Dod's $37.3M Mobil Training Teams Contract Awarded to Serco-Ips Corporation
Contract Overview
Contract Amount: $37,342,171 ($37.3M)
Contractor: Serco-Ips Corporation
Awarding Agency: Department of Defense
Start Date: 2006-08-25
End Date: 2012-12-31
Contract Duration: 2,320 days
Daily Burn Rate: $16.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: MOBIL TRAINING TEAMS
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $37.3 million to SERCO-IPS CORPORATION for work described as: MOBIL TRAINING TEAMS Key points: 1. Contract value of $37.3M over 6 years. 2. Awarded via Full and Open Competition. 3. Risk: Long contract duration may lead to price escalation. 4. Sector: Engineering Services (NAICS 541330).
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure might limit aggressive price discovery compared to fixed-price contracts.
Taxpayer Impact: Taxpayers may face higher costs due to the Cost Plus Fixed Fee structure, especially if program requirements evolve significantly over the contract's long duration.
Public Impact
Significant taxpayer investment in specialized training services. Potential for long-term reliance on a single contractor for critical training. Impact on military readiness and operational effectiveness through specialized training.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (2006-2012)
- No small business participation noted
Positive Signals
- Full and Open Competition awarded
- Clear service description (MOBIL TRAINING TEAMS)
Sector Analysis
This contract falls within the Engineering Services sector, which includes a wide range of professional services for government and private clients. Spending in this sector can vary widely based on infrastructure needs and defense requirements.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. This represents a missed opportunity for small business participation in a significant federal contract.
Oversight & Accountability
Oversight would be crucial for a Cost Plus Fixed Fee contract of this duration to ensure costs remain reasonable and that the contractor meets performance expectations. The Department of the Navy is responsible for this oversight.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Lack of small business participation
- Long contract duration may lead to scope creep or price increases
- Limited transparency on specific training outcomes and their impact
Tags
engineering-services, department-of-defense, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.3 million to SERCO-IPS CORPORATION. MOBIL TRAINING TEAMS
Who is the contractor on this award?
The obligated recipient is SERCO-IPS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $37.3 million.
What is the period of performance?
Start: 2006-08-25. End: 2012-12-31.
What specific training services were provided under MOBIL TRAINING TEAMS, and how did they contribute to mission readiness?
The MOBIL TRAINING TEAMS contract likely provided specialized, on-site training for military personnel, potentially in areas like equipment operation, maintenance, or tactical procedures. The effectiveness would be measured by improved operational capabilities, reduced equipment downtime, and enhanced mission success rates, directly contributing to military readiness.
How were costs controlled and justified under the Cost Plus Fixed Fee structure for this contract?
Cost control under a CPFF contract relies heavily on robust government oversight, detailed cost reporting from the contractor, and clear definition of allowable costs. Justification would involve demonstrating that incurred costs were reasonable, allocable to the contract, and necessary for performing the required services, with the fixed fee providing a baseline profit incentive.
What was the competitive landscape for engineering services like this at the time of award?
The engineering services market is generally competitive, with many firms offering specialized expertise. Awarding via 'Full and Open Competition' suggests that multiple qualified bidders likely vied for this contract. However, the specific niche of 'MOBIL TRAINING TEAMS' might have limited the pool of highly specialized competitors.
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
Solicitation ID: N0002406R3211
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Alion Science and Technology Corporation (UEI: 119162332)
Address: 10 WEST 35TH ST, CHICAGO, IL, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $535,029,326
Exercised Options: $301,643,999
Current Obligation: $37,342,171
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4066
IDV Type: IDC
Timeline
Start Date: 2006-08-25
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2012-09-19
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