DoD Awards $65.3M Contract for Extreme Environments Life Support Services to Kalman & Company, Inc

Contract Overview

Contract Amount: $65,334,283 ($65.3M)

Contractor: Kalman & Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-01-07

End Date: 2026-05-12

Contract Duration: 1,586 days

Daily Burn Rate: $41.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: EXTREME ENVIRONMENTS LIFE SUPPORT BRANCH READINESS SUPPORT SERVICES

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23452

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $65.3 million to KALMAN & COMPANY, INC. for work described as: EXTREME ENVIRONMENTS LIFE SUPPORT BRANCH READINESS SUPPORT SERVICES Key points: 1. Contract awarded to Kalman & Company, Inc. for life support services. 2. Significant value of $65.3 million over its period of performance. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Services fall under Engineering Services (NAICS 541330).

Value Assessment

Rating: good

The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar life support service contracts is recommended to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows all qualified contractors to bid, fostering a competitive environment that should drive down costs.

Taxpayer Impact: The competitive nature of the award is expected to yield a reasonable price for taxpayers, though the Cost Plus Fixed Fee structure warrants ongoing monitoring.

Public Impact

Ensures readiness for critical life support systems in extreme environments. Supports Department of the Navy operations and personnel safety. Long-term contract (over 3 years) provides stability for service provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure requires diligent oversight to control costs.
Potential for scope creep in complex 'extreme environments' services.

Positive Signals

Full and open competition utilized.
Long-term contract ensures sustained support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting specialized life support systems. Spending in this niche area is critical for defense readiness and often involves complex, high-value contracts.

Small Business Impact

The data does not indicate if small businesses were involved in this specific award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of the Navy to ensure cost efficiency and prevent overruns. Regular performance reviews and audits are crucial.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Complexity of 'extreme environments' services.
Long contract duration may pose obsolescence risk.
Lack of explicit small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.3 million to KALMAN & COMPANY, INC.. EXTREME ENVIRONMENTS LIFE SUPPORT BRANCH READINESS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is KALMAN & COMPANY, 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 $65.3 million.

What is the period of performance?

Start: 2022-01-07. End: 2026-05-12.

What is the typical profit margin for Cost Plus Fixed Fee contracts in this specialized engineering services sector?

Profit margins for Cost Plus Fixed Fee (CPFF) contracts in specialized engineering services can vary significantly based on contract complexity, risk, and market conditions. Generally, the fixed fee is negotiated as a percentage of the estimated cost. While specific benchmarks are proprietary, agencies aim for competitive fees that are fair to contractors while protecting taxpayer interests. Monitoring the fee as a percentage of total obligated amount can provide insight.

How will the 'extreme environments' aspect of the life support services be monitored for performance and cost control?

Monitoring 'extreme environments' services requires detailed performance work statements (PWS) and key performance indicators (KPIs). The Department of the Navy must establish clear metrics for reliability, response time, and operational effectiveness under various extreme conditions. Regular site visits, technical reviews, and contractor performance evaluations are essential to ensure the services meet stringent requirements and that costs remain aligned with the negotiated fee.

What is the potential impact of the long contract duration (over 3 years) on technological relevance and cost-effectiveness?

A long contract duration can offer stability and predictability for both the government and the contractor, potentially leading to economies of scale and reduced administrative burden. However, it also carries the risk of technological obsolescence if the supported systems are not regularly updated or if the contractor does not proactively incorporate advancements. Periodic reviews and potential contract modifications may be necessary to ensure continued cost-effectiveness and alignment with evolving technological needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6133121R3001

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2901 S LYNNHAVEN RD #340, VIRGINIA BEACH, VA, 23452

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $93,515,267

Exercised Options: $93,515,267

Current Obligation: $65,334,283

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $7,181,706

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7942

IDV Type: IDC

Timeline