DoD's $18.7M Engineering Services Contract Awarded to OVC-Engineered Solutions LLC

Contract Overview

Contract Amount: $18,664,992 ($18.7M)

Contractor: Ovc-Engineered Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2007-06-15

End Date: 2009-08-10

Contract Duration: 787 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Other

Official Description: ENGINEERING SERVICES

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to OVC-ENGINEERED SOLUTIONS LLC for work described as: ENGINEERING SERVICES Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract duration of 787 days suggests a medium-term engagement for engineering services. 3. Fixed-price contract type implies that the contractor bears the risk of cost overruns. 4. The award was made by the Department of the Army, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The contract was awarded in Maryland, a state with a significant federal contracting presence.

Value Assessment

Rating: fair

Benchmarking the value of this $18.7 million contract is challenging without specific performance metrics or comparable contract data. The fixed-price nature suggests a defined scope and budget, which can be advantageous for cost control. However, the absence of detailed performance context makes it difficult to definitively assess value for money. Further analysis would require comparing the delivered engineering solutions against industry standards and the contractor's historical performance on similar projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method suggests that while the competition was intended to be open, specific sources may have been excluded for defined reasons, potentially limiting the breadth of competition. The number of offers received is not specified, making it difficult to gauge the intensity of the competition. This approach can sometimes lead to less competitive pricing compared to unrestricted full and open competition.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader range of bidders had been considered. It is crucial to understand the rationale behind the exclusion of sources to ensure fair market access and optimal use of taxpayer funds.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Army, receiving specialized engineering services. The services delivered likely support military readiness, infrastructure development, or technological advancement within the Army. The geographic impact is centered in Maryland, where the contract was awarded and potentially where services were performed. The contract supports the engineering sector workforce, providing employment for skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources could impact price competitiveness.
Lack of detailed performance metrics makes value assessment difficult.
Fixed-price contract requires careful scope management to avoid potential disputes.

Positive Signals

Fixed-price contract shifts cost risk to the contractor.
Awarded by a major federal agency (Department of the Army).
Contract duration suggests a substantial project requiring sustained effort.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the professional services industry supporting government and private sector projects. The market for engineering services is vast, encompassing design, consulting, and project management across various disciplines. Federal spending in this sector is substantial, driven by infrastructure, defense, and research and development needs. This specific contract, valued at approximately $18.7 million, represents a moderate-sized engagement within the broader federal engineering services landscape.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration, as 'ss' is false and 'sb' is false. This suggests the contract was not specifically targeted for small businesses. There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are inherent in the fixed-price contract type, which obligates the contractor to deliver specified services within the agreed budget. Transparency is generally facilitated through federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Engineering Contracts
Army Corps of Engineers Services
Professional Services Contracts
Fixed-Price Engineering Agreements
Federal IT and Engineering Support

Risk Flags

Limited competition may impact price.
Scope creep risk in fixed-price contracts.
Need for clear performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to OVC-ENGINEERED SOLUTIONS LLC. ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is OVC-ENGINEERED SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2007-06-15. End: 2009-08-10.

What is the track record of OVC-Engineered Solutions LLC with federal contracts, particularly with the Department of Defense?

Analyzing the track record of OVC-Engineered Solutions LLC requires accessing historical contract data. A review of federal procurement databases would reveal the company's past performance, including the types of contracts awarded, their values, agencies served, and any reported performance issues or accolades. For this specific contract, understanding their prior experience with similar engineering services, especially for the Department of the Army, would provide insight into their capability and reliability. A history of successful, on-time, and within-budget project completion would be a positive indicator, while frequent disputes or performance failures would raise concerns about their suitability for future engagements.

How does the $18.7 million value of this contract compare to similar engineering services contracts awarded by the Department of the Army?

To benchmark the $18.7 million value, one would compare it against the average and median contract values for 'Engineering Services' (NAICS 541330) awarded by the Department of the Army over a relevant period (e.g., the last 3-5 years). This analysis should consider contract duration, scope complexity, and geographic location. If this contract's value falls within the typical range for similar services, it suggests fair market pricing. However, if it is significantly higher or lower, it warrants further investigation into the specific requirements, the level of competition, and the contractor's proposed pricing structure. Data from sources like the Federal Procurement Data System (FPDS) would be essential for this comparison.

What are the primary risks associated with a fixed-price contract for engineering services, and how might they apply here?

Fixed-price contracts, while offering cost certainty to the buyer, shift the risk of cost overruns to the contractor. For engineering services, risks include underestimation of project complexity, unforeseen technical challenges, scope creep if not managed tightly, and potential quality compromises if the contractor attempts to cut costs. In this case, the primary risk for the government is receiving subpar engineering solutions if OVC-Engineered Solutions LLC struggles to meet the technical requirements within the fixed price. Conversely, the contractor bears the risk of increased costs due to factors beyond their control. Effective oversight and clear contract specifications are crucial to mitigate these risks.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the program's effectiveness and potential for cost savings?

This procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests a deliberate decision to limit the pool of potential bidders, even within an otherwise open competition framework. This could be due to specific technical requirements, past performance issues with certain vendors, or national security considerations. While it aims to ensure qualified sources are considered, the exclusion of potential bidders might reduce overall competition, potentially leading to higher prices than a truly unrestricted full and open competition. The effectiveness in terms of cost savings depends heavily on the justification for excluding sources and the competitiveness among the remaining bidders. If the excluded sources were capable and competitive, cost savings may have been forgone.

How has federal spending on engineering services (NAICS 541330) trended over the past five years, and where does this contract fit?

Federal spending on engineering services (NAICS 541330) has generally shown a steady or increasing trend over the past five years, driven by infrastructure investments, defense modernization, and research initiatives. Agencies like the Department of Defense, Department of Transportation, and General Services Administration are major contributors to this spending. This $18.7 million contract represents a single award within this broader spending category. Its significance lies in its contribution to the Department of the Army's specific engineering needs. Analyzing the overall trend helps contextualize the scale of this award and understand the government's ongoing commitment to procuring engineering expertise across various sectors.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB06R0001

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sotera Defense Solutions Inc (UEI: 048010532)

Address: 28712 GLEBE RD, EASTON, MD, 21601

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,664,992

Exercised Options: $18,664,992

Current Obligation: $18,664,992

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB06D0054

IDV Type: IDC

Timeline