DoD's $23.2M Engineering Services Contract Awarded to C2D Joint Venture for Logistics Support Center

Contract Overview

Contract Amount: $23,238,866 ($23.2M)

Contractor: C2D Joint Venture

Awarding Agency: Department of Defense

Start Date: 2016-09-22

End Date: 2025-02-14

Contract Duration: 3,067 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CL,CT::IGF TASK ORDER AWARD FOR SERVICES IN SUPPORT OF THE ENGINEERING MAINTENANCE SYSTEM - NEXT GENERATION OF THE INTEGRATED LOGISTICS SUPPORT CENTER.

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to C2D JOINT VENTURE for work described as: IGF::CL,CT::IGF TASK ORDER AWARD FOR SERVICES IN SUPPORT OF THE ENGINEERING MAINTENANCE SYSTEM - NEXT GENERATION OF THE INTEGRATED LOGISTICS SUPPORT CENTER. Key points: 1. Contract value of $23.2M over its period of performance. 2. Awarded under full and open competition after exclusion of sources. 3. Performance period spans from September 2016 to February 2025. 4. Contract type is Cost Plus Fixed Fee (CPFF). 5. Services support the Engineering Maintenance System - Next Generation. 6. Task order awarded to C2D Joint Venture. 7. Geographic location of service is California.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully, as the contractor is reimbursed for actual costs plus a fixed fee. Benchmarking the $23.2M total award against similar engineering services contracts for logistics support systems is challenging without more specific details on the scope of work and deliverables. However, the duration of nearly 9 years suggests a substantial and ongoing need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources were excluded, suggesting a potentially limited pool of bidders. The number of bidders is not specified, making it difficult to fully assess the level of competition and its impact on price discovery. The exclusion of sources warrants further investigation into the justification.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers compared to a truly full and open competition with a broader range of potential bidders.

Public Impact

The Department of the Army benefits from continued engineering and maintenance support for its critical logistics systems. Services provided are crucial for the operational readiness and efficiency of military logistics. The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications include employment for engineers and technical specialists involved in system maintenance and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can incentivize higher spending if not rigorously overseen.
Exclusion of sources in competition limits potential cost savings for the government.
Long performance period (nearly 9 years) increases exposure to potential cost growth and scope creep.

Positive Signals

Awarded to a joint venture, potentially leveraging diverse expertise.
Services support a critical Next Generation logistics system, indicating a focus on modernization.
Task order awarded under a broader contract vehicle, suggesting pre-qualification of contractors.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense logistics and maintenance systems. The market for defense engineering services is substantial, driven by the continuous need for modernization, sustainment, and operational support of complex military equipment and IT systems. Comparable spending benchmarks would typically be found within the broader IT and professional services categories for the Department of Defense, where large-scale system support contracts are common.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, C2D Joint Venture, may itself be a collaboration that includes small businesses, but this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The CPFF structure necessitates robust oversight to ensure costs are reasonable and the fixed fee is earned. Transparency is generally maintained through contract reporting mechanisms, though specific details of cost breakdowns and fee calculations are often proprietary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Integrated Logistics Support Center (ILSC) operations
Engineering Maintenance Systems
Department of Defense IT Services
Defense Logistics Agency contracts
Next Generation Systems Development

Risk Flags

Limited competition due to source exclusion.
CPFF contract type requires robust cost oversight.
Long performance period increases risk of cost growth.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to C2D JOINT VENTURE. IGF::CL,CT::IGF TASK ORDER AWARD FOR SERVICES IN SUPPORT OF THE ENGINEERING MAINTENANCE SYSTEM - NEXT GENERATION OF THE INTEGRATED LOGISTICS SUPPORT CENTER.

Who is the contractor on this award?

The obligated recipient is C2D JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.2 million.

What is the period of performance?

Start: 2016-09-22. End: 2025-02-14.

