DoD's $38M Engineering Services Contract Awarded to Combined Technical Services, LLC for Test Support

Contract Overview

Contract Amount: $38,192,538 ($38.2M)

Contractor: Combined Technical Services, LLC

Awarding Agency: Department of Defense

Start Date: 2015-09-04

End Date: 2019-03-03

Contract Duration: 1,276 days

Daily Burn Rate: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF TEST SUPPORT SERVICES

Place of Performance

Location: FORT HOOD, CORYELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $38.2 million to COMBINED TECHNICAL SERVICES, LLC for work described as: IGF::OT::IGF TEST SUPPORT SERVICES Key points: 1. Contract value of $38.2M over approximately 3.5 years suggests a significant investment in engineering support. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. Performance period of 1276 days highlights the long-term nature of the requirement. 5. The specific NAICS code (541330) points to a focus on engineering services. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this $38.2M contract is challenging without more specific details on the scope of 'IGF TEST SUPPORT SERVICES'. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, carries inherent risks of cost escalation. Comparing it to similar engineering services contracts within the Department of Defense would be necessary to assess if the pricing structure and final cost are competitive. The fixed fee component provides some cost certainty, but the cost-reimbursement aspect requires diligent oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The number of bidders is not specified, but this approach generally fosters a competitive environment, which can lead to better pricing and innovation. The agency sought proposals from a wide range of qualified engineering service providers.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative solutions, thereby optimizing the use of public funds.

Public Impact

The Department of Defense benefits from specialized engineering expertise for test support services. This contract likely supports critical testing and evaluation activities for military systems or equipment. The geographic impact is centered in Texas, where the contractor is located. Workforce implications include employment opportunities for engineers and technical staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
Lack of specific details on the 'IGF TEST SUPPORT SERVICES' makes it difficult to fully assess value and performance.
The long performance period requires sustained oversight to ensure continued relevance and effectiveness.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contractor is based in Texas, potentially supporting regional DoD activities.
The contract duration indicates a stable, long-term need for these services.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, providing essential support for research, development, testing, and evaluation of military technologies. This contract, falling under NAICS code 541330, represents spending within a market segment that supports government agencies in maintaining technological superiority. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the DoD or other federal agencies for similar testing and evaluation functions.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. However, the prime contractor, Combined Technical Services, LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, cost tracking, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Engineering Services
Army Test and Evaluation Command Contracts
Cost Plus Fixed Fee Contracts
Engineering Services for Defense Systems

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Ambiguity in the service description ('IGF TEST SUPPORT SERVICES') hinders detailed value assessment.
Lack of specific bidder count limits analysis of competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.2 million to COMBINED TECHNICAL SERVICES, LLC. IGF::OT::IGF TEST SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is COMBINED TECHNICAL SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.2 million.

What is the period of performance?

Start: 2015-09-04. End: 2019-03-03.

What is the specific nature of the 'IGF TEST SUPPORT SERVICES' provided under this contract?

The provided data abbreviates the description as 'IGF::OT::IGF TEST SUPPORT SERVICES'. Without further context or access to the full contract details, the precise nature of these services remains ambiguous. 'IGF' could potentially refer to a specific program, system, or operational context within the Department of Defense. 'OT' might denote 'Other Transaction' or a similar classification. 'Test Support Services' broadly implies assistance with the planning, execution, analysis, or management of testing activities for military equipment, systems, or platforms. This could range from providing specialized personnel and equipment to conducting simulations, analyzing test data, or managing test facilities. A deeper dive into the contract's statement of work would be required for a definitive understanding.

How does the Cost Plus Fixed Fee (CPFF) structure impact the overall cost and risk for the government?

The Cost Plus Fixed Fee (CPFF) contract structure involves the government reimbursing the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used for research and development or complex services where the scope is not fully defined at the outset. For the government, the primary risk is cost overrun, as the contractor is incentivized to incur costs to perform the work, and the fixed fee remains constant regardless of the final cost. Effective oversight, stringent cost controls, and clear performance metrics are crucial to mitigate this risk and ensure the government receives value for money. The fixed fee provides some predictability for the contractor's profit, but the total cost to the government can fluctuate significantly.

What is the historical spending pattern for similar test support services within the Department of the Army?

Analyzing historical spending patterns for similar test support services within the Department of the Army requires access to comprehensive contract databases and the ability to filter by relevant NAICS codes (like 541330 for Engineering Services), contract types, and service descriptions. Without such specific data, it's difficult to provide a precise historical context for this $38.2 million contract. However, it is generally understood that the DoD, including the Army, consistently invests significant resources in test and evaluation to ensure the readiness and effectiveness of its platforms and systems. Spending in this area can fluctuate based on modernization programs, new system development, and sustainment requirements. Comparing this contract's value and duration to previous awards for comparable services would reveal trends in pricing, competition, and contractor performance over time.

What are the potential performance risks associated with Combined Technical Services, LLC for this contract?

Potential performance risks for Combined Technical Services, LLC on this $38.2 million contract are not explicitly detailed in the provided summary data. However, general risks inherent in large engineering support contracts include the contractor's ability to recruit and retain qualified personnel, manage complex project timelines, maintain quality standards, and adapt to evolving technical requirements. Given the Cost Plus Fixed Fee structure, there's also a risk related to cost management and adherence to budget constraints. The contractor's past performance record, if available, would offer more specific insights into their reliability and capability in delivering similar services. Effective government oversight is key to mitigating these potential risks.

How does the 'Delivery Order' award type influence the contract's structure and execution?

The award of this contract as a 'Delivery Order' suggests it was likely issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract or a similar master agreement. This structure allows the government to procure specific services or supplies as needed, up to a certain ceiling amount, by issuing individual orders. For this contract, the $38.2 million represents the total value or ceiling for the services to be delivered through this specific order. The advantage of the delivery order system is flexibility for the government, allowing them to adapt to changing needs without re-competing the entire requirement each time. It also implies that the initial competition likely occurred at the IDIQ level, with this delivery order being awarded based on pre-established terms and conditions.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9115112R0037

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Trax International Corporation

Address: 2500 LOUISIANA BLVD NE STE 325, ALBUQUERQUE, NM, 87110

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,475,542

Exercised Options: $49,475,542

Current Obligation: $38,192,538

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9115113D0005

IDV Type: IDC

Timeline