DoD Awards $235.5M Engineering Services Task Order to Adams Communication & Engineering Technology

Contract Overview

Contract Amount: $235,537,744 ($235.5M)

Contractor: Adams Communication & Engineering Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-09-13

End Date: 2018-04-30

Contract Duration: 1,690 days

Daily Burn Rate: $139.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Official Description: AWARD OF TASK ORDER 0007 (R23G-0624) PWS ENTITLED, SATURN ARCH&DESERT OWL.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $235.5 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. for work described as: AWARD OF TASK ORDER 0007 (R23G-0624) PWS ENTITLED, SATURN ARCH&DESERT OWL. Key points: 1. Significant award for engineering services, highlighting a substantial investment in specialized technical support. 2. Competition was full and open, suggesting a robust market for these services. 3. The contract type (Cost Plus Fixed Fee) can introduce cost escalation risks if not managed closely. 4. The sector is engineering services, crucial for infrastructure and defense projects.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type, while allowing flexibility, can lead to higher costs compared to fixed-price contracts if not meticulously managed. The final cost needs careful scrutiny against the value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely benefited from a market-driven price, though the CPFF structure warrants oversight.

Public Impact

Supports critical engineering and design functions for Department of Defense projects. The duration of the task order (over 4 years) indicates a long-term need for these services. Potential impact on military infrastructure development and readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type risk
Long contract duration may obscure current market rates

Positive Signals

Full and open competition
Awarded to established firm

Sector Analysis

Engineering services are vital for government infrastructure, defense, and research. This award falls within a sector that requires specialized expertise and often involves complex project management, with typical contract values varying widely based on scope.

Small Business Impact

The award was not made to a small business. Further analysis would be needed to determine if small businesses had adequate opportunity to participate in the subcontracting process.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates robust oversight to ensure costs are reasonable and allocable. The Department of the Army's contracting officers will be responsible for monitoring performance and expenditures.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Long contract duration
No small business set-aside indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $235.5 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC.. AWARD OF TASK ORDER 0007 (R23G-0624) PWS ENTITLED, SATURN ARCH&DESERT OWL.

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 $235.5 million.

What is the period of performance?

Start: 2013-09-13. End: 2018-04-30.

What was the specific scope of work for this task order, and how does it align with the fixed fee to ensure value?

The specific scope of work, detailed in the PWS, would define the engineering and design services required. The fixed fee is negotiated based on this scope. Ensuring the fee is reasonable requires comparing it to industry standards for similar services and assessing the complexity and risk involved. Without the PWS, a precise value assessment is difficult, but the fee should reflect the anticipated effort and expertise.

Given the CPFF structure, what mechanisms were in place to mitigate cost overruns and ensure efficient resource utilization?

Mitigation strategies for CPFF contracts typically include detailed cost accounting standards, regular audits, negotiation of ceiling prices for direct labor and indirect costs, and clear performance metrics. The contracting officer's vigilance in reviewing incurred costs, challenging unallowable expenses, and ensuring the contractor's management systems are effective are crucial. The number of modifications (4) could indicate potential scope changes or cost adjustments that require scrutiny.

How does the $235.5M award compare to similar engineering services contracts awarded by the DoD or other agencies for comparable projects?

Benchmarking this award requires comparing it against contracts for similar engineering services (e.g., architectural, design, project management) with comparable durations and complexity. Factors like geographic location, specific technical requirements (e.g., cybersecurity, environmental compliance), and the level of competition influence pricing. A preliminary assessment suggests it's a substantial award, but a detailed comparison with peer contracts is needed for a definitive value judgment.

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: $260,112,209

Exercised Options: $235,537,744

Current Obligation: $235,537,744

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD420

IDV Type: IDC

Timeline