Naval Air Warfare Center contract for professional services awarded to Veridian Engineering, Inc. for $11.6 million
Contract Overview
Contract Amount: $11,966,958 ($12.0M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2003-01-16
End Date: 2003-09-30
Contract Duration: 257 days
Daily Burn Rate: $46.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: 200304!000063!1700!A8451 !NAVAL AIR WARFARE CENTER, WEAPON!N6893602D0027 !A!N! !N!0036 !20030116!20030930!004482378!116187758!001381284!N!VERIDIAN ENGINEERING, INC !4455 GENESEE STREET !BUFFALO !NY!14225!13154!029!06!CHINA LAKE NWC !KERN !CALIFORNIA!+000009350000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !561499!E! !5!B!S! ! !D!20030930!B!F!N!A! !A!U!R!2!004!B! !C!N!Z! ! !N!C!N! ! ! !A!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: RIDGECREST, KERN County, CALIFORNIA, 93555
Plain-Language Summary
Department of Defense obligated $12.0 million to KBR WYLE SERVICES, LLC for work described as: 200304!000063!1700!A8451 !NAVAL AIR WARFARE CENTER, WEAPON!N6893602D0027 !A!N! !N!0036 !20030116!20030930!004482378!116187758!001381284!N!VERIDIAN ENGINEERING, INC !4455 GENESEE STREET !BUFFALO !NY!14225!13154!029!06!CHINA LAKE NWC !KERN … Key points: 1. Contract awarded for "Other Professional Services" indicating a broad scope of support. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Award Fee (CPAF), which incentivizes contractor performance. 4. The contract duration was 257 days, a relatively short period for a significant award. 5. The award was made by the Naval Air Warfare Center, a key defense research and development entity. 6. The contractor, Veridian Engineering, Inc., is based in Buffalo, NY.
Value Assessment
Rating: fair
The contract value of $11.6 million for approximately 8.5 months of service appears to be within a reasonable range for specialized professional services in the defense sector. However, without specific details on the services rendered and the performance metrics achieved, a precise value-for-money assessment is challenging. The Cost Plus Award Fee (CPAF) structure allows for potential adjustments based on performance, which can influence the final cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of four bidders suggests a moderately competitive environment. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
The primary beneficiaries are likely the Department of the Navy and its various air warfare programs, which receive essential professional services. Services delivered are categorized as 'Other Professional Services,' which could encompass a wide range of technical, engineering, or administrative support. The geographic impact is centered around the Naval Air Warfare Center, China Lake, California, and the contractor's location in Buffalo, New York. Workforce implications would involve personnel from Veridian Engineering, Inc. contributing to defense-related projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The broad "Other Professional Services" category lacks specificity, making it difficult to fully assess the nature and necessity of the services.
- The short contract duration (257 days) might indicate a need for interim support or a precursor to a larger, longer-term contract, raising questions about strategic planning.
- The Cost Plus Award Fee (CPAF) structure, while incentivizing, can sometimes lead to cost overruns if not managed diligently.
Positive Signals
- Awarded under full and open competition, suggesting a robust and fair bidding process.
- The Cost Plus Award Fee (CPAF) contract type includes performance incentives, which can drive efficiency and quality.
- The contract supports critical naval air warfare capabilities, aligning with national defense objectives.
Sector Analysis
This contract falls within the broader professional, scientific, and technical services sector, specifically supporting defense-related research and development. The North American Industry Classification System (NAICS) code 561499, 'All Other Business Support Services,' is quite general. Comparable spending in this sector for defense support services can range from millions to billions of dollars annually, depending on the specific services and agency.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses. The presence of four bidders suggests that larger, established firms likely participated. Subcontracting opportunities for small businesses would depend on the prime contractor's strategy and the nature of the services required.
Oversight & Accountability
Oversight would typically be managed by the Naval Air Warfare Center contracting officers and program managers. Accountability is built into the CPAF structure through award fees tied to performance. Transparency is generally maintained through contract awards databases, though specific performance details may be sensitive.
Related Government Programs
- Naval Air Systems Command (NAVAIR) Contracts
- Department of Defense Professional Services Contracts
- Research and Development Support Services
- Defense Logistics Agency Support Contracts
Risk Flags
- Lack of specific service details under 'Other Professional Services'.
- Short contract duration may indicate interim or transitional support needs.
- Potential for cost escalation inherent in CPAF contracts.
