TECNICO CORPORATION awarded $10.25M cost-plus contract by DoD for unspecified services

Contract Overview

Contract Amount: $10,249,779 ($10.2M)

Contractor: Tecnico Corporation

Awarding Agency: Department of Defense

Start Date: 2005-08-02

End Date: 2006-08-14

Contract Duration: 377 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: CHESAPEAKE, CHESAPEAKE (CITY) County, VIRGINIA, 23324

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to TECNICO CORPORATION for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost overruns if not managed carefully. 3. Awarded by the Department of Defense, indicating a focus on national security or defense-related needs. 4. The duration of the contract is approximately one year, suggesting a project with a defined scope and timeline. 5. The contract was awarded in August 2005, providing historical context for current spending patterns. 6. The specific service or product procured is not detailed, limiting a precise value assessment.

Value Assessment

Rating: fair

The contract's value of $10.25 million for a roughly one-year duration appears moderate for a Department of Defense procurement. Without knowing the specific services rendered, it's difficult to benchmark against similar contracts. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's costs plus a fixed fee, which can lead to higher overall costs compared to fixed-price contracts if costs are not tightly controlled. This structure is often used when the scope of work is uncertain or difficult to define upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders (no) suggests a reasonably competitive environment for this procurement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. However, the specific nature of the services procured could influence the number of qualified bidders.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of obtaining services at a competitive price, preventing potential overpayment that might occur with less competitive solicitations.

Public Impact

The primary beneficiaries are likely components within the Department of Defense requiring the unspecified services. The services delivered are not specified, making it impossible to detail the exact nature of the support provided. The geographic impact is likely concentrated around the contracting agency or the operational areas of the DoD. Workforce implications are unknown due to the unspecified nature of the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
Lack of specificity regarding the services procured hinders a thorough assessment of value and performance.
The contract was awarded over 18 years ago, making its direct relevance to current market conditions limited.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Multiple bidders participated, suggesting a degree of market interest and competition.
The contract has a defined duration, implying a contained project scope.

Sector Analysis

This contract falls within the broad category of government services procurement, likely supporting the Department of Defense's operational or administrative functions. The defense sector is a significant area of federal spending, encompassing a wide range of services from logistics and maintenance to IT support and research. Benchmarking this $10.25 million contract requires knowledge of the specific services; however, it represents a typical mid-tier award within the defense services market.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Without specific set-aside goals or subcontracting requirements, the direct impact on small businesses is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the awarding agency (Department of Defense) and potentially the Defense Contract Management Agency (DCMA), which is listed as the 'servicing agency'. Accountability measures would be tied to the contract's performance clauses and the CPFF structure, requiring detailed cost reporting and justification. Transparency is limited by the lack of specific service details in the provided data.

Related Government Programs

Department of Defense Services Contracts
Cost-Plus Contracts
Full and Open Competition Awards

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Lack of specific service details limits comprehensive analysis.
Contract awarded over 18 years ago, historical data may not reflect current market conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to TECNICO CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TECNICO CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2005-08-02. End: 2006-08-14.

What specific services did TECNICO CORPORATION provide under this contract?

The provided data does not specify the exact services rendered by TECNICO CORPORATION under this $10.25 million contract awarded by the Department of Defense. Contracts of this nature, especially Cost Plus Fixed Fee (CPFF), are often used for services where the scope is not fully defined at the outset, such as research and development, complex technical support, or specialized engineering services. Without this crucial detail, a comprehensive analysis of the contract's value, performance, and impact is significantly limited. Further investigation into the contract's details, potentially through the Federal Procurement Data System (FPDS) or agency-specific records, would be necessary to ascertain the nature of the work performed.

How does the $10.25 million value compare to similar DoD service contracts awarded around 2005?

Comparing the $10.25 million value requires context on the specific services procured. In 2005, the Department of Defense awarded numerous service contracts. If this contract was for general administrative support, it might be considered substantial. However, if it was for complex engineering or specialized IT services, it could be relatively modest. The Cost Plus Fixed Fee (CPFF) structure also means the final cost could exceed the initial estimate, making direct value comparisons challenging without knowing the final expenditure and the scope of work. Benchmarking would ideally involve comparing contracts with similar service descriptions, durations, and contract types from the same period.

What are the inherent risks associated with a Cost Plus Fixed Fee (CPFF) contract of this size?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the 'fixed fee' component provides some predictability for the contractor's profit, the 'cost plus' element means the government bears the risk of increasing costs. If the contractor does not manage expenses efficiently, the total cost to the government can escalate beyond initial projections. For a $10.25 million contract, effective oversight and rigorous cost monitoring by the Department of Defense are crucial to mitigate this risk. The CPFF structure is typically employed when the scope of work is uncertain or involves significant unknowns, but it necessitates strong government program management to ensure value for money.

What was TECNICO CORPORATION's track record prior to this 2005 award?

Information regarding TECNICO CORPORATION's specific track record prior to the August 2005 award of this $10.25 million Department of Defense contract is not provided in the given data. To assess their performance history, one would need to examine prior federal contract awards to TECNICO CORPORATION, including their performance ratings, any past issues or disputes, and the types of services they had previously delivered. A contractor's history is a key indicator of their reliability, capability, and potential risks associated with awarding them new contracts. Without this historical context, evaluating TECNICO CORPORATION's suitability for this specific DoD requirement is incomplete.

How has federal spending on similar defense services evolved since this contract was awarded in 2005?

Federal spending on defense services has generally increased significantly since 2005, driven by evolving geopolitical landscapes, technological advancements, and sustained military operations. While this specific $10.25 million contract represents a snapshot from over 18 years ago, the overall trend shows a growing reliance on contracted services across all branches of the Department of Defense. Areas like cybersecurity, intelligence analysis, logistics, and specialized technical support have seen substantial investment growth. The nature of contracting has also evolved, with increased emphasis on performance-based contracts and strategic partnerships, although CPFF contracts remain in use for specific circumstances. Understanding this broader trend provides context for how this older contract fits into the larger picture of defense procurement.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: American Maritime Holdings, LLC (UEI: 827462636)

Address: 831 INDUSTRIAL AVENUE, CHESAPEAKE, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: N0014004D0039

IDV Type: IDC

Timeline