DoD's $83.9M contract for electronics and communication systems development awarded to Cubic Applications Inc

Contract Overview

Contract Amount: $16,984,083 ($17.0M)

Contractor: Valiant Global Defense Services Inc

Awarding Agency: Department of Defense

Start Date: 2006-02-23

End Date: 2009-07-31

Contract Duration: 1,254 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 200606!061160!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0003906C0019 !A!N! !N! ! !20060223!20060831!839179272!868624214!008382293!N!CUBIC APPLICATIONS INC !2280 HISTORIC DECATUR ROAD!SAN DIEGO !CA!92106!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000004295208!N!N!000006975770!AC67!RDTE/ELECTRONICS & COMMUNICATION EQ-OP SYSTEM DEV !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !3! ! ! ! ! !99990909!B!F!N!A! !A!U!V!2!015!B! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00039!0001! !

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92106

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to VALIANT GLOBAL DEFENSE SERVICES INC for work described as: 200606!061160!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0003906C0019 !A!N! !N! ! !20060223!20060831!839179272!868624214!008382293!N!CUBIC APPLICATIONS INC !2280 HISTORIC DECATUR ROAD!SAN DIEGO !CA!92106!66000!073!06!SAN DIEGO !SAN … Key points: 1. The contract value is $83.9 million, with a base of $66 million and options totaling $17.9 million. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The primary risk appears to be the cost-plus incentive fee structure, which can lead to cost overruns if not managed carefully. 4. The sector is Defense, specifically related to electronics and communication systems development.

Value Assessment

Rating: good

The contract value of $83.9 million for engineering services appears reasonable given the scope of electronics and communication system development. Benchmarking against similar DoD contracts for R&D and system development would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. The use of a Cost Plus Incentive Fee (CPIF) contract type allows for shared savings if costs are below target, but also carries risk of cost overruns.

Taxpayer Impact: The competitive award process aims to secure fair pricing for taxpayers. However, the CPIF structure requires diligent oversight to ensure cost efficiency and prevent unnecessary expenditure.

Public Impact

This contract supports the development of critical electronics and communication systems for the Department of Defense. The award to Cubic Applications Inc. signifies a significant investment in defense technology and innovation. Taxpayers benefit from the competitive bidding process, which is intended to yield the best value for public funds. The duration of the contract (over 3 years) suggests a substantial and ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus incentive fee structure can incentivize overspending.
Long contract duration may increase risk of scope creep or obsolescence.
Potential for cost overruns if performance targets are not met efficiently.

Positive Signals

Awarded under full and open competition.
Contract aims to develop advanced electronics and communication systems.
Potential for innovation and technological advancement in defense capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research, Development, Test, and Evaluation (RDT&E) for electronics and communication systems. Spending in this area is critical for maintaining technological superiority and national security.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The prime contractor, Cubic Applications Inc., is likely a large business, and subcontracting opportunities for small businesses are not detailed in this record.

Oversight & Accountability

The contract is managed by the Department of Defense, likely through the Space and Naval Warfare Systems Command. Oversight would focus on performance, cost control, and adherence to contract terms, especially given the CPIF structure.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Overruns due to CPIF structure.
Technological Obsolescence during long development cycle.
Performance shortfalls against complex system requirements.
Contractor's ability to manage complex R&D project.
Integration challenges with existing DoD systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to VALIANT GLOBAL DEFENSE SERVICES INC. 200606!061160!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0003906C0019 !A!N! !N! ! !20060223!20060831!839179272!868624214!008382293!N!CUBIC APPLICATIONS INC !2280 HISTORIC DECATUR ROAD!SAN DIEGO !CA!92106!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000004295208!N!N!000006975770!AC67!RDTE/ELECTRONICS & COMMUNICATION EQ-OP SYSTEM DEV !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is VALIANT GLOBAL DEFENSE SERVICES 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 $17.0 million.

What is the period of performance?

Start: 2006-02-23. End: 2009-07-31.

What specific electronic and communication systems are being developed under this contract, and how do they align with current DoD modernization priorities?

The contract specifies 'RDTE/ELECTRONICS & COMMUNICATION EQ-OP SYSTEM DEV'. While the exact systems are not detailed, they likely pertain to advanced communication networks, electronic warfare capabilities, or integrated command and control systems. Alignment with DoD modernization priorities would require further investigation into the specific program objectives and the technological advancements sought.

What are the key performance metrics and incentive targets for the Cost Plus Incentive Fee (CPIF) structure, and how will contractor performance be measured against them?

The CPIF structure implies that both the government and the contractor share in any cost savings or overruns relative to a target cost. Key performance metrics would typically involve technical performance, schedule adherence, and cost control. The specific metrics and incentive targets are not detailed in this record and would be outlined in the contract's Statement of Work and award fee plan.

What is the projected long-term value and operational impact of the developed systems, and what is the plan for sustainment and upgrades post-contract?

The long-term value is expected to enhance DoD's communication and electronic capabilities, potentially improving situational awareness and operational effectiveness. The plan for sustainment and upgrades would typically involve follow-on contracts or organic support within the DoD. The initial contract focuses on development, with sustainment plans usually addressed in subsequent phases or separate agreements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 15

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Valiant Integrated Services LLC (UEI: 080132771)

Address: 2280 HISTORIC DECATUR RD STE 200, SAN DIEGO, CA, 92106

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline