DoD Awards $21.5M for Secure Communications Engineering and Technical Support to MAG DS CORP

Contract Overview

Contract Amount: $21,533,646 ($21.5M)

Contractor: MAG DS Corp

Awarding Agency: Department of Defense

Start Date: 2012-07-12

End Date: 2015-10-11

Contract Duration: 1,186 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS TASK ORDER, TO#0003, IS TO PROVIDE CONTRACTOR EXPERTISE FOR SECURE COMMUNICATIONS FOR ENGINEERING , TECHNICAL SUPPORT, ASSISTANCE IN MARKET RESEARCH AND ACQUISITION MANAGEMENT, PREPARATION FOR FIELDING AND URGENT FIELDING REQUIREMENTS, RAPID RESPONSE PROCUREMENT, COMMUNICATIONS SECURITY, AND SYSTEMS INTEGRATION ENGINEERING TO SUPPORT INFORMATION ASSURANCE INIATIVES.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to MAG DS CORP for work described as: THE PURPOSE OF THIS TASK ORDER, TO#0003, IS TO PROVIDE CONTRACTOR EXPERTISE FOR SECURE COMMUNICATIONS FOR ENGINEERING , TECHNICAL SUPPORT, ASSISTANCE IN MARKET RESEARCH AND ACQUISITION MANAGEMENT, PREPARATION FOR FIELDING AND URGENT FIELDING REQUIREMENTS, RAPID RESPONSE PROCUREME… Key points: 1. Contract focuses on critical areas like secure communications, market research, and acquisition management. 2. MAG DS CORP, a single awardee, will provide support over a nearly 3-year period. 3. The contract utilizes a Cost Plus Fixed Fee (CPFF) pricing structure. 4. Spending falls under Engineering Services (NAICS 541330), a broad category with varying benchmarks.

Value Assessment

Rating: fair

The CPFF structure can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific service details, but the per-year cost is approximately $7.2M.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific awardee and pricing details are not fully transparent, impacting price discovery assessment.

Taxpayer Impact: Taxpayer funds are allocated for essential engineering and technical support services to enhance secure communications capabilities.

Public Impact

Enhances national security through improved secure communication systems. Supports military readiness and operational effectiveness. Invests in specialized engineering and acquisition expertise. Ensures robust information assurance for sensitive data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • CPFF pricing can incentivize cost increases.
  • Lack of detailed performance metrics.
  • Potential for scope creep in engineering services.

Positive Signals

  • Addresses critical secure communications needs.
  • Leverages competitive procurement process.
  • Supports vital defense initiatives.

Sector Analysis

This contract falls under Engineering Services, a sector that supports various government functions. Spending benchmarks vary widely based on the specific engineering discipline and project complexity.

Small Business Impact

The data indicates this was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The contract was awarded via a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would typically involve monitoring performance and costs against the contract terms.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Cost Plus Fixed Fee (CPFF) pricing.
  • Limited transparency on specific deliverables.
  • Potential for undefined scope in engineering services.
  • Single awardee may limit future competition.

Tags

engineering-services, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to MAG DS CORP. THE PURPOSE OF THIS TASK ORDER, TO#0003, IS TO PROVIDE CONTRACTOR EXPERTISE FOR SECURE COMMUNICATIONS FOR ENGINEERING , TECHNICAL SUPPORT, ASSISTANCE IN MARKET RESEARCH AND ACQUISITION MANAGEMENT, PREPARATION FOR FIELDING AND URGENT FIELDING REQUIREMENTS, RAPID RESPONSE PROCUREMENT, COMMUNICATIONS SECURITY, AND SYSTEMS INTEGRATION ENGINEERING TO SUPPORT INFORMATION ASSURANCE INIATIVES.

Who is the contractor on this award?

The obligated recipient is MAG DS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2012-07-12. End: 2015-10-11.

What specific engineering and technical support tasks are included in this order, and how do they align with the stated purpose?

The task order aims to provide expertise for secure communications, engineering support, market research, acquisition management, fielding preparation, rapid response procurement, communications security, and systems integration for information assurance. These tasks collectively support the enhancement and maintenance of secure communication infrastructure and related acquisition processes for the Department of the Army.

How does the Cost Plus Fixed Fee (CPFF) structure impact the overall risk and potential for cost overruns in this contract?

The CPFF structure carries inherent risk as the government pays the contractor's actual costs plus a fixed fee. While the fee is fixed, the total cost is variable. This can incentivize contractors to incur higher costs, potentially leading to overruns if not rigorously monitored and controlled by the government contracting officer.

What is the expected effectiveness of the contractor's support in achieving the stated goals of secure communications and information assurance?

The effectiveness hinges on the contractor's demonstrated expertise in secure communications, systems integration, and information assurance. The nearly three-year duration suggests a need for sustained support. Success will be measured by the successful fielding of secure systems, improved acquisition processes, and enhanced information security posture for the Army.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1 RADAR WAY, TINTON FALLS, NJ, 07724

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

Financial Breakdown

Contract Ceiling: $29,583,249

Exercised Options: $29,583,249

Current Obligation: $21,533,646

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,368,058

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD421

IDV Type: IDC

Timeline

Start Date: 2012-07-12

Current End Date: 2015-10-11

Potential End Date: 2015-10-11 12:10:00

Last Modified: 2022-08-26

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