DoD's $8.6M Project Management Contract Awarded to Credence Dynamo Solutions LLC for Engineering Support

Contract Overview

Contract Amount: $8,581,703 ($8.6M)

Contractor: Credence Dynamo Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-10

End Date: 2026-12-09

Contract Duration: 729 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SUPPORT SERVICES FOR PROJECT MANAGEMENT, OPERATIONS, AND SYSTEMS ENGINEERING (PMOSE). SERVICES INCLUDE CONTRACT MANAGEMENT, STRATEGIC PLANNING AND COMMUNICATIONS, RISK MANAGEMENT, ENGINEERING MANAGEMENT, CYBERSECURITY, & MORE

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.6 million to CREDENCE DYNAMO SOLUTIONS LLC for work described as: SUPPORT SERVICES FOR PROJECT MANAGEMENT, OPERATIONS, AND SYSTEMS ENGINEERING (PMOSE). SERVICES INCLUDE CONTRACT MANAGEMENT, STRATEGIC PLANNING AND COMMUNICATIONS, RISK MANAGEMENT, ENGINEERING MANAGEMENT, CYBERSECURITY, & MORE Key points: 1. Contract focuses on essential project management, operations, and systems engineering support. 2. Services encompass contract management, strategic planning, risk management, and cybersecurity. 3. Awarded via full and open competition, indicating a competitive bidding process. 4. The contract duration is 729 days, ending in December 2026. 5. This award represents a significant investment in specialized engineering and management services for the Department of the Army. 6. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee for profit.

Value Assessment

Rating: good

The contract value of $8.6 million over two years for comprehensive project management and engineering services appears reasonable. Benchmarking against similar large-scale support contracts within the Department of Defense suggests this pricing is within expected ranges for specialized expertise. The Cost Plus Fixed Fee structure, while potentially leading to cost overruns if not managed tightly, is common for complex services where scope can evolve. Further analysis of the fixed fee percentage relative to industry standards would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' suggesting that while initial solicitations may have had exclusions, the final award was made through a broad competitive process. With 6 bidders, this indicates a healthy level of interest and competition for these specialized services. The presence of multiple bidders generally supports price discovery and encourages competitive pricing.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down the final price compared to a sole-source or limited competition scenario. A robust competition ensures that the government receives the best value for its investment.

Public Impact

The Department of the Army benefits from enhanced project management, operational efficiency, and systems engineering capabilities. Services delivered include critical functions like contract management, strategic planning, risk mitigation, and cybersecurity. The contract supports the successful execution of complex defense projects, contributing to national security objectives. Workforce implications include the potential for skilled professionals in project management, engineering, and cybersecurity to be engaged through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage potential cost escalations and ensure the fixed fee remains appropriate.
The broad scope of services necessitates clear performance metrics and robust monitoring to ensure all requirements are met effectively.
Cybersecurity services are critical; any lapse could have significant national security implications.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially better value.
The contractor, Credence Dynamo Solutions LLC, is likely selected based on demonstrated capabilities in project management and engineering.
The contract duration of two years provides stability for project execution and contractor performance.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for specialized project management, operations, and systems engineering support for government agencies, particularly the Department of Defense, is substantial. Companies in this sector often possess deep technical expertise and experience navigating complex government procurement and execution processes. Comparable spending benchmarks for similar support services within the DoD often run into the tens or hundreds of millions of dollars annually, depending on the scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Credence Dynamo Solutions LLC may be a small business itself, the award was not specifically targeted as a small business set-aside. This means larger businesses could also compete. There is no explicit information on subcontracting plans, but for contracts of this nature and size, subcontracting to small businesses is often encouraged or required to meet broader federal goals, though not mandated by a specific set-aside.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and program management office within the Department of the Army. Performance monitoring, financial audits, and adherence to contract terms will be key accountability measures. Transparency is typically maintained through contract databases and reporting requirements. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Project Management Support Services
Army Systems Engineering Contracts
Cybersecurity Support for Federal Agencies
Contract Management Services
Strategic Planning and Communications Support

