DoD's $180M Engineering Services Contract Awarded to Credence Management Solutions
Contract Overview
Contract Amount: $180,088,608 ($180.1M)
Contractor: Credence Management Solutions Limited Liability Company
Awarding Agency: Department of Defense
Start Date: 2020-11-30
End Date: 2024-10-31
Contract Duration: 1,431 days
Daily Burn Rate: $125.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Professional Services
Official Description: PROFESSIONAL SUPPORT SERVICES
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22182
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $180.1 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: PROFESSIONAL SUPPORT SERVICES Key points: 1. Significant contract value of $180M for engineering services. 2. Competition method indicates a competitive award process. 3. Potential risk associated with sole-source exclusion, though stated as 'full and open after exclusion'. 4. Spending falls within the professional support services sector.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful monitoring of costs to ensure value. Benchmarking against similar engineering service contracts is crucial to assess pricing effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method suggests a competitive process was initiated, but the exclusion of certain sources warrants scrutiny to ensure the broadest possible competition was considered. This method can impact price discovery if not managed transparently.
Taxpayer Impact: The competitive nature of the award, despite source exclusions, aims to secure reasonable pricing for taxpayers. However, the specific exclusions could potentially limit cost savings.
Public Impact
Taxpayers are funding essential engineering services for the Department of the Air Force. The contract supports advanced technological development and operational readiness for the military. Credence Management Solutions is a key contractor in this significant DoD procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPFF contract type.
- Need to verify the justification for excluding sources in the competition.
Positive Signals
- Awarded through a competitive process.
- Long-term contract duration provides stability for service delivery.
Sector Analysis
This contract falls under professional support services, specifically engineering services (NAICS 541330). Spending in this sector is critical for government agencies requiring specialized technical expertise for complex projects and operations.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business participation was sought or subcontracted.
Oversight & Accountability
The contract's duration and value necessitate robust oversight from the Department of the Air Force to ensure performance, cost control, and adherence to contract terms. Regular performance reviews and audits are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost creep in CPFF contracts.
- Lack of transparency regarding source exclusions.
- No small business participation indicated.
- Long contract duration increases long-term risk exposure.
Tags
engineering-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $180.1 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. PROFESSIONAL SUPPORT SERVICES
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 $180.1 million.
What is the period of performance?
Start: 2020-11-30. End: 2024-10-31.
What specific engineering services are being provided under this contract, and how do they align with the Air Force's strategic objectives?
The contract is for Engineering Services (NAICS 541330). While the specific services aren't detailed, they likely encompass design, analysis, testing, and technical support for Air Force systems and platforms. These services are crucial for maintaining and advancing the technological capabilities and operational readiness of the Air Force's assets, supporting its strategic mission.
What was the rationale for excluding certain sources in the 'full and open competition after exclusion of sources' process, and did this exclusion impact the final price?
The rationale for excluding sources typically relates to specific technical requirements, security clearances, or prior performance history that only a limited number of contractors can meet. Without detailed documentation, it's difficult to ascertain the exact reasons or the precise impact on price. However, such exclusions can sometimes limit competitive pressure, potentially leading to higher costs than a truly unrestricted competition.
How effectively is the Cost Plus Fixed Fee (CPFF) structure being managed to ensure cost efficiency and prevent potential overruns?
Effective management of a CPFF contract involves rigorous monitoring of direct costs, contractor's indirect costs, and the fixed fee. The Air Force must implement strong financial controls, conduct regular audits, and ensure the contractor's cost accounting practices are sound. Performance metrics and milestones should be tied to fee realization to incentivize efficiency and prevent unnecessary expenditures.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $374,385,774
Exercised Options: $355,012,382
Current Obligation: $180,088,608
Actual Outlays: $11,753,720
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $458,840
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
Start Date: 2020-11-30
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2024-10-01
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