DoD's $44.5M PEO IWS/DASN Ships Support Contract Awarded to Serco Inc. Lacked Competition
Contract Overview
Contract Amount: $44,460,511 ($44.5M)
Contractor: Serco Inc.
Awarding Agency: Department of Defense
Start Date: 2010-06-19
End Date: 2016-12-31
Contract Duration: 2,387 days
Daily Burn Rate: $18.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: PROGRAM SERVICE SUPPORT FOR PEO IWS AND DASN SHIPS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003
Plain-Language Summary
Department of Defense obligated $44.5 million to SERCO INC. for work described as: PROGRAM SERVICE SUPPORT FOR PEO IWS AND DASN SHIPS Key points: 1. Contract awarded to Serco Inc. for $44.5M for program service support. 2. Significant spending in Engineering Services (NAICS 541330). 3. Contract was not competed, raising questions about price discovery. 4. The contract duration was 2387 days, spanning over 6 years.
Value Assessment
Rating: questionable
The contract's total value of $44.5M for engineering services over six years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition may have resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The long duration of the contract limits opportunities for other companies to provide services. Lack of transparency in the procurement process raises concerns about accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration
Positive Signals
- Specific program support for PEO IWS and DASN Ships
Sector Analysis
This contract falls under Engineering Services, a broad sector often involving specialized technical expertise. Benchmarks for similar sole-source engineering support contracts are difficult to establish without competitive data.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely excluded them from participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential weaknesses in oversight and accountability during the procurement process. Further review is needed to understand the justification for the sole-source award.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- No small business participation
Tags
engineering-services, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.5 million to SERCO INC.. PROGRAM SERVICE SUPPORT FOR PEO IWS AND DASN SHIPS
Who is the contractor on this award?
The obligated recipient is SERCO INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $44.5 million.
What is the period of performance?
Start: 2010-06-19. End: 2016-12-31.
What was the specific justification for awarding this contract on a sole-source basis, and was a market research conducted to confirm the absence of competition?
The provided data states the contract was 'NOT COMPETED,' implying a sole-source award. A thorough review of the contract file would be necessary to determine the specific justification and whether market research was performed. Without this information, it's impossible to ascertain if all avenues for competition were explored or if there were unique circumstances necessitating a sole-source approach.
How does the cost-plus-fixed-fee structure impact the overall value and risk for the government in this non-competed contract?
Cost-plus-fixed-fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. For a non-competed contract, this structure can increase risk for the government, as the contractor has less incentive to control costs compared to a fixed-price contract. The fixed fee, however, provides some predictability in profit, but overall cost overruns are borne by the government.
What specific program services were provided under this contract, and how critical were they to the PEO IWS and DASN Ships missions?
The contract title indicates 'PROGRAM SERVICE SUPPORT FOR PEO IWS AND DASN SHIPS.' PEO IWS (Program Executive Office, Integrated Warfare Systems) and DASN (Deputy Assistant Secretary of the Navy) are critical naval acquisition and management entities. The services likely involved technical, engineering, program management, or administrative support essential for these organizations' functions, though the exact nature requires further detail.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002410R5119
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Serco Group PLC (UEI: 298452707)
Address: 1100 NEW JERSEY AVE SE STE 200, WASHINGTON, DC, 20003
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,451,006
Exercised Options: $51,451,006
Current Obligation: $44,460,511
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-06-19
Current End Date: 2016-12-31
Potential End Date: 2016-12-31 00:00:00
Last Modified: 2022-01-12
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