DoD's $45.4M PMMI Support Contract Awarded to MANTECH TSG-2 JV for R&D Services

Contract Overview

Contract Amount: $45,411,701 ($45.4M)

Contractor: Mantech TSG-2 Joint Venture

Awarding Agency: Department of Defense

Start Date: 2015-04-22

End Date: 2020-04-21

Contract Duration: 1,826 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF DT 15-1064 PROGRAM MANAGER MARINE INTELLIGENCE (PMMI) SUPPORT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.4 million to MANTECH TSG-2 JOINT VENTURE for work described as: IGF::OT::IGF DT 15-1064 PROGRAM MANAGER MARINE INTELLIGENCE (PMMI) SUPPORT Key points: 1. Contract awarded for specialized R&D support, indicating a need for advanced technical expertise. 2. The contract duration of 1826 days suggests a long-term requirement for these services. 3. Full and open competition was utilized, implying a broad search for qualified contractors. 4. The contract type (Cost Plus Fixed Fee) is common for R&D where costs can be unpredictable. 5. The award value of over $45 million signifies a substantial investment in this program. 6. The North American Industry Classification System (NAICS) code 541712 points to research in physical, engineering, and life sciences. 7. The contract was issued as a delivery order, suggesting it's part of a larger indefinite delivery contract.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparable R&D service contracts. The Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can lead to cost overruns if not managed tightly. While the total award is significant, the value proposition depends heavily on the successful delivery of research outcomes and the efficiency of the contractor in managing costs within the agreed-upon fee structure. Further analysis would require comparing the fixed fee percentage and the actual incurred costs against industry standards for similar R&D efforts.

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 approach typically fosters a competitive environment, potentially leading to better pricing and innovative solutions. The presence of 4 bids suggests a moderate level of competition for this specialized R&D support. The agency likely sought to leverage the widest possible pool of talent to meet the program's complex requirements.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of offers, which can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) and its Marine Corps, receiving critical intelligence support. The services delivered are focused on research and development, likely contributing to advancements in marine intelligence capabilities. The geographic impact is primarily within the United States, where the contractor operates and the research is conducted. Workforce implications include the employment of specialized researchers, engineers, and technical personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to achieve a larger fee, requiring robust oversight.
The duration of the contract (nearly 5 years) necessitates ongoing monitoring to ensure continued relevance and performance.
The specialized nature of R&D means that measuring tangible outcomes and return on investment can be complex.
Reliance on a single delivery order under a larger IDIQ structure might limit flexibility if program needs evolve significantly.

Positive Signals

Awarding under full and open competition suggests a commitment to finding the best value and technical solution.
The use of a delivery order indicates a structured procurement process within a potentially larger framework.
The contractor, MANTECH TSG-2 JOINT VENTURE, was selected, implying they met the technical and performance requirements.
The contract's focus on R&D aligns with the DoD's need for technological advancement.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D sector is crucial for national security, driving innovation and maintaining technological superiority. Spending in this area often involves long-term investments with uncertain outcomes but potentially high strategic value. Comparable spending benchmarks would typically be found within other DoD R&D procurements for intelligence support or advanced technology development.

Small Business Impact

There is no indication that this contract included a small business set-aside, as the 'ss' field is false. Similarly, the 'sb' field being false suggests no specific small business subcontracting goals were mandated for this particular award. This implies that the primary focus was on securing the best technical solution through full and open competition, rather than prioritizing small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), given its role in contract administration for the Department of Defense. Accountability measures would be embedded within the Cost Plus Fixed Fee contract terms, requiring the contractor to adhere to cost controls and performance standards. Transparency is facilitated through contract awards databases, but detailed programmatic oversight and Inspector General (IG) jurisdiction would depend on specific DoD directives and the nature of the R&D activities.

