DHS Coast Guard awards $148M in engineering services to miscellaneous foreign awardees under full and open competition

Contract Overview

Contract Amount: $147,950,377 ($148.0M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Homeland Security

Start Date: 2002-08-05

End Date: 2002-09-01

Contract Duration: 27 days

Daily Burn Rate: $5.5M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE

Sector: Other

Official Description: CLIN 0056B

Place of Performance

Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $148.0 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: CLIN 0056B Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration of 27 days is relatively short for the awarded amount, raising questions about the scope of work. 4. The use of a Cost Plus Incentive fee structure suggests performance-based incentives were a key component. 5. The geographic location of the awardee in New Jersey is noted, though the services may be performed elsewhere. 6. The contract's value of $148 million for a short duration warrants scrutiny regarding efficiency and cost-effectiveness.

Value Assessment

Rating: questionable

The contract value of $148 million for a 27-day period appears exceptionally high, suggesting either a very complex or broad scope of work not fully detailed, or a potential overvaluation. Benchmarking this against typical engineering service contracts of similar duration is difficult without more specific scope information. The Cost Plus Incentive fee structure can lead to cost overruns if not managed tightly, making value for money a concern.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This method is generally preferred for ensuring fair pricing and access to the widest range of qualified contractors. The number of bidders is not specified, but the open competition suggests a healthy market engagement.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value through a transparent process.

Public Impact

The primary beneficiaries are likely the U.S. Coast Guard, receiving essential engineering services for its operations. The services delivered are engineering-related, crucial for maintaining and improving Coast Guard assets and infrastructure. The geographic impact is primarily associated with the U.S. Coast Guard's operational areas, though the awardee is based in New Jersey. Workforce implications could include specialized engineering roles being filled by the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short duration raises concerns about efficiency and potential for cost escalation.
The 'Miscellaneous Foreign Awardees' designation requires further investigation into the specific entities and their qualifications.
Cost Plus Incentive fee structure necessitates rigorous oversight to ensure cost control and performance.
Lack of detailed scope of work makes it difficult to assess the true value and necessity of the expenditure.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contract addresses a clear need for engineering services within the U.S. Coast Guard.
The use of an incentive fee structure can drive performance and efficiency if properly structured.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of government procurement supporting various operational needs. The market for specialized engineering services is competitive, with numerous firms capable of undertaking complex projects. The $148 million award, while substantial, needs to be viewed in the context of the specific, albeit unspecified, engineering requirements of the U.S. Coast Guard.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. Given the large dollar value and the nature of specialized engineering services, it is unlikely that small businesses would be the primary awardees unless they were part of a larger joint venture or subcontracting effort. Further analysis would be needed to determine subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. The Cost Plus Incentive fee structure necessitates close monitoring of performance metrics and cost expenditures. Transparency is generally maintained through contract reporting mechanisms, though specific details of the oversight process for this particular award are not provided.

Related Government Programs

Department of Homeland Security Procurement
U.S. Coast Guard Operations Support
Engineering and Technical Services Contracts
Foreign Military Sales (if applicable to awardees)
Cost-Plus Contract Types

Risk Flags

High Value for Short Duration
Foreign Awardee Scrutiny
Cost Plus Incentive Fee Risks
Lack of Detailed Scope Information

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $148.0 million to MISCELLANEOUS FOREIGN AWARDEES. CLIN 0056B

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $148.0 million.

What is the period of performance?

Start: 2002-08-05. End: 2002-09-01.

What specific engineering services were procured under CLIN 0056B?

The provided data indicates the contract is for 'Engineering Services' (NAICS code 541330) awarded to 'MISCELLANEOUS FOREIGN AWARDEES'. However, the specific nature of these engineering services is not detailed. Given the substantial value of $147,950,377 and a short duration of 27 days, the services could range from highly specialized technical consulting, design, or analysis related to Coast Guard assets, systems, or infrastructure. Without a detailed statement of work, it is impossible to ascertain the precise services rendered. This lack of specificity is a significant gap in understanding the contract's purpose and value.

How does the $148 million contract value compare to typical engineering service contracts for the U.S. Coast Guard?

Comparing this $148 million contract value to typical U.S. Coast Guard engineering service contracts is challenging without more context on the scope and duration. However, $148 million for a 27-day period is exceptionally high. Most engineering service contracts, even for major projects, are awarded with longer durations or phased approaches. This suggests either an emergency procurement, a highly specialized and critical need, or potentially a contract that was part of a larger, multi-year effort where this CLIN represents a specific, high-value task order. Benchmarking against similar short-duration, high-value engineering contracts is difficult due to the unusual parameters.

What are the risks associated with a 'Miscellaneous Foreign Awardees' designation?

The designation 'Miscellaneous Foreign Awardees' introduces several potential risks. Firstly, it raises questions about the vetting process and security clearances, especially if the services involve sensitive information or access to U.S. infrastructure. Secondly, it can complicate payment processes, legal jurisdiction, and contract enforcement. Thirdly, there may be geopolitical risks or compliance issues related to the countries of origin of these awardees. Ensuring these foreign entities meet U.S. standards for quality, security, and ethical conduct is paramount and requires robust oversight.

What does the 'Cost Plus Incentive' (CPIF) fee structure imply for this contract?

A Cost Plus Incentive (CPIF) fee structure means the contractor is reimbursed for allowable costs plus a target fee, with a predetermined formula for adjusting the fee based on performance against target cost, schedule, or quality objectives. For this contract, it implies that the Coast Guard and the contractor agreed on specific performance goals. If the contractor exceeds these goals (e.g., finishes under budget or ahead of schedule), they earn a higher fee; if they fall short, the fee is reduced. This structure aims to incentivize efficiency but requires careful negotiation of targets and robust monitoring to prevent cost overruns.

What is the historical spending pattern for engineering services by the U.S. Coast Guard?

Historical spending patterns for engineering services by the U.S. Coast Guard typically involve a mix of large, long-term contracts for major acquisitions and infrastructure projects, alongside smaller, more frequent contracts for specialized support. The Coast Guard, like other military and homeland security branches, relies heavily on engineering expertise for vessel design, maintenance, port security infrastructure, and IT systems. Annual spending can fluctuate significantly based on modernization efforts, new construction, and operational demands. A $148 million award for a short period is an outlier compared to typical annual spending profiles for routine engineering services, suggesting a unique or significant undertaking.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE (V)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $147,950,377

Exercised Options: $147,950,377

Current Obligation: $147,950,377

Contract Characteristics

Cost or Pricing Data: YES

Timeline