DoD awards $17.4M engineering services contract to Kalman & Company, Inc. for 3-year duration
Contract Overview
Contract Amount: $17,429,892 ($17.4M)
Contractor: Kalman & Company, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-02-19
End Date: 2025-02-18
Contract Duration: 1,095 days
Daily Burn Rate: $15.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROFESSIONAL SERVICES
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23462
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.4 million to KALMAN & COMPANY, INC. for work described as: PROFESSIONAL SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for engineering services, a critical component of defense operations. 3. The fixed-price contract type aims to control costs for the government. 4. The duration of 1095 days (3 years) indicates a medium-term need for these services. 5. The award was made by the Department of the Army, a major component of the DoD. 6. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering expertise.
Value Assessment
Rating: good
The contract value of $17.4 million over three years for engineering services appears reasonable, especially given the fixed-price nature which shifts some risk to the contractor. Benchmarking against similar large-scale engineering support contracts within the Department of Defense would provide a more precise value-for-money assessment. However, the absence of specific deliverables or performance metrics in the provided data makes a definitive value assessment challenging.
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,' indicating that while the competition was open, specific sources may have been excluded prior to the final award. This suggests a structured procurement process that aimed for broad participation but with defined parameters. The number of bidders is not specified, which limits the ability to assess the intensity of competition and its potential impact on pricing.
Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality compared to sole-source awards.
Public Impact
The primary beneficiaries are the Department of the Army, receiving essential engineering services to support its missions. The services delivered are engineering-related, likely encompassing design, analysis, and technical support for military systems or infrastructure. The geographic impact is likely concentrated within areas where the Army operates or requires engineering support, potentially domestic or international. The contract supports a specialized workforce of engineers and technical professionals employed by Kalman & Company, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess contractor performance beyond contract completion.
- The 'exclusion of sources' clause in the competition type warrants further investigation to understand the rationale and potential impact on competition.
- Limited public information on the specific engineering services required hinders a detailed understanding of the contract's scope and necessity.
Positive Signals
- Awarded through a competitive process, indicating potential for good value.
- Fixed-price contract type helps manage cost certainty for the government.
- Contractor is Kalman & Company, Inc., suggesting established capabilities in the engineering services sector.
Sector Analysis
This contract falls within the broader professional services sector, specifically engineering services (NAICS 541330). The engineering services market is substantial, supporting various government and commercial entities with specialized technical expertise. This contract represents a portion of the Department of Defense's significant spending on engineering and technical support, which is crucial for maintaining and modernizing military capabilities. Comparable spending benchmarks would typically involve analyzing other large engineering support contracts awarded by DoD agencies.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. Therefore, the direct impact on small businesses through this award is likely minimal, unless Kalman & Company, Inc. engages in subcontracting with small businesses. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are often not publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services
- Army Professional Services Contracts
- Engineering and Technical Support Services
- Defense Acquisition Contracts
Risk Flags
- Potential for scope creep due to the nature of engineering services.
- Contractor performance risk if quality or timeliness is not met.
- Limited transparency on specific deliverables and performance metrics.
- Rationale behind 'exclusion of sources' requires further clarification.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, professional-services, firm-fixed-price, full-and-open-competition, delivery-order, kalman-and-company-inc, virginia, medium-value, naics-541330
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.4 million to KALMAN & COMPANY, INC.. PROFESSIONAL SERVICES
Who is the contractor on this award?
The obligated recipient is KALMAN & COMPANY, 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 $17.4 million.
What is the period of performance?
Start: 2022-02-19. End: 2025-02-18.
What is the track record of Kalman & Company, Inc. with the Department of Defense?
Kalman & Company, Inc. has a history of receiving contracts from the Department of Defense, as indicated by this award and potentially others found in federal procurement databases. Analyzing their past performance on similar contracts, including adherence to schedules, quality of deliverables, and overall customer satisfaction, would provide insight into their reliability and capability. A review of past contract awards, modifications, and any reported performance issues or commendations would offer a more comprehensive picture of their track record with the DoD.
How does the per-unit cost of these engineering services compare to market rates or similar government contracts?
Without specific details on the units of service (e.g., labor hours, specific engineering tasks, deliverables) and their associated costs, a direct per-unit cost comparison is not feasible. However, the total contract value of $17.4 million over 1095 days suggests an average annual value of approximately $5.8 million. Benchmarking this against industry standards for engineering services, considering factors like complexity, required expertise, and geographic location, would be necessary. Furthermore, comparing this to other similar engineering support contracts awarded by the DoD or other federal agencies could reveal if the pricing is competitive or deviates significantly from established benchmarks.
What are the primary risks associated with this engineering services contract?
Key risks include potential scope creep if requirements are not clearly defined, contractor performance issues leading to delays or subpar quality, and cost overruns if the fixed-price structure proves inadequate for unforeseen complexities. Technical risks related to the specific engineering challenges involved are also present. Furthermore, reliance on a single contractor for critical engineering functions could pose a risk if the contractor faces financial instability or operational disruptions. The 'exclusion of sources' in the procurement process might also introduce a risk if it inadvertently limited the pool of highly qualified bidders.
How effective is the fixed-price contract type in ensuring value for money in this context?
The fixed-price contract type is generally effective in providing cost certainty for the government and incentivizing the contractor to manage costs efficiently. For well-defined engineering services, it can be a strong mechanism for ensuring value by capping the government's financial exposure. However, if the scope of work is complex or subject to significant change, a fixed-price contract might lead to the contractor either overpricing to account for potential risks or cutting corners on quality to maintain profitability. Effective oversight and clear initial requirements are crucial for maximizing the value derived from a fixed-price arrangement in engineering services.
What is the historical spending trend for similar engineering services within the Department of the Army?
Historical spending on engineering services by the Department of the Army is substantial, reflecting the continuous need for technical expertise in areas such as infrastructure development, weapon systems support, and research and development. Annual spending often runs into billions of dollars across various contract types and service providers. Analyzing past FPDS data would reveal trends in contract values, types of services procured, dominant contractors, and the prevalence of different competition levels. This specific $17.4 million contract represents a moderate-sized award within the broader context of the Army's extensive engineering services procurement.
What are the implications of the 'exclusion of sources' clause on the overall competition?
The 'exclusion of sources' clause indicates that prior to the solicitation being issued, certain potential offerors were identified and excluded from participating in the competition. The reasons for exclusion are typically based on factors such as past performance, security concerns, or specific technical qualifications not met. While the remaining competition is 'full and open,' the initial exclusion narrows the field. The implications for taxpayers depend heavily on the justification for these exclusions; if they were valid and necessary for ensuring mission success or security, then the competition among the remaining qualified sources could still yield good value. However, if the exclusions were arbitrary or overly restrictive, it could limit competition and potentially lead to higher prices or less optimal solutions.
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
Solicitation ID: W911QY18R0002
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5366 VIRGINIA BEACH BLVD, VIRGINIA BEACH, VA, 23462
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $18,875,794
Exercised Options: $18,134,524
Current Obligation: $17,429,892
Actual Outlays: $994,728
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911QY18D0232
IDV Type: IDC
Timeline
Start Date: 2022-02-19
Current End Date: 2025-02-18
Potential End Date: 2025-02-18 00:00:00
Last Modified: 2025-11-26
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