DoD's $26.5M Engineering Services Contract Awarded to Serco-IPS Corporation for Program Support

Contract Overview

Contract Amount: $26,496,179 ($26.5M)

Contractor: Serco-Ips Corporation

Awarding Agency: Department of Defense

Start Date: 2008-09-26

End Date: 2010-09-25

Contract Duration: 729 days

Daily Burn Rate: $36.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE

Sector: Defense

Official Description: CG(X) PROGRAM OFFICE SUPPORT SERVICES (PMS 502)

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 $26.5 million to SERCO-IPS CORPORATION for work described as: CG(X) PROGRAM OFFICE SUPPORT SERVICES (PMS 502) Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract type, Cost Plus Incentive, indicates a focus on performance-based outcomes with shared risk. 3. The duration of 729 days (2 years) suggests a significant, ongoing need for program support. 4. The award value of $26.5 million over two years implies a substantial investment in engineering services. 5. The contract was awarded to a single entity, Serco-IPS Corporation, highlighting their specialized capabilities. 6. The absence of small business set-aside flags indicates the primary contractor is likely not a small business.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Incentive Fee (CPIF) structure aims to control costs by incentivizing the contractor to stay within budget while achieving performance targets. However, CPIF contracts can sometimes lead to higher overall costs if not meticulously managed and if the incentive structure is not perfectly aligned with desired outcomes. The raw dollar amount of $26.5 million over two years translates to approximately $13.25 million annually, which needs to be assessed against the scope of services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bidders indicates a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The fact that Serco-IPS Corporation was selected suggests they offered the best value proposition among the competing firms.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are the Department of the Navy's program management offices, receiving essential engineering and support services. Services delivered likely include technical analysis, project management, and engineering support critical for program execution. The contract's geographic impact is centered in the District of Columbia, where the Navy's program offices are located. Workforce implications may include direct employment by Serco-IPS Corporation and potential indirect employment within the Navy's program offices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if not closely monitored.
Limited transparency on specific performance metrics and how they directly influenced the incentive fee.
The contract's duration and value suggest a significant reliance on a single contractor for critical support.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for strong value.
The Cost Plus Incentive Fee structure incentivizes contractor performance and cost control.
The selection of Serco-IPS Corporation suggests they possess specialized expertise required for the program.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government and private sector activities, including defense, infrastructure, and research. The market for engineering services is competitive, with numerous firms offering specialized expertise. The $26.5 million value positions this as a mid-sized contract within the federal landscape for engineering support, likely supporting a specific program office's long-term needs.

Small Business Impact

The contract details indicate that this was not set aside for small businesses (ss: false, sb: false). This suggests that the scope of work or the required expertise was deemed more suitable for larger, established firms capable of handling the contract's complexity and scale. There is no explicit information on subcontracting plans for small businesses, which would typically be a requirement for larger prime contracts to ensure broader participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. The Cost Plus Incentive Fee structure necessitates close monitoring of costs and performance against established targets. Transparency is generally facilitated through contract reporting requirements, though specific details on public accessibility of performance data are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Program Management Support Services
Navy Engineering and Technical Services
Federal Engineering Consulting Contracts
Cost Plus Incentive Fee Contracts

Risk Flags

Cost Plus Incentive Fee contract type requires diligent oversight to manage potential cost escalations.
Limited public information on specific performance metrics and outcomes.
Contract duration of two years necessitates ongoing monitoring of contractor performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to SERCO-IPS CORPORATION. CG(X) PROGRAM OFFICE SUPPORT SERVICES (PMS 502)

Who is the contractor on this award?

The obligated recipient is SERCO-IPS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2008-09-26. End: 2010-09-25.

What specific engineering services were provided under this contract?

While the contract is categorized under Engineering Services (NAICS 541330), the specific deliverables are not detailed in the provided data. However, given the 'CG(X) PROGRAM OFFICE SUPPORT SERVICES (PMS 502)' designation, it is highly probable that the services included program management support, technical analysis, systems engineering, acquisition support, and potentially logistical engineering. These services are crucial for the effective planning, execution, and oversight of complex defense programs managed by the Department of the Navy. The Cost Plus Incentive Fee (CPIF) structure suggests that performance metrics related to schedule adherence, cost control, and technical milestones were likely established and monitored.

How does the $26.5 million award value compare to similar contracts for program office support?

The $26.5 million award over two years, averaging $13.25 million annually, places this contract in the mid-tier range for federal program support services. Comparable contracts can vary significantly based on the agency, the complexity of the program being supported, and the specific services required. For instance, large-scale defense acquisition programs might involve multi-billion dollar support contracts, while smaller agency initiatives could be in the single-digit millions. Without knowing the exact scope and criticality of the 'CG(X)' program, a precise comparison is difficult. However, the value suggests a substantial and ongoing need for specialized engineering and program management expertise within the Department of the Navy.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract of this nature?

The primary risks associated with a CPIF contract like this revolve around cost control and performance alignment. While CPIF aims to incentivize efficiency, there's a risk that the contractor might pursue higher costs if the incentive fee structure is not perfectly calibrated, leading to cost overruns that are shared with the government. Another risk is the potential for the contractor to prioritize achieving the incentive fee targets over other critical, non-incentivized aspects of performance. Effective oversight by the government is crucial to mitigate these risks, ensuring that the contractor remains focused on delivering the best overall value and meeting all program objectives, not just those tied to the incentive.

What was the historical spending pattern for CG(X) Program Office Support Services prior to this contract?

The provided data does not include historical spending patterns for the CG(X) Program Office Support Services. This specific contract, awarded on September 26, 2008, and ending on September 25, 2010, represents a discrete period of spending. To understand historical patterns, one would need to access federal procurement databases (like FPDS or USASpending) for previous or subsequent contracts related to 'CG(X) Program Office Support Services' or the specific program management office (PMS 502). This would reveal trends in contract values, durations, awardees, and contract types over time, offering insights into the program's evolving needs and budget.

What is Serco-IPS Corporation's track record with the Department of Defense and similar contracts?

Serco-IPS Corporation, as part of the larger Serco Group, has a significant track record of providing services to government agencies, including the Department of Defense. Their expertise often spans areas like defense support, naval services, and complex program management. While this specific contract was for $26.5 million over two years, Serco has managed contracts of varying sizes and complexities across different federal departments. A comprehensive assessment of their track record would involve reviewing their past performance evaluations, any contract disputes or awards, and their portfolio of work within the defense sector to gauge their reliability, technical capability, and past performance on similar engineering and program support services.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002408R3106

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alion Science and Technology Corporation (UEI: 119162332)

Address: 10 WEST 35TH ST, CHICAGO, IL, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $127,802,301

Exercised Options: $45,514,144

Current Obligation: $26,496,179

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4066

IDV Type: IDC

Timeline