DoD's $50M Army Communications Support Contract Awarded to MAG DS Corp Shows Fair Value
Contract Overview
Contract Amount: $50,085,625 ($50.1M)
Contractor: MAG DS Corp
Awarding Agency: Department of Defense
Start Date: 2012-05-07
End Date: 2015-02-06
Contract Duration: 1,005 days
Daily Burn Rate: $49.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF PROJECT MANAGER DEFENSE COMMUNICATIONS AND ARMY TRANSMISSION SYSTEMS (PM DCATS), ACQUISITION, OPERATIONS, LOGISTICS AND ENGINEERING SUPPORT SERVICES
Place of Performance
Location: TINTON FALLS, MONMOUTH County, NEW JERSEY, 07724
Plain-Language Summary
Department of Defense obligated $50.1 million to MAG DS CORP for work described as: IGF::OT::IGF PROJECT MANAGER DEFENSE COMMUNICATIONS AND ARMY TRANSMISSION SYSTEMS (PM DCATS), ACQUISITION, OPERATIONS, LOGISTICS AND ENGINEERING SUPPORT SERVICES Key points: 1. Contract provides essential engineering and logistics support for critical Army communication systems. 2. MAG DS Corp, a single awardee, delivered services within a reasonable cost structure. 3. The contract's duration and scope suggest a well-defined need for specialized support. 4. Performance context indicates a focus on operational continuity for defense communications. 5. Sector positioning highlights the importance of engineering services in maintaining military readiness. 6. The contract's value aligns with benchmarks for similar large-scale defense support services.
Value Assessment
Rating: good
The contract's total value of approximately $50 million over its period of performance appears reasonable when benchmarked against similar large-scale engineering and logistics support contracts for defense communications. While specific cost breakdowns are not provided, the fixed-fee structure suggests that the contractor's profit was capped, encouraging cost efficiency. The absence of significant cost overruns or disputes further supports the assessment of good value for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The fact that it resulted in a single award suggests that MAG DS Corp was the most advantageous offer based on the evaluation criteria. The competitive process likely contributed to achieving a fair price for the required services.
Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.
Public Impact
The primary beneficiaries are the U.S. Army, ensuring the operational readiness of its defense communication systems. Services delivered include project management, acquisition, operations, logistics, and engineering support. The geographic impact is primarily within New Jersey, where the contract was administered. Workforce implications include the employment of skilled engineers, project managers, and logistics personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited public information on specific performance metrics.
- Potential for vendor lock-in given the specialized nature of defense communications support.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Contract completed within its period of performance without apparent major issues.
- Services provided are critical to national defense infrastructure.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense communications. The market for such specialized support services is significant, driven by the continuous need for modernization and maintenance of complex military communication networks. Comparable spending benchmarks in this niche often involve multi-million dollar contracts for system integration, operational support, and lifecycle management, reflecting the high stakes and technical expertise required.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless MAG DS Corp voluntarily engaged small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would have been managed by the Department of the Army, likely through contracting officers and program managers responsible for defense communications. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases, though detailed operational performance data may be restricted due to national security considerations.
Related Government Programs
- Defense Communications Systems
- Army Logistics Support
- Engineering Services for Government
- Acquisition Support Services
Risk Flags
- Potential for cost overruns in Cost Plus Fixed Fee contracts if not closely monitored.
- Dependence on a single contractor for critical defense communication infrastructure.
- Risk of technological obsolescence in rapidly evolving communication fields.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, communications, logistics-support, project-management, acquisition-support, full-and-open-competition, cost-plus-fixed-fee, delivery-order, new-jersey
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.1 million to MAG DS CORP. IGF::OT::IGF PROJECT MANAGER DEFENSE COMMUNICATIONS AND ARMY TRANSMISSION SYSTEMS (PM DCATS), ACQUISITION, OPERATIONS, LOGISTICS AND ENGINEERING SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is MAG DS CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $50.1 million.
What is the period of performance?
Start: 2012-05-07. End: 2015-02-06.
What was the specific nature of the engineering services provided under this contract?
The contract description indicates that the engineering services provided encompassed a broad range of support for Defense Communications and Army Transmission Systems (DCATS). This likely included system design, integration, testing, and maintenance of communication networks and equipment. It also covered acquisition support, helping the Army procure necessary technologies, and operations and logistics, ensuring the smooth functioning and deployment of communication assets. The focus was on maintaining and enhancing the reliability and effectiveness of critical Army communication infrastructure.
How does the total contract value of approximately $50 million compare to similar defense communication support contracts?
A total contract value of $50 million for a multi-year period of performance (approximately 3 years) for specialized defense communication support is within the expected range for contracts of this nature. Large-scale engineering, logistics, and operational support for military communication systems often run into tens or hundreds of millions of dollars, depending on the scope, duration, and technological complexity. Given that this was a full and open competition, the price achieved suggests it was competitive. Benchmarking against similar contracts awarded by the Department of Defense or other military branches for comparable services would likely show this contract to be in the mid-to-high range, reflecting its significant scope.
What were the key performance indicators (KPIs) or metrics used to evaluate MAG DS Corp's performance?
Specific Key Performance Indicators (KPIs) or detailed performance metrics are not publicly available for this contract. However, typical KPIs for such contracts would likely include system uptime and availability, response times for technical support, successful completion of acquisition milestones, efficiency of logistics operations, and adherence to project management timelines and budgets. The contract's structure, being Cost Plus Fixed Fee, would also imply performance evaluations related to cost control and efficient resource utilization to meet the fixed fee objectives.
Were there any significant risks identified or mitigation strategies employed during the contract's lifecycle?
While specific risk registers are not public, potential risks for a contract of this nature could include technological obsolescence, cybersecurity threats to communication systems, contractor performance issues, or changes in military requirements. Mitigation strategies would typically involve robust cybersecurity protocols, regular system upgrades, clear communication channels between the contractor and the Army, performance monitoring, and contingency planning for operational disruptions. The contract's completion without apparent major issues suggests that identified risks were effectively managed.
What is the historical spending pattern for similar Army communication support services?
Historical spending on Army communication support services has been substantial and consistent, reflecting the enduring need for robust and modern communication capabilities. The Department of the Army and the broader Department of Defense allocate significant portions of their budgets to acquiring, maintaining, and upgrading communication systems and associated support services. This includes contracts for network infrastructure, satellite communications, tactical radios, cybersecurity, and the engineering and logistics services required to keep these systems operational. Spending patterns often fluctuate based on technological advancements, geopolitical needs, and strategic priorities, but the overall trend indicates a sustained investment in this critical area.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1 RADAR WAY, TINTON FALLS, NJ, 07724
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $56,405,159
Exercised Options: $56,405,159
Current Obligation: $50,085,625
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $32,051,914
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T10DD421
IDV Type: IDC
Timeline
Start Date: 2012-05-07
Current End Date: 2015-02-06
Potential End Date: 2015-02-06 12:02:00
Last Modified: 2022-03-04
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