DoD awards $33.4M engineering services contract to Centurum Information Technology Inc

Contract Overview

Contract Amount: $33,395,602 ($33.4M)

Contractor: Centurum Information Technology Inc

Awarding Agency: Department of Defense

Start Date: 2011-03-25

End Date: 2012-09-30

Contract Duration: 555 days

Daily Burn Rate: $60.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LOT IV AWARD TERM 1 CPFF, NEW AWARD INCREMENTALLY FUNDED

Place of Performance

Location: MARLTON, BURLINGTON County, NEW JERSEY, 08053

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $33.4 million to CENTURUM INFORMATION TECHNOLOGY INC for work described as: LOT IV AWARD TERM 1 CPFF, NEW AWARD INCREMENTALLY FUNDED Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can present cost control challenges. 3. The contract was incrementally funded, indicating potential for future funding increases. 4. The period of performance spans over 555 days, suggesting a medium-term engagement. 5. The contract is for engineering services, a critical support function for defense operations. 6. The award was a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

The total award amount of $33.4 million for engineering services over approximately 1.5 years appears to be within a reasonable range for complex defense engineering support. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. The CPFF contract type introduces inherent risk in cost management, as the contractor is reimbursed for allowable costs plus a fixed fee. Benchmarking against similar engineering services contracts would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive environment. This approach is intended to foster price discovery and ensure the government receives the best value by considering a wide range of potential contractors.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage a broader pool of qualified contractors to compete, potentially leading to more competitive pricing.

Public Impact

The Department of Defense benefits from specialized engineering services to support its complex operations. The contract likely supports various defense projects requiring engineering expertise. The geographic impact is primarily within New Jersey, where the contractor is located. The contract supports a workforce skilled in engineering and technical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not closely monitored.
Incremental funding requires careful management to ensure continued program support.
Lack of specific performance metrics makes it difficult to assess efficiency.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Engineering services are crucial for maintaining and advancing defense capabilities.
Contractor is based in New Jersey, potentially supporting regional economic activity.

Sector Analysis

Engineering services are a vital component of the defense sector, encompassing design, development, testing, and maintenance of military systems and infrastructure. The market for these services is substantial, driven by the continuous need for technological advancement and operational readiness within the armed forces. This contract fits within the broader category of professional services supporting national defense, where specialized expertise is often required.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Centurum Information Technology Inc., may engage small businesses as subcontractors to fulfill portions of the contract requirements, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the CPFF contract structure, requiring detailed cost reporting and justification. Transparency is facilitated through contract award databases, though specific performance details may be limited due to security or proprietary concerns.

Related Government Programs

Defense Engineering Services
Professional Services Contracts
Cost Plus Fixed Fee Contracts
Delivery Orders

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Incremental funding suggests potential for future cost increases beyond initial award.
Lack of detailed performance metrics hinders objective assessment of value.
Limited information on number of bidders restricts full competition analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.4 million to CENTURUM INFORMATION TECHNOLOGY INC. LOT IV AWARD TERM 1 CPFF, NEW AWARD INCREMENTALLY FUNDED

Who is the contractor on this award?

The obligated recipient is CENTURUM INFORMATION TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $33.4 million.

What is the period of performance?

Start: 2011-03-25. End: 2012-09-30.

What is the specific scope of engineering services required under this contract?

The provided data does not detail the specific scope of engineering services. However, given the contractor's specialization and the agency (Department of Defense), these services likely encompass a broad range of activities such as systems engineering, technical support, design, analysis, integration, and testing for various defense platforms or programs. The 'Engineering Services' NAICS code (541330) covers establishments primarily engaged in providing architectural, engineering, and related design services. Without further documentation, the precise nature of the work remains general.

How does the $33.4 million award compare to similar engineering services contracts awarded by the DoD?

Comparing the $33.4 million award requires context on the duration and scope. For a contract spanning approximately 1.5 years (555 days), this amount suggests a significant undertaking. The DoD frequently awards large engineering services contracts, with values often ranging from tens to hundreds of millions of dollars, depending on the complexity and duration. For instance, similar multi-year contracts for specialized technical support or system development could easily exceed this figure. However, without knowing the specific deliverables and the number of personnel or hours involved, a direct comparison is difficult. The CPFF structure also means the final cost could vary.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risk with a CPFF contract for engineering services is the potential for cost overruns. While the contractor's fee is fixed, they are reimbursed for all allowable costs. If the contractor is inefficient or if unforeseen technical challenges arise, the total cost to the government can escalate beyond initial projections. This necessitates robust government oversight to scrutinize costs, ensure efficiency, and manage scope creep. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee is profitable, especially if unexpected complexities arise.

What is the historical spending pattern for engineering services by the Defense Contract Management Agency (DCMA)?

The provided data focuses on a single award and does not offer historical spending patterns for the DCMA or for engineering services broadly. To assess historical spending, one would need to analyze aggregated contract data over multiple fiscal years, looking at total obligations for the 'Engineering Services' (NAICS 541330) category or similar service codes, and potentially filter by the awarding agency (DoD) or contracting office (DCMA). Such analysis would reveal trends in contract values, competition levels, and the prevalence of different contract types used for these services.

What does the 'incrementally funded' status imply for the total potential value of this contract?

The 'incrementally funded' status means that the contract was not fully funded at the time of award. Instead, funds were allocated in increments, typically corresponding to specific performance periods or contract phases. This implies that the total value of the contract could potentially exceed the initial $33.4 million award amount, as subsequent funding increments may be added over time, subject to appropriations and continued need. This approach is common for contracts that span multiple fiscal years or have uncertain future requirements, allowing the government to obligate funds incrementally.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523606R0762

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Centurum Inc. (UEI: 176091325)

Address: 12000 LINCOLN DR W STE107, MARLTON, NJ, 08053

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,502,973

Exercised Options: $33,502,973

Current Obligation: $33,395,602

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523607D5883

IDV Type: IDC

Timeline