Naval Surface Warfare Center contract for engineering services awarded to AMSEC LLC for over $30.6 million

Contract Overview

Contract Amount: $30,656,041 ($30.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2004-09-02

End Date: 2019-09-30

Contract Duration: 5,506 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST NO FEE

Sector: Defense

Official Description: 200412!055646!1700!BW21A !NAVAL SURFACE WARFARE CENTER CAR!N0017804D4119 !A!N! !Y!0003 ! !20040902!20050930!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!07695!035!53!BREMERTON !KITSAP !WASHINGTON!+000001000000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!20060331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98314, UNITED STATES OF AMERICA

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $30.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: 200412!055646!1700!BW21A !NAVAL SURFACE WARFARE CENTER CAR!N0017804D4119 !A!N! !Y!0003 ! !20040902!20050930!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!07695!035!53!BREMERTON !KITSAP !WASHINGTON!+000001000000!N!N!000000000000!R425!ENGIN… Key points: 1. Contract awarded for engineering technical services, indicating a need for specialized expertise. 2. The contract duration of over 15 years suggests a long-term requirement for these services. 3. Awarded through full and open competition, implying a robust bidding process. 4. The contract type 'COST NO FEE' suggests the government bears the cost of performance, with the contractor receiving no fee. 5. The primary place of performance is Virginia Beach, VA, with a secondary location in Bremerton, WA. 6. The North American Industry Classification System (NAICS) code 541330 points to a focus on engineering services.

Value Assessment

Rating: fair

The total award amount of $30,656,041 over a period of approximately 15 years suggests an average annual spend of roughly $2 million. Without specific deliverables or performance metrics, it's challenging to benchmark the value for money. The 'COST NO FEE' contract type is unusual and warrants further investigation into the rationale behind it, as it typically implies the contractor is reimbursed for costs but receives no profit, which could indicate a unique relationship or a specific program requirement. Comparing this to similar engineering services contracts would require detailed analysis of scope and duration.

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 a bid. The data shows 21 offers were received, suggesting a healthy level of competition for this engineering services requirement. A high number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive proposals for the engineering services required.

Public Impact

The primary beneficiary of this contract is the Department of the Navy, which receives engineering technical services to support its operations. The services delivered are engineering and technical support, crucial for naval warfare capabilities. The contract has a significant geographic impact, with primary performance in Virginia Beach, VA, and secondary performance in Bremerton, WA, supporting naval facilities in these regions. The contract implies a workforce of engineers and technical specialists, likely contributing to employment in the Virginia Beach and Bremerton areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type is highly unusual and raises questions about the contractor's incentive structure and the government's risk exposure.
The extremely long contract duration (over 15 years) could lead to potential cost overruns if not managed meticulously, and may not reflect current technological needs.
Lack of detailed performance metrics or specific deliverables in the provided data makes it difficult to assess the true value and effectiveness of the services rendered.

Positive Signals

Awarded through full and open competition with 21 offers, indicating strong market interest and a competitive bidding environment.
The contract supports critical naval engineering services, aligning with the Department of Defense's mission.
The primary place of performance in Virginia Beach, VA, suggests support for significant naval infrastructure and operations in that region.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related engineering needs. The engineering services market is substantial, with government contracts forming a significant portion. This contract for engineering technical services is a typical example of how the Department of Defense procures specialized expertise to maintain and advance its technological capabilities. Comparable spending benchmarks would involve analyzing other large, long-term engineering support contracts within the DoD, particularly those for naval operations.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals for small businesses. Given the large contract value and specialized nature of engineering services, it's possible that subcontracting opportunities may exist, but this cannot be confirmed without further information. The absence of explicit small business considerations might limit the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract's award through full and open competition, making the process publicly visible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Naval Surface Warfare Center Support Contracts
Defense Engineering and Technical Services
Long-Term Government Service Contracts

Risk Flags

Unusual Contract Type (COST NO FEE)
Long Contract Duration (Over 15 Years)
Lack of Specific Deliverables/Performance Metrics in Summary Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. 200412!055646!1700!BW21A !NAVAL SURFACE WARFARE CENTER CAR!N0017804D4119 !A!N! !Y!0003 ! !20040902!20050930!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!07695!035!53!BREMERTON !KITSAP !WASHINGTON!+000001000000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!20060331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.7 million.

