DoD Awards Averstar Inc. $10.99M for Engineering Technical Services, Extending Contract Duration Significantly

Contract Overview

Contract Amount: $10,993,749 ($11.0M)

Contractor: Averstar. Inc.

Awarding Agency: Department of Defense

Start Date: 1999-10-01

End Date: 2005-12-31

Contract Duration: 2,283 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200010!1700!000180!A8106 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042199C1714 !A!*!* !19991001!20000930!013900449!013900449!013900449!N!1DTD7!AVERSTAR INC !23 FOURTH AVE !BURLINGTON !MA!01803!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !0001!+000000300000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!A !N!U!2!001!B!* !Z!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to AVERSTAR. INC. for work described as: 200010!1700!000180!A8106 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042199C1714 !A!*!* !19991001!20000930!013900449!013900449!013900449!N!1DTD7!AVERSTAR INC !23 FOURTH AVE !BURLINGTON !MA!01803!60650!037!24!PATUXENT RIVER NAS !ST.… Key points: 1. The contract, valued at $10.99 million, was awarded to Averstar Inc. for engineering technical services. 2. The original contract duration was 2283 days, with an end date of 2005-12-31, indicating a significant extension from the initial award date of 1999-10-01. 3. Competition was full and open, suggesting a competitive bidding process was utilized. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 5. The primary sector is Defense, with services provided to the Naval Air Warfare Center.

Value Assessment

Rating: fair

The contract value of $10.99 million for engineering technical services is within a typical range for such contracts. However, the extended duration and CPFF structure warrant scrutiny for potential cost inefficiencies compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the extended duration and CPFF contract type may have allowed for price increases over time.

Taxpayer Impact: While competition was utilized, the extended contract period and CPFF structure could lead to higher costs for taxpayers than a more tightly scoped fixed-price contract.

Public Impact

Taxpayers may be paying more than necessary due to the extended contract duration and Cost Plus Fixed Fee structure. The significant extension of the contract raises questions about initial planning and potential scope creep. The defense sector relies on these services, making contract effectiveness crucial for military readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration beyond initial scope.
Cost Plus Fixed Fee contract type can incentivize higher costs.
Potential for cost overruns due to long performance period.

Positive Signals

Full and open competition was utilized.
Services provided to a critical defense entity (Naval Air Warfare Center).

Sector Analysis

This contract falls within the Defense sector, specifically for engineering and technical services supporting naval aviation. Spending benchmarks for similar services can vary widely based on complexity and duration, but the extended nature of this contract suggests a long-term need.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or prime contractors in this award.

Oversight & Accountability

The extended duration of this contract necessitates robust oversight to ensure cost control and adherence to the original scope, especially given the CPFF structure.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Extended contract duration raises concerns about initial planning and potential scope creep.
Cost Plus Fixed Fee contract type may lead to higher costs for taxpayers.
Lack of specific details on services provided hinders a full assessment of value.
Potential for cost overruns due to the long performance period and CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to AVERSTAR. INC.. 200010!1700!000180!A8106 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042199C1714 !A!*!* !19991001!20000930!013900449!013900449!013900449!N!1DTD7!AVERSTAR INC !23 FOURTH AVE !BURLINGTON !MA!01803!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !0001!+000000300000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!A !N!U!

Who is the contractor on this award?

The obligated recipient is AVERSTAR. 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 $11.0 million.

What is the period of performance?

Start: 1999-10-01. End: 2005-12-31.

What was the primary driver for extending the contract duration from its initial award to over 6 years?

The provided data does not explicitly state the reason for the extended contract duration. However, such extensions often occur due to evolving requirements, unforeseen complexities in the project, or the need for sustained support for critical defense systems. Further investigation into contract modifications and justifications would be necessary to determine the precise cause.

How did the Cost Plus Fixed Fee structure impact the final cost compared to a fixed-price contract for these engineering services?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This can lead to higher final costs than a fixed-price contract if costs escalate beyond initial estimates, as the government bears the risk of cost overruns. The fixed fee, however, provides some incentive for the contractor to control costs to maximize their profit margin.

What specific engineering technical services were provided under this contract, and how critical were they to the Naval Air Warfare Center's mission?

The data identifies the service as 'ENGINEERING TECHNICAL SERVICES' but does not detail the specific tasks performed. These services are likely critical to the Naval Air Warfare Center's operations, potentially involving research, development, testing, evaluation, or maintenance of naval aircraft and related systems. The extended duration suggests a continuous need for these specialized capabilities.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 23 FOURTH AVE, BURLINGTON, MA, 01803

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline