DoD's $16.6M engineering support contract for PA32 systems awarded to VSOLVIT LLC

Contract Overview

Contract Amount: $16,595,475 ($16.6M)

Contractor: Vsolvit LLC

Awarding Agency: Department of Defense

Start Date: 2017-11-17

End Date: 2022-11-16

Contract Duration: 1,825 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THE FOCUS OF THE REQUESTED ENGINEERING, TECHNICAL AND DATA MANAGEMENT SUPPORT WILL BE ON ENGINEERING, INTEGRATION, MAINTENANCE, INSTALLATION, DOCUMENTATION, VERIFICATION, VALIDATION, AND DATA MANAGEMENT OF ALL PA32 SYSTEMS. THE INTENTION OF THIS WORK STATEMENT IS TO ENABLE THE CONTRACTOR TO PROVIDE WIRED AND WIRELESS TELECOMMUNICATIONS AND DATA MANAGEMENT SUPPORT REQUIRED TO MEET THE AFOREMENTIONED FOCUSES FOR THE LIFECYCLE OF EACH RESPECTIVE SYSTEM IN PA32.

Place of Performance

Location: CORONA, RIVERSIDE County, CALIFORNIA, 92878

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to VSOLVIT LLC for work described as: IGF::OT::IGF THE FOCUS OF THE REQUESTED ENGINEERING, TECHNICAL AND DATA MANAGEMENT SUPPORT WILL BE ON ENGINEERING, INTEGRATION, MAINTENANCE, INSTALLATION, DOCUMENTATION, VERIFICATION, VALIDATION, AND DATA MANAGEMENT OF ALL PA32 SYSTEMS. THE INTENTION OF THIS WORK STATEMENT IS TO … Key points: 1. Contract focuses on engineering, integration, maintenance, and data management for PA32 systems. 2. The contract spans five years, indicating a long-term need for these services. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control. 5. VSOLVIT LLC, the contractor, is responsible for wired and wireless telecommunications and data management. 6. The work is crucial for the lifecycle management of specific systems within the PA32 portfolio.

Value Assessment

Rating: good

The contract's value of approximately $16.6 million over five years for specialized engineering and data management support appears reasonable given the scope. Benchmarking against similar long-term engineering support contracts for complex defense systems is necessary for a definitive value assessment. The CPFF structure, while common, requires careful monitoring to ensure costs remain within acceptable parameters and that the fixed fee is justified by the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a competitive environment, which typically aids in price discovery and can lead to more favorable terms for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors strive to offer competitive pricing and innovative solutions to win awards.

Public Impact

The Department of the Navy benefits from sustained engineering and data management support for critical PA32 systems. The contract ensures the operational readiness and lifecycle management of these systems. The services provided are essential for maintaining the functionality and security of the PA32 systems. The contract supports specialized technical roles within the defense sector, potentially impacting the workforce in engineering and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely managed.
The long duration of the contract requires ongoing performance monitoring to ensure continued value.
Dependence on a single contractor for critical system support over five years could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contract addresses a clear need for specialized engineering and data management services.
The five-year term indicates a stable, long-term requirement, allowing for focused expertise development.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for specialized engineering, integration, and data management support for complex defense systems is substantial, driven by the continuous need for modernization and maintenance of military platforms. Spending in this area is often characterized by long-term contracts, high technical requirements, and significant investment in skilled personnel. Comparable spending benchmarks would involve analyzing other contracts for similar system support within the Department of Defense.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the primary focus was on securing the most capable large business contractor through full and open competition. There is no explicit information on subcontracting plans for small businesses, which would be a key area to investigate for potential impacts on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Performance monitoring, cost tracking, and adherence to the contract's technical requirements are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Engineering Services
Naval Systems Support Contracts
PA32 System Lifecycle Management
Defense Telecommunications and Data Management