What is the period of performance?

Start: 2004-09-02. End: 2019-09-30.

What is the specific nature of the 'Engineering Technical Services' being provided under this contract?

The provided data indicates the NAICS code 541330, which covers Engineering Services. While the contract title is 'ENGINEERING TECHNICAL SERVICES', the specific details of the services rendered are not elaborated in the summary data. Typically, such services for the Naval Surface Warfare Center could encompass a wide range of activities including systems engineering, design, analysis, testing, integration, and lifecycle support for naval platforms and systems. This could involve anything from developing new technologies to maintaining existing ones, ensuring operational readiness and effectiveness of naval assets. Further details would likely be found in the contract's Statement of Work (SOW).

Why was this contract awarded as 'COST NO FEE'?

The 'COST NO FEE' (CNF) contract type is highly unusual, especially for a contract valued at over $30 million. Typically, cost-reimbursement contracts include a fee or profit for the contractor. A CNF contract means the contractor is reimbursed for allowable costs incurred in performing the contract but receives no additional payment for their services (no profit). This structure is rare and might be used in specific circumstances, such as when the contractor is a government-affiliated entity, a non-profit organization, or in situations where the primary goal is cost recovery rather than profit generation, perhaps for a specific research or development initiative where the government is heavily invested in the outcome and the contractor's role is more akin to a facilitator or cost manager. It warrants further investigation into the specific rationale behind this award structure.

How does the $30.6 million award compare to other engineering services contracts for the Navy?

The total award of $30.6 million over approximately 15 years averages to about $2 million per year. This figure, while substantial, needs context. The Navy procures a vast array of engineering services, ranging from small, specialized technical support tasks to massive platform design and integration projects. To benchmark this contract, one would need to compare it against contracts with similar scopes, durations, and service types (e.g., systems engineering, R&D support, lifecycle management) awarded by the Navy or other defense agencies. Without a detailed Statement of Work, a direct comparison is difficult, but the annual average suggests a significant, ongoing support requirement rather than a one-off mega-project.

What are the potential risks associated with a contract lasting over 15 years?

A contract duration exceeding 15 years presents several potential risks. Firstly, technological obsolescence is a major concern; the technology landscape can change dramatically over such a long period, potentially rendering the services or systems supported by the contract outdated. Secondly, cost control becomes more challenging; unforeseen economic fluctuations, inflation, and changes in labor costs can significantly impact the total cost to the government. Thirdly, maintaining contractor performance and accountability over such an extended period requires robust oversight and contract management to prevent complacency or degradation of service quality. Finally, the government's requirements may evolve, necessitating contract modifications that could increase costs or alter the scope, potentially leading to disputes.

What is the track record of AMSEC LLC in securing and performing government contracts?

AMSEC LLC, the contractor awarded this significant contract, has a history of performing services for the U.S. military, particularly within the naval domain. While the provided data focuses on this single award, AMSEC has been involved in various defense-related contracts, often related to engineering, technical services, and logistics support. Their performance history on other contracts, including customer satisfaction, adherence to schedules, and budget performance, would be crucial for a comprehensive assessment. A deeper dive into their contract portfolio, past performance reviews, and any reported issues or accolades would provide a clearer picture of their reliability and capability.

How does the competition level (21 offers) impact the value received by the government?

Receiving 21 offers for this contract signifies a highly competitive procurement process. A large number of bidders generally indicates that the market has sufficient capacity and interest to fulfill the government's requirement. This level of competition typically drives down prices as contractors vie for the award, leading to better value for the government. It also increases the likelihood that the government will receive innovative solutions and a wider range of technical approaches. The extensive competition suggests that the government was able to effectively solicit proposals and select a contractor based on a combination of technical merit and price, maximizing the return on taxpayer investment.

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

Offers Received: 21

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1710 SAIC DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline