Missile Defense Agency awards $24.9M contract for engineering services, with a 6-year performance period
Contract Overview
Contract Amount: $24,942,681 ($24.9M)
Contractor: Dynamics Research Corporation
Awarding Agency: Department of Defense
Start Date: 2004-03-26
End Date: 2010-09-30
Contract Duration: 2,379 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200408!000263!9700!HQ0006!MISSILE DEFENSE AGENCY !GS23F0040K !C!N! !N!HQ000604F0009! !20040326!20050331!001014182!001014182!001014182!N!DYNAMICS RESEARCH CORPORATION !60 FRONTAGE ROAD !ANDOVER !MA!01810!01430!009!25!ANDOVER !ESSEX !MASS !+000001847065!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !CAA !MDA SUPPORT !541330!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.9 million to DYNAMICS RESEARCH CORPORATION for work described as: 200408!000263!9700!HQ0006!MISSILE DEFENSE AGENCY !GS23F0040K !C!N! !N!HQ000604F0009! !20040326!20050331!001014182!001014182!001014182!N!DYNAMICS RESEARCH CORPORATION !60 FRONTAGE ROAD !ANDOVER !MA!01810!01430!009!25!ANDOVER !ESSE… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $24.9M over 6 years indicates a significant but not exceptionally high annual spend. 3. Engineering services are critical for complex defense systems, implying a need for specialized expertise. 4. The contract's duration suggests a long-term need for these services, potentially indicating program stability. 5. The award to Dynamics Research Corporation suggests a focus on established contractors with relevant experience. 6. The contract is a delivery order under a larger contract vehicle, common in government procurement.
Value Assessment
Rating: good
The contract value of approximately $4.16 million per year for engineering services appears reasonable given the complexity of missile defense systems. Benchmarking against similar contracts for specialized engineering support within the Department of Defense would provide a more precise value assessment. However, the duration and scope suggest a fair price for the services rendered.
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 were likely solicited. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the best value. The competitive nature suggests that the pricing is likely to be market-driven.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of solutions, ensuring that government funds are used efficiently.
Public Impact
The primary beneficiaries are the Missile Defense Agency and the Department of Defense, who receive essential engineering support for critical defense programs. Services delivered include engineering and technical support, crucial for the development, testing, and sustainment of missile defense systems. The geographic impact is primarily within the United States, supporting national defense infrastructure. Workforce implications include the employment of engineers and technical specialists, likely concentrated in areas where Dynamics Research Corporation operates.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for contractor lock-in due to long-term nature of engineering support.
- Reliance on a single contractor for critical technical expertise could pose a risk if performance degrades.
Positive Signals
- Award through full and open competition suggests a robust selection process.
- The contractor, Dynamics Research Corporation, likely has a proven track record in defense contracting.
- The long duration indicates a stable and ongoing need, suggesting the services are valued.
Sector Analysis
This contract falls within the Engineering Services sector, a vital component of the broader aerospace and defense industry. The market for specialized engineering support in defense is substantial, driven by the continuous need for technological advancement and system sustainment. Comparable spending benchmarks would involve analyzing other contracts for similar engineering and technical services awarded by agencies like the Department of Defense, NASA, or other federal entities involved in complex R&D and system integration.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. As a delivery order under a larger contract, subcontracting opportunities for small businesses may exist, depending on the prime contractor's strategy and the nature of the services required. Further analysis of the prime contract and subcontracting plans would be needed to assess the full impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Missile Defense Agency's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract databases like FPDS-NG, where award details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Missile Defense Systems
- Aerospace Engineering Services
- Department of Defense IT and Technical Services
- Research and Development Support Contracts
Risk Flags
- Long-term contract duration may increase risk of performance degradation or scope creep.
- Reliance on a single contractor for critical engineering functions.
- Potential for technical obsolescence over the contract's lifespan.
Tags
defense, missile-defense, engineering-services, department-of-defense, missile-defense-agency, dynamics-research-corporation, firm-fixed-price, delivery-order, full-and-open-competition, services, technical-services, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.9 million to DYNAMICS RESEARCH CORPORATION. 200408!000263!9700!HQ0006!MISSILE DEFENSE AGENCY !GS23F0040K !C!N! !N!HQ000604F0009! !20040326!20050331!001014182!001014182!001014182!N!DYNAMICS RESEARCH CORPORATION !60 FRONTAGE ROAD !ANDOVER !MA!01810!01430!009!25!ANDOVER !ESSEX !MASS !+000001847065!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !CAA !MDA SUPPORT !541330!E! !6! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is DYNAMICS RESEARCH CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $24.9 million.
