DoD's $23M Sensor Tech Support Contract Awarded to Credence Management Solutions

Contract Overview

Contract Amount: $23,024,861 ($23.0M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2020-01-01

End Date: 2025-06-30

Contract Duration: 2,007 days

Daily Burn Rate: $11.5K/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: SENSOR TECHNOLOGY ADVISORY AND ASSISTANCE SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: SENSOR TECHNOLOGY ADVISORY AND ASSISTANCE SUPPORT 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 closely monitored. 3. Performance period spans over five years, indicating a long-term need for these services. 4. The contract is for advisory and assistance support, crucial for complex defense systems. 5. The award value of $23M over the period of performance requires careful monitoring of expenditures. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a specialized field.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, carries inherent risks of cost escalation. The fixed fee component provides some incentive for the contractor to control costs, but the government bears the majority of the cost risk. Comparing this to similar advisory and assistance contracts within the Department of Defense would provide a clearer picture of its value proposition.

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 while a broad solicitation was made, specific sources may have been excluded based on pre-defined criteria. The number of bidders is not specified, but the 'full and open' designation generally implies a robust competition. This approach aims to ensure fair pricing and access to the best available solutions by allowing all responsible sources to submit offers.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation from multiple vendors.

Public Impact

The Department of the Air Force benefits from specialized technical expertise and advisory services for sensor technologies. This contract supports the development, integration, and sustainment of critical defense sensor systems. The services provided are likely to enhance the operational capabilities and effectiveness of Air Force assets. Geographic impact is primarily within the United States, supporting defense operations and research facilities. Workforce implications may include the need for highly skilled engineers and technical specialists within the contractor organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure can lead to cost overruns if not managed diligently.
Potential for scope creep in advisory and assistance contracts if requirements are not clearly defined and managed.
Reliance on external advisors may reduce organic internal expertise development over the long term.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
Long-term contract duration (over 5 years) indicates a stable and ongoing requirement, potentially leading to efficiencies.
Focus on specialized sensor technology advisory is critical for maintaining technological superiority.

Sector Analysis

The defense sector heavily relies on advanced sensor technologies for intelligence, surveillance, reconnaissance, and targeting. This contract falls within the broader engineering services market, which is a significant component of defense spending. The market for sensor technology advisory and assistance is specialized, with a limited number of firms possessing the requisite expertise. Comparable spending benchmarks would involve looking at other contracts for similar advisory services within defense agencies, particularly those focused on advanced technology integration.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. Given the specialized nature of sensor technology advisory services, it is possible that larger, more established firms are the primary awardees. Further investigation into subcontracting opportunities would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Performance monitoring, financial reviews, and adherence to contract terms are key accountability measures. Transparency is facilitated through contract award databases, but detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Intelligence Agency (DIA) Sensor Programs
National Reconnaissance Office (NRO) Technology Development
Air Force Research Laboratory (AFRL) Sensor Development
Intelligence, Surveillance, and Reconnaissance (ISR) Systems Support

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
Potential for scope creep in advisory services if not clearly defined.
Reliance on external expertise may impact long-term internal capability development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. SENSOR TECHNOLOGY ADVISORY AND ASSISTANCE SUPPORT

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 $23.0 million.

What is the period of performance?

Start: 2020-01-01. End: 2025-06-30.

What is the track record of Credence Management Solutions Limited Liability Company with the Department of Defense, particularly in providing sensor technology advisory services?

Credence Management Solutions LLC has a history of contracts with the Department of Defense, often in areas related to program management, engineering support, and advisory services. While specific details on their sensor technology advisory track record require deeper database searches, their presence in the defense contracting space suggests familiarity with the agency's requirements and operational environment. Analyzing past performance reviews and contract modifications for this company would provide a more comprehensive understanding of their capabilities and reliability in delivering similar services. It is important to note that 'Credence Management Solutions' may also operate under different legal structures or have subsidiaries, necessitating careful identification of the specific entity awarded this contract.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract compare to alternative contract types for similar advisory services, and what are the implications for cost control?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development or complex services where the scope of work is not precisely defined at the outset, as is common with advisory and assistance contracts. In a CPFF contract, the government reimburses the contractor for allowable costs and pays a fixed fee, which is intended to represent the contractor's profit. This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin on the fixed fee. However, it places the primary cost risk on the government, as all allowable costs are reimbursed. Alternative contract types like Firm-Fixed-Price (FFP) offer greater cost certainty for the government but are less suitable when technical uncertainties are high. Cost-plus-incentive-fee (CPIF) contracts could offer a better balance by providing incentives for both cost and performance targets. The CPFF structure here necessitates robust government oversight to manage costs effectively and prevent scope creep.

What are the key performance indicators (KPIs) used to measure the success of this sensor technology advisory and assistance support contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data. However, for advisory and assistance contracts, typical KPIs often revolve around the quality and timeliness of deliverables, such as reports, analyses, and recommendations. Other potential KPIs could include the successful integration of advised technologies, the accuracy of technical assessments, the effectiveness of strategic guidance provided, and the contractor's responsiveness to government requests. The contract's success would also be measured by its contribution to the overall program objectives related to sensor technology development and deployment. The government's program office would establish and monitor these KPIs through regular performance reviews and feedback mechanisms.

What is the historical spending trend for sensor technology advisory and assistance support within the Department of the Air Force, and how does this contract fit into that trend?

Historical spending trends for sensor technology advisory and assistance support within the Department of the Air Force are not detailed in the provided data. However, it is generally understood that the Air Force, as a major component of the DoD, invests significantly in advanced technologies, including sensors, to maintain its operational edge. Spending in this area is often driven by evolving threats, technological advancements, and modernization programs. This $23 million contract, spanning over five years, represents a consistent, long-term investment in specialized expertise. Its allocation suggests a strategic priority for the Air Force in enhancing its sensor capabilities through external advisory support, aligning with broader trends of leveraging industry expertise for complex technological challenges.

What are the potential risks associated with relying on external contractors for critical sensor technology advisory services, and what mitigation strategies are in place?

Key risks associated with relying on external contractors for critical sensor technology advisory services include potential loss of institutional knowledge, contractor lock-in, conflicts of interest, and the possibility of receiving biased advice. Mitigation strategies typically involve robust contract management, clear statement of work, defined performance metrics, and regular government oversight. The government may also implement measures to ensure knowledge transfer and retain critical expertise internally. For this specific contract, the 'Full and Open Competition' award mechanism helps mitigate contractor lock-in by ensuring a competitive environment. Furthermore, the CPFF structure, while carrying cost risks, requires detailed reporting and justification of expenses, enabling government oversight to identify and address potential issues proactively.

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: $61,072,056

Exercised Options: $35,993,910

Current Obligation: $23,024,861

Actual Outlays: $1,050,017

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