Related Government Programs

Department of Defense Research and Development Programs
Marine Corps Intelligence Support Contracts
Information Technology R&D
Advanced Technology Development Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence Risk (R&D)
Performance Degradation Risk (Long Duration)
Key Personnel Turnover Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.4 million to MANTECH TSG-2 JOINT VENTURE. IGF::OT::IGF DT 15-1064 PROGRAM MANAGER MARINE INTELLIGENCE (PMMI) SUPPORT

Who is the contractor on this award?

The obligated recipient is MANTECH TSG-2 JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $45.4 million.

What is the period of performance?

Start: 2015-04-22. End: 2020-04-21.

What specific research and development activities are encompassed by the PMMI Support contract?

The Program Manager Marine Intelligence (PMMI) Support contract, awarded to MANTECH TSG-2 JOINT VENTURE, focuses on Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology), as indicated by NAICS code 541712. While the specific details of the R&D are not publicly disclosed due to the sensitive nature of intelligence support, it likely involves activities aimed at enhancing the Marine Corps' intelligence gathering, analysis, processing, and dissemination capabilities. This could include developing new technologies, improving existing systems, conducting feasibility studies, or providing technical expertise for intelligence-related projects. The contract's duration and value suggest a significant and ongoing requirement for advanced technical support in these critical areas.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact cost control and contractor incentives for this R&D effort?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D, this structure is often used because the scope and costs can be difficult to define precisely upfront. However, it can create an incentive for contractors to increase costs, as their fee is fixed regardless of the total cost. Effective cost control relies heavily on robust government oversight, detailed cost accounting standards, and clear definition of allowable costs. The fixed fee itself acts as a ceiling on the contractor's profit, but the overall cost to the government can still escalate if actual costs are significantly higher than anticipated. Regular audits and performance reviews are crucial to manage this risk.

What is the significance of the contract being awarded as a delivery order under a potential larger IDIQ contract?

The designation of this award as a 'Delivery Order' (aw) suggests it is likely a task order issued against a broader Indefinite Delivery/Indefinite Quantity (IDIQ) contract. IDIQs provide agencies with a flexible way to procure services or supplies over a period, allowing them to issue task orders as needs arise. This approach offers agility, enabling the Department of Defense to quickly obtain specialized R&D support without needing to conduct a full, separate procurement for each specific requirement. The '4' in the 'no' field likely indicates the number of delivery orders issued under the parent IDIQ, suggesting this is one of several specific projects managed under that umbrella contract.

What are the potential risks associated with a nearly five-year contract for specialized R&D support?

A contract duration of 1826 days (approximately five years) for specialized R&D support carries several potential risks. Firstly, technological advancements can rapidly outpace the initial scope of work, potentially rendering the research obsolete or requiring significant modifications, which can lead to cost increases and schedule delays. Secondly, the long duration increases the risk of contractor performance degradation or key personnel turnover, impacting the quality and continuity of the research. Thirdly, market conditions and the competitive landscape for R&D services can change, potentially making the contracted services less cost-effective over time. Finally, ensuring the continued alignment of the R&D objectives with evolving national security priorities requires diligent program management and oversight throughout the contract's life.

How does the selection of MANTECH TSG-2 JOINT VENTURE reflect on their capabilities in the R&D sector?

The selection of MANTECH TSG-2 JOINT VENTURE for this significant Department of Defense contract indicates that they possess the necessary technical expertise, resources, and potentially a proven track record in the specialized field of physical, engineering, and life sciences R&D, particularly as it pertains to intelligence support. Winning a contract awarded under full and open competition suggests they were among the most competitive bidders, meeting or exceeding the government's stringent requirements for technical approach, past performance, and potentially cost. This award serves as a strong positive signal regarding their capabilities and their ability to secure and execute complex, high-value government contracts within the defense sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807513R0001

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12015 LEE JACKSON HWY, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,759,800

Exercised Options: $47,759,800

Current Obligation: $45,411,701

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $6,546,206

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0020

IDV Type: IDC

Timeline