DoD's $9.16M R&D contract for engineering support awarded to Credence Management Solutions

Contract Overview

Contract Amount: $9,161,706 ($9.2M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES F16

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.2 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES F16 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not managed carefully. 3. The NAICS code 541715 indicates a focus on physical, engineering, and life sciences R&D. 4. The contract duration is approximately one year, suggesting a project-specific or short-term need. 5. The award amount of $9.16M falls within a moderate spending range for specialized R&D services. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract requires more detailed cost breakdowns and performance metrics. Without specific deliverables or comparable projects, it's difficult to definitively assess value for money. The fixed fee component provides some cost certainty, but the cost-reimbursable nature of the contract necessitates robust oversight to prevent unnecessary expenditures. Compared to similar R&D support services, the pricing structure will be a key factor in determining its fairness.

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,' indicating that multiple bidders were likely considered. The presence of 5 bidders (no) suggests a reasonable level of competition for this specialized R&D support service. This competitive environment should theoretically lead to more favorable pricing and better service offerings for the government.

Taxpayer Impact: The competitive award process is beneficial for taxpayers as it helps ensure that the government is receiving services at a fair market price, minimizing the risk of overpayment.

Public Impact

The Department of the Air Force benefits from specialized engineering and professional support services. This contract supports research and development activities within the physical, engineering, and life sciences. The services delivered are crucial for advancing scientific and technological capabilities within the DoD. The geographic impact is primarily within Virginia (SN), where the contractor is based, but the R&D outcomes can have national implications. The contract supports a workforce skilled in engineering, research, and administrative support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher costs if not closely monitored for efficiency.
The 'after exclusion of sources' clause in the competition type warrants further investigation into why certain sources were excluded.
Lack of specific performance metrics makes it challenging to assess the true value and effectiveness of the services.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract supports critical R&D efforts for the Department of Defense.
The fixed fee component provides a degree of cost predictability for the government.

Sector Analysis

This contract falls within the broader Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such specialized support services is competitive, with numerous firms offering expertise in scientific research, engineering analysis, and project management. The total federal spending on R&D services is substantial, and this contract represents a portion of the Department of Defense's investment in technological advancement.

Small Business Impact

The data indicates that 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 requirement. However, the prime contractor may still engage small businesses as subcontractors, depending on their own procurement strategies and the nature of the services required.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and the program office within the Department of the Air Force. Robust monitoring of costs, performance, and adherence to the fixed fee is essential. Transparency will depend on the agency's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Research and Development Services
Engineering Support Services
Professional Services Contracts
Department of Defense R&D Spending
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
Potential for undefined scope in R&D contracts can lead to cost overruns.
Need for clarity on the rationale behind 'exclusion of sources' in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.2 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES F16

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 $9.2 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the track record of Credence Management Solutions Limited Liability Company with the federal government, particularly in R&D support services?

A thorough review of federal procurement databases would be necessary to assess Credence Management Solutions LLC's track record. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract modifications. Understanding their past performance in similar R&D support roles, their ability to manage Cost Plus Fixed Fee contracts, and their overall client satisfaction is crucial for evaluating their reliability and capability on this new $9.16M award.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D services in terms of cost efficiency and risk?

Cost Plus Fixed Fee (CPFF) contracts are often used for R&D where the scope of work is not precisely defined at the outset, allowing for flexibility. The government reimburses the contractor's actual costs plus a fixed fee representing profit. While this structure encourages innovation and allows for adaptation, it carries a higher risk of cost overruns compared to fixed-price contracts, as the contractor is incentivized to incur costs to achieve the fixed fee. Effective oversight is paramount to ensure costs remain reasonable and the fixed fee is justified by the value delivered. Other contract types like Firm-Fixed-Price (FFP) offer greater cost certainty but may stifle innovation or be unsuitable for undefined R&D scopes.

What specific R&D areas does NAICS code 541715 cover, and are there any specific technological advancements anticipated from this contract?

NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' encompasses a broad range of scientific inquiry. This includes research in areas like advanced materials, aerospace engineering, environmental science, computer hardware development, and biological research (excluding specialized nano/biotech). Without specific details from the contract statement of work, it's difficult to pinpoint the exact R&D areas or anticipated advancements. However, contracts under this code typically aim to push the boundaries of existing knowledge and develop new technologies or processes relevant to national security, economic competitiveness, or public welfare.

What is the typical annual spending for 'SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES' and how does this $9.16M award compare?

The provided data indicates 'SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES' is a contract vehicle or category, not a specific program with historical annual spending. The $9.16M represents the total value of this particular delivery order. To understand its scale, we would need to compare it to the overall spending within the 'SCAT 1' category or similar engineering/professional support service contracts awarded by the Department of the Air Force or DoD. If 'SCAT 1' is an IDIQ contract, this $9.16M is one task order under it, and its significance depends on the total ceiling and historical drawdowns of that IDIQ.

Given the 'full and open competition after exclusion of sources' clause, what are the potential implications for future procurements of similar services?

The 'full and open competition after exclusion of sources' clause suggests that while the competition was intended to be broad, specific sources were deliberately excluded from consideration. The reasons for exclusion are critical. If based on legitimate factors like lack of capability or past performance issues, it's a standard practice. However, if the exclusions were arbitrary or created an artificial barrier, it could raise concerns about fairness and potentially limit future competition if not properly justified. Understanding the rationale behind the exclusions is key to assessing its impact on the broader market and future procurements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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: FA862225RB009

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1775 TYSONS BLVD, MCLEAN, VA, 22102

Business Categories: Category Business, 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: $243,157,836

Exercised Options: $38,012,431

Current Obligation: $9,161,706

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRCA25DS569

IDV Type: IDC

Timeline