DoD's $85M Combat Environment Simulation Contract Awarded to Jacobs Technology Inc

Contract Overview

Contract Amount: $85,245,791 ($85.2M)

Contractor: Jacobs Technology Inc

Awarding Agency: Department of Defense

Start Date: 2010-09-24

End Date: 2018-10-31

Contract Duration: 2,959 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COMBAT ENVIRONMENT SIMULATION

Place of Performance

Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32547

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $85.2 million to JACOBS TECHNOLOGY INC for work described as: COMBAT ENVIRONMENT SIMULATION Key points: 1. Significant investment in advanced simulation capabilities for the Navy. 2. Jacobs Technology Inc. secured a substantial contract, indicating strong performance or specialized expertise. 3. Potential risks include cost overruns and the need for continuous technological updates. 4. The Engineering Services sector sees continued demand for complex simulation solutions.

Value Assessment

Rating: good

The contract value of $85.2M over approximately 8 years suggests a reasonable annual spend for specialized simulation services. Benchmarking against similar complex engineering and simulation contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.

Public Impact

Enhances training realism for combat personnel, potentially improving mission effectiveness. Supports technological advancement in military simulation and virtual training environments. Contributes to the defense industrial base by supporting a major engineering services provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration increases risk of scope creep and evolving technology obsolescence.
Reliance on a single awardee for a critical capability.
Potential for cost overruns in Cost Plus Fixed Fee contracts.

Positive Signals

Awarded through full and open competition.
Supports critical defense training needs.
Long-term engagement allows for deep expertise development.

Sector Analysis

The Department of Defense frequently procures engineering and technical services, including complex simulations. Spending in this area is driven by the need for advanced training and operational readiness, often exceeding commercial benchmarks due to specialized requirements.

Small Business Impact

This contract was awarded to Jacobs Technology Inc., a large business. There is no indication of small business participation in the provided data.

Oversight & Accountability

The contract was awarded by the Department of the Navy, part of the Department of Defense, which has established oversight mechanisms for large contracts. The duration and value suggest regular reporting and review processes are in place.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (approx. 8 years).
Awarded to a single large business.
Potential for technological obsolescence over contract life.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.2 million to JACOBS TECHNOLOGY INC. COMBAT ENVIRONMENT SIMULATION

Who is the contractor on this award?

The obligated recipient is JACOBS TECHNOLOGY INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $85.2 million.

What is the period of performance?

Start: 2010-09-24. End: 2018-10-31.

What specific simulation capabilities does this contract provide, and how do they align with current and future combat environment needs?

This contract, valued at $85.2 million, likely supports the development, maintenance, and enhancement of sophisticated combat environment simulation systems for the Department of the Navy. These systems are crucial for realistic training scenarios, allowing personnel to prepare for diverse operational challenges without real-world risks. The alignment with future needs would depend on the contract's flexibility to incorporate emerging technologies and adapt to evolving military doctrines and threats.

What are the primary risks associated with a Cost Plus Fixed Fee contract for complex simulation services over an eight-year period?

The primary risks with a Cost Plus Fixed Fee (CPFF) contract for long-term simulation services include potential cost overruns if the contractor's actual costs exceed estimates, leading to higher overall expenditure than initially planned. The fixed fee provides incentive for the contractor, but the government bears the cost risk. Over an eight-year period, technological obsolescence and the need for continuous upgrades also pose significant risks, potentially requiring contract modifications and additional funding.

How effective is full and open competition in ensuring the best value for taxpayer dollars in specialized engineering services like combat simulation?

Full and open competition is generally effective in ensuring best value by fostering a competitive environment where multiple vendors can propose solutions, driving down prices and encouraging innovation. For specialized services like combat simulation, this approach allows the government to solicit a wide range of technical approaches and cost proposals. However, the effectiveness can be influenced by the complexity of the requirements and the number of capable vendors in the market.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6893609R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc

Address: 1030 TITAN COURT, FORT WALTON BEACH, FL, 32547

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

Financial Breakdown

Contract Ceiling: $86,291,280

Exercised Options: $86,291,280

Current Obligation: $85,245,791

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $11,131,805

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6893610D0034

IDV Type: IDC

Timeline