Air Force awards $52.2M engineering services contract to Gauss Management Research and Engineering Inc

Contract Overview

Contract Amount: $52,171,931 ($52.2M)

Contractor: Gauss Management Research and Engineering Inc

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2026-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $35.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TECHNICAL MANAGEMENT AND ADVISORY SERVICES (TMAS 2) PLATFORM

Place of Performance

Location: OGDEN, WEBER County, UTAH, 84405

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $52.2 million to GAUSS MANAGEMENT RESEARCH AND ENGINEERING INC for work described as: TECHNICAL MANAGEMENT AND ADVISORY SERVICES (TMAS 2) PLATFORM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1460 days indicates a long-term need for these services. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The base award amount is $35.7M, with a potential ceiling of $52.2M, indicating flexibility for growth. 5. The contract is for Technical Management and Advisory Services (TMAS 2) Platform, a critical support function. 6. The contractor, Gauss Management Research and Engineering Inc., has secured this significant award. 7. The contract is managed by the Department of the Air Force, a major defense spender.

Value Assessment

Rating: good

The contract's value of $52.2M over approximately four years for technical management and advisory services appears reasonable within the context of large-scale defense contracts. Benchmarking against similar TMAS contracts would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure necessitates close monitoring to ensure costs remain aligned with the fixed fee and do not escalate excessively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while a broad competition was intended, specific sources may have been excluded based on certain criteria. The presence of 3 bidders suggests a moderate level of competition. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of this award, even with exclusions, is generally beneficial for taxpayers as it encourages multiple firms to offer their best pricing and technical solutions.

Public Impact

The Department of the Air Force benefits from specialized technical management and advisory services to support its platforms. This contract ensures the continued operation and improvement of critical Air Force systems. The services delivered are likely to have a broad impact across various Air Force operations and installations. The contract supports a workforce skilled in engineering, management, and advisory roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not rigorously overseen.
The 'Exclusion of Sources' clause in the competition type warrants further investigation to understand the rationale and potential impact on competition.
The significant contract value necessitates robust performance monitoring to ensure deliverables meet expectations.

Positive Signals

Awarded through full and open competition, indicating a commitment to leveraging market capabilities.
The long contract duration suggests a stable and predictable need for the services, allowing for efficient resource planning.
The contractor, Gauss Management Research and Engineering Inc., has secured a substantial contract, indicating confidence in their capabilities.

Sector Analysis

The engineering services sector within the defense industry is characterized by high demand for specialized expertise in areas such as systems integration, lifecycle support, and technical advisory. This contract fits within the broader landscape of defense procurement, where agencies like the Air Force rely on contractors for critical support functions that may not be available in-house or require specialized external knowledge. Comparable spending benchmarks in this sector often involve multi-million dollar contracts for similar advisory and technical management services.

Small Business Impact

The data indicates that small business participation (sb: false) was not a primary set-aside criterion for this contract. There is no explicit information on subcontracting plans for small businesses. Without specific set-aside goals or reporting requirements, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Performance metrics and deliverables would be monitored against the contract's terms and conditions. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Technical Management and Advisory Services (TMAS)
Engineering Services
Department of Defense Contracts
Air Force Procurement
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires careful cost monitoring.
Potential for limited competition due to 'Exclusion of Sources' designation.
Contractor's past performance needs thorough vetting.
Long contract duration increases exposure to changing requirements or technologies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.2 million to GAUSS MANAGEMENT RESEARCH AND ENGINEERING INC. TECHNICAL MANAGEMENT AND ADVISORY SERVICES (TMAS 2) PLATFORM

Who is the contractor on this award?

The obligated recipient is GAUSS MANAGEMENT RESEARCH AND ENGINEERING INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $52.2 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

What is the historical performance record of Gauss Management Research and Engineering Inc. with the Department of Defense?

A thorough review of historical contract data for Gauss Management Research and Engineering Inc. with the Department of Defense would be necessary to assess their performance record. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any instances of disputes or contract terminations. A positive track record with timely delivery, quality work, and adherence to budget would indicate a lower risk for this new award. Conversely, a history of performance issues could raise concerns about the successful execution of this $52.2M contract.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar engineering advisory services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in defense contracting, particularly for services where the scope of work may evolve or is not fully defined at the outset. For engineering and advisory services, CPFF allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While this structure offers flexibility, it can incentivize cost increases if not managed tightly. Industry benchmarks for CPFF in this sector often involve comparing the fixed fee percentage to the total estimated cost. A fee significantly outside the typical range (e.g., 5-15% of total costs) could indicate either exceptional value or potential overpricing, necessitating detailed cost analysis by the government.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' designation?

The designation 'Full and Open Competition After Exclusion of Sources' suggests that while the competition was intended to be broad, certain potential offerors were deliberately excluded. The risks associated with this depend heavily on the justification for exclusion. If the exclusions were based on legitimate technical requirements, security clearances, or specific past performance criteria that only a few entities met, the risk to competition might be minimal. However, if the exclusions were arbitrary or lacked clear justification, it could limit competition, potentially leading to higher prices and reduced innovation. It also raises questions about fairness and could invite protests from excluded parties.

What is the projected impact of this contract on the Air Force's ability to manage and modernize its technical platforms?

This contract is expected to significantly enhance the Air Force's capacity to manage and modernize its technical platforms by providing essential technical management and advisory services. These services likely encompass areas such as systems engineering, program management support, lifecycle sustainment planning, and technology insertion strategies. By leveraging the expertise of Gauss Management Research and Engineering Inc., the Air Force can ensure that its platforms remain operationally effective, secure, and up-to-date with evolving technological advancements. This support is crucial for maintaining air superiority and mission readiness in a rapidly changing threat environment.

How does the $52.2M ceiling compare to historical spending on similar Technical Management and Advisory Services (TMAS) contracts within the DoD?

The $52.2M ceiling for this TMAS 2 contract is substantial and aligns with the significant investments the Department of Defense makes in technical support services. To provide a precise comparison, one would need to analyze historical spending data for similar TMAS contracts across different branches of the DoD. However, generally speaking, contracts of this magnitude are typical for providing comprehensive advisory and management support for complex defense systems over multi-year periods. Benchmarking against other TMAS platforms or similar advisory service contracts awarded by agencies like the Army or Navy would reveal whether this ceiling represents a standard investment or an outlier, considering the scope and duration.

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5875 S ADAMS AVE PKWY STE 2A, SOUTH OGDEN, UT, 84405

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $68,216,980

Exercised Options: $68,156,938

Current Obligation: $52,171,931

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D3074

IDV Type: IDC

Timeline