Dod's $27.3M Training Systems Support Contract Awarded to Mantech Advanced Systems International, Inc

Contract Overview

Contract Amount: $27,321,593 ($27.3M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-12-19

End Date: 2013-06-18

Contract Duration: 2,008 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST NO FEE

Sector: Defense

Official Description: TRAINING SYSTEMS SUPPORT

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $27.3 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: TRAINING SYSTEMS SUPPORT Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is 'Cost No Fee', which shifts cost risk to the contractor. 3. The contract duration spans over 5 years, indicating a significant, long-term need. 4. The award was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 6. The contract was awarded to a single entity, MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.

Value Assessment

Rating: fair

Benchmarking the value of this specific 'Cost No Fee' contract is challenging without detailed cost breakdowns and performance metrics. The 'Cost No Fee' structure implies the contractor is incentivized to manage costs effectively to maximize their fee, but direct price comparisons are difficult. Without more granular data on the services provided and their effectiveness, assessing true value-for-money is limited. However, the duration and scope suggest a substantial investment in training systems.

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 presence of 7 bids suggests a reasonably competitive environment for this specific requirement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that it was competed openly is a positive sign for taxpayer value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors.

Public Impact

The primary beneficiaries are likely Department of Defense personnel who will receive enhanced training through advanced systems. The services delivered are expected to improve the effectiveness and efficiency of military training programs. The geographic impact is primarily within the Department of the Navy's operational areas, potentially worldwide. Workforce implications may include specialized technical support roles for the maintenance and operation of training systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness of the training systems.
The 'Cost No Fee' structure, while shifting risk, can sometimes lead to less contractor focus on cost optimization if not properly managed.
Limited transparency on specific deliverables and outcomes hinders a comprehensive value assessment.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The 'Cost No Fee' contract type places cost control responsibility on the contractor.
The contract duration suggests a stable and ongoing need for these critical training systems.

Sector Analysis

The defense training systems sector is a significant market within the broader aerospace and defense industry. Companies in this space provide simulation, virtual reality, and other technological solutions to enhance military readiness. Spending in this area is driven by the need for realistic and cost-effective training methods. Comparable spending benchmarks would typically involve other large-scale simulation and training contracts awarded by military branches.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, and the prime contractor is MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC., which is not typically classified as a small business. Subcontracting opportunities for small businesses may exist, but are not detailed in the provided data. The impact on the small business ecosystem would depend on the extent to which the prime contractor utilizes small business subcontractors for specialized services or components.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is often limited for specific contract details post-award, but the award itself is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Training Simulators
Military Readiness Programs
Advanced Simulation Technology
Naval Training Systems Command
Engineering Services for Defense

Risk Flags

Potential for technological obsolescence in training systems over the contract duration.
Risk of scope creep or evolving requirements impacting cost and performance.
Need for robust government oversight to ensure contractor performance and cost control under 'Cost No Fee'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. TRAINING SYSTEMS SUPPORT

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, 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 $27.3 million.

What is the period of performance?

Start: 2007-12-19. End: 2013-06-18.

What is the specific nature of the 'Training Systems Support' provided under this contract?

The provided data indicates the contract is for 'Training Systems Support' and falls under NAICS code 541330, 'Engineering Services'. This suggests that MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. is likely providing engineering, design, development, integration, maintenance, or upgrade services for various training systems used by the Department of the Navy. These systems could range from flight simulators and combat training environments to virtual reality training platforms and other specialized equipment designed to prepare military personnel for their duties. The 'Cost No Fee' contract type implies that the contractor is responsible for all costs associated with delivering these services, and their profit is derived from a pre-determined fee, incentivizing efficient cost management.

How does the 'Cost No Fee' contract type impact contractor performance and government oversight?

A 'Cost No Fee' (CNF) contract shifts the financial risk primarily to the contractor. The government agrees to reimburse the contractor for all allowable costs incurred in performing the contract, but the contractor's fee (profit) is fixed and not tied to the actual costs incurred. This structure incentivizes the contractor to control costs diligently to maximize their fee. For government oversight, it means focusing less on scrutinizing every cost item for reasonableness (as in a cost-plus-fee contract) and more on ensuring the contractor adheres to the scope of work, meets performance standards, and manages the project effectively to achieve the desired outcomes within the agreed-upon fee structure. Oversight also involves verifying that the costs claimed are allowable and allocable according to the contract terms.

What does the number of bids (7) suggest about the competition for this engineering services contract?

Receiving 7 bids for this contract, awarded under 'Full and Open Competition', suggests a healthy level of interest and competition within the market for these specific engineering services. While not an exceptionally high number, it indicates that multiple companies were willing and able to compete for this Department of the Navy requirement. This level of competition generally provides the government with a reasonable range of technical approaches and pricing options, increasing the likelihood of achieving a fair and reasonable price. It suggests that the market is not overly concentrated, and smaller or mid-sized firms could potentially compete alongside larger players.

What are the potential risks associated with a long-term contract (over 5 years) for training systems support?

Long-term contracts for training systems support, like this one spanning over 5 years, carry several potential risks. Technological obsolescence is a significant concern; training systems can become outdated quickly in rapidly evolving fields. There's also the risk of cost escalation if not properly managed, despite the 'Cost No Fee' structure, as unforeseen technical challenges or scope creep can occur. Contractor performance degradation over time is another risk, where initial high performance might wane. Furthermore, the government's needs might evolve, making the contracted services less relevant or requiring costly modifications. Ensuring continuous innovation and adaptability from the contractor throughout the contract's life is crucial to mitigate these risks.

How does this contract fit into the broader landscape of defense spending on training and simulation?

This $27.3 million contract for training systems support represents a component of the Department of Defense's substantial investment in training and simulation technologies. Defense spending in this area is critical for maintaining military readiness, providing realistic training scenarios, and reducing the costs and risks associated with live training exercises. The market includes providers of simulators, virtual reality environments, constructive simulations, and associated engineering and support services. Contracts like this one are essential for equipping military personnel with the skills needed to operate complex systems and execute missions effectively in diverse operational environments. It reflects a strategic commitment to leveraging technology for enhanced warfighter 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

Solicitation ID: N0002407R3407

Offers Received: 7

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 12015 LEE JACKSON MEMORIAL HWY, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,673,743

Exercised Options: $34,673,743

Current Obligation: $27,321,593

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4008

IDV Type: IDC

Timeline