Dod's Constant Hawk Operations and Sustainment Contract Awarded to Imperatis Corp. for Over $102M

Contract Overview

Contract Amount: $102,417,985 ($102.4M)

Contractor: Imperatis Corp.

Awarding Agency: Department of Defense

Start Date: 2008-04-08

End Date: 2013-03-31

Contract Duration: 1,818 days

Daily Burn Rate: $56.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONSTANT HAWK OPERATIONS AND SUSTAINMENT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $102.4 million to IMPERATIS CORP. for work described as: CONSTANT HAWK OPERATIONS AND SUSTAINMENT Key points: 1. The contract's cost-plus-fixed-fee structure may incentivize cost overruns. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration of 1818 days (approx. 5 years) indicates a long-term commitment. 4. Engineering services (NAICS 541330) are critical for defense operations. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The significant dollar value suggests a high-impact program for the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging without access to the underlying cost data and detailed scope of work. However, the cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects, carries inherent risks of cost escalation if not rigorously managed. Comparing it to similar long-term, high-value engineering support contracts within the DoD would be necessary for a more precise value assessment. The fixed fee component provides some incentive for the contractor to control costs, but the primary cost driver is the cost reimbursement aspect.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust competitive environment at the outset. The number of bidders is not specified, but the use of full and open competition generally promotes price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to secure the best value through a wide range of potential providers, fostering a competitive environment that can drive down costs.

Public Impact

This contract directly supports the Department of Defense's operational capabilities through engineering services. The primary beneficiaries are military personnel and the overall defense mission of the United States. The geographic impact is likely concentrated around military installations or operational theaters where these services are required. The contract supports a workforce of engineers and technical specialists, contributing to employment in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not closely monitored.
Long contract durations may reduce flexibility to adapt to changing technological needs or strategic priorities.
Reliance on a single contractor for extensive operations and sustainment could create vendor lock-in.
The specific nature of 'operations and sustainment' might involve sensitive or classified activities, potentially limiting transparency.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield good value.
The contractor, IMPERATIS CORP., has a track record of performing government contracts.
The contract is for essential engineering services critical to national defense.
The fixed fee component provides a defined profit margin, offering some cost predictability.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market, particularly for the Department of Defense. This sector encompasses a wide range of activities, including design, consulting, and project management for complex systems. Spending in this area is often driven by the need for specialized technical expertise to support advanced military platforms and infrastructure. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the DoD for similar operational and sustainment functions.

Small Business Impact

The provided data indicates that small business participation (sb) was false and the contract was not a small business set-aside. This suggests that the primary award went to a large business. There is no explicit information on subcontracting plans for small businesses within this data snippet. Therefore, the direct impact on the small business ecosystem from this specific award appears limited, though subcontracting opportunities may exist depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is often a challenge with defense contracts, but reporting requirements and potential audits by the Inspector General's office serve as accountability mechanisms.

Related Government Programs

Defense Engineering Services
Operations and Sustainment Contracts
Cost-Plus-Fixed-Fee Contracts
Department of Defense IT and Support Services
Long-Term Government Contracts

Risk Flags

Cost-Plus-Fixed-Fee contract type carries inherent cost overrun risk.
Long contract duration may lead to technological obsolescence or strategic inflexibility.
Lack of specific performance metrics in provided data hinders detailed assessment.
Potential for limited transparency due to the nature of defense operations and sustainment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $102.4 million to IMPERATIS CORP.. CONSTANT HAWK OPERATIONS AND SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is IMPERATIS CORP..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $102.4 million.

What is the period of performance?

Start: 2008-04-08. End: 2013-03-31.

What is the historical spending trend for CONSTANT HAWK OPERATIONS AND SUSTAINMENT, and how does this award compare?

The provided data represents a single award of $102,417,985.38 for the CONSTANT HAWK OPERATIONS AND SUSTAINMENT contract, awarded on 2008-04-08 and ending on 2013-03-31. Without access to historical contract data for this specific program (e.g., previous awards, modifications, or related contracts under an IDIQ), it is impossible to establish a spending trend or compare this award to past spending. To analyze historical trends, one would need to query federal procurement databases for all contract actions related to 'CONSTANT HAWK OPERATIONS AND SUSTAINMENT' over a longer period, looking at total obligated amounts, number of awards, and average award values.

How does the pricing structure (Cost Plus Fixed Fee) compare to other similar engineering services contracts within the DoD?

Cost Plus Fixed Fee (CPFF) is a common contract type for complex engineering and R&D efforts where the scope is not fully defined or is expected to evolve. For similar large-scale engineering services contracts within the DoD, CPFF is frequently utilized due to the inherent uncertainties in such projects. However, it is also scrutinized for its potential to lead to cost overruns, as the government bears the risk of actual costs incurred. Contracts with more defined scopes might utilize Firm-Fixed-Price (FFP) structures, which offer greater cost certainty for the government but place more risk on the contractor. A comparative analysis would involve examining the prevalence of CPFF versus FFP or other contract types for contracts of similar size, duration, and technical complexity within the defense engineering sector.

What specific engineering services are included under CONSTANT HAWK OPERATIONS AND SUSTAINMENT?

The provided data identifies the contract's description as 'CONSTANT HAWK OPERATIONS AND SUSTAINMENT' and its NAICS code as '541330' (Engineering Services). However, it does not detail the specific services rendered. Typically, 'operations and sustainment' in a defense context can encompass a broad range of activities, including but not limited to: systems engineering, technical support, maintenance planning, logistics support, software sustainment, hardware lifecycle management, and potentially field support or training. To understand the precise services, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

What is IMPERATIS CORP.'s track record with similar DoD contracts?

IMPERATIS CORP. has a history of performing contracts for the Department of Defense, as indicated by this award. To assess their track record comprehensively, a deeper dive into their contract history is required. This would involve examining past performance evaluations (e.g., CPARS reports), the types and values of previous DoD contracts they have held, their performance on those contracts (on-time delivery, cost control, quality), and any past performance issues or disputes. Understanding their experience with 'operations and sustainment' and 'engineering services' specifically would be crucial for evaluating their capability to successfully execute the CONSTANT HAWK contract.

What are the potential risks associated with a 5-year duration for this type of contract?

A contract duration of approximately 5 years (1818 days) for operations and sustainment engineering services presents several potential risks. Firstly, technological obsolescence: military technology evolves rapidly, and a 5-year commitment might lock the DoD into systems or support methods that become outdated. Secondly, strategic shifts: defense priorities can change, and a long-term contract may reduce the government's flexibility to adapt its spending or redirect resources. Thirdly, contractor performance degradation: over long periods, contractor performance can fluctuate, and issues may arise that are difficult to address without significant contractual renegotiation or termination costs. Finally, market changes: the competitive landscape or the contractor's own business situation could change, impacting service delivery.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2231 CRYSTAL DR, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $119,985,982

Exercised Options: $119,985,982

Current Obligation: $102,417,985

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911QX08D0005

IDV Type: IDC

Timeline