DoD's $17.6M engineering services contract awarded to TELE CONSULTANTS INC shows potential value concerns

Contract Overview

Contract Amount: $17,626,267 ($17.6M)

Contractor: Tele Consultants Inc

Awarding Agency: Department of Defense

Start Date: 2005-01-31

End Date: 2007-03-31

Contract Duration: 789 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: CHESAPEAKE, CHESAPEAKE CITY County, VIRGINIA, 23320

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to TELE CONSULTANTS INC for work described as: Key points: 1. The contract's cost-plus-fixed-fee structure may incentivize higher spending. 2. Limited competition after exclusion of sources could impact price discovery. 3. The duration of the contract (789 days) warrants scrutiny for efficiency. 4. Performance context is limited without specific deliverables and outcomes. 5. Engineering services sector is broad; specific niche requires further analysis. 6. The contract's value is moderate within the context of large federal procurements.

Value Assessment

Rating: fair

Benchmarking the value of this $17.6 million contract is challenging without detailed task orders and performance metrics. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, can sometimes lead to higher costs compared to fixed-price contracts if not managed rigorously. Comparing it to similar engineering services contracts within the Department of Defense would require access to granular data on scope, duration, and specific technical requirements. The absence of a clear per-unit cost makes direct value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. The number of bidders is not specified, but this procurement method suggests a potentially limited competitive landscape compared to unrestricted full and open competition. This could mean that the government did not receive the broadest possible range of offers, potentially impacting the final price and innovation.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a wider pool of qualified contractors had been able to bid without exclusions.

Public Impact

The Department of Defense benefits from specialized engineering services. The contract supports national defense objectives through technical expertise. Geographic impact is likely concentrated around military installations or project sites. Workforce implications include employment for engineers and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure may lead to cost overruns if not tightly managed.
Limited competition raises concerns about optimal pricing and potential for higher costs.
Lack of specific performance metrics makes it difficult to assess true value for money.
The exclusion of sources in the competition process warrants further investigation.

Positive Signals

Awarded to a specific contractor (TELE CONSULTANTS INC) indicating a selection based on perceived capability.
Contract duration suggests a sustained need for the engineering services provided.
The contract falls under the broad category of essential engineering support for defense.

Sector Analysis

The engineering services sector is a critical component of the federal procurement landscape, supporting a wide array of government functions from infrastructure development to advanced research and development. Federal spending in this sector is substantial, encompassing architectural, engineering, and related services. This particular contract, valued at $17.6 million, represents a moderate investment within this sector. Comparable spending benchmarks would depend on the specific type of engineering services rendered, but it falls within the typical range for specialized technical support contracts.

Small Business Impact

There is no indication from the provided data that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The contract was awarded to TELE CONSULTANTS INC, and the 'ss' and 'sb' fields are false, suggesting it was not specifically targeted towards small business participation. Further analysis would be needed to determine if any subcontracting occurred and if it flowed down to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA), given its nature and agency. Accountability measures would be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including progress reports, milestone achievements, and final delivery of services. Transparency is facilitated through contract databases like FPDS, but detailed performance data and specific oversight actions are often not publicly available.

Related Government Programs

Defense Engineering Services
Professional Services Contracts
Cost-Plus Contracts
Federal Engineering Support

Risk Flags

Limited competition
Cost-plus contract type
Potential for cost overruns
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to TELE CONSULTANTS INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TELE CONSULTANTS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

Start: 2005-01-31. End: 2007-03-31.

What specific engineering services were provided under this contract?

The provided data indicates the contract falls under the 'Engineering Services' category (NAICS 541330). However, the specific nature of these services is not detailed. Typically, engineering services for the Department of Defense can range widely, including design, analysis, testing, systems engineering, and technical support for various defense platforms, infrastructure, or research projects. Without access to the contract's statement of work or task orders, it's impossible to specify the exact services rendered. The contract type (Cost Plus Fixed Fee) suggests a degree of complexity or uncertainty in the scope, where defining exact deliverables upfront might have been challenging.

How does the $17.6 million cost compare to similar engineering services contracts awarded by the DoD?

Comparing this $17.6 million contract requires context regarding its duration (789 days) and the specific engineering discipline. For large-scale defense projects, $17.6 million over approximately two years might be considered moderate. However, for highly specialized niche engineering services, it could represent a significant investment. Benchmarking would involve analyzing contracts with similar NAICS codes (541330), contract types (CPFF), and agencies within the DoD. Without more granular data on the scope of work and the number of bidders, a precise comparison is difficult. However, it is not an exceptionally large contract in the context of major defense procurements.

What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for these services?

The primary risk with a CPFF contract is that the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. This structure can incentivize contractors to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total cost. While the government aims to control costs through oversight and negotiation, CPFF contracts generally offer less cost certainty than fixed-price contracts. For engineering services, CPFF is often used when the scope of work is not well-defined at the outset or involves significant research and development, but it requires diligent government oversight to ensure cost efficiency and prevent unnecessary expenditures.

What does 'Full and Open Competition After Exclusion of Sources' imply for this contract's value?

This procurement method suggests that the initial solicitation was intended for full and open competition, but certain potential offerors were subsequently excluded. The reasons for exclusion are not provided but could stem from specific technical requirements, security clearances, or other pre-qualification criteria. While it implies some level of competition occurred, the exclusion of sources inherently limits the competitive pool. This can potentially lead to less aggressive pricing and reduced innovation compared to a scenario where all qualified sources could compete without restriction. Therefore, the value realized by the government might be suboptimal compared to a truly unrestricted competition.

What is the track record of TELE CONSULTANTS INC in securing and performing federal contracts?

Information regarding the specific track record of TELE CONSULTANTS INC for this particular contract is limited to its award. To assess their track record, one would need to examine their history of federal contract awards, including contract values, types, performance ratings (if available), and any past performance issues or disputes. A comprehensive review would involve searching federal procurement databases for all contracts awarded to this entity across various agencies. Without this broader context, it's difficult to definitively assess their reliability, efficiency, or overall performance history beyond this single award.

How has federal spending on engineering services evolved over the period this contract was active (2005-2007)?

During the period of this contract (2005-2007), federal spending on engineering services, particularly within the Department of Defense, was influenced by ongoing military operations and modernization efforts. Overall federal outlays for defense and related services were substantial. While specific year-over-year trends for the engineering services category (NAICS 541330) would require detailed analysis of historical budget data, this era generally saw robust government spending on technical and professional services to support military readiness and technological advancement. This contract's $17.6 million value would have been a component of that larger spending trend.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4080 MCGINNIS FERRY ROAD, ALPHARETTA, GA, 30005

Business Categories: Category Business, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0003904D0011

IDV Type: IDC

Timeline