DoD Awards $18.3M Engineering Services Contract to Zapata Inc. via Full and Open Competition
Contract Overview
Contract Amount: $18,289,584 ($18.3M)
Contractor: Zapata Incorporated
Awarding Agency: Department of Defense
Start Date: 2004-07-24
End Date: 2010-12-31
Contract Duration: 2,351 days
Daily Burn Rate: $7.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: CHARLOTTE, MECKLENBURG County, NORTH CAROLINA, 28204
Plain-Language Summary
Department of Defense obligated $18.3 million to ZAPATA INCORPORATED for work described as: Key points: 1. Contract Value: $18.3 million over 6 years. 2. Competition Type: Full and open competition. 3. Risk Assessment: Moderate risk due to long duration and fixed-price nature. 4. Sector: Engineering Services within the Defense sector.
Value Assessment
Rating: fair
The contract's fixed-price structure with a 6-year duration suggests potential for cost overruns if scope changes or unforeseen issues arise. Benchmarking against similar engineering services contracts of this size and duration is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield a fair market price.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.
Public Impact
Supports Department of the Army engineering and technical services. Long-term contract may indicate a sustained need for these services. Potential for follow-on work or similar contracts in the future.
Waste & Efficiency Indicators
Waste Risk Score: 77 / 10
Warning Flags
- Long contract duration (6 years) increases risk of scope creep and price escalation.
- Fixed-price contract may not adequately account for unforeseen technical challenges.
- Lack of specific service details makes it hard to assess value for money.
Positive Signals
- Awarded via full and open competition, maximizing potential for competitive pricing.
- Contract supports critical defense infrastructure needs.
- Clear end date provides a defined period for service delivery.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for supporting various government agencies, particularly in defense and infrastructure. Spending in this sector can vary significantly based on national priorities and project complexity.
Small Business Impact
The contract was awarded through full and open competition, and there is no specific indication of small business participation or set-asides in the provided data. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The long duration of this contract necessitates robust oversight from the Department of Defense to ensure performance standards are met and costs remain controlled. Regular performance reviews and milestone tracking are essential for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk.
- Fixed-price contract may not cover unforeseen costs.
- Lack of detailed service scope hinders value assessment.
- Potential for contractor performance issues over an extended period.
Tags
engineering-services, department-of-defense, nc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to ZAPATA INCORPORATED. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is ZAPATA INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.3 million.
What is the period of performance?
Start: 2004-07-24. End: 2010-12-31.
What specific engineering services are covered under this contract, and how do they align with the Army's current and future needs?
The provided data indicates the contract is for 'Engineering Services' (NAICS 541330) awarded to Zapata Incorporated. However, the specific nature of these services, such as design, consulting, or technical support, is not detailed. Understanding the precise scope is crucial to assess its alignment with the Army's strategic objectives and operational requirements, ensuring the $18.3 million investment directly addresses critical needs.
Given the 6-year duration and fixed-price nature, what mechanisms are in place to manage potential cost overruns or scope creep?
A fixed-price contract over a long duration like 2351 days (approx. 6.4 years) inherently carries risks of cost escalation due to inflation, unforeseen technical challenges, or changes in requirements. Robust contract management, including clear change order procedures, regular performance reviews, and potentially economic price adjustment clauses (though not specified), are vital to mitigate these risks and protect taxpayer interests.
How does the $18.3 million award compare to industry benchmarks for similar engineering services contracts awarded through full and open competition?
Without specific details on the scope, deliverables, and complexity of the engineering services provided, a precise benchmark comparison is challenging. However, $18.3 million over six years for specialized engineering services within the defense sector is a significant investment. A thorough analysis would require comparing the contract's unit rates, overhead, and profit margins against similar contracts awarded by the DoD or other federal agencies for comparable services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 6302 FAIRVIEW RD STE 600, CHARLOTTE, NC, 12
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DACA8700D0034
IDV Type: IDC
Timeline
Start Date: 2004-07-24
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2010-09-01
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