAF contract?

The Cost Plus Fixed Fee (CPFF) structure for this $24.1 million contract means the contractor, Credence Dynamo Solutions LLC, is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This structure is often used when the exact costs are difficult to estimate upfront, as is common with advisory and assistance services. For cost control, it places the onus on the government to meticulously audit and approve all claimed costs to ensure they are reasonable and allocable to the contract. Contractor incentives are primarily driven by the fixed fee; while they are reimbursed for costs, their profit is capped. This can incentivize efficiency to avoid cost overruns that eat into their profit, but it can also lead to a focus on completing tasks within budget rather than necessarily achieving the absolute best outcome if the fee is perceived as low. Close government oversight is crucial to balance these dynamics.

What are the implications of 'Full and Open Competition after Exclusion of Sources' for competition and pricing on this contract?

The 'Full and Open Competition after Exclusion of Sources' designation for this contract indicates that while the solicitation was broadly advertised, specific sources were excluded based on defined criteria. This means the competition was not entirely unrestricted; certain potential bidders were ineligible from the outset. The impact on competition and pricing is nuanced. On one hand, it suggests a deliberate effort to ensure that only qualified entities with specific capabilities or meeting particular requirements could bid, potentially leading to a higher quality of proposals. On the other hand, excluding sources, even if justified, inherently reduces the number of competitors. If the exclusions were too broad or not well-justified, it could limit price discovery and potentially lead to higher prices than would have been achieved in a truly unrestricted competition. The fact that 9 bids were received suggests a reasonable, though not maximal, level of competition.

What is the historical spending pattern for USAF advisory and assistance services, and how does this contract compare?

Historical spending on advisory and assistance (A&AS) services by the Air Force, and the Department of Defense broadly, has been substantial and often constitutes a significant portion of the overall services acquisition budget. These services are critical for supporting complex weapon systems, strategic planning, and program management where organic government expertise may be limited or specialized. This $24.1 million contract for NC3 advisory services is one component within that larger spending picture. Without specific historical data for USAF NC3 A&AS contracts, it's difficult to definitively state if this award is higher or lower than average. However, given the critical nature and complexity of NC3, a contract of this magnitude over a multi-year period is not unusual for specialized support.

What are the potential risks associated with a long-duration (1545 days) contract for advisory services?

Long-duration contracts, such as this 1545-day award, for advisory and assistance services carry several potential risks. Firstly, the risk of scope creep is heightened; as the contract progresses, requirements may evolve, and without rigorous change management, the scope can expand beyond the original intent, potentially increasing costs. Secondly, there's a risk of contractor 'lock-in' or complacency, where the incumbent contractor may become less innovative or responsive over time due to the lack of regular competitive pressure. Thirdly, the relevance of the advice provided can diminish if the technological or strategic landscape shifts significantly during the contract period, requiring continuous adaptation by the contractor. Finally, maintaining consistent quality and performance over such an extended period requires robust government oversight and performance management.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1951 KIDWELL DR STE 550, VIENNA, VA, 22182

Business Categories: Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $93,750,155

Exercised Options: $34,059,801

Current Obligation: $24,126,394

Actual Outlays: $-467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1042

IDV Type: IDC

Timeline