DoD's $5.86M Engineering Services Contract Awarded to Kalman & Company, Inc. for Program Management Support

Contract Overview

Contract Amount: $5,857,414 ($5.9M)

Contractor: Kalman & Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-05-25

End Date: 2026-05-31

Contract Duration: 1,102 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PM MHTV REQUIRES CONTRACTOR SUPPORT POSSESSING THE TECHNICAL ACUMEN TO ASSIST IN PROGRAM MANAGEMENT AND ENGINEERING SERVICES.

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22556

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $5.9 million to KALMAN & COMPANY, INC. for work described as: PM MHTV REQUIRES CONTRACTOR SUPPORT POSSESSING THE TECHNICAL ACUMEN TO ASSIST IN PROGRAM MANAGEMENT AND ENGINEERING SERVICES. Key points: 1. Contract focuses on specialized engineering and program management expertise. 2. Awarded through full and open competition, indicating broad market engagement. 3. Duration of over 3 years suggests a significant, ongoing need for services. 4. Contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 5. The North American Industry Classification System (NAICS) code 541330 points to a market segment focused on engineering services. 6. Small business participation is not explicitly detailed, warranting further investigation. 7. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this $5.86 million contract requires more granular data on the specific services rendered and the labor mix. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, can lead to cost overruns if not managed diligently. Comparing this to similar program management and engineering support contracts within the Department of the Navy would provide a clearer picture of its cost-effectiveness. The fixed fee component offers some predictability, but the cost reimbursement aspect necessitates robust oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of 3 bidders indicates a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market access, the number of bidders can vary significantly based on the specialized nature of the services and the specific solicitation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services offered. A moderate number of bidders, as seen here, suggests that while the market was accessible, the specialized nature of the requirement may have limited the pool of highly qualified proposers.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive essential program management and engineering support. Services delivered will likely enhance the efficiency and effectiveness of specific naval programs. The geographic impact is centered around the contractor's location and the Navy facilities they support, likely within Virginia. Workforce implications include employment opportunities for engineers and program managers, both within the prime contractor and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs and prevent overruns.
Limited public information on specific performance metrics makes it difficult to assess the contractor's track record on this particular award.
The absence of explicit small business subcontracting goals requires further review to understand potential impacts on small business participation.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible procurement process.
The contract duration of over three years suggests a stable, long-term need for the services, providing continuity.
Kalman & Company, Inc. is a known entity in government contracting, implying some level of established capability.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by highly specialized expertise and often supports complex government programs, particularly in defense and infrastructure. The market size for engineering services supporting the federal government is substantial, with significant spending allocated annually across various agencies. This contract represents a portion of the Department of Defense's investment in program management and technical support, aligning with broader trends of outsourcing specialized functions to private sector experts.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there explicit information regarding small business subcontracting requirements in the provided data. This suggests that the primary focus was on obtaining the most capable large business or unrestricted offeror. Further investigation into the contract's specific clauses and the contractor's subcontracting plan would be necessary to determine the extent of small business involvement and its potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Navy's contracting officers and program managers. They will be responsible for monitoring costs, ensuring performance against contract requirements, and approving the fixed fee. Transparency is facilitated through the Federal Procurement Data System (FPDS), which reports contract awards. However, detailed performance reports and specific oversight mechanisms are typically internal to the agency and not publicly disclosed.

Related Government Programs

Program Management Support Services
Engineering Consulting Services
Department of Defense Contract Vehicles
Naval Sea Systems Command (NAVSEA) Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires robust cost monitoring.
Limited public detail on specific performance metrics.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.9 million to KALMAN & COMPANY, INC.. PM MHTV REQUIRES CONTRACTOR SUPPORT POSSESSING THE TECHNICAL ACUMEN TO ASSIST IN PROGRAM MANAGEMENT AND ENGINEERING 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 $5.9 million.

What is the period of performance?

Start: 2023-05-25. End: 2026-05-31.

What is the specific scope of work for Kalman & Company, Inc. under this contract?

The provided data indicates that the contract requires contractor support possessing the technical acumen to assist in program management and engineering services for PM MHTV. While the specific details of PM MHTV are not elaborated, the general scope involves providing specialized expertise to manage and engineer aspects of a program. This could encompass a wide range of activities, including technical analysis, system design support, acquisition strategy development, risk management, and overall program planning and execution. The Cost Plus Fixed Fee (CPFF) structure suggests that the services are complex and may involve evolving requirements where precise cost estimation upfront is challenging.

How does the $5.86 million value compare to similar engineering services contracts within the Department of the Navy?

Comparing the $5.86 million value requires benchmarking against similar contracts for program management and engineering services awarded by the Department of the Navy. Contracts of this magnitude are not uncommon for specialized support roles within large defense programs. However, the specific nature of 'PM MHTV' and the required technical acumen are key differentiators. Without knowing the exact deliverables and duration relative to other contracts, a precise value comparison is difficult. Generally, contracts for highly specialized engineering and program management support can range from a few million to tens or even hundreds of millions of dollars, depending on the program's complexity, duration, and criticality.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risks associated with a CPFF contract involve cost control and contractor incentive. While the fixed fee provides a ceiling for the contractor's profit, the cost-reimbursement aspect means the government bears the risk of actual costs incurred. If the contractor's costs exceed estimates, the government pays them, potentially leading to higher-than-anticipated total contract value. Risks include potential for scope creep, inadequate cost tracking by the contractor, and the government's ability to effectively oversee and audit incurred costs. Conversely, the fixed fee can incentivize the contractor to complete the work efficiently to maximize their profit margin relative to the fee.

What is Kalman & Company, Inc.'s track record with the Department of Defense or similar agencies?

Kalman & Company, Inc. has a history of performing contracts with the Department of Defense and other federal agencies. Publicly available data suggests they have been awarded various contracts, often in areas related to program management, financial management, and engineering support. Their experience typically involves supporting complex government programs and providing analytical and advisory services. A deeper dive into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their reliability and capability in fulfilling requirements similar to this PM MHTV support contract.

How has spending on engineering services by the Department of the Navy trended in recent years?

Spending on engineering services by the Department of the Navy has generally remained robust, reflecting the ongoing need for technical expertise in maintaining and modernizing naval assets, developing new platforms, and managing complex acquisition programs. While specific year-over-year trends can fluctuate based on budgetary cycles, strategic priorities, and the initiation of new major programs, the overall demand for specialized engineering support remains consistently high. Factors such as shipbuilding, aircraft development, cybersecurity enhancements, and infrastructure projects all contribute to sustained spending in this sector. The Department of the Navy often utilizes a mix of contract types, including CPFF, to procure these essential services.

What does the 'Delivery Order' designation imply for this contract?

The 'Delivery Order' designation typically means that this contract is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. This approach allows agencies to procure services or supplies over a period of time from a pre-vetted pool of contractors. For taxpayers, this can imply that the initial competition to establish the IDIQ vehicle was more extensive, and subsequent delivery orders are for specific needs that arise. It streamlines the procurement process for individual requirements while ensuring that the underlying contract met competition standards.

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: M6785423R3004

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2901 S LYNNHAVEN RD #340, VIRGINIA BEACH, VA, 23452

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $21,949,056

Exercised Options: $9,461,388

Current Obligation: $5,857,414

Actual Outlays: $354,071

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,169,751

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7942

IDV Type: IDC

Timeline