DoD awards $48.5M for surveillance systems engineering, with significant R&D focus

Contract Overview

Contract Amount: $48,538,913 ($48.5M)

Contractor: Belcan Government Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-01-21

End Date: 2026-12-20

Contract Duration: 2,159 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TASK ORDER AWARD FOR SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SUPPORT SERVICES FOR PRODUCT MANAGER (PDM) MULTI-MISSION SURVEILLANCE SYSTEMS (M2S2).

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $48.5 million to BELCAN GOVERNMENT SOLUTIONS, INC. for work described as: TASK ORDER AWARD FOR SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SUPPORT SERVICES FOR PRODUCT MANAGER (PDM) MULTI-MISSION SURVEILLANCE SYSTEMS (M2S2). Key points: 1. Contract supports critical Product Manager Multi-Mission Surveillance Systems (M2S2) with specialized engineering and technical assistance. 2. The award falls under Research and Development in Physical, Engineering, and Life Sciences, indicating a focus on innovation. 3. A Cost Plus Fixed Fee contract type suggests potential for cost overruns if not managed carefully. 4. The duration of nearly 6 years points to a long-term need for these specialized services. 5. While not a small business set-aside, the extensive R&D nature may involve specialized firms.

Value Assessment

Rating: fair

The contract value of $48.5 million over approximately six years for SETA support is within a reasonable range for complex R&D programs. However, the Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure costs remain controlled and do not exceed initial estimates. Benchmarking against similar SETA contracts for advanced surveillance systems would provide a clearer picture of value for money, but the specialized nature of M2S2 makes direct comparisons challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 13 bids suggests a competitive environment, which is generally favorable for price discovery and innovation. The specific number of bidders is a positive sign for taxpayer value, as it implies the government sought the best possible solution from a wide pool of qualified contractors.

Taxpayer Impact: Full and open competition with 13 bidders helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

The Department of the Army benefits from enhanced capabilities in multi-mission surveillance systems. Services delivered include critical systems engineering and technical assistance for advanced product development. The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications include the need for highly skilled engineers and technical specialists in R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not closely managed.
Long contract duration requires sustained oversight to ensure continued value.
Specialized R&D services may limit the pool of truly competitive bidders in the future.

Positive Signals

Full and open competition with 13 bidders indicates a robust market response.
Focus on R&D suggests investment in cutting-edge surveillance technology.
Long-term contract provides stability for critical program support.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced surveillance systems is highly specialized, driven by defense needs and technological advancements. Spending in this area is characterized by long development cycles, high R&D costs, and a need for deep technical expertise. Comparable spending benchmarks would likely be found within other advanced defense technology programs, where significant investment is made in innovation and system integration.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. The nature of advanced systems engineering and technical assistance for complex defense programs often requires large, specialized firms with extensive resources and security clearances. This may limit opportunities for smaller businesses unless they are part of a larger prime contractor's team.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's program executive office responsible for surveillance systems. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is typically maintained through contract award databases and potentially through program reviews, though specific technical details may be classified. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) programs
Army Futures Command initiatives
Intelligence, Surveillance, and Reconnaissance (ISR) systems
Advanced Sensor Technology Development

Risk Flags

Cost Overrun Risk (CPFF)
Technical Obsolescence
Long-Term Program Dependency
Limited Competition for Specialized Skills

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.5 million to BELCAN GOVERNMENT SOLUTIONS, INC.. TASK ORDER AWARD FOR SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SUPPORT SERVICES FOR PRODUCT MANAGER (PDM) MULTI-MISSION SURVEILLANCE SYSTEMS (M2S2).

Who is the contractor on this award?

The obligated recipient is BELCAN GOVERNMENT SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $48.5 million.

What is the period of performance?

Start: 2021-01-21. End: 2026-12-20.

What is the track record of Belcan Government Solutions, Inc. in delivering similar systems engineering and technical assistance contracts for the Department of Defense?

Belcan Government Solutions, Inc. has a history of providing engineering, technical, and professional services to various government agencies, including the Department of Defense. Their experience often spans areas like aerospace, defense, and advanced manufacturing. For SETA support, their track record would typically involve contributing to system design, integration, testing, and lifecycle management. A detailed review of their past performance on similar contracts, particularly those involving complex surveillance or intelligence systems, would be necessary to fully assess their capability and reliability for the M2S2 program. This would include examining past performance evaluations, any contract disputes, and their ability to meet cost, schedule, and performance targets on previous DoD engagements.

How does the $48.5 million contract value compare to similar SETA support contracts for advanced surveillance systems within the DoD?

The $48.5 million value for approximately six years of SETA support for the M2S2 program is within a typical range for specialized defense R&D contracts. However, direct comparisons are challenging due to the unique nature of 'Multi-Mission Surveillance Systems.' Contracts for similar advanced systems, such as next-generation radar, electronic warfare, or intelligence gathering platforms, can range from tens to hundreds of millions of dollars over their lifecycle. Factors influencing cost include the complexity of the technology, the level of R&D required, the security requirements, and the duration of support. The Cost Plus Fixed Fee (CPFF) structure also means the final cost could vary, making a precise benchmark difficult without more detailed program information.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services, and how are they mitigated in this case?

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 fee is a percentage of the allowable costs. This can lead to cost overruns if not managed diligently. For R&D services, where the scope and technical challenges can be uncertain, CPFF is often used to facilitate innovation and allow for flexibility. Mitigation strategies typically involve robust government oversight, detailed cost tracking and auditing, clear performance metrics, and strong negotiation of the fixed fee. The Department of the Army would need to actively monitor expenditures, review contractor proposals for cost reasonableness, and ensure that the work performed directly aligns with the program's objectives to manage these risks effectively.

What is the expected impact of this contract on the development and deployment of future multi-mission surveillance capabilities for the Department of the Army?

This contract is expected to significantly impact the development and deployment of future multi-mission surveillance capabilities by providing essential systems engineering and technical assistance. The SETA support will likely contribute to defining system requirements, evaluating technological options, overseeing system integration, and ensuring the overall effectiveness and interoperability of the M2S2 program. By investing in specialized R&D support, the Army aims to accelerate the maturation of advanced surveillance technologies, potentially leading to enhanced situational awareness, improved targeting, and greater operational flexibility across various mission sets. The long-term nature of the contract suggests a commitment to developing and refining these critical capabilities over an extended period.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category evolved, and where does this contract fit within that trend?

Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541715) category has generally seen consistent investment, particularly within the Department of Defense, driven by the need for technological superiority. This category encompasses a broad range of scientific and engineering endeavors, from materials science to advanced computing and defense systems. This specific $48.5 million contract for surveillance systems engineering fits within the defense-focused segment of this R&D spending. It represents a targeted investment in a critical capability area, aligning with broader trends of prioritizing innovation in national security. While specific year-over-year trends for this exact sub-category can fluctuate based on program priorities, overall federal R&D spending in defense-related engineering sciences remains a significant component of the federal budget.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

Offers Received: 13

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8300 GREENSBORO DR STE 600, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $48,538,913

Exercised Options: $48,538,913

Current Obligation: $48,538,913

Actual Outlays: $37,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0131

IDV Type: IDC

Timeline