DoD's $18.3M contract with ADVANCED C4 SOLUTIONS INC for engineering services shows fair value with potential for cost savings

Contract Overview

Contract Amount: $18,332,738 ($18.3M)

Contractor: Advanced C4 Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2010-06-10

End Date: 2011-09-30

Contract Duration: 477 days

Daily Burn Rate: $38.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LOT III - 2ND OPTION YEAR

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33607

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to ADVANCED C4 SOLUTIONS INC for work described as: LOT III - 2ND OPTION YEAR Key points: 1. The contract's pricing appears reasonable when benchmarked against similar engineering services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration and cost structure warrant monitoring for potential cost overruns. 4. Performance context indicates a need for ongoing oversight to ensure quality and efficiency. 5. This contract fits within the broader IT and Defense sectors, supporting critical C4 capabilities.

Value Assessment

Rating: fair

The contract value of $18.3 million for the second option year appears to be within a reasonable range for specialized engineering services. Benchmarking against similar contracts for C4 solutions indicates that the pricing is competitive. However, the Cost Plus Fixed Fee (CPFF) contract type introduces some risk, as costs can escalate. Continuous monitoring of expenditures against the fixed fee is crucial to ensure value for money and prevent unnecessary cost growth.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while sources were initially excluded, the final award was made through a competitive process. The specific details of the exclusion and subsequent open competition are not fully elaborated, but the 'full and open' designation suggests multiple bidders were considered. This level of competition is generally favorable for price discovery and achieving market-based rates.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple vendors to bid, driving down prices and ensuring the government receives competitive offers.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Department of the Navy, receiving advanced C4 solutions. Services delivered include critical engineering support for command, control, communications, and computers (C4) systems. The geographic impact is centered in Florida, where the contractor is located. Workforce implications include the employment of skilled engineers and technical personnel by ADVANCED C4 SOLUTIONS INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs to maximize their fee, requiring robust oversight.
The duration of the contract (477 days for this option year) necessitates sustained monitoring to ensure performance remains on track and within budget.
Potential for scope creep exists in engineering services contracts, which could lead to increased costs if not managed tightly.

Positive Signals

The use of full and open competition suggests a healthy market for these specialized engineering services.
The contract is for an option year, implying satisfactory performance in previous periods.
ADVANCED C4 SOLUTIONS INC is a known entity in providing C4 solutions, suggesting relevant expertise.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting Command, Control, Communications, and Computers (C4) systems, which are integral to the Defense industry. The market for C4 solutions is highly specialized, with a significant portion of government spending directed towards maintaining and upgrading these critical capabilities. Comparable spending benchmarks in this niche often reflect the complexity and security requirements associated with defense technology.

Small Business Impact

The contract details indicate that small business participation was not a primary focus, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the primary award went to a large business, and the impact on the small business ecosystem for this specific contract is likely minimal unless subcontracting opportunities arise independently.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures would include performance reviews, milestone tracking, and financial audits, especially given the CPFF structure. Transparency is generally maintained through contract databases and reporting requirements, though specific internal oversight details are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense C4 Systems Modernization
Naval Engineering Support Services
Advanced Technology Development Contracts
IT Services for Military Operations

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Performance Monitoring Requirement
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to ADVANCED C4 SOLUTIONS INC. LOT III - 2ND OPTION YEAR

Who is the contractor on this award?

The obligated recipient is ADVANCED C4 SOLUTIONS 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 $18.3 million.

What is the period of performance?

Start: 2010-06-10. End: 2011-09-30.

What is the track record of ADVANCED C4 SOLUTIONS INC with government contracts, particularly within the Department of Defense?

ADVANCED C4 SOLUTIONS INC has a history of securing contracts with the Department of Defense, primarily focused on C4 systems and related engineering services. While specific details on past performance metrics are not provided in this snippet, their continued engagement suggests a level of competence and reliability in delivering specialized solutions. Analyzing their contract award history, past performance reviews (if publicly available), and any reported issues or successes would provide a more comprehensive understanding of their track record. Their presence in the market indicates they are a recognized provider for these types of services, but a deeper dive into their performance on previous DoD contracts is warranted for a complete assessment.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract compare to other contract types used for similar engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development or complex engineering projects where the scope is not fully defined at the outset, or where innovation is a key objective. Unlike fixed-price contracts, CPFF allows the contractor to recover allowable costs plus a predetermined fixed fee, which represents profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of the actual costs incurred, placing more risk on the contractor. For engineering services, CPFF can be advantageous when requirements are evolving, but it shifts more cost risk to the government. Agencies often prefer FFP when requirements are stable and well-defined to achieve better cost certainty. The choice of CPFF here suggests the DoD anticipated some level of uncertainty or complexity in the engineering tasks.

What are the key performance indicators (KPIs) used to evaluate the success of this engineering services contract?

Key Performance Indicators (KPIs) for this type of engineering services contract would likely focus on technical performance, schedule adherence, and cost control. Technical KPIs might include the successful design, development, or integration of C4 systems, meeting specified performance parameters, and achieving required levels of reliability and security. Schedule KPIs would involve meeting project milestones and delivery dates for engineering deliverables. Cost control KPIs would be particularly important for a CPFF contract, monitoring actual costs against projections and ensuring the fixed fee remains appropriate for the work performed. Quality assurance metrics, such as defect rates or the number of rework instances, would also be critical. The Department of the Navy would establish these KPIs in the contract's Performance Work Statement (PWS).

What is the historical spending trend for engineering services related to C4 systems within the Department of the Navy?

Historical spending trends for engineering services related to C4 systems within the Department of the Navy have generally shown a consistent and often increasing demand, driven by the need for technological modernization and maintaining operational readiness. The Navy, like other branches of the DoD, invests heavily in C4 capabilities to ensure secure and effective communication and information flow across its global operations. Factors such as evolving threats, advancements in technology, and the lifecycle management of existing systems contribute to sustained or growing expenditures in this area. Analyzing multi-year spending data would reveal specific growth patterns, identify peak investment periods, and highlight any shifts in focus towards particular C4 technologies or services.

Are there any specific risks associated with the geographic location (Florida) of the contractor for this DoD contract?

The geographic location of the contractor in Florida does not inherently introduce specific risks for this Department of Defense contract, provided the contractor has robust business continuity and cybersecurity measures in place. However, depending on the nature of the C4 systems supported, proximity to military installations or specific operational theaters could be a factor, though not explicitly stated here. Potential indirect risks could include regional labor market dynamics affecting talent acquisition or retention, or susceptibility to regional natural disasters impacting operations. For a contract focused on engineering services, the primary risks are typically related to technical execution, cost management, and security, rather than the contractor's physical location, unless that location is critical for deployment or direct support.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523606R0763

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2202 N WEST SHORE BLVD, TAMPA, FL, 90

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $18,332,738

Exercised Options: $18,332,738

Current Obligation: $18,332,738

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523608D2800

IDV Type: IDC

Timeline