GSA awards $502K engineering services task order to Phoenix Group of Virginia Inc

Contract Overview

Contract Amount: $5,023,080 ($5.0M)

Contractor: Phoenix Group of Virginia Inc

Awarding Agency: General Services Administration

Start Date: 2024-11-14

End Date: 2026-11-13

Contract Duration: 729 days

Daily Burn Rate: $6.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PEO AIRCRAFT CARRIERS IFORECAST TASK ORDER TWO AWARD

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $5.0 million to PHOENIX GROUP OF VIRGINIA INC for work described as: PEO AIRCRAFT CARRIERS IFORECAST TASK ORDER TWO AWARD Key points: 1. Contract awarded as a delivery order under an existing contract. 2. Services are for engineering, with a focus on aircraft carriers. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The duration of the contract is approximately two years. 5. The award was not competed, raising questions about potential value. 6. The small business status of the contractor is not specified, but the contract was not set aside.

Value Assessment

Rating: questionable

The contract value of $502,308 for two years of engineering services is difficult to benchmark without more specific details on the scope of work. As a Cost Plus Fixed Fee contract, there is an inherent risk of costs exceeding initial estimates if not managed carefully. The lack of competition makes it challenging to assess if the pricing is competitive or represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a delivery order under an existing contract and was not competed. The data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This suggests that either the requirement was specific to the capabilities of Phoenix Group of Virginia Inc., or it was a sole-source award. Without a competitive process, it is difficult to ascertain the level of price discovery and whether the government received the best possible pricing.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive bidding, potentially leading to higher costs than if multiple vendors had vied for the contract.

Public Impact

The primary beneficiaries of this contract are likely the U.S. Navy's PEO Aircraft Carriers program, receiving specialized engineering support. The services delivered will focus on engineering tasks related to aircraft carrier platforms. The geographic impact is centered in the District of Columbia, where the contract is managed. Workforce implications include employment opportunities for engineers and technical staff at Phoenix Group of Virginia Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Limited information available on the specific engineering services required, making value assessment difficult.

Positive Signals

Awarded under an existing contract, suggesting potential for streamlined delivery.
Focus on critical defense infrastructure (aircraft carriers) indicates a potentially important service.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related activities. The North American Industry Classification System (NAICS) code 541330, Engineering Services, encompasses firms that provide engineering consulting and design services. Spending in this sector is substantial, particularly within the defense industry, where specialized engineering expertise is crucial for complex platforms like aircraft carriers. Benchmarking this specific award is challenging without knowing the precise scope, but it represents a small portion of overall defense engineering expenditures.

Small Business Impact

The provided data does not indicate if this contract was a small business set-aside, and the 'ss' field is false. Furthermore, the 'sb' field is also false, suggesting no specific subcontracting goals for small businesses were mandated for this particular award. This means the primary contractor, Phoenix Group of Virginia Inc., is not necessarily a small business, and there are no explicit requirements for them to engage small businesses as subcontractors on this task order.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service, which manages many government-wide acquisition contracts. The contracting officer at GSA is responsible for ensuring performance and compliance. As a delivery order under an existing contract, the oversight mechanisms are likely tied to the terms of the parent contract. Transparency is limited due to the sole-source nature of the award, and specific Inspector General jurisdiction would depend on the ultimate agency utilizing the services, likely the Department of the Navy.

Related Government Programs

PEO Aircraft Carriers Program
Naval Engineering Support Contracts
GSA Federal Acquisition Service Contracts
Cost Plus Fixed Fee Engineering Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5.0 million to PHOENIX GROUP OF VIRGINIA INC. PEO AIRCRAFT CARRIERS IFORECAST TASK ORDER TWO AWARD

Who is the contractor on this award?

The obligated recipient is PHOENIX GROUP OF VIRGINIA INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2024-11-14. End: 2026-11-13.

What is the track record of Phoenix Group of Virginia Inc. with government contracts, particularly in engineering services for defense applications?

A comprehensive review of Phoenix Group of Virginia Inc.'s track record would require access to a broader contract database. However, based on the limited data provided, this is a delivery order valued at $502,308 for engineering services related to aircraft carriers. Without more information on past performance, past contract values, and client agencies, it is difficult to definitively assess their expertise and reliability in this specific domain. Further investigation into their contract history, including any performance evaluations or past disputes, would be necessary for a thorough assessment. It's important to note that awards made on a non-competitive basis can sometimes be with established contractors, but this is not always the case.

How does the $502,308 contract value compare to similar engineering services contracts for aircraft carrier support?

Benchmarking the $502,308 contract value for engineering services related to aircraft carriers is challenging without a detailed understanding of the specific tasks to be performed. Engineering requirements can vary significantly, from conceptual design and feasibility studies to detailed technical support and modernization planning. If this contract is for a specific, limited scope of work or a short-term specialized task, the value might be appropriate. However, if it represents a significant portion of the engineering effort for a major platform upgrade or sustainment activity, it could be considered relatively small. Comparable contracts would need to be identified based on similar scope, duration, and complexity of engineering services within the naval aviation or shipbuilding sectors.

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

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Phoenix Group of Virginia Inc., present specific risks. The primary risk for the government is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. If the contractor's costs exceed initial estimates, the government still pays those costs, potentially leading to a higher total expenditure than anticipated. This structure can incentivize contractors to incur higher costs if the fixed fee is substantial relative to the total expected cost. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure value for taxpayer money. For engineering services, scope creep can also exacerbate cost overruns.

Given this is a sole-source award, what does this imply about the availability of qualified contractors for PEO Aircraft Carriers engineering needs?

A sole-source award, or in this case, an award 'NOT AVAILABLE FOR COMPETITION,' suggests that the procuring agency (likely GSA acting on behalf of a Navy program office) determined that only one contractor, Phoenix Group of Virginia Inc., could meet the specific requirements. This could be due to unique capabilities, proprietary technology, urgent needs where competition is impractical, or a lack of sufficient market research identifying other capable vendors. It implies that for this particular requirement, the market may be limited, or the agency's justification for not competing was accepted. This situation can reduce competitive pressure, potentially leading to higher prices and less innovation compared to a fully competed contract.

What is the historical spending pattern for engineering services supporting the PEO Aircraft Carriers program, and how does this award fit in?

Analyzing historical spending for the PEO Aircraft Carriers program would require access to extensive federal procurement data. Without that, it's impossible to definitively place this $502,308 award within a broader context. However, engineering services are a critical component of major defense programs like aircraft carriers, which involve complex design, development, sustainment, and modernization efforts. Spending in this area can fluctuate significantly based on program phases, new platform development, or major refits. This particular award appears to be a relatively small task order, suggesting it might be for a specific, focused engineering support function rather than a large-scale program component. Understanding the overall budget and spending trends for PEO Aircraft Carriers would provide better context for the significance of this individual award.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFCA24R0052

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 630 WOODLAKE DR, CHESAPEAKE, VA, 23320

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,960,463

Exercised Options: $7,135,377

Current Obligation: $5,023,080

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFCA24D0001

IDV Type: IDC

Timeline