What is the period of performance?
Start: 2004-03-26. End: 2010-09-30.
What is the track record of Dynamics Research Corporation with the Missile Defense Agency and similar defense contracts?
Dynamics Research Corporation (DRC) has a history of providing engineering and technical services to various U.S. government agencies, including the Department of Defense. While specific details on their performance with the Missile Defense Agency (MDA) for this particular contract (GS23F0040K) are not fully elaborated in the provided data, their engagement suggests a level of established capability and trust. Generally, companies like DRC that secure significant contracts in the defense sector possess expertise in areas such as systems engineering, software development, and technical support for complex defense platforms. Their track record would typically be assessed based on past performance evaluations, on-time delivery, adherence to budget, and the quality of technical solutions provided in previous engagements. A deeper dive into their contract history with the MDA and other defense entities would reveal the extent of their experience and success in delivering similar engineering services.
How does the $24.9M contract value compare to other engineering services contracts awarded by the MDA?
The $24.9 million contract value for engineering services awarded to Dynamics Research Corporation by the Missile Defense Agency (MDA) represents a significant but not exceptionally large award within the context of major defense procurements. The MDA's budget is substantial, often running into billions of dollars annually, to support the development and deployment of complex missile defense systems. Contracts for engineering and technical support are a critical component of this spending. While this specific award is substantial for a single contract, it is likely one of many such contracts the MDA utilizes to acquire specialized expertise. To provide a precise comparison, one would need to analyze the average and median contract values for similar engineering services over comparable performance periods awarded by the MDA in recent years. However, it is reasonable to assume that this award falls within a typical range for specialized, long-term engineering support required for advanced defense technologies.
What are the primary risks associated with this type of long-term engineering services contract?
Long-term engineering services contracts, such as this $24.9 million award to Dynamics Research Corporation, carry several inherent risks. One primary risk is 'scope creep,' where the project's requirements expand beyond the original agreement, potentially leading to cost overruns and schedule delays if not managed effectively. Another significant risk is contractor performance degradation over the contract's extended duration; initial high performance may wane, impacting the quality or timeliness of deliverables. Technical obsolescence is also a concern, as the technologies and methodologies used may become outdated during the contract period, requiring costly updates or modifications. Furthermore, reliance on a single contractor for critical expertise can create a dependency, making it difficult to switch providers or bring capabilities in-house if needed. Finally, changes in government priorities or budget constraints could lead to contract modifications or terminations, impacting both the contractor and the program's continuity.
How effective are engineering services contracts in ensuring the success of complex defense programs like missile defense?
Engineering services contracts are generally considered highly effective, and often essential, for the success of complex defense programs like missile defense. These programs involve intricate technologies, rigorous testing, and continuous evolution, requiring specialized expertise that government agencies may not possess internally or need to augment. Contractors like Dynamics Research Corporation bring focused technical skills, innovative solutions, and dedicated resources to address specific engineering challenges. They can accelerate development timelines, provide specialized testing and validation, and offer ongoing technical support crucial for system sustainment and upgrades. The competitive bidding process, when properly executed, ensures that the government selects contractors offering the best combination of technical capability, experience, and value. While risks exist, effective contract management, clear performance metrics, and strong oversight mechanisms help maximize the effectiveness of these services in achieving program objectives.
What are the historical spending patterns for engineering services by the Missile Defense Agency?
The Missile Defense Agency (MDA) consistently allocates significant portions of its budget to engineering and technical services, reflecting the complex and R&D-intensive nature of its mission. Historical spending patterns show a sustained demand for expertise in areas such as systems engineering, software development, integration, testing, and advanced research related to missile defense technologies. The MDA frequently utilizes various contract vehicles, including large indefinite-delivery/indefinite-quantity (IDIQ) contracts and specific task orders or delivery orders, to procure these services. Spending levels can fluctuate based on program maturity, technological advancements, and evolving threat assessments. The $24.9 million awarded in this instance is indicative of the ongoing investment in specialized engineering support necessary to maintain and advance U.S. missile defense capabilities. Analyzing multi-year spending trends would reveal specific areas of increased or decreased investment within the engineering services domain.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Engility Corporation (UEI: 783837672)
Address: 2 TECH DR, ANDOVER, MA, 01810
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,507,336
Exercised Options: $25,507,336
Current Obligation: $24,942,681
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F0040K
IDV Type: FSS
Timeline
Start Date: 2004-03-26
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2016-09-01
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