DoD's $15.8M engineering services contract awarded to CSSI, LLC, with a 4-year performance period
Contract Overview
Contract Amount: $15,858,232 ($15.9M)
Contractor: Cssi, LLC
Awarding Agency: Department of Defense
Start Date: 2022-11-10
End Date: 2026-12-23
Contract Duration: 1,504 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: VIDS
Place of Performance
Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410
Plain-Language Summary
Department of Defense obligated $15.9 million to CSSI, LLC for work described as: VIDS Key points: 1. Value for money appears fair, given the cost-plus-fixed-fee structure which incentivizes cost control. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include the cost-plus-fixed-fee contract type, which can lead to cost overruns if not managed closely. 4. Performance context is within engineering services for the Department of the Navy. 5. Sector positioning is within professional, scientific, and technical services, a common area for federal contracting.
Value Assessment
Rating: fair
The contract's value of $15.8 million over approximately four years for engineering services is within a typical range for such specialized support. The cost-plus-fixed-fee (CPFF) structure means the government pays allowable costs plus a fixed fee, which can be advantageous if costs are well-managed. Benchmarking against similar engineering service contracts would provide a clearer picture of value, but the duration and scope suggest a moderate investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but a full and open process generally fosters a competitive environment, which should theoretically lead to better price discovery and more favorable terms for the government.
Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lower prices.
Public Impact
The Department of the Navy benefits from specialized engineering expertise to support its operations and projects. Services delivered likely include design, analysis, testing, and technical consultation related to naval systems or infrastructure. The geographic impact is primarily centered around the contract's performance location, which is not explicitly detailed but likely supports naval facilities or projects. Workforce implications involve skilled engineers and technical professionals employed by CSSI, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, as the fee is fixed regardless of the final cost.
- The long performance period (over 4 years) increases the risk of scope creep or unforeseen cost increases.
- Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess performance risks.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- CSSI, LLC is the sole awardee, implying they met all requirements and offered competitive terms.
- The contract has a defined end date, providing a clear timeframe for service delivery.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the professional, scientific, and technical services industry. Federal spending in this area supports a wide range of government functions, from defense and infrastructure to research and development. Comparable spending benchmarks would involve analyzing other engineering service contracts awarded by the Department of Defense and other federal agencies to gauge the relative size and pricing of this award.
Small Business Impact
The provided data indicates that small business participation (ss and sb fields) is false. This suggests that the contract was not set aside for small businesses, nor does it appear to have specific subcontracting goals for small businesses mandated in this award. Consequently, the direct impact on the small business ecosystem from this specific contract is likely minimal, though CSSI, LLC may engage small businesses as subcontractors independently.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are embedded in the contract terms, including performance requirements and the CPFF payment structure. Transparency is facilitated through contract databases like SAM.gov. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services
- Naval Sea Systems Command Contracts
- Professional, Scientific, and Technical Services
- Cost-Plus Contracts
- Long-Term Service Contracts
Risk Flags
- Cost-plus-fixed-fee contract type requires close monitoring to prevent cost overruns.
- Lack of specific performance metrics in provided data hinders effectiveness assessment.
- Potential for contractor to prioritize fee over cost efficiency in CPFF structure.
Tags
department-of-defense, department-of-the-navy, engineering-services, professional-scientific-and-technical-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, cssi-llc, south-carolina, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.9 million to CSSI, LLC. VIDS
Who is the contractor on this award?
The obligated recipient is CSSI, 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 $15.9 million.
What is the period of performance?
Start: 2022-11-10. End: 2026-12-23.
What is the track record of CSSI, LLC in performing similar engineering services contracts for the federal government?
A thorough review of CSSI, LLC's contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any reported contract disputes or terminations, and the successful completion of similar engineering services contracts, particularly those with the Department of Defense or the Department of the Navy. Data from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be crucial. Without this specific data, it's difficult to definitively assess their past performance reliability for this $15.8 million contract.
How does the estimated cost per year for this contract compare to industry benchmarks for similar engineering services?
The total contract value is approximately $15.8 million over a period of roughly 1504 days (about 4 years). This averages to roughly $3.95 million per year. To benchmark this against industry standards, one would need to compare it with the average annual cost of similar engineering services contracts awarded by the Department of Defense or other federal agencies, considering factors like contract scope, complexity, and specific engineering disciplines involved. Data on average rates for engineering labor and overhead within the defense sector would also be relevant. A preliminary assessment suggests this annual spend is moderate for a federal engineering support contract of this duration.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific engineering service?
The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their profit (the fixed fee) is predetermined. If the contractor's actual costs exceed estimates, the government still pays those costs. This necessitates robust government oversight to monitor expenditures and ensure costs are allowable, reasonable, and allocable. For engineering services, risks can also include potential for scope creep if requirements are not clearly defined, leading to increased costs and potentially impacting the fixed fee's adequacy or the government's overall value.
How effective is the 'full and open competition' approach likely to be in ensuring competitive pricing for these engineering services?
The 'full and open competition' approach is generally considered the most effective method for ensuring competitive pricing, as it allows all responsible sources to participate. This maximizes the number of potential bidders, increasing the likelihood that multiple companies will offer competitive proposals to win the contract. The effectiveness, however, also depends on the specific market dynamics for these engineering services – the number of qualified firms, the complexity of the requirements, and the clarity of the solicitation. If the market is highly specialized or has few capable providers, even full and open competition might yield limited price reduction.
What historical spending patterns exist for engineering services within the Department of the Navy, and how does this contract fit?
The Department of the Navy consistently spends significant amounts on engineering services to support its vast array of platforms, systems, and infrastructure. Historical spending patterns reveal a continuous need for design, maintenance, modernization, and technical support across naval aviation, surface ships, submarines, and shore facilities. This $15.8 million contract, awarded under full and open competition, fits within this established pattern of procuring specialized engineering expertise to fulfill specific project or operational requirements. Its value and duration appear consistent with many other task orders or delivery orders issued for similar services.
Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract that can be analyzed?
The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, such details would be found within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Analyzing these KPIs would be essential for a comprehensive assessment of contract effectiveness, allowing for evaluation of timeliness, quality of deliverables, technical accuracy, and overall contractor performance against defined objectives. Without them, assessing the program's effectiveness relies heavily on the assumption that the contractor meets the unspecified requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6523618R0168
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cssi, Inc.
Address: 395 E ST SW STE 200, WASHINGTON, DC, 20024
Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $25,680,792
Exercised Options: $20,114,247
Current Obligation: $15,858,232
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6523621D4801
IDV Type: IDC
Timeline
Start Date: 2022-11-10
Current End Date: 2026-12-23
Potential End Date: 2026-12-23 00:00:00
Last Modified: 2026-01-09
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