DoD awards $71.8M engineering support task order to IAP Worldwide Services, Inc

Contract Overview

Contract Amount: $71,842,119 ($71.8M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-28

End Date: 2020-09-30

Contract Duration: 1,829 days

Daily Burn Rate: $39.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF AWARD OF TASK ORDER 0028 FOR ENGINEERING SUPPORT.

Place of Performance

Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $71.8 million to IAP WORLDWIDE SERVICES, INC. for work described as: IGF::OT::IGF AWARD OF TASK ORDER 0028 FOR ENGINEERING SUPPORT. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Task order duration of 1829 days indicates a long-term need for engineering services. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 4. The award was made to a single contractor, IAP Worldwide Services, Inc. 5. The contract is for engineering services, a critical support function for defense operations. 6. The task order was issued under a larger contract, implying a pre-existing relationship or framework.

Value Assessment

Rating: fair

The contract value of $71.8 million over approximately five years for engineering services appears within a reasonable range for large-scale defense support contracts. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar engineering support contracts for the Department of Defense would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 2 bids suggests a moderate level of competition for this specific task order. While full and open competition is generally preferred for maximizing price discovery and ensuring fair opportunity, the limited number of bids might suggest potential barriers to entry or a specialized market for these engineering services.

Taxpayer Impact: A competitive award process, even with a limited number of bidders, generally benefits taxpayers by encouraging contractors to offer competitive pricing to secure the work.

Public Impact

The Department of the Army benefits from specialized engineering support to fulfill its operational requirements. The contract supports critical defense infrastructure and potentially advanced military technologies. Services are likely delivered within Florida, as indicated by the 'ST' and 'SN' fields. The contract supports a workforce of engineers and technical specialists, contributing to employment in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher costs if contractor efficiencies are not realized.
Limited competition (2 bidders) may indicate potential for higher pricing than a more robustly competed contract.
The long duration of the task order increases the risk of scope creep or evolving requirements not being adequately managed.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential contractors could bid.
The fixed fee component of the CPFF contract provides some level of cost certainty for the government.
The task order is for essential engineering services, indicating a clear and defined need.

Sector Analysis

The engineering services sector supporting the Department of Defense is a significant market, encompassing a wide range of specialized technical expertise. This contract for engineering support likely falls within the broader professional, scientific, and technical services industry. Spending in this area is driven by the need for design, development, testing, and sustainment of complex military systems and infrastructure. Comparable spending benchmarks would typically be found within large indefinite-delivery/indefinite-quantity (IDIQ) contracts or other major system acquisition vehicles.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, IAP Worldwide Services, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this task order would typically fall under the Department of the Army's contracting and program management offices. The Inspector General (IG) for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS-NG, which provide basic details of the award. Accountability measures would be embedded in the contract's performance standards and reporting requirements.

Related Government Programs

Department of Defense Engineering Services
Army Engineering Contracts
Professional, Scientific, and Technical Services
Cost Plus Fixed Fee Contracts
Task Order Awards

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition (2 bidders) may impact price competitiveness.
Lack of specific service details hinders full value assessment.
Blank PSC field indicates potential data anomaly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.8 million to IAP WORLDWIDE SERVICES, INC.. IGF::OT::IGF AWARD OF TASK ORDER 0028 FOR ENGINEERING SUPPORT.

Who is the contractor on this award?

The obligated recipient is IAP WORLDWIDE SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $71.8 million.

What is the period of performance?

Start: 2015-09-28. End: 2020-09-30.

What specific engineering services are being provided under this task order?

The provided data does not specify the exact nature of the engineering services. However, given the contractor (IAP Worldwide Services, Inc.) and the awarding agency (Department of the Army), these services could range from facility design and construction oversight to systems engineering, logistics support, or technical consulting for military equipment and infrastructure. Further details would typically be found in the task order's statement of work (SOW), which is not included in the provided data. Understanding the SOW is crucial for assessing the contract's true value and performance.

How does the $71.8 million award compare to IAP Worldwide Services, Inc.'s other contracts?

Without access to IAP Worldwide Services, Inc.'s complete contract portfolio, a direct comparison is difficult. However, $71.8 million over approximately five years represents a substantial award, indicating the company's capacity to handle large-scale government contracts. IAP Worldwide Services is known for providing global logistics, facilities management, and aviation support, often to government and defense clients. This engineering support task order aligns with their general service offerings, suggesting it's a significant but potentially not an outlier contract within their business operations.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs. While the fixed fee provides some certainty, if costs escalate significantly due to inefficiencies or unforeseen issues, the total contract value can increase substantially. For a $71.8 million award over five years, risks include potential cost overruns, scope creep where the scope of work expands without a corresponding adjustment to the fee, and challenges in accurately estimating and monitoring all allowable costs. Robust government oversight and clear performance metrics are essential to mitigate these risks.

What is the historical spending trend for engineering services by the Department of the Army?

Historical spending data for engineering services by the Department of the Army is extensive and fluctuates based on global security needs, infrastructure projects, and modernization efforts. The Army consistently invests billions annually in various engineering and construction-related services. This $71.8 million task order represents a portion of that broader spending. Trends often show increased spending during periods of active military engagement or significant base infrastructure development. Analyzing multi-year spending patterns would reveal specific areas of focus, such as facilities engineering, R&D support, or specialized technical services.

What does the 'PSC' field being blank signify for this contract?

The 'PSC' field, which typically stands for Product or Service Code, being blank is unusual for a contract award. Product or Service Codes are standardized government classifications used to categorize goods and services procured. A blank PSC might indicate a data entry error in the system where this information was recorded, or it could potentially relate to a specific type of inter-agency agreement or a unique classification not captured by standard PSCs. For a contract of this nature (engineering services), a PSC like 'R400' (Architect and Engineering Services) or similar would be expected. Its absence hinders detailed categorization and comparative analysis.

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

Address: 7315, NORTH ATLANTIC AVENUE, CAPE CANAVERAL, FL, 32920

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

Financial Breakdown

Contract Ceiling: $101,690,361

Exercised Options: $74,787,863

Current Obligation: $71,842,119

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $4,694,226

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T10DD416

IDV Type: IDC

Timeline