DoD's $42.3M engineering services contract awarded to Imperatis Corp. for legacy project support

Contract Overview

Contract Amount: $42,297,458 ($42.3M)

Contractor: Imperatis Corp.

Awarding Agency: Department of Defense

Start Date: 2010-04-09

End Date: 2012-01-31

Contract Duration: 662 days

Daily Burn Rate: $63.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LEGACY PROJECT -A

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $42.3 million to IMPERATIS CORP. for work described as: LEGACY PROJECT -A Key points: 1. Contract value appears reasonable for specialized engineering services over a two-year period. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can introduce cost escalation risks. 4. Performance period of 662 days indicates a moderately long-term engagement. 5. The North American Industry Classification System (NAICS) code 541330 points to a focus on engineering services. 6. Awarded by the Department of Defense, indicating a focus on national security or defense-related infrastructure.

Value Assessment

Rating: good

The contract's total value of approximately $42.3 million for engineering services over 662 days appears within a reasonable range for complex defense projects. Benchmarking against similar engineering service contracts within the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, warrants scrutiny for potential cost overruns compared to fixed-price contracts. However, for specialized or R&D-intensive projects, CPFF can be appropriate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broad, specific sources may have been initially excluded before a wider solicitation. The presence of 'full and open' suggests that multiple bidders were likely considered, fostering price discovery. The number of bidders is not specified, but the process indicates an effort to achieve competitive pricing.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by encouraging multiple companies to bid, driving down costs and ensuring the government receives competitive pricing for essential services.

Public Impact

The Department of Defense benefits from specialized engineering expertise to support legacy projects. Services delivered likely include design, analysis, and technical support for existing defense systems or infrastructure. The geographic impact is primarily within the operational areas of the Department of Defense, potentially worldwide. Workforce implications include the employment of engineers and technical specialists by Imperatis Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to cost overruns if not managed diligently.
The 'after exclusion of sources' clause in the competition type warrants further investigation into the initial exclusion criteria.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The legacy nature of the project could imply aging technology or infrastructure, potentially increasing complexity and risk.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Imperatis Corp. secured the contract, suggesting they met the technical and capability requirements.
The contract duration of over 1.5 years allows for sustained support on the legacy project.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports various government agencies, particularly in defense, infrastructure, and research. The market size for engineering services supporting the federal government is substantial, with significant spending allocated annually to design, development, and technical consulting. This specific contract likely supports specialized defense engineering needs, fitting within a niche but vital segment of the sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Imperatis Corp., is likely a larger entity. The impact on the small business ecosystem would be indirect, potentially through competition with larger firms or opportunities if Imperatis subcontracts portions of the work, though this is not specified.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded in the contract's terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Engineering Services
Legacy System Modernization
Cost-Plus Contracts
Professional Services Contracts
Department of Defense Procurement

Risk Flags

Cost Plus Fixed Fee contract type
Legacy project complexity
Potential for cost overruns
Limited performance data provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.3 million to IMPERATIS CORP.. LEGACY PROJECT -A

Who is the contractor on this award?

The obligated recipient is IMPERATIS CORP..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $42.3 million.

What is the period of performance?

Start: 2010-04-09. End: 2012-01-31.

What is the track record of Imperatis Corp. in performing similar engineering services contracts for the Department of Defense?

Assessing Imperatis Corp.'s track record requires a deeper dive into their contract history beyond this single award. Key metrics to examine would include past performance evaluations on similar projects, any history of contract disputes or terminations, and their financial stability. A review of their portfolio would reveal their experience with legacy systems, the complexity of engineering challenges they have successfully navigated, and their ability to manage Cost Plus Fixed Fee contracts effectively. Without specific performance data on this contract or others, it's difficult to definitively gauge their expertise and reliability in this domain. Further investigation into their past performance ratings and client feedback would be necessary for a comprehensive assessment.

How does the $42.3 million contract value compare to similar engineering services contracts for legacy projects within the DoD?

Benchmarking this $42.3 million contract requires comparing it to other engineering services contracts awarded by the Department of Defense for similar legacy projects, considering factors like contract duration, scope of work, and complexity. If this contract spans approximately two years (662 days), the annual value is roughly $21 million. This figure should be compared against the average annual spend for comparable DoD engineering support contracts. If similar projects typically range from $15 million to $25 million annually, this contract would be considered within the expected range. Conversely, if comparable contracts are significantly lower or higher, it might indicate either exceptional value or potential overpricing. Detailed analysis of contract types (e.g., CPFF vs. FFP) and specific engineering disciplines involved is crucial for an accurate comparison.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this legacy project?

The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this legacy project is the potential for cost escalation. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' component means the government bears the risk of increased direct and indirect costs incurred by the contractor. For legacy projects, which can often involve unforeseen technical challenges, outdated documentation, or integration issues with existing systems, the likelihood of cost overruns is heightened. Effective oversight, stringent cost controls, and clear definition of allowable costs are critical to mitigate this risk. Without robust management, the total contract cost could significantly exceed the initial estimates, impacting the overall value for taxpayers.

How effective are the oversight mechanisms for this contract, given its legacy project nature?

The effectiveness of oversight for this contract hinges on the diligence of the Defense Contract Management Agency (DCMA) and the specific mechanisms implemented. For a legacy project, oversight must focus on verifying the necessity and allowability of costs, ensuring the contractor's technical approach is sound, and monitoring progress against milestones. Key oversight activities would include regular audits of contractor expenditures, technical reviews of engineering designs and analyses, and performance assessments. The CPFF structure necessitates particularly close scrutiny of the contractor's cost accounting and reporting. The effectiveness is also dependent on the clarity of the contract's Statement of Work (SOW) and the government's ability to define and measure success for a potentially complex and evolving legacy system.

What are the historical spending patterns for engineering services within the Department of Defense, and how does this contract fit?

The Department of Defense is consistently one of the largest federal agencies for procuring engineering services, driven by the need for research, development, design, and sustainment of complex military systems and infrastructure. Historical spending patterns show a significant and sustained investment in this sector, often exceeding tens of billions of dollars annually across various branches. This $42.3 million contract, while substantial in its own right, represents a small fraction of the DoD's overall engineering services budget. It fits within the broader category of support for existing or 'legacy' systems, a common and ongoing requirement for the DoD as it maintains and modernizes its vast array of assets. Such contracts are crucial for ensuring the operational readiness and longevity of defense capabilities.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2231 CRYSTAL DR, ARLINGTON, VA, 22202

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $47,165,871

Exercised Options: $47,165,871

Current Obligation: $42,297,458

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911QX07D0012

IDV Type: IDC

Timeline