DoD's $33.1M Space Logistics Contract to Apogee Engineering: Engineering Services for Air Force
Contract Overview
Contract Amount: $33,104,502 ($33.1M)
Contractor: Apogee Engineering, LLC
Awarding Agency: Department of Defense
Start Date: 2019-02-15
End Date: 2025-02-28
Contract Duration: 2,205 days
Daily Burn Rate: $15.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPACE LOGISTICS INFRASTRUCTURE FOR SUPPORT AND SERVICES BASIC CONTRACT
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80920
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $33.1 million to APOGEE ENGINEERING, LLC for work described as: SPACE LOGISTICS INFRASTRUCTURE FOR SUPPORT AND SERVICES BASIC CONTRACT Key points: 1. Contract awarded for essential engineering services supporting space logistics infrastructure. 2. Apogee Engineering, LLC, a contractor with a significant presence in defense services, secured this award. 3. The contract's duration spans over six years, indicating a long-term need for these specialized services. 4. Awarded by the Department of the Air Force, it highlights the critical role of engineering in space operations. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. This award falls under the Engineering Services NAICS code (541330).
Value Assessment
Rating: good
The contract's total value of $33.1 million over approximately six years suggests a moderate annual spend for specialized engineering services. Benchmarking against similar contracts for space logistics support and engineering requires detailed analysis of scope and deliverables. However, the firm fixed-price structure generally indicates a commitment to cost control, provided the scope is well-defined. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the duration and nature of the services suggest a strategic investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, certain sources were excluded, potentially limiting the pool of bidders. The number of bidders is not specified, but the 'limited' competition level suggests that the government may have had specific requirements or pre-existing relationships that influenced the procurement process. This approach can sometimes lead to less aggressive pricing compared to unrestricted full and open competition.
Taxpayer Impact: A limited competition may result in higher costs for taxpayers if it restricts the number of capable vendors and reduces price pressure. However, if the exclusions were justified by specific technical needs, it could ensure the best fit for a complex requirement.
Public Impact
The Department of the Air Force benefits from specialized engineering expertise for its space logistics infrastructure. This contract supports the operational readiness and advancement of U.S. space capabilities. The services provided are crucial for maintaining and enhancing the complex systems that underpin space operations. Geographic impact is likely concentrated around Air Force installations and space command centers, though the nature of space operations is global. Workforce implications include employment for skilled engineers and technical professionals within Apogee Engineering and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition to reduce price discovery and increase costs for taxpayers.
- The 'exclusion of sources' clause requires careful scrutiny to ensure it was fully justified and did not unduly restrict competition.
- Long contract duration necessitates ongoing performance monitoring to ensure continued value and alignment with evolving space needs.
Positive Signals
- Firm Fixed Price contract structure shifts cost risk to the contractor, encouraging cost efficiency.
- Award to a single contractor suggests a focused approach to meeting specific, potentially complex, engineering requirements.
- The contract supports critical national security infrastructure in the vital domain of space.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the defense and aerospace industries. The market for space logistics and related engineering services is highly specialized, characterized by significant R&D investment, stringent security requirements, and a limited number of highly qualified contractors. Spending in this area is driven by national security priorities and the increasing reliance on space-based assets for communication, intelligence, and navigation. Comparable spending benchmarks would typically be found within other large, complex defense procurements for specialized technical support.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract award. This suggests that the primary focus was on securing specialized engineering capabilities from a contractor deemed best suited for the requirement. There is no explicit information on subcontracting plans for small businesses, which would typically be detailed in the contract's statement of work or associated documentation. The absence of a small business set-aside may mean fewer direct opportunities for small businesses on this prime contract, though they could potentially participate as subcontractors if Apogee Engineering opts to engage them.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the Firm Fixed Price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Space Force Logistics Support Contracts
- Department of Defense Engineering Services
- Air Force Research and Development
- National Security Space Acquisition
- Aerospace Engineering Services
Risk Flags
- Limited competition may impact price competitiveness.
- Justification for exclusion of sources requires review.
- Long-term contract requires sustained performance monitoring.
Tags
defense, department-of-defense, department-of-the-air-force, engineering-services, space-logistics, firm-fixed-price, limited-competition, apogee-engineering, contract-award, federal-spending, technical-services, aerospace
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.1 million to APOGEE ENGINEERING, LLC. SPACE LOGISTICS INFRASTRUCTURE FOR SUPPORT AND SERVICES BASIC CONTRACT
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 $33.1 million.
