DoD's $35.7M contract for encryption device support awarded to Engineering Solutions & Products LLC
Contract Overview
Contract Amount: $35,756,424 ($35.8M)
Contractor: Engineering Solutions & Products LLC
Awarding Agency: Department of Defense
Start Date: 2011-01-18
End Date: 2013-01-17
Contract Duration: 730 days
Daily Burn Rate: $49.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: KGV-72 PROGRAMMABLE INLINE ENCRYPTION DEVICE (PIED)INSTALLATION AND TRAINING SUPPORT
Place of Performance
Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724
Plain-Language Summary
Department of Defense obligated $35.8 million to ENGINEERING SOLUTIONS & PRODUCTS LLC for work described as: KGV-72 PROGRAMMABLE INLINE ENCRYPTION DEVICE (PIED)INSTALLATION AND TRAINING SUPPORT Key points: 1. The contract value of $35.7M for encryption device support is significant. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract falls under the Communication Equipment Repair and Maintenance NAICS code. 4. The award was made by the Department of the Army within the Defense sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount of $35.7M for a 2-year duration needs to be benchmarked against similar support contracts for encryption devices.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific nature of encryption device support might limit the number of qualified bidders.
Taxpayer Impact: Taxpayer funds are being used for critical communication security support. The effectiveness of the competition in securing the best value for taxpayer money is a key consideration.
Public Impact
Ensures secure communication capabilities for the Department of Defense. Supports the operational readiness of military communication systems. Provides essential training for personnel operating encryption devices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Limited information on specific performance metrics and outcomes.
- Potential for vendor lock-in with specialized encryption technology.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security functions.
- Includes installation and training, indicating comprehensive support.
Sector Analysis
This contract falls within the Defense sector, specifically related to IT and communication equipment. Spending benchmarks for similar communication equipment repair and maintenance contracts are essential for evaluating value.
Small Business Impact
The data indicates the prime contractor is Engineering Solutions & Products LLC. There is no explicit information provided regarding small business participation in this contract.
Oversight & Accountability
Oversight would typically involve contract performance reviews, financial audits, and ensuring compliance with security protocols. The Department of the Army is responsible for overseeing this contract.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of specific performance metrics.
- Potential for limited competition despite 'full and open' designation.
- No explicit small business participation noted.
Tags
communication-equipment-repair-and-maint, department-of-defense, nj, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.8 million to ENGINEERING SOLUTIONS & PRODUCTS LLC. KGV-72 PROGRAMMABLE INLINE ENCRYPTION DEVICE (PIED)INSTALLATION AND TRAINING SUPPORT
Who is the contractor on this award?
The obligated recipient is ENGINEERING SOLUTIONS & PRODUCTS 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 $35.8 million.
What is the period of performance?
Start: 2011-01-18. End: 2013-01-17.
What was the competitive landscape like for this specific encryption device support, and did the full and open competition result in demonstrably better pricing compared to sole-source alternatives?
While awarded under full and open competition, the specialized nature of encryption technology may have limited the number of truly competitive bids. A detailed analysis of the bid submissions and the final negotiated price against estimated costs would be needed to confirm if the competition yielded optimal value. Without this, it's difficult to definitively state if pricing was superior to potential sole-source scenarios.
What are the key performance indicators (KPIs) for this contract, and how effectively has Engineering Solutions & Products LLC met them to ensure the security and reliability of the encryption devices
The provided data does not include specific Key Performance Indicators (KPIs) for this contract. To assess effectiveness, one would need to review contract performance reports, user feedback, and any documented instances of system downtime or security breaches related to the supported encryption devices. The absence of this information makes a definitive judgment on effectiveness challenging.
Given the Cost Plus Fixed Fee (CPFF) contract type, what mechanisms were in place to control costs and prevent potential overruns, and what was the final cost compared to the initial estimate?
CPFF contracts inherently carry a risk of cost overruns as the contractor is reimbursed for actual costs plus a fixed fee. Effective oversight would involve rigorous monitoring of incurred costs, justification of expenses, and adherence to pre-defined ceilings. Without access to detailed financial reports and audit trails, it's difficult to ascertain the effectiveness of cost control measures or the final variance from the initial estimate.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4 INDUSTRIAL WAY W FL 3, EATONTOWN, NJ, 04
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,756,424
Exercised Options: $35,756,424
Current Obligation: $35,756,424
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T09DB201
IDV Type: IDC
Timeline
Start Date: 2011-01-18
Current End Date: 2013-01-17
Potential End Date: 2013-01-17 00:00:00
Last Modified: 2014-09-23
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