Naval Sea Systems Command contract for engineering services awarded to Unified-Zai JV for over $21.8 million

Contract Overview

Contract Amount: $21,856,733 ($21.9M)

Contractor: Unified-Zai JV

Awarding Agency: Department of Defense

Start Date: 2002-01-31

End Date: 2014-09-30

Contract Duration: 4,625 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200210!024555!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401D7029 !A!N! !N!0003 !20020131!20020930!799571554!799571554!799571554!N!UNIFIED-ZAI JOINT VENTURE !6551 LOISDALE COURT !SPRINGFIELD !DC!22150!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000120000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M!A!A!D!20060331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to UNIFIED-ZAI JV for work described as: 200210!024555!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401D7029 !A!N! !N!0003 !20020131!20020930!799571554!799571554!799571554!N!UNIFIED-ZAI JOINT VENTURE !6551 LOISDALE COURT !SPRINGFIELD !DC!22150!50000!001!11!WASHINGTON !DISTR… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is substantial, spanning over 12 years, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical area for defense operations. 5. The contract was awarded by the Naval Sea Systems Command, a key component of the Department of Defense. 6. The contractor, Unified-Zai JV, is a joint venture, which may indicate a specialized or combined capability.

Value Assessment

Rating: fair

The total award amount of $21,856,733.18 over a period of approximately 12 years suggests an average annual spend of around $1.8 million. Without specific performance metrics or detailed cost breakdowns, it's challenging to definitively benchmark the value for money. However, the Cost Plus Fixed Fee (CPFF) contract type, while common, carries inherent risks of cost escalation if not rigorously managed. Comparing this to similar long-term engineering support contracts within the Navy or DoD would be necessary for a more precise assessment of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovation as contractors vie for the award. The level of competition, if robust, should theoretically lead to a fair market price for the engineering services required.

Taxpayer Impact: Taxpayers benefit from full and open competition as it is designed to ensure the government receives the best possible value by leveraging a wide range of potential providers. This approach helps prevent price gouging and encourages efficiency among bidders.

Public Impact

The primary beneficiaries are likely the U.S. Navy and the Department of Defense, who receive essential engineering services for naval systems. The services delivered are categorized under 'Engineering Services,' crucial for the design, development, maintenance, and modernization of naval platforms. The geographic impact is primarily centered around the Naval Sea Systems Command's operational areas, likely involving naval bases and shipyards. Workforce implications include the employment of engineers and technical staff by the contractor, Unified-Zai JV, contributing to the skilled labor market in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractors to increase costs to maximize their fee, requiring stringent oversight.
The long contract duration (over 12 years) increases the risk of cost escalation due to inflation and potential scope creep if not managed effectively.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance and value delivery over time.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
The contractor, Unified-Zai JV, is a joint venture, potentially bringing specialized expertise to complex engineering challenges.
The contract is for engineering services, a critical function for maintaining and advancing naval capabilities.

Sector Analysis

The contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the professional services market supporting government and defense initiatives. This sector is characterized by specialized expertise and often involves long-term engagements for complex projects. Spending in this area is crucial for maintaining technological superiority and operational readiness. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the Department of Defense or other federal agencies for similar naval or defense-related projects.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and does not explicitly mention subcontracting plans related to small businesses (sb: false). Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, the prime contractor, Unified-Zai JV, may engage small businesses as subcontractors, which is not detailed here. Further investigation into subcontracting reports would be needed to assess the full impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Naval Sea Systems Command (NAVSEA) and the Defense Contract Management Agency (DCMA). These entities are responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing payments. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to control costs and ensure the fixed fee is earned appropriately. Transparency is generally maintained through contract reporting requirements, though specific details of ongoing oversight are not provided.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Cost Plus Fixed Fee Contracts
Federal Engineering Services Contracts
Defense Contract Management Agency Oversight

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration may lead to cost escalation if not managed effectively.
Limited information on the number of bidders in the full and open competition.
No explicit mention of small business subcontracting goals or achievements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to UNIFIED-ZAI JV. 200210!024555!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401D7029 !A!N! !N!0003 !20020131!20020930!799571554!799571554!799571554!N!UNIFIED-ZAI JOINT VENTURE !6551 LOISDALE COURT !SPRINGFIELD !DC!22150!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000120000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M!A!A!D!20060331!B

Who is the contractor on this award?

