DoD awards $53.3M Engineering Services contract to VSE Corporation, a sole-source, firm-fixed-price agreement
Contract Overview
Contract Amount: $53,260,534 ($53.3M)
Contractor: VSE Corporation
Awarding Agency: Department of Defense
Start Date: 2006-05-05
End Date: 2008-11-30
Contract Duration: 940 days
Daily Burn Rate: $56.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22303
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $53.3 million to VSE CORPORATION for work described as: Key points: 1. Contract awarded to VSE Corporation for Engineering Services. 2. The contract value is $53,260,534.07. 3. Awarded by the Department of the Army, a component of the Department of Defense. 4. The contract type is Firm Fixed Price. 5. This was a sole-source award.
Value Assessment
Rating: questionable
The contract was awarded on a sole-source basis, limiting price discovery and comparison. Without competitive bidding, it's difficult to assess if the $53.3M price represents fair market value for engineering services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to higher prices and reduced innovation as there is no market pressure to offer the best value.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible value for the $53.3 million spent on engineering services.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The Department of the Army received engineering services without exploring alternative providers. The long duration of the contract (over two years) without competition warrants scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation noted
Positive Signals
- Firm Fixed Price contract type can provide cost certainty
Sector Analysis
Engineering services (NAICS 541330) are crucial for government projects, encompassing design, consulting, and project management. Spending in this sector can vary widely based on project scope and agency needs. This award represents a significant investment in specialized engineering expertise.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this sole-source award. This suggests that small businesses may not have had an opportunity to participate in providing these engineering services.
Oversight & Accountability
The sole-source nature of this award suggests a potential gap in competitive sourcing strategies. Further oversight is needed to understand why competition was not pursued and to ensure future procurements maximize value.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- Potential for overpayment due to absence of market competition.
- No indication of small business participation.
- Long contract duration without competition raises concerns about value.
Tags
engineering-services, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.3 million to VSE CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is VSE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $53.3 million.
What is the period of performance?
Start: 2006-05-05. End: 2008-11-30.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without specific documentation, it's impossible to confirm the exact reason, but it implies a lack of readily available alternatives or a specific, singular requirement.
What is the risk associated with awarding a large contract like this without competition?
The primary risk of a sole-source award is the potential for inflated costs and reduced value for money. Without competitive pressure, the contractor may not be incentivized to offer the lowest possible price or the most innovative solutions. This can lead to inefficient use of taxpayer funds and potentially suboptimal service delivery compared to what could be achieved through a competitive process.
How effective was this contract in meeting the Department of the Army's engineering needs?
The effectiveness of the contract in meeting the Army's engineering needs cannot be fully assessed from the provided data alone. While the contract was completed, the lack of competition makes it difficult to benchmark performance against potential alternatives. A review of project outcomes, client satisfaction, and adherence to scope would be necessary to determine true effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2550 HUNTINGTON AVE, ALEXANDRIA, VA, 08
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2006-05-05
Current End Date: 2008-11-30
Potential End Date: 2008-11-30 00:00:00
Last Modified: 2011-07-01
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