DoD's $4.4M MARS Bridge Action contract awarded to Apogee Engineering for engineering services
Contract Overview
Contract Amount: $4,431,338 ($4.4M)
Contractor: Apogee Engineering, LLC
Awarding Agency: Department of Defense
Start Date: 2024-11-15
End Date: 2026-05-14
Contract Duration: 545 days
Daily Burn Rate: $8.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MANAGEMENT ASSISTANCE OF RESEARCH AND SCIENCE (MARS) BRIDGE ACTION
Place of Performance
Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117
Plain-Language Summary
Department of Defense obligated $4.4 million to APOGEE ENGINEERING, LLC for work described as: MANAGEMENT ASSISTANCE OF RESEARCH AND SCIENCE (MARS) BRIDGE ACTION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. Apogee Engineering, LLC, is the sole contractor for this delivery order. 4. The contract duration is 545 days, indicating a medium-term engagement. 5. The contract is for engineering services, a critical support function for defense operations. 6. The contract is being performed in New Mexico.
Value Assessment
Rating: fair
Benchmarking the value of this specific $4.4 million contract is challenging without more detailed cost breakdowns and comparisons to similar engineering services contracts. The Cost Plus Fixed Fee (CPFF) structure means the government pays the actual costs incurred by the contractor plus a fixed fee, which can lead to cost overruns if not managed tightly. While the total value is moderate, the effectiveness and value for money will depend heavily on the deliverables and the contractor's performance in managing costs and achieving technical objectives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the best value offer. The open competition suggests a healthy market for these engineering services.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the selection of a contractor based on merit and value, rather than sole-source limitations.
Public Impact
The Department of Defense benefits from specialized engineering services to support its operations. This contract likely supports critical defense infrastructure or program development. The services are being delivered in New Mexico, potentially impacting the local economy and workforce. The contract supports the defense sector's need for technical expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts require robust oversight to prevent cost creep and ensure the fixed fee remains appropriate.
- Performance metrics and deliverables need to be clearly defined and monitored to ensure value for money.
- The specific engineering services required are not detailed, making it difficult to assess potential risks without further context.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
- The contractor, Apogee Engineering, LLC, is likely selected based on demonstrated capabilities in engineering services.
- The contract duration provides a stable period for service delivery and project completion.
Sector Analysis
The engineering services sector supporting the Department of Defense is a significant market. This contract falls under the broader category of professional, scientific, and technical services. Companies in this space often compete for contracts involving research, development, testing, and evaluation, as well as program management and technical support. Spending in this area is driven by the need for specialized expertise to maintain technological superiority and operational readiness.
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, Apogee Engineering, LLC, may choose to subcontract portions of the work to small businesses as part of their overall project execution strategy, which would need to be monitored.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract will be critical. The Department of the Air Force, under the Department of Defense, will need to establish clear performance metrics, monitor incurred costs diligently, and ensure the fixed fee remains justified throughout the contract's life. Transparency in reporting costs and progress will be key. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Defense Engineering Services
- Research and Development Support
- Management and Technical Consulting
- Air Force Procurement
Risk Flags
- Cost Overrun Risk (CPFF)
- Performance Monitoring Intensity
- Scope Definition Clarity
Tags
defense, department-of-defense, air-force, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, new-mexico, apogee-engineering-llc, medium-value-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.4 million to APOGEE ENGINEERING, LLC. MANAGEMENT ASSISTANCE OF RESEARCH AND SCIENCE (MARS) BRIDGE ACTION
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 $4.4 million.
What is the period of performance?
Start: 2024-11-15. End: 2026-05-14.
What is Apogee Engineering, LLC's track record with the Department of Defense?
Apogee Engineering, LLC has a history of contracting with the Department of Defense. While specific details of past performance on similar engineering services contracts are not provided in this data snippet, their selection for this $4.4 million MARS Bridge Action contract suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance reviews, award types (e.g., sole-source vs. competitive), and any past issues or successes, would provide a more comprehensive understanding of their reliability and capability in delivering defense-related engineering services.
How does the $4.4 million value compare to similar engineering services contracts awarded by the Air Force?
The $4.4 million value for this 545-day engineering services contract is a moderate amount for the Department of Defense. The Air Force, like other branches, awards contracts ranging from small, specialized task orders to multi-billion dollar programs. Without specific details on the scope of 'MANAGEMENT ASSISTANCE OF RESEARCH AND SCIENCE (MARS) BRIDGE ACTION' and the exact engineering services required, a direct comparison is difficult. However, contracts of this value typically represent specific project needs or support functions rather than large-scale system development. Benchmarking against contracts with similar North American Industry Classification System (NAICS) codes (like 541330 for Engineering Services) and similar durations would provide better context on whether this represents a competitive price point.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to ensure their fixed fee is profitable, the government bears the risk of all allowable costs. If the contractor's cost estimates are inaccurate or if unforeseen technical challenges arise, the total cost to the government can exceed initial projections. Effective risk mitigation requires robust government oversight, detailed cost tracking, clear definition of scope, and strong contract management to ensure the fixed fee remains appropriate for the work performed and that the contractor is not incentivized to inflate costs. There's also a risk that the contractor might prioritize profit over quality if not managed properly.
How effective is 'full and open competition' in ensuring value for money in defense engineering services?
Full and open competition is generally considered the most effective method for ensuring value for money in defense contracting, including engineering services. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. The government can solicit proposals based on best value, considering both technical merit and cost. This process increases the likelihood of selecting a contractor that offers the optimal balance of quality, performance, and price. While it requires more upfront effort in solicitation and evaluation, the long-term benefits in terms of cost savings and superior service delivery typically outweigh the initial investment.
What is the historical spending trend for engineering services within the Department of the Air Force?
Historical spending trends for engineering services within the Department of the Air Force are substantial, reflecting the complexity and technological demands of modern air and space operations. The Air Force consistently procures a wide array of engineering support, encompassing areas like aircraft design and maintenance, weapons systems development, IT infrastructure, and research and development. Spending in this category fluctuates based on strategic priorities, modernization programs, and specific operational needs. While this $4.4 million contract is a specific instance, the overall annual expenditure on engineering services by the Air Force runs into billions of dollars, highlighting its critical role in maintaining readiness and advancing capabilities.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 8610 EXPLORER DRIVE, SUITE 305, COLORADO SPRINGS, CO, 80920
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,901,110
Exercised Options: $9,519,719
Current Obligation: $4,431,338
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $1,227,772
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAD23DU100
IDV Type: IDC
Timeline
Start Date: 2024-11-15
Current End Date: 2026-05-14
Potential End Date: 2026-11-14 00:00:00
Last Modified: 2026-01-08
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