Coast Guard awards $3.3M for cutter engineering support, with 3 bids received

Contract Overview

Contract Amount: $3,291,740 ($3.3M)

Contractor: Management & Engineering Technologies International Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-27

End Date: 2026-09-26

Contract Duration: 1,095 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: HM&E ENGINEERING TECHNICAL SUPPORT, AVAILABILITY PROJECT MANAGEMENT (APM), AND SUPPLY MANAGEMENT SERVICES FOR LREPL AND OTHER PRODUCT LINES FOR PLANNED AND EMERGENCY REPAIRS OF COAST GUARD CUTTERS AT VARIOUS LOCATIONS BOTH CONUS AND OCONUS.

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98134

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.3 million to MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC for work described as: HM&E ENGINEERING TECHNICAL SUPPORT, AVAILABILITY PROJECT MANAGEMENT (APM), AND SUPPLY MANAGEMENT SERVICES FOR LREPL AND OTHER PRODUCT LINES FOR PLANNED AND EMERGENCY REPAIRS OF COAST GUARD CUTTERS AT VARIOUS LOCATIONS BOTH CONUS AND OCONUS. Key points: 1. Contract focuses on critical engineering, availability project management, and supply chain support for Coast Guard cutters. 2. The award was made under full and open competition, indicating a competitive bidding process. 3. The contract duration is three years, suggesting a need for sustained support. 4. The fixed-price contract type aims to control costs and provide predictability. 5. The services cover both planned and emergency repairs, highlighting operational flexibility. 6. The scope includes diverse locations, both within the US and overseas.

Value Assessment

Rating: good

The contract value of $3.3 million over three years appears reasonable for specialized engineering and supply management services for a fleet of vessels. Benchmarking against similar contracts for fleet readiness and technical support for maritime assets would provide a more precise value assessment. The firm-fixed-price structure suggests a degree of cost control, but detailed cost breakdowns are not available to fully assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. Three bids were received, indicating a moderate level of competition. While three bidders suggest some market interest, a higher number could potentially lead to more aggressive pricing and a wider range of technical solutions.

Taxpayer Impact: The competitive nature of this award, with three bids, is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs and improving service quality.

Public Impact

Coast Guard cutters will receive essential engineering, project management, and supply chain services, enhancing operational readiness. Personnel involved in cutter maintenance and repair will benefit from improved support systems. The services support both planned maintenance and emergency repairs, ensuring fleet availability for critical missions. Geographic impact includes various locations both CONUS and OCONUS, supporting global Coast Guard operations. The contract supports the operational effectiveness of the U.S. Coast Guard's maritime security and safety missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs within the firm-fixed-price contract.
Dependence on a single contractor for critical availability project management and supply chain functions.
Risk of service disruption if the contractor faces performance issues or financial instability.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive market for these services.
Contract duration of three years allows for stable planning and execution of services.
Services cover both planned and emergency repairs, ensuring operational flexibility for the Coast Guard.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense and maritime industry. The market for specialized engineering and logistics support for naval and maritime assets is significant, driven by the need to maintain aging fleets and ensure operational readiness. Comparable spending benchmarks would typically involve contracts for ship maintenance, repair, overhaul, and technical support services for government vessels.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC, may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem. Further analysis of subcontracting plans would be needed to assess the full impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Coast Guard contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified services within agreed-upon timelines and quality standards. Transparency is facilitated through the contract award process and public availability of contract data, though detailed performance metrics are not publicly disclosed.

Related Government Programs

Coast Guard Vessel Maintenance and Repair Contracts
Naval Engineering Support Services
Maritime Logistics and Supply Chain Management
Defense Readiness and Sustainment Programs

Risk Flags

Potential for scope creep impacting cost and schedule.
Reliance on contractor for critical supply chain and project management functions.
Geographic complexity of services (CONUS/OCONUS) may introduce logistical challenges.
Need for consistent performance monitoring to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.3 million to MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC. HM&E ENGINEERING TECHNICAL SUPPORT, AVAILABILITY PROJECT MANAGEMENT (APM), AND SUPPLY MANAGEMENT SERVICES FOR LREPL AND OTHER PRODUCT LINES FOR PLANNED AND EMERGENCY REPAIRS OF COAST GUARD CUTTERS AT VARIOUS LOCATIONS BOTH CONUS AND OCONUS.

