DoD Awards $25M Engineering Services Contract to Serco Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $25,040,660 ($25.0M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2022-09-21
End Date: 2027-09-20
Contract Duration: 1,825 days
Daily Burn Rate: $13.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NON-PERSONAL PROFESSIONAL SUPPORT SERVICES TO OBTAIN THE FULL RANGE OF TECHNICAL ENGINEERING SERVICES IN SUPPORT OF IWS 3.0
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002
Plain-Language Summary
Department of Defense obligated $25.0 million to SERCO INC for work described as: NON-PERSONAL PROFESSIONAL SUPPORT SERVICES TO OBTAIN THE FULL RANGE OF TECHNICAL ENGINEERING SERVICES IN SUPPORT OF IWS 3.0 Key points: 1. Contract awarded for comprehensive technical engineering support to IWS 3.0. 2. Serco Inc. secured the contract through full and open competition. 3. The contract has a duration of 5 years, ending in 2027. 4. This award falls under the Engineering Services NAICS code 541330. 5. The contract type is Cost Plus Fixed Fee.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee structure allows for flexibility in scope but requires careful monitoring of costs to ensure value. Benchmarking against similar engineering services contracts is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing and allows the government to select the best value. The delivery order mechanism suggests this is one of multiple orders under a larger contract.
Taxpayer Impact: Full and open competition is intended to maximize taxpayer value by fostering a competitive environment that drives down prices and improves service quality.
Public Impact
Ensures continued technical engineering support for critical Department of the Navy programs. Supports advanced technological development within the IWS 3.0 initiative. Potential for follow-on work or similar contracts in the future. Impacts the engineering services sector by defining service requirements and pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- The specific technical requirements and performance metrics need close monitoring.
- Potential for scope creep given the nature of engineering services.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Long-term contract duration suggests a stable and ongoing need for these services.
- Clear designation of the agency and program supported (DoD, IWS 3.0).
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for government infrastructure and defense projects. Spending in this sector is often driven by complex technological requirements and long-term program needs.
Small Business Impact
The contract was awarded through full and open competition and does not indicate specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
Oversight will be critical to manage the Cost Plus Fixed Fee structure, ensuring that costs remain reasonable and that the contractor meets all technical and performance requirements. Regular reporting and performance reviews are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Complexity of technical engineering services requires diligent oversight.
- Risk of scope creep impacting budget and timeline.
- Dependence on a single contractor for critical engineering support.
Tags
engineering-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.0 million to SERCO INC. NON-PERSONAL PROFESSIONAL SUPPORT SERVICES TO OBTAIN THE FULL RANGE OF TECHNICAL ENGINEERING SERVICES IN SUPPORT OF IWS 3.0
Who is the contractor on this award?
The obligated recipient is SERCO 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 $25.0 million.
What is the period of performance?
Start: 2022-09-21. End: 2027-09-20.
What is the historical performance of Serco Inc. on similar government contracts, particularly those involving complex engineering services?
Serco Inc. has a history of performing various government contracts, including IT, logistics, and support services. For engineering services, their past performance on similar complex projects would need to be reviewed to assess their capability and reliability. Evaluating their track record on cost control and adherence to technical specifications in previous engineering contracts is crucial for understanding potential risks and ensuring effective service delivery.
How does the awarded amount compare to the government's independent cost estimate for these engineering services?
Comparing the awarded amount of $25,040,660.28 to the government's independent cost estimate is vital for assessing value. If the awarded amount is significantly lower, it suggests strong competition and favorable pricing. Conversely, if it's higher, it may indicate an underestimation of costs or less competitive bidding. This comparison helps determine if taxpayers are receiving a fair price for the engineering support.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?
The effectiveness of this contract hinges on clearly defined Key Performance Indicators (KPIs) related to technical accuracy, project timelines, and adherence to specifications. The Department of the Navy must establish robust measurement mechanisms to track these KPIs throughout the contract's duration. Regular performance reviews and feedback loops are essential to ensure the engineering services provided are meeting the needs of IWS 3.0 and delivering the intended technical outcomes.
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: N0016422R3003
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $43,240,874
Exercised Options: $32,332,212
Current Obligation: $25,040,660
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $4,587,439
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8498
IDV Type: IDC
Timeline
Start Date: 2022-09-21
Current End Date: 2027-09-20
Potential End Date: 2027-09-20 00:00:00
Last Modified: 2026-02-12
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