USMC Awards $16M Engineering Services Contract to DLH, LLC for TCAC FOS
Contract Overview
Contract Amount: $16,081,623 ($16.1M)
Contractor: DLH, LLC
Awarding Agency: Department of Defense
Start Date: 2022-03-31
End Date: 2026-03-30
Contract Duration: 1,460 days
Daily Burn Rate: $11.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: UNITED STATES MARINE CORPS (USMC) TECHNICAL CONTROL AND ANALYSIS CENTER (TCAC) FAMILY OF SYSTEMS (FOS)
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21703
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $16.1 million to DLH, LLC for work described as: UNITED STATES MARINE CORPS (USMC) TECHNICAL CONTROL AND ANALYSIS CENTER (TCAC) FAMILY OF SYSTEMS (FOS) Key points: 1. Contract awarded to DLH, LLC for technical control and analysis center systems. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract has a duration of 4 years, ending March 2026. 4. The primary service category is Engineering Services. 5. The contract type is Cost Plus Fixed Fee, which can carry cost overrun risks.
Value Assessment
Rating: fair
The contract value of $16M over 4 years appears moderate for complex engineering services. Benchmarking against similar DoD contracts for technical control and analysis systems would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple vendors were likely able to bid, promoting price discovery. However, the specific impact on price depends on the number and competitiveness of the bidders.
Taxpayer Impact: Taxpayer funds are being used for critical defense infrastructure support. The competitive nature of the award aims to ensure reasonable pricing, but the Cost Plus Fixed Fee structure warrants monitoring.
Public Impact
Ensures continued operation and modernization of critical Marine Corps communication and analysis systems. Supports technological advancement within the USMC's command and control capabilities. Potential for job creation within the engineering and technical services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Lack of specific performance metrics in provided data.
- Small business participation not indicated.
Positive Signals
- Full and open competition utilized.
- Contract supports critical defense infrastructure.
- Long-term engagement allows for stable support.
Sector Analysis
This contract falls under Engineering Services, a broad category often supporting defense and technology sectors. Spending benchmarks for similar technical control and analysis systems within the DoD are highly variable based on system complexity and scope.
Small Business Impact
The provided data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further investigation would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of the Navy, through the USMC, is responsible for oversight. The contract's Cost Plus Fixed Fee structure necessitates robust financial oversight to manage costs effectively and prevent potential overruns.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee structure may lead to cost overruns.
- Lack of detailed performance metrics.
- No indication of small business subcontracting.
- Potential for scope creep without clear deliverables.
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 $16.1 million to DLH, LLC. UNITED STATES MARINE CORPS (USMC) TECHNICAL CONTROL AND ANALYSIS CENTER (TCAC) FAMILY OF SYSTEMS (FOS)
Who is the contractor on this award?
The obligated recipient is DLH, 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 $16.1 million.
What is the period of performance?
Start: 2022-03-31. End: 2026-03-30.
What is the projected total cost if the fixed fee is applied to the estimated cost, and how does this compare to similar systems?
The provided data does not specify the fixed fee percentage. To assess value, the fixed fee needs to be determined and added to the estimated cost. This total should then be benchmarked against the cost of comparable technical control and analysis systems within the DoD or other federal agencies to gauge cost-effectiveness.
What are the specific performance metrics and deliverables for this contract, and how are they being monitored?
The data lacks details on specific performance metrics and deliverables. Effective oversight requires clearly defined objectives, measurable outcomes, and a robust monitoring system to track DLH, LLC's performance against these standards. Without this, assessing the contract's effectiveness and identifying potential risks is challenging.
How will the Cost Plus Fixed Fee structure be managed to ensure cost efficiency and prevent contractor overspending?
Managing a Cost Plus Fixed Fee contract requires stringent financial controls and regular audits. The government must closely monitor all incurred costs, ensure they are reasonable and allocable, and verify that the contractor is operating within the agreed-upon scope. Clear communication channels and proactive risk management are essential to mitigate potential cost overruns.
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: N6523621R3025
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: DLH Holdings Corp
Address: 6720B ROCKLEDGE DR STE 777, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,061,032
Exercised Options: $26,307,507
Current Obligation: $16,081,623
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D7739
IDV Type: IDC
Timeline
Start Date: 2022-03-31
Current End Date: 2026-03-30
Potential End Date: 2027-03-30 00:00:00
Last Modified: 2025-10-30
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