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC.

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 $3.3 million.

What is the period of performance?

Start: 2023-09-27. End: 2026-09-26.

What is the track record of MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC with the U.S. Coast Guard and similar federal agencies?

A review of federal procurement data indicates that MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC has a history of receiving contracts from various federal agencies, including the Department of Homeland Security (which oversees the Coast Guard) and the Department of Defense. Their contract awards often relate to engineering services, technical support, and program management. Analyzing the past performance ratings and any past performance issues associated with their previous contracts would provide insight into their reliability and capability to execute this current award. Specific details on past performance quality, on-time delivery, and adherence to budget on prior Coast Guard contracts would be crucial for a comprehensive assessment.

How does the awarded amount compare to similar engineering support contracts for maritime assets?

The awarded amount of approximately $3.3 million over three years for HM&E (Hull, Machinery, and Equipment) engineering, availability project management, and supply management services for Coast Guard cutters is within a typical range for specialized technical support. However, direct comparisons are challenging without knowing the exact scope, complexity, and duration of services for other contracts. Contracts for similar services, such as fleet technical support, depot-level maintenance, or integrated logistics support for naval vessels, can range from hundreds of thousands to tens of millions of dollars annually, depending on the size and type of the fleet, the criticality of the assets, and the specific services required. The firm-fixed-price nature of this award suggests a defined scope, which aids in comparison if similar fixed-price contracts are identified.

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

Key risks for this contract include potential cost overruns if the scope of work expands beyond the initial definition (scope creep), despite the firm-fixed-price structure. Another risk is the contractor's ability to consistently deliver high-quality services across diverse locations (CONUS/OCONUS) and manage both planned and emergency repairs effectively. Mitigation strategies likely involve robust contract oversight by the Coast Guard, clear performance metrics and deliverables outlined in the contract, and potentially performance bonds. The competitive award process itself mitigates some risk by selecting a contractor presumed to have the capability and capacity to perform. Regular performance reviews and communication channels are also critical for early identification and resolution of issues.

How effective is the current contract in ensuring the availability and readiness of Coast Guard cutters?

The effectiveness of this contract in ensuring cutter availability and readiness will be directly measured by the contractor's performance against the defined scope of work and service level agreements. Success hinges on the timely and quality delivery of engineering, project management, and supply chain services. Positive indicators would include reduced downtime for planned maintenance, efficient resolution of emergency repairs, and improved operational readiness of the cutters supported. Conversely, negative indicators would involve delays, cost overruns (if applicable beyond the fixed price), or a decline in the operational status of the affected vessels. Ongoing monitoring by the Coast Guard program office is essential to gauge and ensure effectiveness.

What are the historical spending patterns for similar engineering and technical support services for the U.S. Coast Guard fleet?

Historical spending for engineering and technical support services for the U.S. Coast Guard fleet has been substantial, reflecting the significant operational demands and aging assets within the service. The Coast Guard consistently invests in maintenance, repair, and modernization programs to ensure its cutters and aircraft remain operational. Spending patterns often show a mix of large, long-term sustainment contracts, as well as smaller, specialized service awards for specific platforms or technical needs. The total annual expenditure for fleet readiness and support services can run into hundreds of millions of dollars, varying based on fleet modernization cycles, budget appropriations, and the urgency of repair needs. This $3.3 million award represents a component of that broader spending.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z04023RSSDV0008

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8600 BOEING DR, EL PASO, TX, 79925

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,447,667

Exercised Options: $3,291,740

Current Obligation: $3,291,740

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS324

IDV Type: IDC

Timeline