DoD awards $26.8M engineering services contract to Valiant Global Defense Services Inc. for Option Year 2

Contract Overview

Contract Amount: $26,831,774 ($26.8M)

Contractor: Valiant Global Defense Services Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-01

End Date: 2024-08-14

Contract Duration: 379 days

Daily Burn Rate: $70.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS MODIFICATION FUNDS OPTION ORDERING YEAR 2 CONTRACT LINE-ITEM NUMBERS 2001-2004

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92123

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to VALIANT GLOBAL DEFENSE SERVICES INC. for work described as: THIS MODIFICATION FUNDS OPTION ORDERING YEAR 2 CONTRACT LINE-ITEM NUMBERS 2001-2004 Key points: 1. Contract value represents a significant investment in engineering support for the Department of the Army. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. Engineering services are critical for defense infrastructure and operational readiness. 4. The contract duration of 379 days indicates a medium-term need for these services. 5. Fixed-price contract type helps manage cost certainty for the government. 6. The specific NAICS code (541330) points to specialized engineering expertise.

Value Assessment

Rating: good

The contract value of $26.8 million for one year of engineering services appears reasonable given the scope of defense support. Benchmarking against similar engineering services contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

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 specific number of bidders is not provided, but this method generally fosters competitive pricing and allows the government to select the best value offer. The open competition suggests a healthy market for these specialized engineering services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is expected to drive down prices through market forces and ensure the government receives high-quality services at a competitive rate.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential engineering support. Services likely include design, analysis, and technical support for military projects. The contract's geographic impact is likely concentrated in areas where Army operations or infrastructure projects are located, potentially within California. The contract supports specialized engineering roles, contributing to the defense industrial workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Engineering services, categorized under NAICS code 541330, represent a significant segment of the professional services market supporting government and private sector projects. This sector is characterized by specialized expertise in areas like civil, mechanical, electrical, and aerospace engineering. The Department of Defense is a major consumer of these services, utilizing them for infrastructure development, weapon system design, and operational support. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the DoD or other federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Valiant Global Defense Services Inc. is likely a large business. There is no explicit information on subcontracting plans for small businesses within this specific award modification. Further review of the original contract and any associated small business subcontracting goals would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Performance monitoring, quality assurance, and compliance with contract terms are key oversight mechanisms. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

defense, department-of-defense, department-of-the-army, engineering-services, full-and-open-competition, firm-fixed-price, delivery-order, california, professional-services, large-business

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to VALIANT GLOBAL DEFENSE SERVICES INC.. THIS MODIFICATION FUNDS OPTION ORDERING YEAR 2 CONTRACT LINE-ITEM NUMBERS 2001-2004

Who is the contractor on this award?

The obligated recipient is VALIANT GLOBAL DEFENSE SERVICES 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 $26.8 million.

What is the period of performance?

Start: 2023-08-01. End: 2024-08-14.

What is Valiant Global Defense Services Inc.'s track record with the Department of Defense, particularly in engineering services?

Valiant Global Defense Services Inc. has a history of receiving contracts from the Department of Defense, including various service and support contracts. While specific details on their engineering services performance for the Army under this particular contract are not fully elaborated in the provided data, their presence as a recipient of significant DoD awards suggests a level of established capability and past performance. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous DoD contracts, would offer a more comprehensive understanding of their reliability and expertise in delivering engineering solutions.

How does the $26.8 million value for one year of engineering services compare to similar contracts within the DoD?

The $26.8 million value for one year of engineering services for the Department of the Army falls within a common range for large-scale defense support contracts. However, a precise comparison requires benchmarking against contracts with similar scopes of work, specific engineering disciplines (e.g., civil, mechanical, electrical, systems engineering), and the geographic location of service delivery. Contracts for specialized R&D engineering or highly technical system design might command higher or lower values. Without more granular data on the specific services rendered, it's challenging to definitively state if this represents exceptional value, but it aligns with the significant investments the DoD makes in engineering support.

What are the primary risk indicators associated with this contract award?

Key risk indicators for this contract include the potential for scope creep if the Option Year 2 requirements are not precisely defined and managed. Reliance on a single contractor for a full year of services necessitates robust performance monitoring to ensure quality and timeliness. Furthermore, the specific engineering disciplines required are not detailed in the provided data, which could pose a risk if the contractor lacks the precise expertise needed for certain tasks. The firm fixed-price nature, while beneficial for cost control, can also incentivize the contractor to cut corners if not adequately overseen, increasing quality risks.

How effective is the firm fixed-price contract type in ensuring program effectiveness for engineering services?

The firm fixed-price (FFP) contract type is generally effective in ensuring program effectiveness for well-defined engineering services by providing cost certainty to the government and incentivizing the contractor to manage costs efficiently. For the government, it limits financial risk as the price is set. For the contractor, it offers the potential for higher profit margins if they can deliver services below the fixed price. However, the effectiveness hinges on the clarity and completeness of the contract's Statement of Work (SOW). If the SOW is ambiguous or incomplete, it can lead to disputes, change orders, or a contractor focusing on minimum requirements rather than optimal solutions, potentially impacting overall program effectiveness.

What are the historical spending patterns for engineering services by the Department of the Army?

Historical spending patterns for engineering services by the Department of the Army are substantial, reflecting the continuous need for design, planning, construction oversight, and technical support for military installations, infrastructure, and equipment. The Army consistently awards billions of dollars annually across various engineering disciplines through different contract vehicles, including architect-engineer contracts, construction management, and specialized technical support. Spending can fluctuate based on modernization initiatives, infrastructure repair needs, and global operational demands. This $26.8 million award represents a portion of that broader, ongoing investment in engineering capabilities.

What is the significance of the NAICS code 541330 (Engineering Services) in the context of this contract?

The NAICS code 541330, 'Engineering Services,' signifies that the contract is for professional services requiring specialized knowledge and application of engineering principles. This code encompasses a wide range of activities, including the design, development, and application of engineering sciences and technologies. For this Department of the Army contract, it indicates that the services procured involve tasks such as structural, mechanical, electrical, civil, or systems engineering, crucial for military projects, infrastructure development, or operational support. It helps categorize the spending and allows for benchmarking against other federal contracts within this specific professional services sector.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: EDUCATION AND TRAININGEDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W900KK19R0003

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2355 DULLES CORNER BLVD STE 200, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $30,023,774

Exercised Options: $30,023,774

Current Obligation: $26,831,774

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $1,922,958

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK20D0013

IDV Type: IDC

Timeline

Start Date: 2023-08-01

Current End Date: 2024-08-14

Potential End Date: 2024-08-14 00:00:00

Last Modified: 2025-03-28

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