DoD's $40.7M engineering support contract for ISR/SOF awarded to Apogee Engineering, LLC

Contract Overview

Contract Amount: $40,748,927 ($40.7M)

Contractor: Apogee Engineering, LLC

Awarding Agency: Department of Defense

Start Date: 2021-03-18

End Date: 2026-02-17

Contract Duration: 1,797 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF INTELLIGENCE SURVEILLANCE RECONNAISSANCE AND SPECIAL OPERATIONS FORCES DIRECTORATE, CROSSCUTTER

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80920

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $40.7 million to APOGEE ENGINEERING, LLC for work described as: SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF INTELLIGENCE SURVEILLANCE RECONNAISSANCE AND SPECIAL OPERATIONS FORCES DIRECTORATE, CROSSCUTTER Key points: 1. Contract provides critical engineering and administrative support for intelligence, surveillance, reconnaissance, and special operations forces. 2. Apogee Engineering, LLC, a significant player in defense contracting, holds this award. 3. The contract's duration of nearly five years suggests a sustained need for these specialized services. 4. Awarded under full and open competition, indicating a broad market solicitation. 5. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee, potentially incentivizing efficiency. 6. The contract value of over $40 million signifies a substantial investment in supporting advanced military capabilities.

Value Assessment

Rating: good

The contract value of $40.7 million over its period of performance appears reasonable for specialized engineering and administrative support services for ISR/SOF. Benchmarking against similar large-scale defense support contracts would provide a more precise value-for-money assessment. The CPFF contract type, while allowing for flexibility, requires careful monitoring to ensure costs remain controlled and the fixed fee provides adequate incentive for performance.

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,' suggesting that while a broad solicitation occurred, specific sources may have been excluded based on pre-qualification or other criteria. With 6 bidders, the competition level indicates a healthy interest in this requirement, which generally supports price discovery and potentially better pricing for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs compared to a sole-source or limited competition scenario. The presence of multiple bidders suggests that government funds are being utilized in a cost-conscious manner.

Public Impact

The primary beneficiaries are the Department of Defense's Intelligence, Surveillance, Reconnaissance, and Special Operations Forces, who receive essential technical and administrative support. Services delivered include engineering expertise and administrative functions crucial for the operation and maintenance of advanced ISR and SOF capabilities. The contract's impact is concentrated within the defense sector, supporting national security objectives. Workforce implications include the creation or sustainment of highly skilled engineering and administrative jobs within Apogee Engineering and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Reliance on a single contractor for critical support services could pose a risk if performance issues arise.
The 'after exclusion of sources' clause warrants scrutiny to ensure fair competition was not unduly limited.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Long contract duration suggests a stable and predictable need for these services, allowing for focused support.
Apogee Engineering's established presence in defense contracting implies a level of expertise and reliability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense capabilities. The market for such specialized engineering support is significant, driven by the continuous need for technological advancement and operational readiness within military branches. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the DoD to firms specializing in ISR and SOF technologies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Apogee Engineering, may engage small businesses as subcontractors, depending on their own subcontracting plans and the availability of specialized services within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Support Services
Special Operations Forces (SOF) Support Services
Defense Engineering Services
Aerospace Engineering Support
Information Technology Support for Defense

Risk Flags

Potential for cost creep in CPFF contracts.
Effectiveness of 'exclusion of sources' in maintaining robust competition.
Dependence on contractor performance for critical ISR/SOF support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.7 million to APOGEE ENGINEERING, LLC. SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF INTELLIGENCE SURVEILLANCE RECONNAISSANCE AND SPECIAL OPERATIONS FORCES DIRECTORATE, CROSSCUTTER

Who is the contractor on this award?

The obligated recipient is APOGEE ENGINEERING, LLC.

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 $40.7 million.

What is the period of performance?

Start: 2021-03-18. End: 2026-02-17.

What is Apogee Engineering, LLC's track record with similar government contracts, particularly within the DoD?

Apogee Engineering, LLC has a significant track record with the Department of Defense, often securing contracts related to engineering services, technical support, and program management. Their portfolio frequently includes work supporting intelligence, surveillance, and reconnaissance (ISR) platforms, as well as special operations forces (SOF). A review of federal procurement data indicates they have been awarded numerous contracts across various agencies, demonstrating a capacity to handle complex requirements. Their performance history, as reflected in past performance evaluations within contract databases, generally suggests a competent provider, though specific details on past issues or exceptional performance would require deeper analysis of individual contract close-outs and performance reviews.

How does the awarded value of $40.7 million compare to similar engineering support contracts for ISR/SOF?

The $40.7 million contract value for engineering and administrative support services for ISR/SOF appears to be within a typical range for contracts of this nature and duration (nearly five years). Large-scale defense support contracts, especially those requiring specialized engineering expertise for advanced systems like ISR and SOF, often run into tens of millions of dollars. For instance, similar contracts for system integration, technical support, and lifecycle management for complex defense platforms can range from $20 million to over $100 million, depending on the scope, complexity, and specific technologies involved. The value here suggests a substantial but not exceptionally large award, reflecting a focused scope of services for a critical directorate.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for engineering and administrative support is the potential for cost overruns. While the fixed fee provides a ceiling for the contractor's profit, the government bears the risk of reimbursing all allowable costs. If the contractor's costs exceed initial estimates, the government pays the actual costs plus the pre-determined fee. This can lead to the total contract value exceeding initial projections. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk. The CPFF structure can also incentivize contractors to incur costs to achieve a higher fee base, although the fixed fee component aims to limit this.

How effective is the 'full and open competition after exclusion of sources' method in ensuring optimal value for taxpayers?

The 'full and open competition after exclusion of sources' method aims to balance broad market solicitation with specific requirements that may necessitate excluding certain types of offerors or specific sources. While 'full and open' competition is generally preferred for maximizing value, the 'exclusion of sources' component can limit the pool of potential bidders. If the exclusions are well-justified (e.g., based on unique capabilities, security clearances, or past performance requirements essential for the mission), it can lead to a competitive environment among qualified firms, potentially yielding good value. However, if exclusions are overly broad or not adequately justified, it could inadvertently reduce competition, potentially leading to higher prices and less optimal value for taxpayers compared to unrestricted full and open competition.

What are the implications of this contract's duration (1797 days) on service continuity and contractor performance?

The contract's duration of approximately five years (1797 days) offers significant advantages for service continuity and contractor performance. For the government, it ensures a stable and predictable provision of critical engineering and administrative support services, minimizing disruptions and the administrative burden of frequent re-competition. For the contractor, a longer duration allows for greater investment in specialized personnel, process optimization, and a deeper understanding of the client's evolving needs. This stability can foster a stronger working relationship, encourage proactive problem-solving, and potentially lead to improved performance and efficiency over the contract's life. It also provides a more reliable basis for the contractor to plan resource allocation and workforce development.

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: 8610 EXPLORER DRIVE, SUITE 305, COLORADO SPRINGS, CO, 80920

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $73,028,818

Exercised Options: $48,826,113

Current Obligation: $40,748,927

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $11,232,439

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS133

IDV Type: IDC

Timeline