Naval Surface Warfare Center contract for program management and support services awarded to AMSEC LLC for over $38.9M
Contract Overview
Contract Amount: $38,952,001 ($39.0M)
Contractor: Leidos Inc
Awarding Agency: Department of Defense
Start Date: 2006-03-29
End Date: 2011-03-28
Contract Duration: 1,825 days
Daily Burn Rate: $21.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 21
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200606!SS2685!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0017804D4119 !A!N! !Y!FC02 ! !20060329!20070328!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!36000!097!18!INDIANAPOLIS !MARION !INDIANA !+000007950706!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00164!0001! !
Place of Performance
Location: CRANE, MARTIN County, INDIANA, 47522, UNITED STATES OF AMERICA
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $39.0 million to LEIDOS INC for work described as: 200606!SS2685!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0017804D4119 !A!N! !Y!FC02 ! !20060329!20070328!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!36000!097!18!INDIANAPOLIS !MARION !INDIANA !+000007950706!N!N!000000000000!R408!PROGRAM… Key points: 1. Contract awarded for program management and support services, indicating a need for specialized expertise. 2. The contract duration of 1825 days suggests a long-term requirement for these services. 3. The award was made under full and open competition, implying a robust bidding process. 4. The primary place of performance is Indiana, suggesting a focus on domestic operations. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. The contractor, AMSEC LLC, is a relatively small entity compared to prime contractors like Leidos Inc.
Value Assessment
Rating: fair
The contract value of $38.9M over approximately five years for program management and support services appears reasonable given the scope. However, without specific benchmarks for similar program management contracts within the Department of Defense, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee, potentially leading to higher final costs than fixed-price contracts if not closely monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The data shows 21 bids were received, suggesting a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price and a wider range of innovative solutions being considered.
Public Impact
The primary beneficiaries are the Department of the Navy and its various programs requiring program management and support services. Services delivered include program management, technical support, and potentially other specialized engineering services. The place of performance is listed as Indiana, indicating a geographic impact on the workforce and economy in that state. The contract supports the operational readiness and effectiveness of naval surface warfare capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns if not managed diligently.
- Limited information on specific performance metrics makes it difficult to assess contractor efficiency.
- The contractor, AMSEC LLC, may have fewer resources and a smaller track record compared to larger defense contractors.
Positive Signals
- Awarded through full and open competition, suggesting a fair and competitive process.
- The contract duration indicates a stable, long-term need for the services provided.
- The services provided are crucial for program management and support within the Naval Surface Warfare Center.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting program management and technical support for defense applications. The market for such services is substantial, driven by government requirements for specialized expertise in complex defense systems. Comparable spending benchmarks for program management support services within the Department of Defense are typically in the millions to tens of millions of dollars, depending on the scope and duration.
Small Business Impact
This contract does not appear to have a specific small business set-aside. While AMSEC LLC is a smaller entity compared to prime contractors, the award itself was made under full and open competition. There is no explicit information regarding subcontracting plans for small businesses within this data, which could represent missed opportunities for the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Naval Surface Warfare Center (NSWC) contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Naval Surface Warfare Center (NSWC) Support Services
- Department of Defense Program Management Services
- Engineering Services Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
- Limited public data on contractor performance metrics.
- Potential for contractor to prioritize fee over cost efficiency in CPFF contracts.
Tags
defense, department-of-defense, department-of-the-navy, naval-surface-warfare-center, program-management, support-services, engineering-services, cost-plus-fixed-fee, full-and-open-competition, indiana, amsec-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.0 million to LEIDOS INC. 200606!SS2685!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0017804D4119 !A!N! !Y!FC02 ! !20060329!20070328!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!36000!097!18!INDIANAPOLIS !MARION !INDIANA !+000007950706!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00164!0001! !
Who is the contractor on this award?
The obligated recipient is LEIDOS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $39.0 million.
What is the period of performance?
Start: 2006-03-29. End: 2011-03-28.
What is the track record of AMSEC LLC in performing similar program management and support services for the Department of Defense?
AMSEC LLC, now part of Huntington Ingalls Industries (HII) Technical Solutions, has a history of providing technical, engineering, and operational support services to the U.S. Navy and other government agencies. Their expertise often lies in areas such as naval architecture, marine engineering, combat systems, and program management. While specific details on their performance for this particular contract (N00164-06-D-0021) are not fully detailed in the provided data, their broader portfolio suggests experience in managing complex projects and delivering technical solutions. The contract's duration and value indicate a significant engagement, implying a level of trust and capability demonstrated by the Naval Surface Warfare Center in awarding it.
How does the awarded amount of $38.9M compare to similar program management support contracts for naval warfare centers?
The awarded amount of $38.9 million over approximately five years for program management and support services at the Crane Division Naval Surface Warfare Center is within a typical range for such contracts. However, direct comparisons are challenging without granular data on contract scope, specific services rendered, and duration. Contracts for program management and technical support can vary significantly based on the complexity of the systems being supported, the level of expertise required, and the specific deliverables. Generally, contracts of this magnitude suggest a substantial and ongoing need for specialized support, reflecting the intricate nature of naval warfare systems and their development.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for program management services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for program management services is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the final project cost. For the government, this means less cost certainty compared to fixed-price contracts. Effective oversight, stringent cost controls, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value for its investment.
How effective is full and open competition in ensuring competitive pricing for engineering services contracts like this one?
Full and open competition is generally considered the most effective method for ensuring competitive pricing for engineering services contracts. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This process fosters price discovery and encourages contractors to offer their best prices and most innovative solutions to win the contract. The fact that 21 bids were received for this contract suggests that the full and open competition strategy was successful in attracting significant interest and promoting a competitive environment.
What is the historical spending pattern for program management and support services at the Naval Surface Warfare Center, Crane Division?
Analyzing historical spending patterns for program management and support services at the Naval Surface Warfare Center, Crane Division (NSWC Crane) requires access to comprehensive contract databases. While this specific contract (N00164-06-D-0021) represents a portion of that spending, a broader trend analysis would involve examining numerous awards over several fiscal years. Generally, naval warfare centers require consistent support for their research, development, test, and evaluation (RDT&E) activities, as well as program management of complex weapon systems. Spending in this category can fluctuate based on defense priorities, budget allocations, and the lifecycle of specific programs. Understanding these patterns is crucial for long-term budget planning and resource allocation.
What are the implications of the place of performance being in Indiana for workforce development and local economy?
With the place of performance listed as Indiana, this contract has direct implications for the local workforce and economy in that state. It signifies job creation and economic activity related to program management and support services within the defense sector. The presence of such a contract can foster the development of specialized skills in engineering and program management, potentially leading to a more robust local talent pool. Furthermore, it can stimulate indirect economic benefits through local procurement, employee spending, and support services required by the contractor and its employees.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 21
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MC LEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2006-03-29
Current End Date: 2011-03-28
Potential End Date: 2011-03-28 00:00:00
Last Modified: 2016-02-16
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