DoD awards $21.9M for Code 31 Support Services to Envisioneering Inc. under full and open competition

Contract Overview

Contract Amount: $21,877,877 ($21.9M)

Contractor: Envisioneering Inc

Awarding Agency: Department of Defense

Start Date: 2019-11-12

End Date: 2024-11-30

Contract Duration: 1,845 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Official Description: SUPPORT SERVICES FOR CODE 31

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to ENVISIONEERING INC for work described as: SUPPORT SERVICES FOR CODE 31 Key points: 1. Significant contract value for specialized engineering services. 2. Full and open competition suggests a competitive bidding process. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. IT/Engineering services sector with a long performance period.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can lead to costs exceeding initial estimates. Benchmarking against similar engineering service contracts is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a robust price discovery process. However, the Cost Plus Fixed Fee structure may still allow for cost escalation.

Taxpayer Impact: Taxpayer funds are being utilized for essential engineering support services, with competition aiming to ensure reasonable pricing.

Public Impact

Ensures continued support for critical Code 31 operations. Supports a long-term project with a significant duration. Potential impact on future contract awards in the engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for government infrastructure and defense projects. Spending benchmarks for similar services are typically high due to specialized expertise required.

Small Business Impact

The data indicates no small business participation in this contract. Further analysis could explore opportunities for subcontracting to small businesses in future awards.

Oversight & Accountability

The contract is managed by the Department of the Navy, part of the Department of Defense. Oversight mechanisms should ensure adherence to contract terms and cost controls.

Related Government Programs

Risk Flags

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 $21.9 million to ENVISIONEERING INC. SUPPORT SERVICES FOR CODE 31

Who is the contractor on this award?

The obligated recipient is ENVISIONEERING 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 $21.9 million.

What is the period of performance?

Start: 2019-11-12. End: 2024-11-30.

What is the typical profit margin for Cost Plus Fixed Fee contracts in the engineering services sector?

Profit margins for Cost Plus Fixed Fee contracts in the engineering services sector can vary but often range from 7-15%. This structure aims to incentivize efficiency while allowing the contractor to cover costs and earn a predetermined profit. Actual margins depend on the specific risks, complexity, and competitive landscape of the project.

What are the primary risks associated with a long-duration Cost Plus Fixed Fee contract for engineering services?

The primary risks include cost escalation due to unforeseen technical challenges or scope creep, potential for contractor inefficiency if oversight is lax, and difficulty in accurately forecasting final costs. The extended timeline increases the likelihood of market shifts or technological obsolescence impacting the project's value.

How effectively does full and open competition mitigate cost overruns in this type of contract?

Full and open competition helps establish a competitive baseline price and encourages multiple bidders to propose efficient solutions. However, it does not entirely eliminate the risk of cost overruns inherent in Cost Plus Fixed Fee contracts. Robust government oversight and clear performance metrics remain critical to managing costs throughout the contract's life.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: N0001419R3502

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5904 RICHMOND HWY STE 600, ALEXANDRIA, VA, 22303

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $32,508,278

Exercised Options: $25,970,887

Current Obligation: $21,877,877

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7613

IDV Type: IDC

Timeline

Start Date: 2019-11-12

Current End Date: 2024-11-30

Potential End Date: 2024-11-30 00:00:00

Last Modified: 2025-12-01

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