DoD's C3T C4I Support Services contract awarded to Viatech, Inc. for over $199M

Contract Overview

Contract Amount: $199,452,212 ($199.5M)

Contractor: Viatech, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-07-22

End Date: 2014-01-21

Contract Duration: 914 days

Daily Burn Rate: $218.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROGRAM EXECUTIVE OFFICE FOR COMMAND, CONTROL, AND COMMUNICATIONS-TACTICAL (C3T) WORLDWIDE C4I SUPPORT SERVICES

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $199.5 million to VIATECH, INC. for work described as: PROGRAM EXECUTIVE OFFICE FOR COMMAND, CONTROL, AND COMMUNICATIONS-TACTICAL (C3T) WORLDWIDE C4I SUPPORT SERVICES Key points: 1. Contract provides essential C4I support services for the DoD's PEO C3T. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is approximately 914 days. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 5. The contract was awarded as a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework. 6. The contract's value is substantial, reflecting the critical nature of C4I support for tactical command and control systems.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without access to the full IDIQ details or comparable contracts. The Cost Plus Fixed Fee (CPFF) structure requires careful oversight to ensure costs remain reasonable and the fixed fee aligns with the effort. While the total award value is significant, the value-for-money assessment depends heavily on the effective delivery of services and the efficiency of cost management by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific delivery order. A higher number of bidders typically leads to more competitive pricing and a broader range of technical solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down costs and improve service quality.

Public Impact

The primary beneficiaries are the Department of Defense's Command, Control, Communications, and Computers-Tactical (C3T) program. Services delivered likely include technical support, system integration, maintenance, and operational assistance for C4I systems. The geographic impact is worldwide, supporting global military operations. Workforce implications may include specialized technical personnel required for C4I systems support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
Limited competition (2 bidders) may not have yielded the most cost-effective solution.
The specific performance metrics and quality assurance for C4I support are not detailed here, posing a potential risk to service effectiveness.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
The contract supports critical C4I systems essential for national defense.
The contractor, Viatech, Inc., has experience in providing such services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting Command, Control, Communications, and Computers (C4I) systems. The market for defense-related C4I support services is substantial, driven by the continuous need for advanced communication and information systems in military operations. Comparable spending benchmarks would involve analyzing other large-scale C4I support contracts awarded by the DoD and other defense agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Analysis of subcontracting opportunities for small businesses would require further investigation into the contract's terms and the prime contractor's subcontracting plan, if applicable. The absence of explicit set-aside information suggests the primary focus was on full and open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the Program Executive Office for Command, Control, and Communications-Tactical (PEO C3T). Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is generally maintained through contract award databases, though detailed performance data may be restricted.

Related Government Programs

PEO C3T Programs
DoD C4I Modernization Efforts
Tactical Communications Systems Support
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Limited number of bidders (2) may indicate potential for reduced competition.
Scope and performance metrics for C4I support need detailed monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $199.5 million to VIATECH, INC.. PROGRAM EXECUTIVE OFFICE FOR COMMAND, CONTROL, AND COMMUNICATIONS-TACTICAL (C3T) WORLDWIDE C4I SUPPORT SERVICES

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 $199.5 million.

What is the period of performance?

Start: 2011-07-22. End: 2014-01-21.

What is the track record of Viatech, Inc. in delivering C4I support services for the DoD?

Viatech, Inc. has a history of providing various technical and support services to the Department of Defense. For this specific contract, their track record would be assessed based on their performance against the contract's requirements, including timeliness, quality of service, and adherence to budget. A review of past performance evaluations, if available, would provide deeper insights into their capabilities and reliability in delivering complex C4I support. Their ability to successfully manage Cost Plus Fixed Fee contracts, ensuring cost control while meeting performance objectives, is a key indicator of their suitability for such engagements.

How does the value of this contract compare to similar C4I support services contracts?

Comparing the $199 million award value requires context regarding the scope, duration, and specific services rendered. Large-scale C4I support contracts for major defense programs can range from tens of millions to billions of dollars. This contract's value appears substantial, suggesting it covers a broad range of critical support functions across multiple systems or geographic locations. Benchmarking against similar contracts awarded by PEO C3T or other DoD entities for comparable C4I support would provide a clearer picture of its relative value. Factors like the complexity of the systems supported, the level of technical expertise required, and the operational tempo of the supported units influence the overall cost.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for C4I support?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor is incentivized by a fixed fee, the 'cost plus' portion means the government pays the actual allowable costs incurred. If the contractor is inefficient or faces unforeseen challenges, costs can escalate beyond initial projections. For C4I support, risks include the complexity of integrating and maintaining advanced systems, potential for scope creep if requirements are not clearly defined, and the need for highly specialized personnel. Effective government oversight, robust cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

How effective is full and open competition in ensuring competitive pricing for specialized defense services like C4I support?

Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that typically leads to more favorable pricing for the government. For specialized defense services like C4I support, this approach allows a wider pool of qualified contractors to propose solutions. However, the effectiveness is contingent on the clarity of the solicitation, the complexity of the requirements, and the market's capacity to support multiple bidders. In cases where the market is limited or the technical requirements are highly niche, even full and open competition might result in a smaller number of bids, as seen with the two bidders in this instance. Nonetheless, it remains the preferred method for ensuring a fair and competitive procurement process.

What are the implications of this contract being awarded as a delivery order?

Awarding this contract as a delivery order implies it is likely part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar framework agreement. This structure allows the government to procure services incrementally as needed, providing flexibility and potentially streamlining the acquisition process for subsequent orders. For taxpayers, this can mean better cost control if the base IDIQ contract was competitively awarded and if the delivery order pricing is also subject to competitive or pre-negotiated rates. It allows the government to adapt to changing requirements and ensures that services are procured only when and where they are needed, avoiding upfront over-commitment of funds.

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

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: $207,917,889

Exercised Options: $207,917,889

Current Obligation: $199,452,212

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE407

IDV Type: IDC

Timeline