Air Force awards $76.9M for Engineering, Logistics, and Program Support to Credence Management Solutions

Contract Overview

Contract Amount: $76,882,454 ($76.9M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2019-03-01

End Date: 2024-05-18

Contract Duration: 1,905 days

Daily Burn Rate: $40.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) FOR ENGINEERING, LOGISTICS, PROPULSION; PROGRAM DEVELOPMENT AND INTEGRATION; LOGISTICS CIVIL ENGINEERING; FORCE PROTECTION DIRECTORATES (AFLCMC/EN-EZ; LG-LZ: LP; XZ; AFMC/A4N)

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $76.9 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) FOR ENGINEERING, LOGISTICS, PROPULSION; PROGRAM DEVELOPMENT AND INTEGRATION; LOGISTICS CIVIL ENGINEERING; FORCE PROTECTION DIRECTORATES (AFLCMC/EN-EZ; LG-LZ: LP; XZ; AFMC/A4N) Key points: 1. Significant contract value highlights the need for specialized engineering and logistics support within the Air Force. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. 3. Risk appears moderate given the long duration and cost-plus-fixed-fee structure, requiring careful monitoring. 4. Spending is concentrated in professional, scientific, and technical services, specifically engineering.

Value Assessment

Rating: good

The contract's total value of $76.9M over approximately 5 years suggests a substantial but potentially reasonable price for comprehensive engineering and administrative support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive bidding process was used, aiming to secure the best value. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being utilized for critical defense support services, with the competitive award aiming to ensure efficient use of these resources.

Public Impact

Ensures continued operational readiness and program development for key Air Force directorates. Supports critical functions in logistics, propulsion, and force protection, impacting national security. Provides stable employment for personnel involved in specialized engineering and administrative roles. The long-term nature of the contract suggests ongoing strategic importance of these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher costs if not closely managed.
Long contract duration increases exposure to potential scope creep or evolving requirements.
Reliance on a single awardee for this broad scope could pose a risk if performance falters.

Positive Signals

Awarded through a competitive process, suggesting potential for value.
Supports critical Air Force missions, indicating strategic necessity.
The contract is for essential engineering and logistics services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services. Benchmarks for similar large-scale, long-term engineering support contracts within the Department of Defense are typically in the tens to hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award, and opportunities for subcontracting are not specified.

Oversight & Accountability

The contract is managed by the Department of the Air Force, implying oversight from relevant program offices and potentially the Defense Contract Management Agency (DCMA). The long duration necessitates consistent oversight to ensure performance and cost control.

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.
Risk of contractor performance issues over a long duration.
Limited competition due to 'exclusion of sources' may impact price.
Lack of small business participation in prime contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.9 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) FOR ENGINEERING, LOGISTICS, PROPULSION; PROGRAM DEVELOPMENT AND INTEGRATION; LOGISTICS CIVIL ENGINEERING; FORCE PROTECTION DIRECTORATES (AFLCMC/EN-EZ; LG-LZ: LP; XZ; AFMC/A4N)

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 $76.9 million.

What is the period of performance?

Start: 2019-03-01. End: 2024-05-18.

What is the specific breakdown of costs within the Cost Plus Fixed Fee structure, and how are profit margins determined?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Detailed cost breakdowns are typically found in the contract's schedule and exhibits. Profit margins are negotiated based on factors like contract complexity, risk, and market rates, and are subject to government audit and approval to ensure fairness and prevent excessive profit.

How does the 'exclusion of sources' clause in the competition impact potential cost savings or innovation?

Excluding sources, even after an initial full and open competition, can limit the pool of potential bidders. While it might be used for specific technical reasons or to consolidate requirements, it could potentially reduce competitive pressure, leading to higher prices or less innovation compared to a truly open competition. The justification for exclusion is critical for assessing its impact.

What mechanisms are in place to ensure the effectiveness and efficiency of the engineering and administrative support provided over the contract's five-year duration?

Effectiveness and efficiency are typically ensured through performance metrics, Service Level Agreements (SLAs), and regular performance reviews outlined in the contract. The government contracting officer and COR monitor contractor performance against these standards. The CPFF structure also requires diligent cost monitoring to prevent inefficiencies from inflating the final cost.

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: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1775 TYSONS BLVD, MCLEAN, VA, 22102

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: $154,573,655

Exercised Options: $109,240,795

Current Obligation: $76,882,454

Actual Outlays: $3,506,342

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS315

IDV Type: IDC

Timeline