VA Awards $3.57M Engineering Services Contract to OCMI Inc. via Full and Open Competition

Contract Overview

Contract Amount: $3,565,902 ($3.6M)

Contractor: Ocmi Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-20

End Date: 2027-03-19

Contract Duration: 1,094 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Engineering Services

Official Description: COST ESTIMATING SERVICES CONTRACT

Place of Performance

Location: IRVINE, ORANGE County, CALIFORNIA, 92618

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.6 million to OCMI INC for work described as: COST ESTIMATING SERVICES CONTRACT Key points: 1. Contract Value: $3.57 million over 3 years. 2. Competition: Awarded through full and open competition, indicating market availability. 3. Risk: Low risk identified due to fixed-price contract and established competition. 4. Sector: Engineering Services (NAICS 541330).

Value Assessment

Rating: good

The contract value of $3.57 million for 3 years appears reasonable for engineering services. Benchmarking against similar VA contracts for cost estimating services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for the engineering services procured.

Public Impact

Veterans will benefit from improved infrastructure and facilities through the engineering services provided. The contract supports the Department of Veterans Affairs' mission to serve veterans. Economic impact through OCMI Inc., a service provider, and potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.
Awarded by a major federal agency (VA).

Sector Analysis

This contract falls within the Engineering Services sector, specifically for cost estimating. Spending in this sector is crucial for infrastructure projects and facility management within federal agencies.

Small Business Impact

The data indicates that small business participation was not a specific requirement or noted in this award. Further analysis would be needed to determine if small businesses were excluded or if the prime contractor is a small business.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to ensure compliance and performance.

Related Government Programs

Engineering Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for contractor cost overruns impacting profit.
Risk of quality compromise if contractor faces financial pressure.
Limited visibility into contractor's internal cost structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.6 million to OCMI INC. COST ESTIMATING SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is OCMI INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2024-03-20. End: 2027-03-19.

What is the typical cost range for similar cost estimating services contracts awarded by the VA?

The typical cost range for similar cost estimating services contracts awarded by the VA can vary significantly based on project scope, duration, and complexity. However, contracts of this magnitude ($3.57M over 3 years) are not uncommon for comprehensive engineering support. Benchmarking against historical data for contracts with similar NAICS codes (541330) and service descriptions would provide a more accurate comparison.

What specific risks are associated with a firm fixed-price contract for engineering services?

A firm fixed-price contract for engineering services shifts most of the risk to the contractor. Potential risks include the contractor underestimating costs, leading to reduced profit or potential financial strain, or overestimating costs, resulting in a less competitive bid. For the government, the risk is that the contractor may cut corners on quality to maintain profitability if cost overruns occur.

How effectively does full and open competition ensure value for taxpayer money in engineering services procurement?

Full and open competition is a cornerstone of ensuring value for taxpayer money. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best prices and technical solutions. This process helps prevent price gouging and ensures the government procures services at or near fair market value, maximizing the return on investment for public funds.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C10F24Q50023

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8851 RESEARCH DR, IRVINE, CA, 92618

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,494,710

Exercised Options: $3,565,902

Current Obligation: $3,565,902

Actual Outlays: $1,401,863

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA18D008M

IDV Type: FSS

Timeline