DoD's $28.7M contract for weapons survivability testing awarded to Management & Engineering Technologies International Inc

Contract Overview

Contract Amount: $28,678,354 ($28.7M)

Contractor: Management & Engineering Technologies International Inc

Awarding Agency: Department of Defense

Start Date: 2009-10-01

End Date: 2015-01-10

Contract Duration: 1,927 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: WEAPONS SURVIVABILITY LABORATORY TEST&EVALUATION SUPPORT SERVICES

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79925

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC for work described as: WEAPONS SURVIVABILITY LABORATORY TEST&EVALUATION SUPPORT SERVICES Key points: 1. The contract's value of $28.7 million over approximately 5 years suggests a significant investment in specialized defense support services. 2. The 'Full and Open Competition After Exclusion of Sources' award type indicates a competitive process, though with specific source exclusions. 3. The duration of 1927 days (over 5 years) points to a long-term need for these services, implying stability in the requirement. 4. The cost-plus-fixed-fee (CPFF) contract type suggests that costs are reimbursed, plus a fixed fee, which can incentivize cost control but also carries inherent risk. 5. The contractor, Management & Engineering Technologies International Inc., has a track record with this type of specialized support. 6. The services provided are crucial for ensuring the survivability and effectiveness of military hardware in operational environments. 7. The contract's focus on laboratory test and evaluation highlights a critical phase in the defense acquisition lifecycle.

Value Assessment

Rating: fair

Benchmarking the value of this $28.7 million contract is challenging without specific performance metrics or comparable service contracts. The cost-plus-fixed-fee structure means that while the fee is fixed, the total cost can fluctuate based on actual expenses. This structure is common for R&D and complex services where exact costs are difficult to predict upfront. However, it necessitates careful oversight to ensure costs remain reasonable and do not escalate unnecessarily.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the initial solicitation was open, certain sources were excluded, possibly due to specific qualifications, prior performance, or security requirements. The presence of 3 bidders indicates some level of competition, but the exclusion of sources may have limited the overall pool of potential offerors, potentially impacting price discovery.

Taxpayer Impact: The limited competition, even after an initial open process, could mean that taxpayers did not benefit from the lowest possible price that a truly unrestricted competition might have yielded.

Public Impact

The primary beneficiaries are the Department of Defense agencies requiring robust testing and evaluation of weapons systems. The services delivered include critical laboratory test and evaluation support, ensuring weapons systems meet survivability standards. The geographic impact is primarily within Texas, where the contractor is located, but the ultimate benefit extends to national defense capabilities. The contract supports a specialized workforce skilled in engineering, testing, and defense systems analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
The 'exclusion of sources' clause warrants scrutiny to ensure it was justified and did not unduly restrict competition.
Long-term contracts require ongoing performance monitoring to ensure continued value for money.

Positive Signals

The contract was competed, indicating an effort to secure services through a structured process.
The contractor has secured a significant contract, suggesting a level of trust and capability recognized by the DoD.
The duration implies a stable, long-term need for these critical defense support services.

Sector Analysis

This contract falls within the Defense sector, specifically supporting the testing and evaluation of military hardware. The market for such specialized services is often characterized by a limited number of highly qualified contractors due to the technical expertise and security clearances required. Spending in this area is driven by the continuous need to upgrade and ensure the effectiveness of defense systems against evolving threats.

Small Business Impact

There is no indication that this contract included small business set-asides. The nature of specialized defense testing and evaluation services often requires large, established firms with specific technical capabilities and clearances, which may limit subcontracting opportunities for small businesses unless specifically mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The cost-plus-fixed-fee structure necessitates rigorous financial oversight to monitor expenditures and the reasonableness of costs incurred. Transparency is generally maintained through contract reporting requirements, though specific details of test results are often classified.

Related Government Programs

Defense Research and Development
Weapons System Acquisition
Military Test and Evaluation Services
Defense Logistics and Support Services

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition may impact price discovery.
Need for robust oversight of contractor performance and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC. WEAPONS SURVIVABILITY LABORATORY TEST&EVALUATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $28.7 million.

What is the period of performance?

