DoD awards $221M engineering services contract to VIATECH, INC. for 4 years

Contract Overview

Contract Amount: $221,351,068 ($221.4M)

Contractor: Viatech, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-02-27

End Date: 2012-02-12

Contract Duration: 1,446 days

Daily Burn Rate: $153.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: AWARD OF NEW TASK ORDER

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $221.4 million to VIATECH, INC. for work described as: AWARD OF NEW TASK ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Task order awarded for engineering services, a critical component of defense operations. 3. Contract duration of approximately 4 years indicates a significant, long-term need. 4. Awarded by the Defense Contract Management Agency, highlighting a focus on defense procurement. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparison to similar engineering service contracts within the Department of Defense. The total award amount of over $221 million for a four-year period suggests a substantial investment. Without specific deliverables or performance metrics, it is difficult to definitively assess value for money. However, the use of Time and Materials pricing could lead to cost overruns if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific task order. While competition is generally positive, the exact number of bidders does not always correlate directly with the best price or value without further analysis of the proposals submitted.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Department of Defense, which receives essential engineering services. Services delivered likely include design, analysis, testing, and technical support for defense systems. The geographic impact is centered in New Jersey, where VIATECH, INC. is located. Workforce implications include employment opportunities for engineers and technical staff at VIATECH, INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure.
Limited insight into the specific engineering challenges and solutions required.
Dependence on a single contractor for a significant duration could pose supply chain risks if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
VIATECH, INC. is a known entity within the defense contracting space.
The contract duration suggests a stable and predictable need for these services.

Sector Analysis

Engineering services represent a significant segment of the federal contracting market, particularly within the defense sector. Companies providing these services are crucial for the development, maintenance, and modernization of military systems and infrastructure. The total federal spending on engineering services can reach billions annually, with the Department of Defense being a major client. This contract fits within the broader landscape of specialized technical support required by government agencies.

Small Business Impact

The provided data indicates that small business participation was not a primary focus for this specific award, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting goals for small businesses within this data. Therefore, the direct impact on the small business ecosystem from this particular contract appears limited, though VIATECH, INC. may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet performance and cost requirements. Accountability measures are embedded in the contract terms and conditions, including delivery schedules and quality standards. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Department of Defense IT Services
Military Construction Support
Aerospace Engineering Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition indicated by only two bidders.
Lack of specific performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $221.4 million to VIATECH, INC.. AWARD OF NEW TASK ORDER

Who is the contractor on this award?

The obligated recipient is VIATECH, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $221.4 million.

What is the period of performance?

Start: 2008-02-27. End: 2012-02-12.

What is VIATECH, INC.'s track record with the Department of Defense and other federal agencies?

VIATECH, INC. has a history of contracting with the Department of Defense, as evidenced by this award. To fully assess their track record, a deeper dive into their past performance on similar contracts would be necessary. This would involve reviewing past performance evaluations, any documented issues or disputes, and their overall success rate in delivering on previous government contracts. Examining their contract history across different agencies could also reveal patterns in their service delivery and reliability. Without access to specific past performance reports, it's challenging to provide a definitive assessment beyond acknowledging their existing relationship with the DoD.

How does the $221 million award compare to similar engineering service contracts awarded by the DoD?

The $221 million award for engineering services over approximately four years is a substantial contract. To benchmark its value, it would need to be compared against other large-scale engineering service contracts awarded by the Department of Defense or other federal agencies for similar scope and duration. Factors such as the specific type of engineering (e.g., mechanical, electrical, civil), the complexity of the projects, and the required expertise would influence pricing. A comparison would ideally involve looking at per-year costs, average labor rates, and the overall cost-effectiveness of similar procurements to determine if this award represents a competitive price point for the services rendered.

What are the primary risks associated with this Time and Materials (T&M) contract?

The primary risk associated with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If not managed diligently, this structure can incentivize longer project durations or less efficient work, as the contractor is compensated for hours worked. For the government, this necessitates robust oversight to monitor labor hours, material costs, and overall project progress to ensure that costs remain reasonable and that the project is completed efficiently. Without strong controls, the total cost can exceed initial estimates significantly.

What is the expected effectiveness of the engineering services provided under this contract?

The effectiveness of the engineering services provided under this contract will depend heavily on the specific tasks outlined in the statement of work and the performance of VIATECH, INC. As an engineering services contract for the Department of Defense, the expected effectiveness likely relates to the successful design, development, testing, or sustainment of defense systems, infrastructure, or technologies. Key performance indicators (KPIs) and deliverables stipulated in the contract will be crucial for measuring effectiveness. A successful outcome would mean that the engineering solutions provided meet the technical requirements, are delivered on time and within budget, and contribute to the overall mission objectives of the DoD.

How has federal spending on engineering services evolved over the past five years, and where does this contract fit?

Federal spending on engineering services has generally remained robust, particularly within the defense and infrastructure sectors, often fluctuating based on national priorities and budget allocations. Over the past five years, there has been a consistent demand for specialized engineering expertise to support modernization efforts, research and development, and large-scale projects. This $221 million contract for engineering services awarded to VIATECH, INC. by the Department of Defense represents a significant, albeit specific, allocation within this broader spending category. It aligns with the trend of the DoD outsourcing complex engineering tasks to specialized contractors to leverage expertise and manage workload.

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: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: D & S Consultants Inc. (UEI: 792244097)

Address: 615 HOPE RD STE 3A, EATONTOWN, NJ, 07724

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $277,937,173

Exercised Options: $221,351,068

Current Obligation: $221,351,068

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE407

IDV Type: IDC

Timeline