DoD Awards $87.4M Engineering Services Contract to Eastern Research Group Inc. for Energetics Manufacturing Support
Contract Overview
Contract Amount: $87,382,571 ($87.4M)
Contractor: Eastern Research Group Inc
Awarding Agency: Department of Defense
Start Date: 2023-10-21
End Date: 2026-10-20
Contract Duration: 1,095 days
Daily Burn Rate: $79.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DESIGN ENGINEERING, PROJECT MANAGEMENT, PLANNING AND DEVELOPMENT, FACILITY INSPECTION, TESTING AND MAINTENANCE TO SUPPORT CONTINUED EXECUTION OF ENERGETICS MANUFACTURING EMPLOYED THROUGHOUT THE DOD WEAPON SYSTEMS.
Place of Performance
Location: INDIAN HEAD, CHARLES County, MARYLAND, 20640
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $87.4 million to EASTERN RESEARCH GROUP INC for work described as: DESIGN ENGINEERING, PROJECT MANAGEMENT, PLANNING AND DEVELOPMENT, FACILITY INSPECTION, TESTING AND MAINTENANCE TO SUPPORT CONTINUED EXECUTION OF ENERGETICS MANUFACTURING EMPLOYED THROUGHOUT THE DOD WEAPON SYSTEMS. Key points: 1. Contract supports critical Energetics Manufacturing for DoD weapon systems. 2. Eastern Research Group Inc. is the awardee. 3. Potential for long-term support through 2026. 4. No small business participation noted.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful oversight to manage costs. The awarded amount of $87.4M over three years suggests a substantial scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method is generally expected to yield competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Ensures continued availability of essential weapon system components. Supports advanced manufacturing capabilities within the defense sector. Provides critical engineering and project management services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation.
- Cost Plus Fixed Fee contract type requires diligent oversight.
Positive Signals
- Full and open competition utilized.
- Supports critical defense manufacturing.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense manufacturing. Benchmarks for similar DoD engineering services contracts vary widely based on scope and duration, but $87.4M over three years represents a significant investment.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to leverage small business capabilities and promote economic diversity within the defense industrial base.
Oversight & Accountability
The Cost Plus Fixed Fee structure necessitates strong government oversight to ensure costs are reasonable and the fixed fee is justified. Regular performance reviews and audits will be crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- No small business participation.
- Cost Plus Fixed Fee contract type.
- Potential for scope creep.
- Reliance on a single contractor for critical support.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.4 million to EASTERN RESEARCH GROUP INC. DESIGN ENGINEERING, PROJECT MANAGEMENT, PLANNING AND DEVELOPMENT, FACILITY INSPECTION, TESTING AND MAINTENANCE TO SUPPORT CONTINUED EXECUTION OF ENERGETICS MANUFACTURING EMPLOYED THROUGHOUT THE DOD WEAPON SYSTEMS.
Who is the contractor on this award?
The obligated recipient is EASTERN RESEARCH GROUP 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 $87.4 million.
What is the period of performance?
Start: 2023-10-21. End: 2026-10-20.
What specific metrics will be used to assess the value and effectiveness of the engineering services provided under this contract?
Value and effectiveness will likely be assessed through key performance indicators (KPIs) related to project completion timelines, adherence to budget, quality of deliverables (e.g., design accuracy, test results), and successful integration of manufactured components into DoD weapon systems. Regular progress reports and milestone reviews will provide data for this assessment.
What are the primary risks associated with this Cost Plus Fixed Fee contract, and how are they being mitigated?
Key risks include potential cost overruns if the scope is not well-defined or if unforeseen technical challenges arise. Mitigation strategies involve robust contract management, detailed work breakdown structures, regular cost reviews, and clear change control processes. The fixed fee component incentivizes efficiency, but the 'cost plus' aspect requires vigilant monitoring of expenditures.
How does this contract contribute to the overall readiness and technological advancement of the DoD's weapon systems?
This contract is crucial for maintaining and improving the manufacturing processes of energetics used in DoD weapon systems. By ensuring the quality and reliability of these components through expert engineering, project management, and testing, it directly supports weapon system operational readiness and enables the integration of future technological advancements.
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: N0017423R3002
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 561 VIRGINIA RD, CONCORD, MA, 01742
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $99,994,085
Exercised Options: $94,391,726
Current Obligation: $87,382,571
Subaward Activity
Number of Subawards: 31
Total Subaward Amount: $13,230,420
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D7559
IDV Type: IDC
Timeline
Start Date: 2023-10-21
Current End Date: 2026-10-20
Potential End Date: 2028-10-20 00:00:00
Last Modified: 2025-12-12
More Contracts from Eastern Research Group Inc
- Engineering and Technical Services in Support of Nswc IHD Energetics Department M Mission Execution — $37.9M (Department of Defense)
- Federal Contract — $30.0M (Environmental Protection Agency)
- Closing Americas Wastewater Access GAP Community Program Support — $29.6M (Environmental Protection Agency)
- Mission Contract in Support of the Office of Enforcement and Compliance Assurance Division, Office of Civil Enforcement. Igf::ot::igf — $23.0M (Environmental Protection Agency)
- Technical and Administrative Program Support for the Office of Wastewater Management — $21.9M (Environmental Protection Agency)
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)