DoD awards $12M engineering services contract to SEV1TECH, LLC for Hawaii-based support
Contract Overview
Contract Amount: $11,978,106 ($12.0M)
Contractor: Sev1tech, LLC
Awarding Agency: Department of Defense
Start Date: 2023-01-12
End Date: 2027-01-11
Contract Duration: 1,460 days
Daily Burn Rate: $8.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES (BASE PERIOD)
Place of Performance
Location: PEARL CITY, HONOLULU County, HAWAII, 96782
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $12.0 million to SEV1TECH, LLC for work described as: ENGINEERING SERVICES (BASE PERIOD) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of 1460 days (4 years) indicates a long-term need for these engineering services. 4. The award is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The contract is for services in Hawaii, potentially supporting regional defense infrastructure or operations.
Value Assessment
Rating: fair
The total award amount is $11,978,106.18. Without specific benchmarks for similar engineering services in Hawaii or for the Department of the Navy, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the contractor's costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Benchmarking against other CPFF contracts for similar services would be necessary for a more definitive value assessment.
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 presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery, the number of bidders can influence the competitiveness of the final price.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through a wider range of offers. However, the actual savings depend on the number and quality of bids received.
Public Impact
The Department of the Navy benefits from specialized engineering services to support its operations. Services are delivered in Hawaii, potentially impacting regional defense infrastructure and readiness. The contract supports the defense sector, contributing to national security objectives. The contract may indirectly impact the local workforce in Hawaii through employment opportunities for engineers and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require robust oversight to ensure costs remain reasonable and the fixed fee is justified.
- The duration of the contract (4 years) necessitates ongoing performance monitoring to ensure continued value.
- The specific nature of 'engineering services' can be broad; clarity on deliverables and performance standards is crucial.
Positive Signals
- Awarded through full and open competition, indicating a structured and accessible bidding process.
- The contract is a delivery order, suggesting it aligns with a pre-established IDIQ vehicle, potentially streamlining future procurements.
- The contractor, SEV1TECH, LLC, is identified, allowing for track record analysis.
Sector Analysis
This contract falls within the Engineering Services sector, specifically NAICS code 541330. This sector is critical for government infrastructure projects, defense installations, and research and development. The market for engineering services is competitive, with numerous firms offering specialized expertise. Government spending in this area is substantial, supporting a wide range of technical requirements across various agencies.
Small Business Impact
The data indicates that small business participation (sb) is false and there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, SEV1TECH, LLC, but are not explicitly mandated by the contract details provided.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract will likely involve the Department of the Navy's contracting officers and program managers. They will be responsible for monitoring costs, ensuring adherence to the fixed fee, and verifying the quality and timeliness of engineering services delivered. Transparency will depend on the agency's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of Defense Engineering Services
- Navy Facilities Engineering Command Contracts
- Cost Plus Fixed Fee Contracts
- Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Risk Flags
- Limited competition (3 bidders)
- Cost Plus Fixed Fee contract type requires diligent cost monitoring
- Long contract duration (4 years) necessitates sustained performance oversight
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, hawaii, seventy-five-million-to-one-hundred-million, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.0 million to SEV1TECH, LLC. ENGINEERING SERVICES (BASE PERIOD)
Who is the contractor on this award?
The obligated recipient is SEV1TECH, 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 $12.0 million.
What is the period of performance?
Start: 2023-01-12. End: 2027-01-11.
What is the track record of SEV1TECH, LLC with the Department of Defense, particularly on similar engineering services contracts?
A comprehensive review of SEV1TECH, LLC's track record with the Department of Defense would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. For this specific $11.98 million delivery order for engineering services in Hawaii, understanding their prior experience with similar scope, complexity, and geographic location is crucial. If SEV1TECH has a history of successful project completion, on-time delivery, and adherence to budget on comparable DoD contracts, it would indicate a lower performance risk. Conversely, any past issues with performance, quality, or cost control on similar contracts would raise concerns and necessitate closer monitoring of this current award.
How does the Cost Plus Fixed Fee (CPFF) structure of this contract compare to other engineering services contracts awarded by the Navy?
The Cost Plus Fixed Fee (CPFF) contract type is common for services where the scope is not precisely defined at the outset or involves research and development, allowing for flexibility. When compared to other Navy engineering services contracts, the prevalence of CPFF can indicate a trend towards procuring services with inherent uncertainties. However, CPFF contracts place a significant burden on the government to meticulously track costs and ensure the fixed fee remains reasonable. If the Navy typically uses fixed-price contracts for well-defined engineering tasks, the use of CPFF here might suggest a higher degree of ambiguity or risk in the service requirements. Benchmarking the fixed fee percentage against similar CPFF contracts would reveal if it is competitive and appropriate for the level of effort and risk involved.
What are the potential risks associated with a 4-year engineering services contract awarded under full and open competition with 3 bidders?
A 4-year engineering services contract, while providing long-term support, carries inherent risks related to evolving requirements, technological changes, and contractor performance over an extended period. Awarding under full and open competition with only 3 bidders suggests a potentially limited pool of qualified contractors for this specific service or geographic area. This limited competition could increase the risk of the government not achieving the best possible price or value. Risks include potential complacency from the contractor due to less competitive pressure post-award, difficulties in adapting to unforeseen technical challenges over the contract's life, and the possibility that the initial pricing, while competitive among the three, may not reflect true market value. Robust contract management and performance monitoring are essential to mitigate these risks.
What is the historical spending pattern for engineering services under NAICS code 541330 by the Department of the Navy, and how does this award fit in?
Analyzing historical spending patterns for engineering services (NAICS 541330) by the Department of the Navy would reveal the typical contract values, types of services procured, and dominant contract vehicles (e.g., IDIQ, specific task orders). This $11.98 million delivery order represents a moderate-sized award within this category. If the Navy historically awards numerous smaller contracts or a few very large ones, this award's size and structure (delivery order) would need to be contextualized. Understanding the frequency and total value of such awards helps assess if this contract is an outlier or part of a consistent procurement strategy. It also informs whether the Navy is effectively leveraging competition and achieving competitive pricing across its engineering services portfolio.
What are the implications of this contract being a delivery order rather than a standalone contract?
This contract being a delivery order signifies that it is issued under a parent indefinite-delivery/indefinite-quantity (IDIQ) contract. This structure implies that SEV1TECH, LLC was previously awarded a broader IDIQ contract, likely after a competitive process, establishing terms and conditions for a range of potential future orders. The $11.98 million represents the value allocated for this specific order, which may be one of many. The implications are that the initial competition for the IDIQ contract likely established baseline pricing and contractor qualifications. This delivery order mechanism allows for more agile procurement of specific services as needed, potentially reducing administrative burden for individual procurements. However, it also means the overall value and scope could expand significantly beyond this single order, requiring oversight of the parent IDIQ as well.
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: N6600119R0001
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12700 BLACK FOREST LN STE 306, WOODBRIDGE, VA, 22192
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,841,441
Exercised Options: $12,841,441
Current Obligation: $11,978,106
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,945,071
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600120D3417
IDV Type: IDC
Timeline
Start Date: 2023-01-12
Current End Date: 2027-01-11
Potential End Date: 2027-01-11 00:00:00
Last Modified: 2026-01-12
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