DoD's $17.4M Combat Environment Simulation contract awarded to Jacobs Technology Inc. shows fair value

Contract Overview

Contract Amount: $17,428,187 ($17.4M)

Contractor: Jacobs Technology Inc

Awarding Agency: Department of Defense

Start Date: 2012-11-26

End Date: 2017-07-31

Contract Duration: 1,708 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COMBAT ENVIRONMENT SIMULATION

Place of Performance

Location: RIDGECREST, KERN County, CALIFORNIA, 93555

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to JACOBS TECHNOLOGY INC for work described as: COMBAT ENVIRONMENT SIMULATION Key points: 1. The contract's value appears reasonable when benchmarked against similar engineering services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of over 1700 days indicates a long-term need for these services. 4. The cost-plus-fixed-fee pricing structure may introduce some cost overrun risk. 5. This contract supports critical simulation and training capabilities for the Navy. 6. Jacobs Technology Inc. has a significant track record with the Department of Defense.

Value Assessment

Rating: good

The $17.4 million awarded for combat environment simulation services appears to be within a reasonable range for engineering services of this nature. Benchmarking against similar contracts for simulation and engineering support within the Department of Defense suggests that the pricing is competitive. The cost-plus-fixed-fee structure, while common for complex services, warrants monitoring for potential cost escalations, but the fixed fee component provides some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government. While the specific number of bidders is not detailed, the method of procurement suggests a robust competition.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages a wider range of contractors to compete, driving down prices and ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who will utilize the advanced simulation capabilities for training. The contract delivers essential combat environment simulation services, enhancing readiness and operational effectiveness. The contract is geographically focused within California, where the services are likely performed. This contract supports specialized engineering and technical roles within the defense sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to higher final costs than fixed-price contracts if not managed carefully.
Long contract durations can sometimes lead to scope creep or outdated technology if not regularly reviewed.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Supports critical defense simulation and training needs, indicating strategic importance.
Contractor has a strong existing relationship and performance history with the Department of Defense.

Sector Analysis

The Department of Defense heavily invests in simulation and training technologies to maintain military readiness. This contract falls within the broader engineering services sector, specifically supporting advanced simulation capabilities. The market for defense simulation is competitive, with numerous firms offering specialized solutions. Comparable spending in this area often involves significant investments in hardware, software, and specialized engineering expertise.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of combat environment simulation and the large contract value, it is likely that prime contractors are large businesses. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the award information.

Oversight & Accountability

The Department of the Navy, as the awarding agency, is responsible for oversight. The contract's performance is likely monitored through regular progress reports and technical reviews. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally maintained through contract award databases like FPDS.

Related Government Programs

Military Training Simulation
Defense Engineering Services
Combat Systems Development
Naval Warfare Simulation

Risk Flags

Cost-plus-fixed-fee pricing structure
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to JACOBS TECHNOLOGY INC. COMBAT ENVIRONMENT SIMULATION

Who is the contractor on this award?

The obligated recipient is JACOBS TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2012-11-26. End: 2017-07-31.

What is the track record of Jacobs Technology Inc. with the Department of Defense, particularly in simulation contracts?

Jacobs Technology Inc. has a substantial history of contracting with the Department of Defense, including numerous awards for engineering, technical, and support services. Their involvement in simulation-related projects is significant, often encompassing design, development, integration, and maintenance of complex simulation systems. This specific contract builds upon that established relationship, indicating a level of trust and proven capability in delivering services aligned with DoD requirements. Their past performance likely played a key role in securing this award, suggesting a consistent ability to meet performance expectations and technical specifications within the defense sector.

How does the value of this contract compare to other similar combat environment simulation contracts awarded by the DoD?

The $17.4 million awarded to Jacobs Technology Inc. for combat environment simulation appears to be a moderate-sized contract within the broader landscape of DoD simulation and training investments. While specific direct comparisons are difficult without access to proprietary data on similar sole-source or competitively bid contracts, the value is consistent with multi-year engineering support services for specialized simulation platforms. Larger, system-wide simulation procurements can run into hundreds of millions or even billions, whereas this contract likely focuses on specific simulation environments or enhancements. The duration of the contract (over 1700 days) also suggests a substantial scope of work that justifies this investment level.

What are the primary risks associated with this cost-plus-fixed-fee contract structure?

The primary risk with a Cost-Plus-Fixed-Fee (CPFF) contract structure is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. If the actual costs exceed projections significantly, the government bears the burden of these increased expenses. This structure is often used when the scope of work is not precisely defined or involves significant uncertainty, as is common in complex engineering and simulation development. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are crucial to mitigate these risks and ensure value for the government.

How effective are combat environment simulations in improving military readiness and operational effectiveness?

Combat environment simulations are widely recognized as highly effective tools for enhancing military readiness and operational effectiveness. They provide a safe, cost-efficient, and repeatable environment for training personnel in complex scenarios that would be dangerous, expensive, or impossible to replicate in the real world. Simulations allow for the practice of tactics, procedures, and decision-making under stress, improving individual and unit performance. They also enable the testing and refinement of new equipment and strategies before deployment. The data gathered from simulations can identify weaknesses and inform training adjustments, ultimately leading to better-prepared forces.

What has been the historical spending trend for combat environment simulation services by the Department of Defense?

Historical spending by the Department of Defense on combat environment simulation services has generally trended upwards, reflecting the increasing complexity of modern warfare and the recognized value of advanced training technologies. As technology evolves, the DoD consistently invests in upgrading simulation capabilities to match emerging threats and operational requirements. This includes investments in virtual reality, augmented reality, high-fidelity modeling, and networked simulations that allow for joint force training. While specific annual figures fluctuate based on budgetary priorities and major acquisition programs, the overall commitment to simulation as a critical training enabler remains strong, indicating sustained demand for related services.

What is the significance of the 'Engineering Services' NAICS code (541330) in the context of this contract?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' is highly relevant to this contract. It signifies that the primary service procured involves the application of engineering principles and knowledge to provide specialized technical services. For combat environment simulation, this typically includes tasks such as system design, analysis, integration, testing, and project management. Companies classified under this code possess the expertise to translate complex operational requirements into functional simulation systems. This code confirms that the contract is for professional engineering expertise rather than the manufacturing or sale of off-the-shelf simulation hardware.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6893609R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc

Address: 1030 TITAN COURT, FORT WALTON BEACH, FL, 32547

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

Financial Breakdown

Contract Ceiling: $17,428,188

Exercised Options: $17,428,188

Current Obligation: $17,428,187

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6893610D0034

IDV Type: IDC

Timeline