DoD's Navy Awards $63M Engineering Services Contract to Kalman & Company, Inc
Contract Overview
Contract Amount: $62,997,805 ($63.0M)
Contractor: Kalman & Company, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-01-09
End Date: 2022-01-08
Contract Duration: 1,825 days
Daily Burn Rate: $34.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF EXTREME ENVIRONMENTS LIFE SUPPORT DIVISION READINESS SUPPORT SERVICES
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23452
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $63.0 million to KALMAN & COMPANY, INC. for work described as: IGF::OT::IGF EXTREME ENVIRONMENTS LIFE SUPPORT DIVISION READINESS SUPPORT SERVICES Key points: 1. Contract awarded for readiness support services in extreme environments. 2. Kalman & Company, Inc. secured the contract. 3. The contract spans five years, indicating a long-term need. 4. Engineering services sector sees significant federal investment.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking against similar CPFF contracts for engineering services is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the CPFF pricing structure may limit price discovery compared to fixed-price contracts.
Taxpayer Impact: Taxpayers are exposed to potential cost increases due to the CPFF structure, but the competitive award aims to secure fair market value.
Public Impact
Ensures operational readiness for Navy personnel in challenging environments. Supports critical engineering services for national defense. Potential for technological advancements in life support systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF pricing structure carries inherent cost risk.
- Long contract duration (5 years) requires ongoing performance monitoring.
- Specific details on cost drivers are not provided.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense readiness.
- Contract addresses specialized extreme environment needs.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for government operations, particularly in defense. Federal spending in this area often involves complex projects requiring specialized expertise.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract's CPFF nature necessitates robust oversight from the Department of the Navy to ensure costs are reasonable and performance meets requirements. Regular audits and performance reviews are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing model.
- Lack of detailed cost breakdown for analysis.
- Contract duration of 5 years requires sustained oversight.
- No indication of small business subcontracting.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.0 million to KALMAN & COMPANY, INC.. IGF::OT::IGF EXTREME ENVIRONMENTS LIFE SUPPORT DIVISION READINESS SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is KALMAN & COMPANY, 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 $63.0 million.
What is the period of performance?
Start: 2017-01-09. End: 2022-01-08.
What specific engineering services are included under this contract, and how do they contribute to 'extreme environments' readiness?
The contract specifies 'Engineering Services' (NAICS 541330) for 'IGF EXTREME ENVIRONMENTS LIFE SUPPORT DIVISION READINESS SUPPORT SERVICES.' This likely encompasses design, analysis, testing, and integration of life support systems and related infrastructure intended for use in harsh operational conditions, such as underwater, high altitude, or contaminated environments, ensuring personnel safety and mission effectiveness.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific service?
The primary risk with CPFF is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If the government's oversight is insufficient or the contractor's cost estimation is inaccurate, the final cost could significantly exceed initial projections. This necessitates diligent monitoring of contractor expenditures and performance.
How does the $63 million award compare to typical spending for similar readiness support services contracts within the Department of Defense?
Without specific benchmarks for 'extreme environments life support readiness support services,' a direct comparison is challenging. However, $63 million over five years ($12.6 million annually) for specialized engineering services within the defense sector appears within a reasonable range, considering the complexity and critical nature of supporting personnel in hazardous conditions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002416R3075
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 5366 VIRGINIA BEACH BLVD, VIRGINIA BEACH, VA, 23462
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $70,968,315
Exercised Options: $70,968,315
Current Obligation: $62,997,805
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017814D7790
IDV Type: IDC
Timeline
Start Date: 2017-01-09
Current End Date: 2022-01-08
Potential End Date: 2022-01-08 00:00:00
Last Modified: 2025-11-07
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