DHS awards $5.25M for engineering and test support to Credence Dynamo Solutions, with 3 bidders

Contract Overview

Contract Amount: $5,254,920 ($5.3M)

Contractor: Credence Dynamo Solutions LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-05-01

End Date: 2027-02-28

Contract Duration: 1,764 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE PROFESSIONAL ENGINEERING SUPPORT, TEST AND EVALUATION SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20593

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.3 million to CREDENCE DYNAMO SOLUTIONS LLC for work described as: PROVIDE PROFESSIONAL ENGINEERING SUPPORT, TEST AND EVALUATION SUPPORT. Key points: 1. Contract value appears reasonable given the scope of professional engineering and test support. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. Contract duration of nearly 5 years indicates a need for sustained support. 5. The award is for engineering services, a critical component of the U.S. Coast Guard's mission. 6. No small business set-aside was utilized, indicating the primary focus was on best value. 7. The contract is firm-fixed-price, aligning contractor incentives with government objectives.

Value Assessment

Rating: good

The contract value of $5.25 million over approximately 4.9 years for professional engineering and test support appears to be within a reasonable range for specialized services. Benchmarking against similar contracts for engineering and test support within DHS or the Coast Guard would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the pricing was determined upfront and aims to provide cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources may have been excluded based on specific criteria. With 3 bidders, the competition level suggests a moderate level of market interest. This approach can be effective when specific capabilities are required, but it warrants scrutiny to ensure the exclusion criteria were justified and did not unduly limit competition.

Taxpayer Impact: A moderate level of competition, with 3 bidders, suggests that taxpayers likely received a fair price, though a broader competition might have yielded even more competitive pricing.

Public Impact

The U.S. Coast Guard benefits from specialized engineering and test support, crucial for its operational readiness and asset maintenance. Services delivered include professional engineering support and test and evaluation support, enhancing the reliability and effectiveness of Coast Guard systems. The geographic impact is primarily within the District of Columbia, where the contractor is located and likely where services will be rendered or managed. Workforce implications include the employment of skilled engineers and technical personnel by Credence Dynamo Solutions to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type requires further investigation to ensure it was fully justified and did not unnecessarily restrict competition.
Lack of small business participation could limit opportunities for smaller, specialized firms in this contracting area.

Positive Signals

Firm-fixed-price contract type provides cost certainty and aligns contractor incentives with government objectives.
The contract duration of nearly 5 years suggests a stable, long-term need for these critical services.
The award to a single contractor implies a focused relationship for specialized support.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant market supporting government and private sector operations. The U.S. Coast Guard, as part of the Department of Homeland Security, relies heavily on such services for maintaining its diverse fleet and operational infrastructure. Spending in this sector is driven by the need for specialized technical expertise in design, testing, and evaluation to ensure safety, compliance, and performance of complex systems.

Small Business Impact

This contract does not appear to have a small business set-aside (SS=false, SB=false). The award to Credence Dynamo Solutions LLC, a single entity, suggests that subcontracting opportunities for small businesses may be limited unless explicitly included in the prime contract's scope. The absence of a set-aside indicates that the primary focus was on securing the required specialized engineering and test capabilities, potentially from larger or more established firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and program managers within the Department of Homeland Security. Accountability is established through the firm-fixed-price contract terms, performance metrics, and delivery schedules. Transparency is facilitated through federal procurement databases like FPDS.gov, where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security - Procurement
U.S. Coast Guard - Operations Support
Engineering Services Contracts
Test and Evaluation Services

Risk Flags

Competition level ('Full and Open Competition After Exclusion of Sources') warrants review for justification.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.3 million to CREDENCE DYNAMO SOLUTIONS LLC. PROVIDE PROFESSIONAL ENGINEERING SUPPORT, TEST AND EVALUATION SUPPORT.

Who is the contractor on this award?

The obligated recipient is CREDENCE DYNAMO SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2022-05-01. End: 2027-02-28.

What is the track record of Credence Dynamo Solutions LLC in performing similar engineering and test support contracts for the federal government?

Credence Dynamo Solutions LLC has been awarded federal contracts primarily in the engineering and technical services domain. While specific details on past performance for similar large-scale test and evaluation support are not immediately available from the provided data, their award by the U.S. Coast Guard for a nearly five-year contract valued at over $5 million suggests a demonstrated capability to meet government requirements. Further analysis of their contract history, including past performance reviews and any reported issues on previous awards, would be necessary to fully assess their track record. This includes examining their experience with firm-fixed-price contracts and their ability to deliver complex engineering solutions within specified timelines and budgets.

How does the awarded value of $5.25 million compare to similar engineering and test support contracts within the Department of Homeland Security or the U.S. Coast Guard?

The awarded value of $5.25 million for professional engineering and test and evaluation support over approximately 1764 days (4.9 years) provides a benchmark for this type of service. To assess value for money, this contract should be compared against other DHS or Coast Guard contracts for similar services, considering factors like contract duration, scope complexity, and required expertise. For instance, contracts for specialized maritime engineering, systems integration testing, or fleet readiness support could serve as comparators. Without direct access to a database of comparable contracts, it's challenging to definitively state if $5.25 million is high or low. However, the firm-fixed-price nature suggests a negotiated price intended to represent good value for the defined scope.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential scope creep, contractor performance issues, and the possibility that the 'exclusion of sources' may have limited the best possible pricing. Mitigation strategies are in place through the firm-fixed-price contract type, which caps the government's financial liability and incentivizes the contractor to manage costs effectively. The contract duration of nearly five years also presents a risk of evolving technological needs or changing mission requirements; however, this duration also suggests a stable, long-term requirement. The U.S. Coast Guard's oversight mechanisms, including performance monitoring and quality assurance, are crucial for mitigating performance risks. The justification for excluding sources would need to be robust to ensure fair pricing.

What is the expected effectiveness of the engineering and test support provided by Credence Dynamo Solutions for the U.S. Coast Guard's mission?

The engineering and test support provided by Credence Dynamo Solutions is expected to be highly effective in ensuring the operational readiness, safety, and reliability of U.S. Coast Guard assets and systems. This includes support for vessel maintenance, acquisition programs, and the implementation of new technologies. By providing specialized expertise in testing and evaluation, the contractor helps identify and resolve potential issues before they impact operational missions, thereby enhancing mission success rates. The long-term nature of the contract suggests a critical and ongoing need for these services, underscoring their importance to the Coast Guard's ability to perform its diverse duties, from maritime security to search and rescue.

How has federal spending on engineering and test support services for the Department of Homeland Security evolved over the past five years?

Federal spending on engineering and test support services for the Department of Homeland Security (DHS) has generally been substantial, reflecting the agency's broad responsibilities across national security, border control, and emergency management. While specific figures for DHS's engineering and test support spending are not provided here, the sector as a whole sees significant investment. Trends likely include increased demand for cybersecurity-related testing, advanced sensor technologies, and support for modernization of legacy systems. The Coast Guard, as a major component of DHS, consistently requires engineering support for its fleet and infrastructure. Analyzing historical spending patterns within DHS and its sub-agencies would reveal fluctuations tied to specific acquisition programs, technological advancements, and overall budget allocations.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z02322R74109000

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1951 KIDWELL DR STE 550, VIENNA, VA, 22182

Business Categories: Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,689,221

Exercised Options: $5,264,934

Current Obligation: $5,254,920

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $374,333

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1042

IDV Type: IDC

Timeline