Air Force awards $86M EPASS contract to Credence Management Solutions for engineering support

Contract Overview

Contract Amount: $86,283,574 ($86.3M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2018-12-13

End Date: 2020-08-31

Contract Duration: 627 days

Daily Burn Rate: $137.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF AIR FORCE LIFE CYCLE MANAGEMENT STAFF ORGANIZATIONS (AFLCMC/CCX FM IN PK XP NASIC)

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $86.3 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF AIR FORCE LIFE CYCLE MANAGEMENT STAFF ORGANIZATIONS (AFLCMC/CCX FM IN PK XP NASIC) Key points: 1. Contract awarded to Credence Management Solutions for $86.3M. 2. Services are for Air Force Life Cycle Management Staff Organizations. 3. Contract type is Cost Plus Fixed Fee. 4. Competition was Full and Open after exclusion of sources.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. The awarded amount of $86.3M for a 627-day duration suggests a significant investment in engineering and administrative support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under Full and Open competition after exclusion of sources, indicating a competitive process but with specific source exclusions. This method aims for fair pricing but the exclusions might limit the breadth of competition.

Taxpayer Impact: Taxpayer funds are utilized for engineering and administrative support services for the Air Force, with the final cost dependent on the fixed fee and actual costs incurred.

Public Impact

Supports critical Air Force Life Cycle Management functions. Ensures availability of specialized engineering and administrative expertise. Potential for cost efficiencies through competitive bidding. Impacts operational readiness and program execution for the Air Force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Exclusion of sources in competition may limit price discovery.
Contract duration of 627 days requires ongoing monitoring.

Positive Signals

Full and Open competition ensures a degree of market vetting.
Contract supports essential Air Force operational needs.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense and aerospace. Spending in this area is benchmarked against similar support services for government agencies, with costs varying based on complexity and duration.

Small Business Impact

The data indicates this contract was awarded to Credence Management Solutions, LLC. There is no explicit information provided regarding small business participation or subcontracting goals within this specific award.

Oversight & Accountability

Oversight is managed by the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs remain reasonable and the fixed fee is justified by the services rendered.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition due to source exclusions.
Contract duration requires sustained oversight.
Lack of explicit small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.3 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF AIR FORCE LIFE CYCLE MANAGEMENT STAFF ORGANIZATIONS (AFLCMC/CCX FM IN PK XP NASIC)

Who is the contractor on this award?

The obligated recipient is CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY.

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 $86.3 million.

What is the period of performance?

Start: 2018-12-13. End: 2020-08-31.

What specific engineering and administrative support functions are covered under this EPASS contract?

The EPASS contract provides professional and administrative support services to Air Force Life Cycle Management Staff Organizations. This likely includes a range of activities such as program management, technical analysis, logistics support, financial management, and administrative assistance crucial for the lifecycle management of Air Force systems.

What are the primary risks associated with the 'Cost Plus Fixed Fee' contract type in this context?

The primary risk with Cost Plus Fixed Fee (CPFF) is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. While the fixed fee provides some predictability, the government bears the risk of cost overruns, necessitating strong oversight to ensure efficiency and prevent unnecessary expenditures.

How does the 'Full and Open competition after exclusion of sources' method impact the overall effectiveness and value of this contract?

This method aims to balance broad competition with specific requirements, potentially leading to good value if the excluded sources were not critical for optimal pricing. However, it could limit the pool of potential bidders, potentially reducing competitive pressure and the best possible price discovery compared to unrestricted full and open competition.

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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8609 WESTWOOD CTR DR STE 300, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $132,290,331

Exercised Options: $101,471,418

Current Obligation: $86,283,574

Actual Outlays: $5,983,687

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $6,701,849

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS112

IDV Type: IDC

Timeline