DoD Awards $319M for Constant Hawk & TACOP Operations Continuation

Contract Overview

Contract Amount: $318,968,501 ($319.0M)

Contractor: Adams Communication & Engineering Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-20

End Date: 2017-05-31

Contract Duration: 1,714 days

Daily Burn Rate: $186.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AWARD OF TASK ORDER 0004 (R2 3G-0533) PWS TITLED, "CONTINUATION OF OPERATIONS FOR CONSTANT HAWK (CH) AND TACTICAL OPERATIONS (TACOP)."

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $319.0 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. for work described as: AWARD OF TASK ORDER 0004 (R2 3G-0533) PWS TITLED, "CONTINUATION OF OPERATIONS FOR CONSTANT HAWK (CH) AND TACTICAL OPERATIONS (TACOP)." Key points: 1. Significant contract value for ongoing defense operations. 2. Competition was full and open, suggesting market engagement. 3. Risk is moderate due to long duration and cost-plus structure. 4. Engineering services sector, critical for military readiness.

Value Assessment

Rating: good

The contract value of $319M over 1714 days (approx. $186K/day) appears reasonable for complex engineering services supporting critical defense systems. Benchmarking against similar long-term, specialized defense contracts would provide further context.

Cost Per Unit: $186,096

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing compared to limited or sole-source procurements.

Taxpayer Impact: Taxpayer funds are being utilized for essential defense operations, with competition aiming to ensure value for money.

Public Impact

Ensures continued operational capability for critical military surveillance and tactical systems. Supports advanced engineering and technical services for national security. Potential for technological advancements stemming from ongoing R&D and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus fixed fee structure can incentivize cost overruns.
Long contract duration increases risk of scope creep and price escalation.
Reliance on a single awardee for critical operations.

Positive Signals

Full and open competition promotes market efficiency.
Supports essential defense capabilities.
Clear performance period defined.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications. Spending in this area is driven by national security needs and technological advancements in military operations.

Small Business Impact

The awardee, Adams Communication & Engineering Technology, Inc., is not indicated as a small business. This contract does not appear to have specific set-asides for small businesses.

Oversight & Accountability

The Department of the Army awarded this task order, implying oversight by the contracting agency. Further oversight would involve performance monitoring and financial audits throughout the contract's life.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost-plus fixed fee contract type.
Long contract duration (1714 days).
Critical system support reliance.
Potential for scope creep.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $319.0 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC.. AWARD OF TASK ORDER 0004 (R2 3G-0533) PWS TITLED, "CONTINUATION OF OPERATIONS FOR CONSTANT HAWK (CH) AND TACTICAL OPERATIONS (TACOP)."

Who is the contractor on this award?

The obligated recipient is ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $319.0 million.

What is the period of performance?

Start: 2012-09-20. End: 2017-05-31.

What specific engineering services are included under "Continuation of Operations for Constant Hawk (CH) and Tactical Operations (TACOP)?"

The PWS details the continuation of operations for the Constant Hawk (CH) and Tactical Operations (TACOP) systems. This likely encompasses a range of engineering services such as system maintenance, upgrades, technical support, logistics, and potentially software development or integration to ensure these critical defense platforms remain operational and effective.

How does the cost-plus fixed fee (CPFF) structure impact cost control for this $319M contract?

The CPFF structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it incentivizes the contractor to complete the work, it can also reduce the incentive for cost efficiency, as the fee remains constant regardless of the final cost. This necessitates robust government oversight to manage costs and prevent overruns.

What is the long-term strategic value of maintaining the Constant Hawk and TACOP systems through this contract?

Maintaining these systems is crucial for the Department of Defense's intelligence, surveillance, and reconnaissance (ISR) capabilities. The Constant Hawk and TACOP platforms likely provide essential real-time data and situational awareness for tactical operations, directly impacting mission success and soldier safety. Continued operational readiness ensures the military can effectively execute its missions.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10740 PARKRIDGE BLVD STE 700, RESTON, VA, 20191

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $318,968,501

Exercised Options: $318,968,501

Current Obligation: $318,968,501

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD420

IDV Type: IDC

Timeline