Tags
defense, department-of-defense, department-of-the-navy, naval-air-warfare-center, professional-services, cost-plus-award-fee, full-and-open-competition, california, new-york, business-support-services, research-and-development, weapons-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.0 million to KBR WYLE SERVICES, LLC. 200304!000063!1700!A8451 !NAVAL AIR WARFARE CENTER, WEAPON!N6893602D0027 !A!N! !N!0036 !20030116!20030930!004482378!116187758!001381284!N!VERIDIAN ENGINEERING, INC !4455 GENESEE STREET !BUFFALO !NY!14225!13154!029!06!CHINA LAKE NWC !KERN !CALIFORNIA!+000009350000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !561499!E! !5!B!S! ! !D!20030930!B
Who is the contractor on this award?
The obligated recipient is KBR WYLE SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.0 million.
What is the period of performance?
Start: 2003-01-16. End: 2003-09-30.
What specific types of 'Other Professional Services' were provided under this contract?
The provided data categorizes the service under NAICS code 561499, 'All Other Business Support Services,' which is a very broad classification. Without access to the contract statement of work (SOW) or task orders, the precise nature of the services rendered remains unspecified. These services could range from administrative support, technical consulting, program management assistance, to specialized engineering analysis. The Naval Air Warfare Center (NAWC) at China Lake focuses on weapons system development and testing, suggesting the services were likely related to these core functions, potentially involving technical documentation, testing support, or program analysis.
How does the $11.6 million award compare to similar contracts for professional services at the Naval Air Warfare Center?
Comparing the $11.6 million award requires context regarding the duration and scope of services. This contract had a duration of 257 days (approximately 8.5 months). For a period of less than a year, $11.6 million represents a significant investment. However, the NAWC procures a wide array of services, from short-term specialized support to long-term, large-scale R&D contracts that can extend for years and be valued in the hundreds of millions. Without knowing the specific deliverables, this award appears substantial for its timeframe, suggesting either highly specialized expertise was required or the scope was broad within the 'other professional services' umbrella.
What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract of this nature?
The primary risk with CPAF contracts is the potential for costs to escalate beyond initial estimates, as the contractor is reimbursed for allowable costs. While the 'award fee' component incentivizes performance, it relies on subjective evaluations by the government, which can lead to disputes. If the criteria for earning award fees are not clearly defined or if the evaluation process is inconsistent, it can undermine the intended incentive. Furthermore, contractors may focus on achieving award fee targets rather than optimizing overall cost-efficiency. Effective government oversight and clear performance metrics are crucial to mitigate these risks.
What was the track record of Veridian Engineering, Inc. prior to receiving this contract?
Information regarding Veridian Engineering, Inc.'s specific track record prior to this 2003 contract is not detailed in the provided data. However, as a recipient of a federal contract, the company would have undergone some level of vetting. To assess their track record, one would typically look at past performance on similar government contracts, including their history of meeting deadlines, staying within budget, and the quality of their deliverables. A deeper dive would involve reviewing past performance evaluations, any contract disputes, or awards received. Without this historical data, it's difficult to definitively assess their prior performance.
How does the competition level (4 bidders) impact the value received by the government?
Having four bidders for this contract suggests a healthy level of competition. Generally, more bidders lead to more competitive pricing and a wider range of innovative solutions. The government can leverage this competition to negotiate better terms and prices. The fact that it was 'full and open' competition means all responsible sources were allowed to compete. While four bidders is a good number, the optimal level can vary depending on the complexity and niche nature of the services. In this case, it indicates that the market had multiple capable providers willing to bid, which is positive for value realization.
What is the significance of the contract being awarded by the Naval Air Warfare Center?
The Naval Air Warfare Center (NAWC) is a critical component of the U.S. Navy's research, development, and acquisition infrastructure, particularly focused on airborne weapons systems and electronic warfare. Contracts awarded by NAWC are typically tied to advanced technology development, testing, and sustainment of naval aviation assets. This implies that the professional services procured under this contract were likely specialized and essential for maintaining the technological edge of naval aviation, supporting programs related to aircraft, missiles, sensors, and related systems.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Court Square Capital Partners, L.P. (UEI: 610537735)
Address: 7800 HWY 20 W., HUNTSVILLE, AL, 05
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6893602D0027
IDV Type: IDC
Timeline
Start Date: 2003-01-16
Current End Date: 2003-09-30
Potential End Date: 2003-09-30 00:00:00
Last Modified: 2010-01-06
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