DoD's $817M Logistics Services Contract with MANTECH: Engineering Services Awarded

Contract Overview

Contract Amount: $816,817,802 ($816.8M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-07-31

End Date: 2011-12-30

Contract Duration: 1,247 days

Daily Burn Rate: $655.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOGISTICS' SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $816.8 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: LOGISTICS' SERVICES Key points: 1. Significant contract value of over $816 million for logistics services. 2. Sole-source award to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. raises competition concerns. 3. Contract type is Time and Materials, which can pose cost control risks. 4. Engineering Services sector, NAICS 541330, indicates specialized technical support.

Value Assessment

Rating: questionable

The contract value is substantial, but the Time and Materials pricing structure without clear competition makes a direct value assessment difficult. Benchmarking against similar engineering services contracts is challenging due to the sole-source nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition on this large contract may result in a higher cost to taxpayers than if multiple vendors had vied for the work.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The long duration and significant value suggest critical logistics support for the Department of Defense. Lack of transparency in the award process could hinder public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials contract type
Lack of competition
High contract value

Positive Signals

Provides essential logistics services to the DoD

Sector Analysis

This contract falls within the Engineering Services sector, characterized by specialized technical and advisory support. The $817 million award is a significant expenditure within this sector, highlighting the DoD's reliance on external expertise for logistics.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely precluded small business participation.

Oversight & Accountability

The sole-source award warrants scrutiny regarding justification and adherence to procurement regulations. Oversight should focus on ensuring the necessity of this approach and monitoring contract performance and costs.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for overpayment due to sole-source award.
Risk of cost escalation with Time and Materials pricing.
Limited transparency in the procurement process.
Lack of small business participation.
Dependency on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $816.8 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. LOGISTICS' SERVICES

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS 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 $816.8 million.

What is the period of performance?

Start: 2008-07-31. End: 2011-12-30.

What was the justification for awarding this significant contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves specific circumstances like unique capabilities, urgent needs, or lack of viable alternatives. Without detailed documentation, it's difficult to assess if all competitive avenues were exhausted. A thorough review would examine the agency's rationale against Federal Acquisition Regulation (FAR) guidelines to ensure fair and efficient use of taxpayer funds.

How were costs controlled under this Time and Materials contract, given the absence of competition?

Time and Materials contracts can be susceptible to cost overruns, especially without competitive pressure. Oversight mechanisms like detailed cost tracking, regular audits, and performance metrics are crucial. The agency should have robust processes to verify labor hours, material costs, and ensure the contractor's efficiency to mitigate potential waste.

What is the long-term strategic impact of relying on a single vendor for such critical logistics services?

Long-term reliance on a sole-source vendor can create dependency and reduce market competition, potentially leading to price increases and reduced innovation. It also poses a risk if the vendor faces financial difficulties or operational issues. Diversifying the vendor base or developing internal capabilities could enhance resilience and cost-effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV08R0202

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation (UEI: 053518312)

Address: 12015 LEE JACKSON MEMORIAL HWY, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $816,817,802

Exercised Options: $816,817,802

Current Obligation: $816,817,802

Contract Characteristics

Cost or Pricing Data: YES

Timeline