DoD's $11.7M engineering support contract awarded to Viatech, Inc. shows fair value with 2 bidders

Contract Overview

Contract Amount: $11,756,388 ($11.8M)

Contractor: Viatech, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-03-14

End Date: 2012-09-30

Contract Duration: 1,661 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: ENGINEERING AND CREATIVE SERVICES SUPPORT FOR PEO IEW&S

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to VIATECH, INC. for work described as: ENGINEERING AND CREATIVE SERVICES SUPPORT FOR PEO IEW&S Key points: 1. Contract awarded via full and open competition, indicating a competitive marketplace. 2. Delivery order under a larger IDIQ contract, suggesting potential for follow-on work. 3. Time and Materials contract type carries inherent risk of cost overruns. 4. Performance period of 1661 days (approx. 4.5 years) indicates a significant, long-term need. 5. Contract value of $11.7M falls within a moderate spending range for engineering services. 6. No small business set-aside, suggesting the primary contract vehicle may not prioritize small businesses.

Value Assessment

Rating: good

The contract value of $11.7M for engineering and creative services over approximately 4.5 years appears reasonable given the scope. Benchmarking against similar PEO IEW&S support contracts suggests pricing is within expected ranges. The Time and Materials (T&M) pricing structure, while common for evolving requirements, warrants close monitoring to ensure cost efficiency and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple vendors were eligible to bid. The presence of two bidders indicates a moderate level of competition for this specific delivery order. While two bidders are better than one, a higher number of bids typically leads to more aggressive pricing and better value for the government.

Taxpayer Impact: The full and open competition with two bidders suggests that taxpayers received a fair price, though potentially not the absolute lowest possible if more vendors had participated.

Public Impact

Provides critical engineering and creative services to the Program Executive Office for Intelligence, Electronic Warfare, and Sensors (PEO IEW&S). Supports the development and sustainment of advanced intelligence, electronic warfare, and sensor systems for the Department of Defense. Impacts national security by ensuring the readiness and technological superiority of military assets. Likely involves a skilled workforce of engineers, designers, and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Limited competition (2 bidders) may have resulted in a higher price than a more robust competition.
The specific nature of 'creative services' alongside engineering could introduce scope ambiguity.

Positive Signals

Awarded under a full and open competition, ensuring a broad base of potential offerors.
Long performance period suggests a stable, ongoing requirement and potential for contractor stability.
Supports a critical PEO within the Department of the Army, indicating high strategic importance.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader defense industrial base. The market for defense engineering support is substantial, with numerous firms specializing in areas like electronic warfare and sensor technology. Spending in this category is often driven by the need for technological advancement and system sustainment. Comparable contracts often involve complex system integration, research, and development support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contract vehicle under which this delivery order was issued may not have specific small business set-aside provisions, or that larger businesses were deemed more capable or competitive for this particular requirement. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices within PEO IEW&S. The Time and Materials nature of the contract necessitates rigorous oversight of labor hours and material costs to ensure value. Inspector General (IG) jurisdiction would apply in cases of suspected fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

PEO IEW&S Contracts
Department of the Army Engineering Services
Intelligence, Electronic Warfare, and Sensors Support
Defense IDIQ Contracts
Time and Materials Contracts

Risk Flags

Time and Materials Contract Type
Limited Competition (2 Bidders)
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to VIATECH, INC.. ENGINEERING AND CREATIVE SERVICES SUPPORT FOR PEO IEW&S

Who is the contractor on this award?

The obligated recipient is VIATECH, 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 $11.8 million.

What is the period of performance?

Start: 2008-03-14. End: 2012-09-30.

What is the track record of Viatech, Inc. with the Department of Defense, particularly in engineering and sensor support?

Viatech, Inc. has a history of contracting with the Department of Defense, including various agencies within the Army. Their experience often encompasses engineering services, technical support, and program management, aligning with the requirements of this contract. Analyzing their past performance on similar contracts, including on-time delivery, quality of work, and adherence to budget, would provide further insight into their capabilities and reliability. Specific details on past performance ratings and any significant issues encountered would be crucial for a comprehensive assessment. Their presence in the Maryland (MD) region, a hub for defense contracting, suggests established relationships and familiarity with the DoD's operational environment.

How does the $11.7M value compare to similar engineering support contracts for PEO IEW&S or equivalent programs?

The $11.7M contract value for approximately 4.5 years of engineering and creative services support for PEO IEW&S appears to be within a moderate range for such specialized defense support. Contracts for similar PEOs or programs focused on intelligence, electronic warfare, and sensors can range from a few million to tens or even hundreds of millions of dollars, depending on the complexity, duration, and specific deliverables. Factors like the number of personnel required, the level of technical expertise, and the criticality of the systems being supported influence the overall cost. Given that this was a delivery order under a larger IDIQ, the pricing is likely benchmarked against the ceiling rates established in the parent contract, which itself would have undergone some form of competition.

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

The primary risk with a Time and Materials (T&M) contract, especially one valued at $11.7M over 1661 days, is the potential for cost escalation and lack of defined scope. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and material costs incurred. This structure can incentivize longer task durations or less efficient work if not meticulously managed. For the government, risks include difficulty in predicting the final cost, potential for scope creep where requirements expand without formal change orders, and the burden of ensuring contractor efficiency. Robust oversight, detailed tracking of hours and materials, and clear communication channels are essential to mitigate these risks and ensure value for taxpayer money.

What does the competition level (2 bidders) imply about the effectiveness of the procurement process for this contract?

A competition level of two bidders suggests a moderately competitive procurement process. While it indicates that the requirement was not a sole-source award and that multiple entities were interested and capable, it falls short of the robust competition typically desired to ensure the best possible pricing and value. A higher number of bidders (e.g., 3-5 or more) generally leads to more aggressive proposals and greater downward pressure on prices. The effectiveness here is fair; the government likely received a reasonable price, but there's a possibility that a more open competition could have yielded even greater savings for taxpayers. The specific nature of the services and the availability of qualified contractors in the market also play a role in the number of bids received.

How does this contract fit into the broader spending patterns for Engineering Services within the Department of Defense?

This $11.7M contract represents a segment of the significant spending within the Department of Defense (DoD) on engineering services. The DoD is a major consumer of engineering expertise, covering everything from basic research and development to complex system design, integration, testing, and sustainment. Engineering Services (NAICS code 541330) are crucial for maintaining technological superiority and ensuring the effectiveness of military platforms. Spending in this category fluctuates based on modernization priorities, threat assessments, and specific program needs. This contract, supporting PEO IEW&S, aligns with the DoD's ongoing investment in advanced intelligence gathering, electronic warfare capabilities, and sensor technologies, reflecting a consistent pattern of allocating substantial resources to these critical areas.

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.

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: $16,780,538

Exercised Options: $11,756,388

Current Obligation: $11,756,388

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE407

IDV Type: IDC

Timeline