Risk Flags

Potential for cost overruns under CPFF structure.
Ensuring consistent quality across diverse service areas (PM, Ops, SE, Cyber).
Dependence on contractor for critical cybersecurity functions.
Scope creep management in evolving project environments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.6 million to CREDENCE DYNAMO SOLUTIONS LLC. SUPPORT SERVICES FOR PROJECT MANAGEMENT, OPERATIONS, AND SYSTEMS ENGINEERING (PMOSE). SERVICES INCLUDE CONTRACT MANAGEMENT, STRATEGIC PLANNING AND COMMUNICATIONS, RISK MANAGEMENT, ENGINEERING MANAGEMENT, CYBERSECURITY, & MORE

Who is the contractor on this award?

The obligated recipient is CREDENCE DYNAMO SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.6 million.

What is the period of performance?

Start: 2024-12-10. End: 2026-12-09.

What is the track record of Credence Dynamo Solutions LLC in performing similar government contracts?

Assessing the track record of Credence Dynamo Solutions LLC requires a review of their past performance on federal contracts, particularly those with the Department of Defense and for similar services like project management, operations, and systems engineering. Publicly available data, such as contract award histories and performance evaluations (if accessible), would indicate their success rate, ability to meet deadlines, and quality of deliverables. A history of successful contract completions, positive past performance reviews, and minimal disputes or terminations would suggest a reliable contractor. Conversely, a pattern of underperformance, cost overruns, or contract disputes would raise concerns about their capability to execute this current $8.6 million award effectively.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of service?

The Cost Plus Fixed Fee (CPFF) contract type is often used for complex services where the scope of work is not precisely defined at the outset or is expected to evolve, such as research and development or specialized engineering support. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing their profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of costs incurred, offering greater cost certainty for the government but potentially higher risk for the contractor. Cost-Reimbursement contracts (like Cost Plus Incentive Fee or Cost Plus Award Fee) offer different risk-reward balances. For project management and systems engineering, CPFF can be advantageous if flexibility is needed, but it requires robust government oversight to control costs and ensure the fixed fee remains fair relative to the effort.

What are the key performance indicators (KPIs) likely being used to evaluate contractor performance?

For a contract encompassing project management, operations, and systems engineering, key performance indicators (KPIs) would likely focus on efficiency, effectiveness, and adherence to requirements. Examples include on-time delivery of project milestones, adherence to budget targets (especially relevant for cost-reimbursement elements), quality of deliverables (e.g., accuracy of engineering designs, completeness of risk assessments), responsiveness to government requests, and successful implementation of cybersecurity protocols. For strategic planning and communications, KPIs might involve stakeholder satisfaction or clarity and impact of communications. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS) and are crucial for assessing value and ensuring mission success.

What is the historical spending trend for similar project management and engineering support services within the Department of the Army?

Historical spending trends for project management and engineering support services within the Department of the Army are substantial, reflecting the complexity and scale of its operations and modernization efforts. The Army consistently awards billions of dollars annually across various contract vehicles for these types of services. Spending in this category has generally remained high, driven by ongoing modernization programs, infrastructure upgrades, and the need for advanced technical expertise in areas like systems engineering, cybersecurity, and acquisition support. Fluctuations may occur based on specific program cycles, budget allocations, and strategic priorities, but the demand for these specialized support functions remains a consistent and significant expenditure.

What are the potential risks associated with the cybersecurity services component of this contract?

The cybersecurity services component of this contract carries significant risks due to the sensitive nature of Department of Defense data and systems. Potential risks include data breaches resulting from inadequate security measures, compromise of critical infrastructure, insider threats, and vulnerabilities in software or hardware used. Failure to maintain robust cybersecurity could lead to loss of classified information, disruption of military operations, and severe damage to national security. The contractor must adhere to stringent DoD cybersecurity standards (e.g., RMF, NIST guidelines) and implement continuous monitoring and threat detection. Any lapse in these services could have immediate and far-reaching consequences, necessitating rigorous oversight and rapid response protocols.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1951 KIDWELL DR STE 550, VIENNA, VA, 22182

Business Categories: Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,766,646

Exercised Options: $17,257,582

Current Obligation: $8,581,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D8134

IDV Type: IDC

Timeline