DoD's Army awards $32M for Satellite Systems SETA Support to MAG DS CORP
Contract Overview
Contract Amount: $31,995,382 ($32.0M)
Contractor: MAG DS Corp
Awarding Agency: Department of Defense
Start Date: 2015-02-05
End Date: 2017-06-06
Contract Duration: 852 days
Daily Burn Rate: $37.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::CL,CT::IGF PRODUCT MANAGER WIDEBAND ENTERPRISE SATELLITE SYSTEMS (PDM WESS) SYSTEMS ENGINEERING TECHNICAL ASSISTANCE (SETA) SUPPORT
Place of Performance
Location: TINTON FALLS, MONMOUTH County, NEW JERSEY, 07724
Plain-Language Summary
Department of Defense obligated $32.0 million to MAG DS CORP for work described as: IGF::CL,CT::IGF PRODUCT MANAGER WIDEBAND ENTERPRISE SATELLITE SYSTEMS (PDM WESS) SYSTEMS ENGINEERING TECHNICAL ASSISTANCE (SETA) SUPPORT Key points: 1. Contract awarded to MAG DS CORP for $31.99M. 2. Services include Systems Engineering Technical Assistance (SETA) for Wideband Enterprise Satellite Systems. 3. The contract was awarded under full and open competition. 4. This falls under Engineering Services sector, NAICS 541330. 5. Contract duration was 852 days.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. The awarded amount of $31.99M for 852 days suggests a significant investment in specialized engineering support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a broad search for qualified vendors. This method generally promotes competitive pricing and allows the government to select the best value.
Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for essential satellite systems engineering support.
Public Impact
Ensures continued operation and development of critical Wideband Enterprise Satellite Systems. Supports the Department of the Army's communication and intelligence capabilities. The SETA support is vital for technical oversight and risk management in complex satellite programs. Impacts national security by maintaining robust satellite communication infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize contractor to increase costs.
- Long contract duration may indicate complexity or potential for scope creep.
Positive Signals
- Full and open competition ensures market best practices.
- SETA support is crucial for technical program success.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting complex satellite systems. Spending benchmarks for SETA support can vary widely based on system complexity and program phase, but $32M over nearly two years indicates a substantial and critical program.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to MAG DS CORP, a large business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The award was made by the Department of the Army, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring adherence to contract terms and performance standards.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Lack of transparency on small business participation.
- Contract duration may indicate long-term dependency.
- Complexity of satellite systems requires continuous, high-level oversight.
Tags
engineering-services, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.0 million to MAG DS CORP. IGF::CL,CT::IGF PRODUCT MANAGER WIDEBAND ENTERPRISE SATELLITE SYSTEMS (PDM WESS) SYSTEMS ENGINEERING TECHNICAL ASSISTANCE (SETA) SUPPORT
Who is the contractor on this award?
The obligated recipient is MAG DS CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $32.0 million.
What is the period of performance?
Start: 2015-02-05. End: 2017-06-06.
What was the specific technical scope of the SETA support provided, and how did it contribute to the overall success of the Wideband Enterprise Satellite Systems program?
The SETA support likely encompassed a range of technical advisory services, including system design review, risk assessment, technical evaluation of contractor proposals, and independent verification and validation. This expertise is crucial for ensuring the satellite systems meet stringent performance requirements, remain within budget, and are delivered on schedule, ultimately contributing to the program's success by providing objective technical guidance to the government.
Given the CPFF contract type, what mechanisms were in place to control costs and ensure the government received good value for the $31.99M expenditure?
Cost Plus Fixed Fee contracts require robust oversight to manage costs. Mechanisms likely included detailed cost tracking, regular audits, performance metrics tied to fee determination, and clear definition of allowable costs. The government would have actively monitored expenditures against the fixed fee, ensuring the contractor remained efficient and avoided unnecessary costs to maximize their fee.
How did the full and open competition process ensure that MAG DS CORP's proposal represented the best technical and cost solution for the Army's satellite systems needs?
Full and open competition allowed multiple qualified vendors to submit proposals, fostering a competitive environment. The Army would have evaluated proposals based on predefined criteria, likely including technical approach, past performance, and price. By comparing these elements across all bidders, the Army could identify the offer that provided the best overall value, ensuring that MAG DS CORP's selection was justified by superior technical merit and competitive pricing.
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1 RADAR WAY, TINTON FALLS, NJ, 07724
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,194,603
Exercised Options: $37,194,603
Current Obligation: $31,995,382
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T10DD421
IDV Type: IDC
Timeline
Start Date: 2015-02-05
Current End Date: 2017-06-06
Potential End Date: 2017-06-06 12:06:00
Last Modified: 2025-06-23
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