DoD Awards $19.4M Engineering Services Contract to VSE Corporation for Naval Surface Warfare Center
Contract Overview
Contract Amount: $19,426,952 ($19.4M)
Contractor: VSE Corporation
Awarding Agency: Department of Defense
Start Date: 2006-05-31
End Date: 2011-06-30
Contract Duration: 1,856 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 21
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 200608!SS3847!1700!N00174!INDIAN HEAD DIVISION NAVAL SURFA!N0017804D4149 !A!N! !Y!FG01 ! !20060531!20081217!049997380!049997380!049997380!N!VSE CORPORATION !2550 HUNTINGTON AVE !ALEXANDRIA !VA!22303!41500!017!24!INDIAN HEAD !CHARLES !MARYLAND !+000000796500!N!N!000000000000!R425!ENGINEERING TECHNICAL 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!N00174!0001! !
Place of Performance
Location: INDIAN HEAD, CHARLES County, MARYLAND, 20640
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $19.4 million to VSE CORPORATION for work described as: 200608!SS3847!1700!N00174!INDIAN HEAD DIVISION NAVAL SURFA!N0017804D4149 !A!N! !Y!FG01 ! !20060531!20081217!049997380!049997380!049997380!N!VSE CORPORATION !2550 HUNTINGTON AVE !ALEXANDRIA !VA!22303!41500!017!24!INDIAN HEAD !CHAR… Key points: 1. The contract, valued at $19.4 million, was awarded to VSE Corporation for engineering technical services. 2. This award represents a significant portion of VSE Corporation's business, highlighting their role as a key contractor. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The sector is primarily IT and Engineering Services, a common area for defense spending.
Value Assessment
Rating: good
The contract's value of $19.4 million for engineering technical services appears reasonable given the duration and scope. Benchmarking against similar contracts for specialized engineering support within the DoD would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently, with pricing driven by market forces rather than sole-source arrangements.
Public Impact
Naval operations and research & development may see advancements due to specialized engineering support. VSE Corporation's role as a prime contractor impacts its financial performance and market position. The contract contributes to the broader defense industrial base, supporting jobs and technological capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively long (over 5 years), potentially leading to scope creep or cost overruns if not managed tightly.
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
Positive Signals
- Awarded under full and open competition, suggesting a competitive pricing environment.
- VSE Corporation is a known entity in defense contracting, implying a level of established capability.
- The contract supports critical naval research and development functions.
Sector Analysis
This contract falls within the Engineering and Technical Services sector, a critical component of the Department of Defense's support infrastructure. Spending in this area is benchmarked against similar service contracts for specialized technical expertise and project management within defense agencies.
Small Business Impact
The data does not explicitly indicate the extent of small business participation in this contract. Further analysis would be needed to determine if VSE Corporation is subcontracting to small businesses, which is a common practice in larger defense contracts.
Oversight & Accountability
The Cost Plus Fixed Fee (CPFF) structure necessitates strong government oversight to ensure cost control and prevent contractor overcharging. Regular performance reviews and audits are crucial for accountability.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for cost overruns without strict oversight.
- Limited detail on specific services provided.
Tags
department-of-defense, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.4 million to VSE CORPORATION. 200608!SS3847!1700!N00174!INDIAN HEAD DIVISION NAVAL SURFA!N0017804D4149 !A!N! !Y!FG01 ! !20060531!20081217!049997380!049997380!049997380!N!VSE CORPORATION !2550 HUNTINGTON AVE !ALEXANDRIA !VA!22303!41500!017!24!INDIAN HEAD !CHARLES !MARYLAND !+000000796500!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!D!200
Who is the contractor on this award?
The obligated recipient is VSE 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 $19.4 million.
What is the period of performance?
Start: 2006-05-31. End: 2011-06-30.
What specific engineering technical services are included in this contract, and how do they align with the Naval Surface Warfare Center's mission objectives?
The contract specifies 'ENGINEERING TECHNICAL SERVICES' (PSC R425) and was awarded to VSE Corporation. While the exact scope isn't detailed, these services typically encompass design, development, testing, and integration of systems and technologies for naval applications. They are crucial for supporting the NSWC's mission in areas like weapons systems, combat systems, and other naval technologies, ensuring operational readiness and technological advancement.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services, and how can they be mitigated?
CPFF contracts carry the risk of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize less cost-consciousness. Mitigation strategies include stringent cost monitoring, detailed performance metrics, clear scope definition, and robust government oversight to challenge questionable costs and ensure efficient execution.
How does the $19.4 million award to VSE Corporation contribute to the overall effectiveness of the Naval Surface Warfare Center's research and development efforts?
This award provides VSE Corporation with significant resources to deliver specialized engineering expertise, directly supporting the NSWC's R&D initiatives. By securing essential technical services, the NSWC can accelerate innovation, enhance existing naval technologies, and ensure its platforms remain technologically superior, thereby contributing to overall mission effectiveness and national security.
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
Address: 2550 HUNTINGTON AVE, ALEXANDRIA, VA, 08
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: N0017804D4149
IDV Type: IDC
Timeline
Start Date: 2006-05-31
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2011-09-01
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