Navy's $150M SMLIS Contract Awarded to MANTECH Advanced Systems International, Inc. for Engineering Services

Contract Overview

Contract Amount: $149,946,745 ($149.9M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-07-18

End Date: 2014-07-17

Contract Duration: 2,190 days

Daily Burn Rate: $68.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NAVY LEGACY SHIP MANAGEMENT AND LOGISTICS SUPPORT INFORMATION SYSTEMS (SMLIS)TAS::97 4930 000::TAS

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $149.9 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: NAVY LEGACY SHIP MANAGEMENT AND LOGISTICS SUPPORT INFORMATION SYSTEMS (SMLIS)TAS::97 4930 000::TAS Key points: 1. The contract, valued at $149,946,644.64, was awarded under full and open competition. 2. MANTECH Advanced Systems International, Inc. is the sole awardee for this engineering services contract. 3. The contract duration is 2190 days, spanning from July 2008 to July 2014. 4. This award falls under the Engineering Services NAICS code 541330. 5. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure suggests potential for costs to exceed initial estimates. Benchmarking against similar engineering services contracts is difficult without detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure can sometimes lead to less aggressive price negotiation compared to fixed-price contracts.

Taxpayer Impact: Taxpayer funds are utilized for this contract. The competitive award process aims to ensure reasonable pricing, but the CPFF structure warrants monitoring for cost efficiency.

Public Impact

Supports critical Navy legacy ship management and logistics information systems. Ensures continued operational readiness and efficiency for naval assets. Impacts personnel involved in ship management and logistics operations. Contributes to the broader defense IT infrastructure and services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price.
Long contract duration may not adapt well to rapidly changing technology.
No small business participation noted.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Supports essential Navy operational systems.
Clear contract award and defined period of performance.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related IT and logistics systems. Spending benchmarks for similar large-scale defense IT support contracts can vary widely based on scope and complexity.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the prime contractor is likely a large business, and subcontracting opportunities for small businesses were not explicitly detailed or mandated in this award.

Oversight & Accountability

The Department of the Navy awarded this contract. Oversight would typically involve contract performance monitoring, financial reviews, and ensuring adherence to the Cost Plus Fixed Fee terms to manage costs and deliverables effectively.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (6 years).
No explicit small business participation.
Potential for vendor lock-in.
Reliance on legacy systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $149.9 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. NAVY LEGACY SHIP MANAGEMENT AND LOGISTICS SUPPORT INFORMATION SYSTEMS (SMLIS)TAS::97 4930 000::TAS

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $149.9 million.

What is the period of performance?

Start: 2008-07-18. End: 2014-07-17.

What was the rationale for choosing a Cost Plus Fixed Fee contract type for this significant engineering services award?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is significant uncertainty in the costs involved. For complex systems like legacy ship management and logistics support, the Navy might have opted for CPFF to allow flexibility in addressing unforeseen technical challenges or evolving requirements while providing the contractor with a fixed fee for their effort.

How did the full and open competition process ensure value for money given the CPFF structure?

While CPFF contracts inherently carry cost risk, full and open competition aims to mitigate this by ensuring multiple qualified bidders compete. The Navy would have evaluated proposals based on technical merit, past performance, and the proposed fixed fee, alongside estimated costs. This competitive pressure, even within a CPFF framework, should drive more reasonable cost proposals and a well-defined fixed fee for the contractor's services.

What are the potential long-term implications of using a single contractor for such a critical system over a 6-year period?

A single contractor over a long period can lead to deep system knowledge and efficiency. However, it also carries risks such as vendor lock-in, potential complacency, and reduced incentive for innovation if not managed contractually. The Navy would need robust oversight to ensure continued performance, cost control, and adaptation to any necessary technological advancements or security updates.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002408R3045

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 2251 CORPORATE PARK DR STE 600, 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: $150,537,927

Exercised Options: $150,537,234

Current Obligation: $149,946,745

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4080

IDV Type: IDC

Timeline