DoD's $88M Combat Environment Simulation contract awarded to Jacobs Technology Inc. shows fair value with 32 bids

Contract Overview

Contract Amount: $88,076,788 ($88.1M)

Contractor: Jacobs Technology Inc

Awarding Agency: Department of Defense

Start Date: 2010-09-24

End Date: 2018-02-28

Contract Duration: 2,714 days

Daily Burn Rate: $32.5K/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 $88.1 million to JACOBS TECHNOLOGY INC for work described as: COMBAT ENVIRONMENT SIMULATION Key points: 1. The contract demonstrates a competitive bidding process, suggesting potential for good value. 2. Jacobs Technology Inc. has a track record with government contracts, indicating some level of performance reliability. 3. The cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns. 4. The duration of the contract (2714 days) suggests a long-term need for these simulation services. 5. The contract's focus on engineering services aligns with broader defense modernization efforts. 6. The geographic location in Florida may indicate specific training or operational needs.

Value Assessment

Rating: good

The contract's total value of approximately $88 million over its period of performance suggests a significant investment in simulation capabilities. While a direct per-unit cost comparison is difficult without more granular data on the specific simulation services provided, the presence of 32 bids indicates a competitive market. This level of competition generally pressures pricing towards market rates, implying a reasonable value proposition for the government. The cost-plus-fixed-fee (CPFF) contract type, however, requires careful oversight to ensure costs remain controlled and the fixed fee remains appropriate for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 32 bids received. This indicates a robust and healthy competitive environment for combat environment simulation services. The high number of bidders suggests that multiple firms possess the capabilities to meet the Department of the Navy's requirements, which typically leads to more favorable pricing and innovative solutions for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive pricing for essential simulation services.

Public Impact

The Department of Defense benefits through enhanced training capabilities for personnel operating in simulated combat environments. Advanced simulation services are delivered, improving readiness and reducing risks associated with live training exercises. The primary geographic impact is within the Department of the Navy's operational and training infrastructure, likely concentrated in Florida. The contract supports a workforce of engineers and technical specialists involved in developing and maintaining simulation systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs to maximize their fee, requiring diligent oversight.
The long contract duration (2714 days) increases the risk of scope creep or evolving technological requirements not being fully addressed.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's actual performance quality.
The absence of small business subcontracting data raises questions about opportunities for smaller firms in this large contract.

Positive Signals

Awarded under full and open competition with 32 bids, indicating a strong market and likely competitive pricing.
The contractor, Jacobs Technology Inc., has prior experience with government contracts, suggesting familiarity with requirements and processes.
The contract addresses a critical need for advanced simulation, directly supporting military readiness and training effectiveness.
The engineering services provided are essential for maintaining and updating complex simulation systems.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for simulation and training systems is substantial, driven by the continuous need for military readiness and technological advancement. This contract represents a significant portion of spending within this niche, supporting the development and maintenance of sophisticated combat simulation environments. Comparable spending benchmarks would typically involve other large-scale simulation and training contracts awarded by various branches of the military.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or performance. This suggests that opportunities for small businesses may be limited to direct subcontracting roles, if any, awarded by the prime contractor, Jacobs Technology Inc. Further investigation into subcontracting goals and achievements would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee remains justified. Transparency is facilitated through contract award databases, but detailed performance reports and audits would be managed internally by the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Training Simulation Systems
Engineering and Technical Services
Department of Defense Simulation and Training Programs
Combat Systems Development
Virtual and Constructive Simulation

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration increases risk of scope creep and technological obsolescence.
Lack of specific performance metrics hinders detailed value assessment.
No explicit small business subcontracting information provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.1 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 $88.1 million.

What is the period of performance?

Start: 2010-09-24. End: 2018-02-28.

What is the track record of Jacobs Technology Inc. with similar Department of Defense contracts?

Jacobs Technology Inc. has a substantial history of performing contracts for the Department of Defense across various agencies and service branches. Their portfolio often includes engineering, technical support, base operations, and facility management services. While specific details on past simulation-related contracts require deeper database searches, their consistent presence as a prime contractor suggests a capacity to manage complex, large-scale government projects. Past performance reviews and contract close-out data would provide a more granular understanding of their reliability, cost control, and adherence to schedule on similar endeavors. However, their continued awards indicate a generally satisfactory performance history in the eyes of the DoD.

How does the awarded amount compare to similar combat environment simulation contracts?

Comparing the $88 million award for combat environment simulation requires identifying contracts with similar scope, duration, and technological complexity. Contracts for developing and maintaining large-scale, immersive simulation systems can range widely. A contract of this magnitude, awarded over a period of approximately 7.4 years (2714 days), suggests a significant investment. Benchmarking against other DoD simulation contracts awarded within the last five years, particularly those focused on virtual combat environments or advanced training simulators, would provide context. Without access to specific details of the services rendered and the technological sophistication, a precise value-for-money assessment is challenging. However, the 32 bids received suggest market competitiveness, which typically aligns pricing with industry standards.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for simulation services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for the contractor to increase costs, as their fixed fee is calculated as a percentage of the allowable costs. This can incentivize less stringent cost control than in fixed-price contracts. For simulation services, risks also include the potential for scope creep, where requirements evolve beyond the initial agreement, leading to cost increases and potential delays. Technological obsolescence is another concern, as simulation technology advances rapidly; a long-duration contract might require significant updates. Ensuring the 'fixed fee' remains appropriate for the actual work performed and that robust oversight is in place to scrutinize all costs are critical mitigation strategies for the government.

How effective are combat environment simulations in improving military readiness?

Combat environment simulations are widely recognized as highly effective tools for improving military readiness. They allow personnel to train in realistic, yet safe, scenarios that replicate the complexities and stresses of actual combat operations. This provides opportunities for practicing tactics, improving decision-making under pressure, and enhancing team coordination without the risks and costs associated with live-fire exercises. Simulations can expose trainees to a wider range of environments and threat types than might be feasible in physical training. While simulations cannot fully replicate the visceral experience of combat, they offer a scalable, repeatable, and cost-effective method for developing critical skills and refining operational procedures, thereby significantly contributing to overall force preparedness.

What has been the historical spending trend for combat environment simulation services by the Department of the Navy?

Historical spending trends for combat environment simulation services by the Department of the Navy indicate a consistent and often increasing investment in these capabilities. Driven by evolving threats, the need for advanced training, and technological advancements, the Navy has allocated significant funds towards developing, acquiring, and maintaining sophisticated simulation and training systems. This includes investments in virtual reality, augmented reality, and complex constructive simulations. Analyzing spending data over the past decade would likely reveal a pattern of sustained or growing expenditure, reflecting the strategic importance placed on simulation as a force multiplier for training and operational readiness. Specific figures would require detailed analysis of historical contract awards and budget allocations.

What are the implications of awarding a large simulation contract in Florida?

Awarding a large simulation contract in Florida, such as this one to Jacobs Technology Inc., has several implications. Florida has a significant military presence and a growing defense industry, making it a strategic location for such contracts. This award likely stimulates the local economy through job creation in engineering, technical support, and related fields. It may also foster collaboration with local universities and research institutions specializing in simulation technology. Furthermore, the concentration of such contracts in a specific geographic area can lead to the development of specialized expertise and a robust ecosystem of supporting businesses within the region, potentially enhancing the state's position as a hub for defense simulation and training.

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: $88,490,497

Exercised Options: $88,490,497

Current Obligation: $88,076,788

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $14,879,489

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