Risk Flags

Potential for cost overruns in CPFF contracts.
Risk of performance degradation over the five-year contract term.
Need for robust government oversight to manage scope and costs.
Technological obsolescence of supported systems over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to VSOLVIT LLC. IGF::OT::IGF THE FOCUS OF THE REQUESTED ENGINEERING, TECHNICAL AND DATA MANAGEMENT SUPPORT WILL BE ON ENGINEERING, INTEGRATION, MAINTENANCE, INSTALLATION, DOCUMENTATION, VERIFICATION, VALIDATION, AND DATA MANAGEMENT OF ALL PA32 SYSTEMS. THE INTENTION OF THIS WORK STATEMENT IS TO ENABLE THE CONTRACTOR TO PROVIDE WIRED AND WIRELESS TELECOMMUNICATIONS AND DATA MANAGEMENT SUPPORT REQUIRED TO MEET THE AFOREMENTIONED FOCUSES FOR THE LIFECYCLE OF EACH RESPECTIVE SYSTEM IN PA32.

Who is the contractor on this award?

The obligated recipient is VSOLVIT LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2017-11-17. End: 2022-11-16.

What is the track record of VSOLVIT LLC in performing similar engineering and data management contracts for the Department of Defense?

Assessing VSOLVIT LLC's track record requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Specifically, looking for experience with complex systems similar to PA32, long-term support engagements, and Cost Plus Fixed Fee contract types would be crucial. A positive track record with timely delivery, adherence to budget, and high-quality technical output would indicate a lower performance risk for this current contract. Conversely, a history of cost overruns, missed deadlines, or quality deficiencies would raise concerns about VSOLVIT's ability to meet the requirements effectively.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar engineering services in the defense sector?

The Cost Plus Fixed Fee (CPFF) contract type, used here, reimburses the contractor for allowable costs plus a fixed fee representing profit. This structure is common for research and development or services where the scope is not precisely defined at the outset, incentivizing the contractor to control costs to protect their fixed profit margin. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but potentially less cost certainty for the government. Cost-Reimbursement contracts (like Cost Plus Incentive Fee or Cost Plus Award Fee) offer different incentive structures. For engineering services with evolving requirements, CPFF can be appropriate, but it necessitates robust government oversight to manage costs effectively and ensure the fixed fee remains commensurate with the effort and risk involved.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how are they monitored?

Key Performance Indicators (KPIs) for this contract would likely focus on technical performance, schedule adherence, and cost control. Examples could include system uptime percentages, successful integration rates of new components, response times for maintenance requests, accuracy and completeness of documentation, and adherence to budget targets. Monitoring these KPIs would typically involve regular progress meetings between the government and VSOLVIT, review of contractor-generated reports, site inspections, and potentially independent government testing. The contract's Performance Work Statement (PWS) would detail the specific metrics, acceptable performance levels, and the government's methods for surveillance and evaluation to ensure the contractor meets its obligations.

What is the historical spending trend for engineering and data management support for PA32 systems or similar platforms within the Navy?

Analyzing historical spending for PA32 systems or comparable platforms within the Navy is essential for context. This involves examining past contracts awarded for similar services, their values, durations, and the contractors involved. Trends in spending can reveal whether requirements are increasing, decreasing, or remaining stable. Significant year-over-year increases might warrant scrutiny regarding scope creep or inflation, while consistent spending could indicate a steady operational need. Comparing the current $16.6 million, five-year contract to previous expenditures will help determine if this award represents a fair market price and aligns with established budgetary patterns for maintaining such systems.

What are the potential risks associated with the long-term nature (five years) of this engineering support contract?

The five-year duration of this contract presents several potential risks. Firstly, there's the risk of contractor performance degradation over time; initial high performance may wane without continuous oversight. Secondly, technological obsolescence is a concern; systems supported might evolve, requiring the contractor to adapt, or the contract might outlive the relevance of the original scope if not managed dynamically. Thirdly, market conditions and pricing can change significantly over five years, potentially making the initial agreement less favorable to the government later on. Finally, long-term reliance on a single contractor can reduce flexibility and inhibit the introduction of new technologies or approaches from other vendors.

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: N6426717R3007

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4171 MARKET STREET SUITE 2, VENTURA, CA, 93003

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $21,327,863

Exercised Options: $21,327,863

Current Obligation: $16,595,475

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017815D8491

IDV Type: IDC

Timeline