DoD Awards $248M Engineering Services Contract to Serco-IPS Corporation, Not Competed

Contract Overview

Contract Amount: $247,834,619 ($247.8M)

Contractor: Serco-Ips Corporation

Awarding Agency: Department of Defense

Start Date: 2018-09-11

End Date: 2022-09-03

Contract Duration: 1,453 days

Daily Burn Rate: $170.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BASE YEAR SUPPORT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $247.8 million to SERCO-IPS CORPORATION for work described as: BASE YEAR SUPPORT Key points: 1. Significant contract value of $248 million for engineering services. 2. Lack of competition raises concerns about potential overpricing and value. 3. Contract awarded to Serco-IPS Corporation, a known entity in government contracting. 4. The Engineering Services sector is broad, making direct benchmarks challenging without more detail.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without competitive bids, it's hard to determine if the $248 million represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition suggests taxpayers may be paying a premium for these engineering services.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The Department of Defense relies on these services, impacting readiness and operations. Transparency in sole-source awards is crucial for public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee structure
Long contract duration (1453 days)

Positive Signals

Contract awarded to an established company
Services are essential for the Department of Defense

Sector Analysis

This contract falls under Engineering Services, a broad category. The $248 million award is substantial, but without specific service details, it's hard to benchmark against similar contracts in the sector.

Small Business Impact

The data does not indicate whether small businesses were involved in subcontracting opportunities for this contract.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was sound and that the pricing is reasonable.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns due to CPFF structure
Absence of clear value for money assessment
Limited transparency in procurement justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $247.8 million to SERCO-IPS CORPORATION. BASE YEAR SUPPORT

Who is the contractor on this award?

The obligated recipient is SERCO-IPS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $247.8 million.

What is the period of performance?

Start: 2018-09-11. End: 2022-09-03.

What was the justification for not competing this significant engineering services contract?

The justification for not competing this $248 million contract is not provided in the data. Typically, sole-source awards require a documented justification, such as the existence of only one responsible source, or a compelling urgency. Without this information, it's impossible to assess the validity of the procurement method.

How does the Cost Plus Fixed Fee structure impact the risk for the government in this contract?

The Cost Plus Fixed Fee (CPFF) structure shifts some financial risk to the government. While the contractor's profit is fixed, the government bears the risk of cost overruns. In a non-competed contract, this risk is amplified as there's less pressure on the contractor to control costs efficiently.

What is the potential impact of this contract's pricing on future DoD engineering service procurements?

If the pricing in this non-competed contract is found to be above fair market value, it could set an unfavorable benchmark for future procurements. It might also disincentivize competitive bidding if contractors perceive opportunities for sole-source awards with less stringent cost controls.

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: N0017418R0015

Offers Received: 1

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $285,609,430

Exercised Options: $266,533,045

Current Obligation: $247,834,619

Actual Outlays: $15,822,362

Subaward Activity

Number of Subawards: 83

Total Subaward Amount: $147,312,512

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline