Department of Defense awards $177M contract for engineering services to Ducom, Inc

Contract Overview

Contract Amount: $75,593,619 ($75.6M)

Contractor: Ducom, Incorporated

Awarding Agency: Department of Defense

Start Date: 2004-03-30

End Date: 2007-04-07

Contract Duration: 1,103 days

Daily Burn Rate: $68.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200406!004589!2100!W56HZV!TACOM - WARREN !DAAE0798DT065 !A!N! !N!0050 ! !20040330!20050331!177154796!177154796!177154796!N!DUCOM INC !850 SLIGO AVE STE 700 !SILVER SPRING !MD!20910!72450!031!24!SILVER SPRING !MONTGOMERY !MARYLAND !+000012980220!N!N!000000000000!AD21!RDTE/SERVICES-BASIC RESEARCH !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A! !99990909!B! ! !B! !A!N!Y!2!001!K! !Z!N!Z! ! !N!A!Y!N!B! ! ! !B!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $75.6 million to DUCOM, INCORPORATED for work described as: 200406!004589!2100!W56HZV!TACOM - WARREN !DAAE0798DT065 !A!N! !N!0050 ! !20040330!20050331!177154796!177154796!177154796!N!DUCOM INC !850 SLIGO AVE STE 700 !SILVER SPRING !MD!20910!72450!031!24!SILVER SPRING !MONT… Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a competitive process. 2. The contract value of $177,154,796 over its duration suggests a significant investment in engineering services. 3. The primary service category is 'Engineering Services', aligning with the North American Industry Classification System (NAICS) code 541330. 4. The contract was awarded to Ducom, Inc., with a performance period spanning from March 2004 to April 2007. 5. The contract type is 'Time and Materials', which can sometimes lead to cost overruns if not closely managed. 6. The contract was awarded by the Department of the Army, a major component of the Department of Defense.

Value Assessment

Rating: fair

The total contract value of $177,154,796 is substantial for engineering services. Without specific benchmarks for the exact services rendered, it's difficult to definitively assess value for money. However, the 'Time and Materials' contract type carries inherent risks of cost escalation compared to fixed-price contracts. The contract duration of approximately three years also needs to be considered in the context of the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This suggests that while the competition was open, there might have been initial exclusions or specific criteria that narrowed the field before the final open competition. The fact that it was open competition is positive for price discovery, but the 'exclusion of sources' aspect warrants further investigation into the specific reasons for such exclusions.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. However, the 'exclusion of sources' element could potentially limit the number of competitive bids received, which might impact the ultimate cost savings for taxpayers.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Army, which receives essential engineering services. The services delivered likely support military readiness, research, development, or operational needs. The geographic impact is centered around the contractor's location in Silver Spring, Maryland, and potentially any sites where the engineering services are performed. Workforce implications include employment opportunities for engineers and support staff at Ducom, Inc. and potentially related subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Time and Materials' contract type can lead to higher costs if not managed effectively, as it bases payment on the time and materials used rather than a fixed price.
The 'exclusion of sources' in the competition type, while still allowing for open competition, might indicate a less robust competitive landscape than a purely 'full and open' process.

Positive Signals

The contract was awarded through a 'full and open competition' process, which generally promotes competitive pricing and a wider range of potential contractors.
The award to a single contractor (Ducom, Inc.) suggests they met the specific requirements and offered the best value at the time of award.

Sector Analysis

Engineering services represent a critical sector supporting various government functions, including defense, infrastructure, and research. The market for these services is competitive, with numerous firms offering specialized expertise. This contract fits within the broader category of professional services procured by the federal government, which consistently represents a significant portion of federal spending. Benchmarking this contract's value would require comparing it to similar engineering service contracts awarded by the DoD or other agencies for comparable scope and complexity.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The award was made to Ducom, Inc., and information regarding subcontracting plans or their impact on the small business ecosystem is not available in this data snippet. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, where basic award information is made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research, Development, Test, and Evaluation
Army Engineering and Construction Services
Professional Services Contracts
Defense Logistics Agency Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited transparency on the 'exclusion of sources' rationale in the competition process.
Need for robust oversight to manage contractor performance and costs effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.6 million to DUCOM, INCORPORATED. 200406!004589!2100!W56HZV!TACOM - WARREN !DAAE0798DT065 !A!N! !N!0050 ! !20040330!20050331!177154796!177154796!177154796!N!DUCOM INC !850 SLIGO AVE STE 700 !SILVER SPRING !MD!20910!72450!031!24!SILVER SPRING !MONTGOMERY !MARYLAND !+000012980220!N!N!000000000000!AD21!RDTE/SERVICES-BASIC RESEARCH !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A! !999

Who is the contractor on this award?

The obligated recipient is DUCOM, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $75.6 million.

What is the period of performance?

Start: 2004-03-30. End: 2007-04-07.

What specific engineering services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541330, which is 'Engineering Services'. The contract description also mentions 'RDTE/SERVICES-BASIC RESEARCH'. This suggests the services likely encompassed a range of engineering disciplines related to basic research and development activities for the Department of the Army. Examples could include conceptual design, feasibility studies, technical analysis, systems engineering, and support for research projects. Without more detailed contract documentation or a Statement of Work (SOW), the precise nature of the services remains general.

How does the awarded amount of $177,154,796 compare to similar engineering service contracts for the Department of the Army?

Comparing the $177 million award requires context regarding the scope, duration, and specific services. The Department of the Army procures a wide array of engineering services, from large-scale infrastructure projects to specialized R&D support. Contracts for major defense systems development or large construction oversight can easily exceed this amount. However, for basic research and general engineering support over a three-year period, $177 million is a substantial sum. Benchmarking would involve identifying contracts with similar NAICS codes, contract types (Time and Materials), and agency components (e.g., Army Research Laboratory, specific program executive offices) to assess if the pricing is competitive for the services rendered.

What are the potential risks associated with a 'Time and Materials' contract of this magnitude?

Time and Materials (T&M) contracts, like this one, carry inherent risks, primarily related to cost control. Since payment is based on direct labor hours at specified hourly rates and the cost of materials plus a percentage for overhead and profit, there's a risk of cost escalation if the project takes longer than anticipated or requires more resources. For a $177 million contract, this risk is amplified. Effective oversight is crucial to monitor labor hours, material costs, and ensure the contractor is working efficiently towards project milestones. Without stringent controls and clear performance metrics, T&M contracts can become significantly more expensive than initially projected.

What does 'Full and Open Competition After Exclusion of Sources' imply for the bidding process?

This contract type signifies a nuanced competitive approach. 'Full and Open Competition' means that all responsible sources were permitted to submit a bid. However, the addition of 'After Exclusion of Sources' suggests that prior to the open competition phase, certain potential sources may have been excluded based on specific criteria, such as pre-qualification requirements, specific technical capabilities, or previous performance issues. While the final stage was open, the initial exclusion might have limited the pool of bidders. This could be a mechanism to ensure only highly qualified or specialized firms participate, but it also raises questions about whether the exclusion unnecessarily restricted competition and potentially impacted price discovery.

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

The Department of the Army, as a major component of the DoD, consistently spends billions of dollars annually on a wide range of services, including engineering. Historical data shows significant and ongoing investment in engineering support for R&D, infrastructure maintenance and upgrades, weapon system development, and operational support. Spending patterns can fluctuate based on geopolitical events, modernization priorities, and budget allocations. Contracts like this one, for basic research and engineering services, represent a steady, albeit variable, component of the Army's overall procurement strategy, reflecting a continuous need for technical expertise.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 850 SLIGO AVE STE 700, SILVER SPRING, MD, 08

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE0798DT065

IDV Type: IDC

Timeline