Start: 2009-10-01. End: 2015-01-10.

What is the historical spending pattern for weapons survivability test and evaluation services by the Department of Defense?

Historical spending on weapons survivability test and evaluation services by the Department of Defense is substantial and fluctuates based on modernization cycles, threat assessments, and specific program requirements. While precise aggregate figures for this niche are not publicly itemized, the DoD consistently allocates billions annually to research, development, testing, and evaluation (RDT&E). Contracts like the one awarded to Management & Engineering Technologies International Inc. represent a portion of this broader investment. Factors influencing spending include the introduction of new platforms (e.g., next-generation aircraft, naval vessels, ground vehicles), upgrades to existing systems, and the need to validate performance against increasingly sophisticated adversary capabilities. Analysis of past budgets and contract awards within the defense RDT&E portfolio would reveal trends in demand for specialized testing services, often driven by geopolitical events and technological advancements.

How does the performance of Management & Engineering Technologies International Inc. on similar contracts compare?

Assessing the performance of Management & Engineering Technologies International Inc. on similar contracts requires access to detailed performance evaluations and past performance reviews, which are often not publicly available for competitive reasons. However, the award of a significant, multi-year contract by the Department of Defense suggests a positive past performance record or at least a competitive capability that met the agency's requirements. Government contract databases and award histories can indicate the types and values of contracts previously held by the company. A deeper analysis would involve reviewing any publicly available contract data, such as contract close-out reports or performance metrics if released, to gauge their track record in delivering complex technical services within budget and schedule.

What are the key risks associated with cost-plus-fixed-fee (CPFF) contracts in defense R&D and testing?

Cost-plus-fixed-fee (CPFF) contracts, like the one awarded for weapons survivability testing, carry inherent risks for the government. The primary risk is cost escalation, as the contractor is reimbursed for all allowable costs, plus a fixed fee. While the fee is fixed, the total cost can increase significantly if the contractor's expenses are higher than anticipated. This necessitates robust government oversight to scrutinize costs, ensure they are reasonable and allocable to the contract, and prevent inefficiencies. Another risk is the potential for scope creep, where the project expands beyond its original intent, leading to increased costs without a commensurate increase in value. Contractors may also have less incentive to control costs aggressively compared to fixed-price contracts, as their profit margin (the fixed fee) remains constant regardless of the final cost. Effective risk mitigation relies on clear contract terms, detailed work breakdown structures, and diligent government program management.

What is the typical market size and competitive landscape for weapons survivability test and evaluation services?

The market for specialized weapons survivability test and evaluation services is relatively niche and dominated by a small number of highly specialized defense contractors. These firms possess unique technical expertise, advanced laboratory facilities, and often require specific security clearances. The market size is difficult to quantify precisely as it's often embedded within broader defense RDT&E budgets. However, it represents a critical segment of the defense industrial base, essential for ensuring the effectiveness and safety of military equipment. Competition can be limited due to high barriers to entry, including significant capital investment in facilities and personnel, as well as stringent government qualification requirements. Consequently, contracts are often awarded through competitive bidding among a select group of qualified companies, or sometimes through sole-source or limited-source procurements if only one or a few entities possess the necessary capabilities.

How does the 'Full and Open Competition After Exclusion of Sources' award type impact price discovery and value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' award type presents a nuanced scenario for price discovery and taxpayer value. While it begins with an intention for broad competition, the subsequent exclusion of specific sources can limit the number of viable bidders. This limitation may arise from requirements for unique technical capabilities, past performance, security clearances, or specific intellectual property. If the excluded sources represent significant potential competitors, the reduced pool could lead to less aggressive bidding and potentially higher prices than a truly unrestricted competition might yield. However, if the exclusions are well-justified and necessary to ensure the acquisition of highly specialized or critical services, the resulting competition among the remaining qualified bidders might still yield fair market value. Taxpayers benefit most when the competition is robust enough to drive innovation and cost-efficiency, even within specialized domains.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6893609R0023

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8600 BOEING DR, EL PASO, TX, 79925

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $37,820,531

Exercised Options: $33,352,067

Current Obligation: $28,678,354

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline