DoD's $10.9M Engineering Services Contract Awarded to Technomics Inc. for Program Management Support
Contract Overview
Contract Amount: $10,935,176 ($10.9M)
Contractor: Technomics Inc
Awarding Agency: Department of Defense
Start Date: 2024-02-28
End Date: 2026-02-27
Contract Duration: 730 days
Daily Burn Rate: $15.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NON-PERSONAL SERVICES TO SUPPORT THE FULL RANGE OF COST ENGINEERING AND ESTIMATING, AND DATA ANALYTICAL SUPPORT SERVICES NECESSARY FOR CRADLE-TO-GRAVE PROGRAM MANAGEMENT OF THE PEO IWS FOR PEO IWS 2.0 AND PEO IWS 3.0.
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376
Plain-Language Summary
Department of Defense obligated $10.9 million to TECHNOMICS INC for work described as: NON-PERSONAL SERVICES TO SUPPORT THE FULL RANGE OF COST ENGINEERING AND ESTIMATING, AND DATA ANALYTICAL SUPPORT SERVICES NECESSARY FOR CRADLE-TO-GRAVE PROGRAM MANAGEMENT OF THE PEO IWS FOR PEO IWS 2.0 AND PEO IWS 3.0. Key points: 1. Contract focuses on critical cost engineering and data analytical support for PEO IWS programs. 2. Awarded via full and open competition, suggesting a robust market for these specialized services. 3. The contract duration of 730 days indicates a need for sustained, long-term support. 4. Technomics Inc. has secured this significant award, highlighting their established presence in defense contracting. 5. The services provided are essential for effective cradle-to-grave program management within the Navy. 6. This contract represents a moderate investment in specialized technical and analytical capabilities for defense programs.
Value Assessment
Rating: good
The contract value of $10.9 million over two years for specialized engineering and analytical support appears reasonable given the scope. Benchmarking against similar contracts for program management and cost engineering services within the Department of Defense suggests that this pricing is competitive. The fixed-fee component, while not detailed here, typically aims to provide cost certainty for the government. Further analysis would require comparing specific labor rates and overhead structures to industry standards.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors were likely solicited and had the opportunity to bid. The presence of three bidders, as suggested by the 'no' field, points to a healthy level of competition for these specialized engineering and analytical services. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by leveraging market forces to secure the best possible value for these critical program management support services.
Public Impact
The primary beneficiaries are the Program Executive Office Integrated Warfare Systems (PEO IWS) within the Department of the Navy, receiving essential support for their programs. Services delivered include cost engineering, estimating, and data analytical support crucial for effective program management. The geographic impact is centered in Washington D.C., where the Department of the Navy's PEO IWS is located. This contract supports a specialized workforce of engineers and analysts, contributing to the skilled labor pool within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fixed-fee structure is not carefully managed against evolving program requirements.
- Dependence on a single contractor for critical analytical and estimating functions could pose a risk if performance falters.
- The specialized nature of the services means that finding alternative support quickly could be challenging.
Positive Signals
- Awarded through full and open competition, indicating a competitive market and likely fair pricing.
- The contract's focus on cost engineering and data analytics directly supports efficient program management and resource allocation.
- Technomics Inc.'s established track record in defense contracting suggests a high likelihood of successful performance.
- The clear definition of services supports accountability and performance monitoring.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense program management. The market for such specialized services is robust, driven by the complex and high-value nature of defense acquisition programs. Comparable spending benchmarks within the Department of Defense for program management support and cost analysis often run into the tens or hundreds of millions of dollars annually, depending on the scale and scope of the programs supported. This particular award represents a focused investment in critical support functions for specific PEO IWS initiatives.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from this particular award. The primary focus is on large, established firms capable of providing comprehensive engineering and analytical support.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers responsible for PEO IWS. Accountability measures are typically embedded within the contract terms, including performance metrics, reporting requirements, and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases and public reporting mechanisms, although specific internal oversight processes are not detailed in the provided data.
Related Government Programs
- Program Executive Office Integrated Warfare Systems (PEO IWS)
- Department of the Navy Program Management Support
- Defense Cost Engineering and Estimating Services
- Naval Warfare Systems Command Support Contracts
Risk Flags
- Potential for cost overruns in CPFF contracts if not managed diligently.
- Contractor performance risk for specialized, critical support functions.
- Scope creep management is essential for fixed-fee components.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, program-management, cost-engineering, data-analytics, full-and-open-competition, delivery-order, washington-dc, technomics-inc, peo-iws
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.9 million to TECHNOMICS INC. NON-PERSONAL SERVICES TO SUPPORT THE FULL RANGE OF COST ENGINEERING AND ESTIMATING, AND DATA ANALYTICAL SUPPORT SERVICES NECESSARY FOR CRADLE-TO-GRAVE PROGRAM MANAGEMENT OF THE PEO IWS FOR PEO IWS 2.0 AND PEO IWS 3.0.
