DoD's $45M Engineering Services Contract with SERCO-IPS Corporation: A Decade of Full and Open Competition

Contract Overview

Contract Amount: $45,009,065 ($45.0M)

Contractor: Serco-Ips Corporation

Awarding Agency: Department of Defense

Start Date: 2009-06-01

End Date: 2018-12-30

Contract Duration: 3,499 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Official Description: TO N00178-04-D-4066-N403

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $45.0 million to SERCO-IPS CORPORATION for work described as: TO N00178-04-D-4066-N403 Key points: 1. Significant contract value of $45M over nearly 10 years. 2. Awarded under full and open competition, indicating a competitive market. 3. Cost Plus Fixed Fee contract type may pose cost control challenges. 4. Engineering Services sector is critical for defense operations.

Value Assessment

Rating: good

The contract's value of $45M over almost 10 years suggests a substantial need for engineering services. Benchmarking against similar large-scale engineering service contracts would provide a clearer picture of its pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by leveraging market forces to drive down costs.

Public Impact

Supports critical Department of the Navy engineering and technical services. Long-term nature of the contract provides stability for the contractor and ensures continuity of services. Potential for cost overruns exists with Cost Plus Fixed Fee contracts if not closely monitored.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Long contract duration (nearly 10 years)

Positive Signals

Full and open competition
Significant contract value indicating essential services

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for supporting complex defense projects and infrastructure. Spending in this sector is often substantial due to the specialized nature of the work.

Small Business Impact

The data indicates the prime contractor is SERCO-IPS CORPORATION and that small business participation was not a stated factor (ss: false, sb: false). Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded via a Delivery Order under a larger IDIQ contract (TO N00178-04-D-4066-N403). Oversight would likely be managed through the parent contract's structure, with specific attention to the Cost Plus Fixed Fee elements.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type can lead to cost overruns.
Long contract duration may reduce flexibility and increase risk of obsolescence.
Lack of detail on small business subcontracting.
Unclear meaning of 'br' value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.0 million to SERCO-IPS CORPORATION. TO N00178-04-D-4066-N403

Who is the contractor on this award?

The obligated recipient is SERCO-IPS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $45.0 million.

What is the period of performance?

Start: 2009-06-01. End: 2018-12-30.

What was the total value of the parent IDIQ contract from which this delivery order was issued?

The provided data focuses solely on the delivery order (DO N00178-04-D-4066-N403) with a value of $45,009,064.52. Information regarding the total value of the overarching IDIQ contract is not present in this dataset. Understanding the parent contract's scope and total value would offer a broader perspective on the government's commitment and potential for future task orders.

How effectively were cost controls managed under the Cost Plus Fixed Fee structure for this contract?

The Cost Plus Fixed Fee (CPFF) contract type allows the contractor to recover costs plus a fixed fee. While it encourages contractor participation, it can lead to cost overruns if not rigorously monitored. Without specific cost performance reports or audits, it's difficult to assess the effectiveness of cost controls. The 'br' value of 12863 might represent a benchmark or budget variance, but its context is unclear.

What specific engineering services were provided under this delivery order?

The Nationalкое Code (NAICS) code 541330 indicates 'Engineering Services.' However, the specific nature of these services for this particular delivery order is not detailed in the provided data. These could range from design and analysis to testing and consulting, supporting various Department of the Navy programs and infrastructure needs.

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: N0002408R3375

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alion Science and Technology Corporation (UEI: 119162332)

Address: 10 WEST 35TH ST, CHICAGO, IL, 60616

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $48,126,747

Exercised Options: $48,126,747

Current Obligation: $45,009,065

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4066

IDV Type: IDC

Timeline