DoD's $21.2M Navy Contract for Engineering Services Awarded to Tecnico Corp
Contract Overview
Contract Amount: $21,243,935 ($21.2M)
Contractor: Tecnico Corporation
Awarding Agency: Department of Defense
Start Date: 2009-09-02
End Date: 2013-09-30
Contract Duration: 1,489 days
Daily Burn Rate: $14.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING AND TECHNICAL SERVICES
Place of Performance
Location: CHESAPEAKE, CHESAPEAKE (CITY) County, VIRGINIA, 23324, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.2 million to TECNICO CORPORATION for work described as: ENGINEERING AND TECHNICAL SERVICES Key points: 1. Contract awarded to Tecnico Corporation for $21.2 million. 2. Full and open competition was utilized. 3. The contract falls under the Ship Building and Repairing NAICS code. 4. This is a Cost Plus Fixed Fee contract type.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may not always yield the lowest price.
Taxpayer Impact: Taxpayer funds were used in a competitive process, but the cost-plus nature warrants scrutiny for efficiency.
Public Impact
Supports naval shipbuilding and repair capabilities. Provides essential engineering and technical services to the Department of the Navy. The contract duration of nearly 5 years indicates a significant, long-term need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- No specific small business participation noted.
Positive Signals
- Full and open competition utilized.
- Long contract duration suggests sustained need and potential for stable support.
Sector Analysis
This contract falls within the broader defense industrial base, specifically supporting shipbuilding and repair. Spending in this sector is often driven by national security requirements and fleet readiness.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were pursued.
Oversight & Accountability
The Department of the Navy managed this contract. Oversight would focus on ensuring adherence to the fixed fee and managing the cost-plus elements effectively.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business awardee.
- Limited detail on specific services provided.
- Potential for cost overruns.
Tags
ship-building-and-repairing, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.2 million to TECNICO CORPORATION. ENGINEERING AND TECHNICAL SERVICES
Who is the contractor on this award?
The obligated recipient is TECNICO CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $21.2 million.
What is the period of performance?
Start: 2009-09-02. End: 2013-09-30.
What was the final cost compared to the initial estimate, and how did the fixed fee component perform?
The provided data does not include final cost figures or a comparison to initial estimates. For Cost Plus Fixed Fee contracts, the 'fixed fee' is negotiated upfront, but the 'cost' portion can vary. Analyzing the final expenditure against the estimated cost and the efficiency of the contractor in managing those costs would be crucial for assessing value.
Were there any performance issues or contract modifications that impacted the overall cost or delivery?
The data does not detail performance issues or modifications. Contract modifications can significantly alter the scope and cost of a Cost Plus Fixed Fee agreement. A review of contract modification history and any associated performance reviews would be necessary to understand potential risks and their impact on the final price and effectiveness.
How does the awarded amount compare to the benchmark for similar engineering and technical services contracts within the DoD?
Without specific details on the scope of services and the complexity of the engineering tasks, a direct benchmark is challenging. However, the $21.2 million over nearly five years suggests a substantial but not exceptionally large contract for specialized technical support within the defense sector. Further comparison would require detailed service descriptions and market research.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
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
Solicitation ID: N6554003R0001
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: American Maritime Holdings, LLC (UEI: 827462636)
Address: 831 INDUSTRIAL AVE, CHESAPEAKE, VA, 23324
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $21,243,935
Exercised Options: $21,243,935
Current Obligation: $21,243,935
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6554005D0017
IDV Type: IDC
Timeline
Start Date: 2009-09-02
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2015-11-18
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