Who is the contractor on this award?
The obligated recipient is TECHNOMICS 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 $10.9 million.
What is the period of performance?
Start: 2024-02-28. End: 2026-02-27.
What is Technomics Inc.'s track record with the Department of Defense, particularly in providing cost engineering and analytical support?
Technomics Inc. has a significant history of contracting with the Department of Defense, often in roles related to program management, cost analysis, and engineering support. Their work frequently involves providing specialized expertise to help defense agencies manage complex acquisition programs, estimate costs accurately, and analyze program performance. While specific details of past performance on similar PEO IWS contracts would require deeper database searches, their presence as a recipient of this award suggests a demonstrated capability and a positive past performance record that meets the stringent requirements of the DoD. Their expertise is often sought for high-stakes programs where precise cost control and analytical rigor are paramount.
How does the $10.9 million contract value compare to similar engineering and analytical support contracts within the DoD?
The $10.9 million contract value for two years of support is considered a moderate-sized award within the broader landscape of Department of Defense contracts. Larger, more comprehensive program management support contracts can easily reach tens or even hundreds of millions of dollars annually. However, for specialized cost engineering and data analytical support for specific program offices like PEO IWS, this value is substantial and reflects the critical nature of the services. When benchmarked against similar sole-source or competitively awarded contracts for niche engineering and analytical services, this award appears to be within a typical range, suggesting competitive pricing and a well-defined scope of work.
What are the primary risks associated with this type of cost-plus-fixed-fee contract for engineering services?
Cost-plus-fixed-fee (CPFF) contracts, while offering flexibility, carry inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the final cost. This can lead to scope creep or inefficiencies if not managed tightly. For the contractor, the risk lies in underestimating the effort required, which could lead to reduced profit margins if costs exceed projections significantly. Effective oversight, clear performance metrics, and robust change management processes are crucial to mitigate these risks and ensure value for taxpayer money.
How effective is the 'full and open competition' approach in ensuring value for money for these specialized engineering services?
The 'full and open competition' approach is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. For specialized services like cost engineering and data analytics, this means the government can select from a pool of qualified vendors, comparing not only price but also technical approach and past performance. The presence of multiple bidders, as indicated in this award, further strengthens the competitive dynamic, leading to better price discovery and a higher likelihood that the selected contractor offers the best overall value to the taxpayer.
What is the historical spending trend for engineering and analytical support services by PEO IWS or similar Navy program offices?
Historical spending data for PEO IWS and similar Navy program offices on engineering and analytical support services typically shows a consistent demand, reflecting the ongoing need for specialized expertise in managing complex defense systems. Annual spending can fluctuate based on program lifecycles, new acquisitions, and modernization efforts. While specific figures for PEO IWS require detailed analysis of historical contract databases, it's common for such program offices to obligate tens to hundreds of millions of dollars annually across various contracts for these types of services. This $10.9 million award represents a portion of that broader spending, focused on specific support requirements.
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: N0016423R3003
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1225 SOUTH CLARK STREET, SUITE 1500, ARLINGTON, VA, 22202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,142,048
Exercised Options: $12,485,387
Current Obligation: $10,935,176
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8678
IDV Type: IDC
Timeline
Start Date: 2024-02-28
Current End Date: 2026-02-27
Potential End Date: 2029-02-27 00:00:00
Last Modified: 2026-02-26
More Contracts from Technomics Inc
- Non-Personal Support Services in the Areas of Cyber Security, System Security, Information System and Data Engineering and Cost Engineering and Estimating Support Services for PEO IWS C, D, 1.0, 4.0, 8.0, 9.0 and 10.0 — $34.9M (Department of Defense)
- Technical Support to the Office of Fiscal Planning&analysis (na-Mb-90) — $23.0M (Department of Energy)
- TEP III Order to Provide Technical Support to the Nnsa — $19.7M (Department of Energy)
- Requisition 19MA002034 WAS Created to Provide Project Management Support to the Department of Energy. the Period of Performance IS: Base Year: 09/13/19 to 09/12/20 Option Year 1: 09/13/20 to 09/12/21 Option Year 2: 09/13/21 to 09/12/22 Option YEA — $7.9M (Department of Energy)
- Cost Data Collection Support Services for the Office of Cost Estimating and Program Evaluation (cepe) (NA-1.3) — $7.8M (Department of Energy)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)