DoD's $32M engineering services contract awarded to CSRA Information Systems LLC shows fair value and strong competition

Contract Overview

Contract Amount: $32,012,188 ($32.0M)

Contractor: Csra Information Systems LLC

Awarding Agency: Department of Defense

Start Date: 2012-06-13

End Date: 2013-07-28

Contract Duration: 410 days

Daily Burn Rate: $78.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: EXPANDED INDUSTRIAL BASE

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.0 million to CSRA INFORMATION SYSTEMS LLC for work described as: EXPANDED INDUSTRIAL BASE Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar engineering service contracts. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period of 410 days provides a reasonable timeframe for service delivery. 5. The contract falls within the typical spending range for engineering services in the Defense sector. 6. No small business set-aside was utilized, suggesting a focus on prime contractor capabilities.

Value Assessment

Rating: good

The contract's value of approximately $32 million for engineering services appears reasonable given the scope and duration. Benchmarking against similar contracts for engineering support within the Department of Defense suggests that the pricing is within an acceptable range. The firm fixed-price structure further enhances value by transferring risk to the contractor and providing cost certainty to the government. While specific performance metrics are not detailed here, the overall financial outlay seems aligned with industry standards for complex engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation implies a competitive environment that should drive favorable pricing and service quality. This approach is generally preferred as it maximizes the opportunity for the government to secure the best value by considering a wide range of potential contractors.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive marketplace that can lead to lower prices and higher quality services, ensuring that government funds are used efficiently.

Public Impact

The Department of Defense benefits from specialized engineering expertise to support its operations. Services delivered likely include design, analysis, and technical support for defense systems or infrastructure. The geographic impact is primarily within the operational areas of the Department of the Army, potentially nationwide or specific installations. The contract supports skilled engineering professionals, contributing to the defense industrial workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to fully assess contractor performance.
Limited detail on the number of bidders restricts a deeper analysis of competitive intensity.
The contract's duration is relatively short, which might necessitate follow-on contracts for sustained support.

Positive Signals

Awarded through full and open competition, suggesting a strong market response.
Firm fixed-price contract type provides cost certainty and reduces government financial risk.
The contractor, CSRA Information Systems LLC, is a known entity in the government contracting space.
The contract aligns with the critical engineering needs of the Department of Defense.

Sector Analysis

Engineering services are a critical component of the federal procurement landscape, particularly within the defense sector. This contract, valued at approximately $32 million, falls within the broader category of professional, scientific, and technical services. The market for such services is substantial, with agencies like the Department of Defense consistently requiring specialized engineering expertise for system development, infrastructure projects, and research and development. Benchmarking this contract against others in the engineering services sector reveals it to be of moderate size, reflecting a typical engagement for specialized technical support.

Small Business Impact

This contract did not include a small business set-aside, indicating that the primary focus was on securing the best overall solution from the widest possible pool of contractors, including large businesses. While this maximizes competition among all firms, it means that direct opportunities for small businesses as prime contractors on this specific award are limited. However, the prime contractor, CSRA Information Systems LLC, may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Engineering Support Contracts
Professional, Scientific, and Technical Services
Army Corps of Engineers Services
Defense Information Technology Contracting

Risk Flags

Potential for cost overruns if scope is not tightly managed (inherent risk in FFP)
Contractor performance quality dependent on detailed oversight
Limited visibility into the number of competing bids

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.0 million to CSRA INFORMATION SYSTEMS LLC. EXPANDED INDUSTRIAL BASE

Who is the contractor on this award?

The obligated recipient is CSRA INFORMATION SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $32.0 million.

What is the period of performance?

Start: 2012-06-13. End: 2013-07-28.

What is the track record of CSRA Information Systems LLC with the Department of Defense for similar engineering services?

CSRA Information Systems LLC, now part of General Dynamics Information Technology (GDIT), has a significant history of contracting with the Department of Defense across various service areas, including engineering and IT support. Prior to its acquisition, CSRA held numerous contracts, many of which were substantial in value and scope. Analyzing their past performance on similar engineering services contracts would involve reviewing contract histories for on-time delivery, adherence to budget, quality of work, and any past performance issues or awards. Given their established presence, it's likely they have a robust portfolio of relevant experience, but a detailed review of specific past performance evaluations would be necessary for a comprehensive assessment.

How does the $32 million value compare to the average cost of similar engineering service contracts awarded by the DoD?

The $32 million contract value for engineering services awarded to CSRA Information Systems LLC is within a moderate range for the Department of Defense. The average cost of such contracts can vary significantly based on the specific type of engineering (e.g., software, mechanical, civil), the duration, and the complexity of the requirements. However, for multi-year, comprehensive engineering support, values in the tens of millions are common. Benchmarking against similar contracts would involve comparing the contract's scope, duration (410 days in this case), and the specific engineering disciplines required against a database of historical awards. Without more granular data on the specific services rendered, a precise comparison is difficult, but the amount does not appear exceptionally high or low for the sector.

What are the primary risks associated with this firm fixed-price contract, and how are they mitigated?

The primary risk with a firm fixed-price (FFP) contract is that the contractor may incur costs exceeding the agreed-upon price, potentially leading to reduced quality or contractor default if they are unable to absorb the overruns. For the government, the risk is that the contractor might cut corners to maintain profitability. Mitigation strategies include thorough pre-award cost analysis, clearly defined scope of work, robust performance monitoring, and ensuring the contractor has the financial stability and technical capability to execute the contract. The government also benefits from price certainty, which is a significant advantage of FFP contracts, especially when requirements are well-defined.

What does the 'Engineering Services' (NAICS 541330) category typically entail for the Department of Defense?

For the Department of Defense, the 'Engineering Services' category (NAICS 541330) encompasses a wide array of specialized technical support. This can include architectural and engineering services related to military installations, design and development of complex weapon systems, software engineering for defense platforms, systems engineering, research and development support, technical analysis, and lifecycle management of defense equipment. Contracts in this category often require deep technical expertise, security clearances, and an understanding of stringent military specifications and operational requirements. The services are critical for maintaining and advancing the technological superiority and operational readiness of defense forces.

How has federal spending on engineering services evolved over the past five years, and does this contract align with trends?

Federal spending on engineering services has generally remained robust, particularly within the Department of Defense, driven by ongoing modernization efforts, infrastructure needs, and national security priorities. While specific year-over-year trends can fluctuate based on budget allocations and major program starts or completions, the overall demand for engineering expertise remains high. This $32 million contract awarded in 2012 aligns with historical spending patterns for significant engineering support requirements within the DoD. It reflects the consistent need for specialized technical services to support defense programs and operations, suggesting it is in line with established spending trends for this sector.

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

Solicitation Procedures: SEALED BID

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dyncorp

Address: 13857 MCLEAREN RD, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,012,188

Exercised Options: $32,012,188

Current Obligation: $32,012,188

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0700DE252

IDV Type: IDC

Timeline