DoD's $17.6M Tactical Information System Enhancement Contract Awarded to Viatech Inc
Contract Overview
Contract Amount: $17,598,170 ($17.6M)
Contractor: Viatech, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-08-18
End Date: 2012-11-16
Contract Duration: 1,186 days
Daily Burn Rate: $14.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TACTICAL INFORMATION SYSTEM ENHANCEMENT RESEARCH & OPERATIONS
Place of Performance
Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724
Plain-Language Summary
Department of Defense obligated $17.6 million to VIATECH, INC. for work described as: TACTICAL INFORMATION SYSTEM ENHANCEMENT RESEARCH & OPERATIONS Key points: 1. Contract value of $17.6 million for research and operations. 2. Awarded under full and open competition. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure. 4. The sector is Defense, specifically engineering services.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure suggests potential for cost growth, making direct pricing comparisons challenging without detailed cost breakdowns. The fixed fee component provides some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, though the CPFF structure warrants monitoring for cost efficiency.
Public Impact
Enhances tactical information systems crucial for military operations. Supports the Department of Defense's technological capabilities. The research and operations aspect may lead to future technological advancements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns.
- Long contract duration (1186 days) increases exposure to changing requirements and costs.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Contract supports critical defense information systems.
Sector Analysis
This contract falls within the Engineering Services sector for the Department of Defense. Benchmarks for similar R&D or system enhancement contracts in defense can vary widely based on complexity and technology.
Small Business Impact
The data does not indicate if small businesses were involved in the subcontracting process. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Awarded by the Defense Contract Management Agency, suggesting oversight is in place. However, the CPFF structure requires diligent monitoring to ensure cost control and value for money.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration.
- Potential for cost overruns.
- Lack of specific small business participation data.
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 $17.6 million to VIATECH, INC.. TACTICAL INFORMATION SYSTEM ENHANCEMENT RESEARCH & OPERATIONS
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 $17.6 million.
What is the period of performance?
Start: 2009-08-18. End: 2012-11-16.
What was the final cost compared to the initial estimate, and how did the fixed fee component influence the contractor's performance?
Without access to the final cost data and a detailed breakdown of the fixed fee, it's difficult to assess the ultimate value. The CPFF structure incentivizes cost incurrence up to a point, with the fixed fee representing the contractor's profit. Effective oversight would focus on ensuring costs were reasonable and allocable to the contract.
What specific risks were identified during the contract's lifecycle, and how were they mitigated, particularly concerning the CPFF structure?
Potential risks include scope creep, cost overruns beyond the target cost, and contractor inefficiencies. Mitigation strategies would involve robust contract surveillance, regular performance reviews, and strict adherence to the contract's terms and conditions, especially regarding cost allowability and reasonableness.
How effectively did the competitive bidding process translate into cost savings or superior technical solutions for the DoD?
Full and open competition generally leads to better price discovery. However, the CPFF structure means the government bears the cost risk. Assessing effectiveness requires comparing the final price and delivered capabilities against the initial solicitation requirements and the performance of competing proposals.
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: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $65,447,325
Exercised Options: $38,626,963
Current Obligation: $17,598,170
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T06DE407
IDV Type: IDC
Timeline
Start Date: 2009-08-18
Current End Date: 2012-11-16
Potential End Date: 2012-11-16 00:00:00
Last Modified: 2017-04-17
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