What is the period of performance?
Start: 2019-02-15. End: 2025-02-28.
What is Apogee Engineering, LLC's track record with the Department of Defense, particularly in space logistics or engineering services?
Apogee Engineering, LLC has a notable track record with the Department of Defense, often securing contracts related to engineering, technical support, and program management. While specific details on their involvement in 'space logistics infrastructure' prior to this award would require deeper database analysis, their general profile suggests experience in complex defense environments. Their past performance on similar contracts, including their ability to manage firm-fixed-price agreements and deliver on technical requirements, would have been a key factor in this award. Reviewing their contract history for prior successful engagements, particularly those involving the Air Force or space-related agencies, would provide further insight into their capabilities and reliability for this specific requirement.
How does the $33.1 million value compare to similar engineering services contracts for space logistics infrastructure?
The $33.1 million value for this six-year contract represents an average annual spend of approximately $5.5 million for specialized engineering services related to space logistics infrastructure. Comparing this to similar contracts requires access to a broader dataset of defense procurements. However, for complex, niche services like space logistics engineering, this figure appears moderate. Larger, more comprehensive space system development contracts can run into hundreds of millions or billions. Conversely, smaller, short-term consulting engagements would be significantly less. This contract's value suggests a substantial, but not massive, investment in sustained engineering support for critical space assets, likely focused on specific infrastructure elements rather than entire system development.
What are the primary risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?
The primary risks associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' stem from the potential reduction in the competitive landscape. While intended to allow for broad competition initially, the subsequent exclusion of specific sources can limit the number of viable bidders. This reduction can lead to less aggressive pricing, as the remaining bidders may face less pressure to offer the most competitive rates. Furthermore, if the exclusions are not rigorously justified or are perceived as arbitrary, it could raise concerns about fairness and potentially lead to protests. For taxpayers, the risk is paying a premium due to a narrowed field of competition, especially if the excluded sources possessed unique capabilities or offered more cost-effective solutions.
What does the Firm Fixed Price (FFP) contract type imply about program effectiveness and cost control?
The Firm Fixed Price (FFP) contract type implies a strong emphasis on cost control and shifts the majority of performance risk to the contractor, Apogee Engineering, LLC. Under FFP, the contractor agrees to a set price for the defined scope of work, regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and effectively to maximize profit. For program effectiveness, FFP requires a very clear and detailed scope of work; ambiguity can lead to disputes or the contractor cutting corners. If the scope is well-defined, FFP can lead to predictable costs for the government and encourage the contractor to deliver the required services efficiently to meet the fixed price.
How has federal spending in Engineering Services (NAICS 541330) evolved, and where does this contract fit?
Federal spending in Engineering Services (NAICS 541330) has historically been substantial, driven by the needs of defense, infrastructure, and research agencies. This sector encompasses a wide range of services, from civil engineering for construction projects to highly specialized technical and scientific engineering for defense and aerospace. This specific contract, valued at $33.1 million over six years for the Department of the Air Force's space logistics infrastructure, represents a focused allocation within the broader engineering services category. It highlights the government's continued investment in advanced technological capabilities, particularly in the critical domain of space, and underscores the demand for specialized engineering expertise within the defense industrial base.
What are the potential implications of this contract on the small business ecosystem within the aerospace and defense sector?
Given that this contract was not awarded as a small business set-aside (ss: false, sb: false), its direct impact on the small business ecosystem is likely limited. Prime contractors like Apogee Engineering are often large businesses with established supply chains. While they may engage small businesses as subcontractors, there's no guarantee or specific requirement indicated in the provided data. The absence of a set-aside means that opportunities for small businesses to compete directly for this prime contract were likely minimal. However, the overall health of the aerospace and defense sector, supported by contracts like this, can indirectly benefit small businesses through increased demand for their specialized products or services within the larger supply chain, provided the prime contractor actively seeks them out.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
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: FIRM FIXED PRICE (J)
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: $154,518,851
Exercised Options: $51,143,550
Current Obligation: $33,104,502
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $17,208,325
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
Start Date: 2019-02-15
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2025-04-26
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