What is the specific nature of the 'Engineering Maintenance System - Next Generation' and its criticality to DoD operations?

The 'Engineering Maintenance System - Next Generation' (EMS-NG) is a crucial component of the Department of Defense's (DoD) logistics infrastructure. It is designed to manage and streamline the maintenance, repair, and overhaul processes for a wide array of military equipment and systems. This includes tracking maintenance schedules, managing spare parts inventory, documenting repair history, and ensuring compliance with technical directives. The 'Next Generation' aspect implies an upgrade or modernization of existing systems to improve efficiency, data analytics capabilities, and integration with other modern defense IT platforms. Its criticality lies in ensuring the operational readiness and availability of military assets, directly impacting mission success and national security. Without effective maintenance management, equipment failures can lead to mission delays, increased costs, and potential risks to personnel.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for similar engineering services in the DoD?

Cost Plus Fixed Fee (CPFF) contracts are common in the DoD for complex projects where the scope of work is not precisely defined at the outset, or where research and development activities are involved. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with Fixed Price contracts, where the price is set regardless of actual costs, offering more cost certainty to the government but potentially higher risk for the contractor. Cost Plus Incentive Fee (CPIF) contracts offer shared savings or bonuses based on performance metrics. For engineering services, CPFF is often chosen when innovation or adaptation is expected, but it places a significant burden on the government to meticulously audit costs and ensure the fee is commensurate with the effort. Compared to fixed-price contracts, CPFF generally offers less cost predictability for the government.

What are the potential risks associated with the 'exclusion of sources' in the competition for this contract?

The 'exclusion of sources' in a competitive procurement, even if followed by 'full and open competition' among the remaining eligible sources, inherently limits the competitive landscape. The primary risk is reduced price competition, potentially leading to higher costs for the government and taxpayers. If legitimate and capable sources were excluded without a clear, justifiable reason (e.g., specific security requirements, unique capabilities not widely available), it could indicate a less than optimal procurement strategy. This exclusion might also stifle innovation by preventing potentially more efficient or cost-effective solutions from being proposed. Furthermore, it can raise concerns about fairness and equal opportunity among potential contractors. A thorough review of the justification for excluding sources is essential to mitigate these risks and ensure the government is obtaining the best value.

What does the long performance period (nearly 9 years) imply for the stability and evolution of the supported system?

A performance period spanning nearly nine years (September 2016 to February 2025) for an engineering services contract, particularly one supporting a 'Next Generation' system, suggests a long-term commitment to the system's sustainment, development, and potential evolution. This extended duration implies that the system is considered critical and likely requires ongoing support, updates, and potentially significant modifications over its lifecycle. It indicates a stable requirement for the services provided. However, such a long period also increases the risk of cost growth due to inflation, changes in technology, or unforeseen scope expansion (scope creep). Effective contract management, including regular reviews and potential re-negotiations or modifications, is crucial to ensure the system remains relevant and costs are controlled throughout its extended operational life.

How does the $23.2M award value compare to typical spending on similar engineering support contracts within the DoD?

The $23.2 million award value for engineering services supporting a next-generation logistics system is a significant, but not unusual, figure for the Department of Defense. Large-scale IT and engineering support contracts within the DoD often range from tens to hundreds of millions of dollars, reflecting the complexity and scale of military operations and the systems that support them. For instance, contracts for enterprise resource planning (ERP) system support, cybersecurity services, or major platform sustainment can easily exceed this amount. To provide a precise comparison, one would need to benchmark against contracts with highly similar scopes of work, specific technical requirements, and similar performance periods. However, in the context of sustaining and evolving critical defense logistics IT infrastructure, $23.2 million over nearly nine years represents a substantial investment in maintaining operational capability.

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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 110 CASTILIAN DR, STE 200, GOLETA, CA, 93117

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,678,966

Exercised Options: $23,238,866

Current Obligation: $23,238,866

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV15DKB19

IDV Type: IDC

Timeline