Air Force awards $54M engineering support contract to Credence Management Solutions, with 1,978 days duration

Contract Overview

Contract Amount: $54,168,702 ($54.2M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2020-04-01

End Date: 2025-08-31

Contract Duration: 1,978 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF THE AIR FORCE INSTITUTE OF TECHNOLOGY (AFIT)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $54.2 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF THE AIR FORCE INSTITUTE OF TECHNOLOGY (AFIT) Key points: 1. Contract provides essential engineering and administrative support to the Air Force Institute of Technology. 2. The contract's duration of nearly 2,000 days suggests a long-term need for these services. 3. The award was made under full and open competition, indicating a broad search for qualified bidders. 4. The pricing structure (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 5. Performance is located in Virginia, potentially impacting the local workforce and economy. 6. The contract value of over $54 million over its term warrants scrutiny of cost-effectiveness.

Value Assessment

Rating: fair

The contract value of $54.17 million over approximately 5.4 years results in an average annual value of roughly $10 million. Benchmarking this against similar engineering support services contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently, as it reimburses the contractor for allowable costs plus a fixed fee. The total obligated amount is $27.39 million, suggesting that the full $54.17 million is not yet committed, which is typical for multi-year contracts.

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.' This indicates that the solicitation was broadly advertised, and multiple bids were likely received. The 'exclusion of sources' part might suggest specific requirements that narrowed the field, but the primary mechanism was open competition. A competitive process generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value by encouraging multiple companies to offer their services at the most favorable terms.

Public Impact

The primary beneficiaries are the Air Force Institute of Technology (AFIT), which receives critical engineering and administrative support. Services delivered include professional and administrative support essential for AFIT's educational and research missions. The geographic impact is concentrated in Virginia, where the contract is being performed. Workforce implications may include the creation or sustainment of engineering and administrative jobs in the Virginia area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type requires robust oversight to manage costs and prevent overruns.
The long duration of the contract necessitates continuous performance monitoring to ensure sustained quality.
Potential for scope creep in CPFF contracts if not clearly defined and managed.

Positive Signals

Awarded through full and open competition, suggesting a competitive market was leveraged.
The contract supports a critical educational and research institution (AFIT), aligning with Air Force objectives.
The contractor, Credence Management Solutions, has a track record that can be further analyzed for performance history.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330). This sector is characterized by firms offering specialized engineering expertise across various disciplines. The market size for government engineering services is substantial, driven by defense, infrastructure, and research needs. This specific contract supports a unique educational and research institution within the Department of Defense, indicating a specialized niche within the broader engineering services market.

Small Business Impact

The data indicates that small business participation (ss and sb flags) is not a primary focus of this specific award, as both flags are false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the prime contractor, Credence Management Solutions, is likely a larger entity, and the contract was not specifically targeted to encourage small business involvement at the prime level. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and potentially the Air Force Institute of Technology's contracting and program management offices. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent financial oversight to ensure that costs are allowable, reasonable, and allocable, and that the fixed fee is earned appropriately. Transparency would be enhanced through regular performance reviews and reporting. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Air Force Institute of Technology (AFIT) Operations
Department of Defense Engineering Support Services
Professional and Administrative Support Services Contracts
Cost Plus Fixed Fee Contracts
Full and Open Competition Awards

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for scope creep in CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.2 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF THE AIR FORCE INSTITUTE OF TECHNOLOGY (AFIT)

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 $54.2 million.

What is the period of performance?

Start: 2020-04-01. End: 2025-08-31.

What is the historical spending pattern for engineering and administrative support services at AFIT?

Analyzing historical spending patterns for engineering and administrative support services at AFIT is crucial for understanding the long-term investment in these capabilities. Without specific historical data for AFIT, we can look at broader trends. The Department of Defense, as a whole, spends billions annually on professional and engineering services. Contracts for academic and research institutions like AFIT often involve specialized support that may not fluctuate as dramatically as operational procurement. The current $54.17 million contract over nearly five years suggests a consistent need. Previous contracts for similar support at AFIT, if available, would reveal if this award represents an increase, decrease, or stable level of spending for these services. Understanding past spending helps in evaluating the reasonableness of the current contract's value and duration.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type used here reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve, offering flexibility. However, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor is incentivized to incur costs to earn more allowable expenses, though the fee itself is fixed. For similar engineering and administrative support services, fixed-price contracts (like Firm-Fixed Price) are generally preferred when requirements are well-defined, as they offer greater cost certainty. Incentive contracts could also be used to motivate performance. The choice of CPFF suggests that the government prioritized flexibility and the contractor's ability to adapt to evolving needs at AFIT over strict cost certainty.

What is Credence Management Solutions' track record with similar government contracts?

Credence Management Solutions Limited Liability Company has been awarded this contract for engineering and administrative support services. To assess their track record, one would typically examine their past performance on similar government contracts, particularly those with the Department of Defense or other agencies requiring engineering and professional services. Key aspects to review include on-time delivery, quality of work, adherence to budget (especially relevant for CPFF contracts), and any past performance issues or awards. A review of contract databases (like FPDS or SAM.gov) and past performance evaluations, if publicly available, would provide insights into their reliability, expertise, and overall suitability for managing complex support services. A strong track record suggests a lower risk of performance issues for this AFIT contract.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

While the specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, they are essential for effective oversight. For engineering and administrative support services at an institution like AFIT, KPIs would likely focus on the quality and timeliness of engineering analyses, reports, and project management; the efficiency of administrative processes; adherence to AFIT's academic and research standards; and responsiveness to requests. Performance measurement typically involves regular progress reports, milestone reviews, and potentially formal evaluations like Contractor Performance Assessment Reporting System (CPARS) assessments. The government contracting officer and technical representatives would monitor these KPIs to ensure the contractor meets the contract's objectives and deliverables, especially given the CPFF structure which requires careful monitoring of both cost and performance.

What is the potential impact of the 'exclusion of sources' clause in the competition type?

The contract type is listed as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation implies that while the competition was intended to be open, certain sources were excluded from bidding. The reasons for exclusion can vary, such as specific security clearances, unique technical capabilities, past performance issues, or pre-existing relationships that might have led to a sole-source justification for a portion of the requirement initially. However, the 'full and open' aspect suggests that after any initial exclusions, the remaining field was competed broadly. The impact on taxpayers is generally positive if the exclusions were justified and did not unduly limit competition, leading to a competitive price among the eligible bidders. If exclusions were arbitrary or overly restrictive, it could potentially limit price discovery and lead to higher costs.

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

Solicitation ID: FA862219R8145

Offers Received: 1

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: $91,655,237

Exercised Options: $69,960,676

Current Obligation: $54,168,702

Actual Outlays: $1,516,058

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