The obligated recipient is UNIFIED-ZAI JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2002-01-31. End: 2014-09-30.

What is the track record of Unified-Zai Joint Venture in securing and performing on federal contracts, particularly within the Department of Defense?

The provided data identifies Unified-Zai Joint Venture (Unified-Zai JV) as the contractor for this specific Naval Sea Systems Command (NAVSEA) contract. However, this single data point does not offer a comprehensive view of their track record. To assess their performance history, one would need to examine other federal contract awards to Unified-Zai JV, including their value, duration, type, and performance ratings (if available). Information on past performance, including any awards, disputes, or terminations, would be crucial for understanding their reliability and capability in fulfilling government requirements. A deeper dive into contract databases like FPDS or SAM.gov would be necessary to build a complete picture of their federal contracting history.

How does the awarded amount of over $21.8 million compare to similar engineering services contracts awarded by NAVSEA or the DoD?

The total award of $21,856,733.18 for engineering services over approximately 12 years represents an average annual value of roughly $1.8 million. To benchmark this, one would need to compare it against other contracts for similar engineering support, particularly those related to naval systems or platforms, awarded by NAVSEA or other DoD components. Factors such as the specific technical requirements, contract duration, and contract type (e.g., CPFF) should be considered. If similar contracts for comparable services have significantly higher or lower average annual values, it could indicate whether this award was priced competitively or if there are potential anomalies. Accessing historical contract data and performing a comparative analysis is essential for this assessment.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this award, and how are they mitigated?

The Cost Plus Fixed Fee (CPFF) contract type, used here, carries inherent risks. For the government, the primary risk is that the contractor may have less incentive to control costs, as their fee is fixed regardless of the actual costs incurred (though the total contract value is capped). This can lead to cost overruns if the initial cost estimates are inaccurate or if the contractor's efficiency is low. For the contractor, the risk lies in underestimating costs, which could reduce their profit margin if the fixed fee doesn't adequately cover their expenses. Mitigation strategies typically involve robust government oversight, detailed cost accounting standards, clear definition of allowable costs, and careful negotiation of the fixed fee based on realistic cost projections and contractor risk.

What is the expected impact of this contract on the specific engineering services market, particularly for naval systems?

This contract, awarded to Unified-Zai JV, signifies a substantial commitment by the Naval Sea Systems Command to procure engineering services. Its impact on the market depends on the size and scope of the services required. For the specific niche of naval systems engineering, it could stimulate competition among firms capable of meeting the stringent requirements. If Unified-Zai JV is a new entrant or a significant player, this award could enhance their market position. Conversely, if the services are highly specialized, it might consolidate expertise within the awarded contractor. The long duration suggests a stable demand, potentially influencing investment decisions and workforce development within specialized engineering firms serving the defense sector.

How has federal spending on engineering services (NAICS 541330) by the Department of Defense trended over the past decade, and where does this contract fit within that trend?

Federal spending on engineering services (NAICS 541330) by the Department of Defense has generally been substantial and has seen fluctuations over the past decade, often driven by modernization programs, operational tempo, and evolving defense strategies. While this specific contract's award date (2002) predates the most recent decade, it represents a significant investment within its timeframe. To understand its place in the trend, one would need to analyze aggregate DoD spending data for NAICS 541330 across multiple years. This contract, valued at over $21.8 million, would be one data point contributing to the overall spending picture. Trends might show increases during periods of heightened conflict or major acquisition programs, and potential decreases during budget austerity or shifts in defense priorities.

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: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6551 LOISDALE CT STE 400, SPRINGFIELD, VA, 22150

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002401D7029

IDV Type: IDC

Timeline