DoD's $31.2M Engineering Services Contract Awarded to American Society for Engineering Education

Contract Overview

Contract Amount: $31,221,851 ($31.2M)

Contractor: American Society for Engineering Education

Awarding Agency: Department of Defense

Start Date: 2015-04-24

End Date: 2020-04-26

Contract Duration: 1,829 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF SUPPORT SERVICES: NREIP/SEAP

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $31.2 million to AMERICAN SOCIETY FOR ENGINEERING EDUCATION for work described as: IGF::OT::IGF SUPPORT SERVICES: NREIP/SEAP Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1829 days indicates a long-term need for these engineering services. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The award was a delivery order against a larger contract, implying a phased approach to service delivery. 5. The small business set-aside flag is false, meaning small businesses were not specifically targeted for this award. 6. The contract is associated with NREIP/SEAP programs, suggesting a focus on research and educational initiatives.

Value Assessment

Rating: fair

Benchmarking the value of this $31.2 million contract is challenging without specific performance metrics or comparable service contracts. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the government reimburses costs plus a fixed fee. While the fixed fee provides some predictability, the total cost can escalate if the contractor's expenses increase. Without detailed breakdowns of labor categories, overhead, and the fixed fee percentage, a precise value-for-money assessment is difficult. However, the duration of nearly five years suggests a sustained need and potentially a reasonable annual cost if the scope of work is substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders (no) suggests a moderate level of competition. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions. However, the specific nature of engineering services and the specialized requirements of the Department of the Navy could limit the pool of qualified offerors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a broad selection process. The presence of multiple bidders increases the likelihood of competitive pricing, potentially leading to cost savings compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research initiatives, receiving specialized engineering support. The contract supports the NREIP/SEAP programs, which may involve research, development, and educational activities. The geographic impact is centered in the District of Columbia (st, sn), where the contract was awarded. The contract likely impacts the engineering workforce by providing employment opportunities for skilled professionals within the American Society for Engineering Education and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
Limited transparency on specific performance metrics makes it difficult to assess true value for money.
The specialized nature of engineering services might limit the pool of truly competitive bidders.
The contract duration of nearly five years requires sustained oversight to ensure continued relevance and efficiency.

Positive Signals

Awarded through full and open competition, indicating a broad solicitation process.
The fixed fee component of the CPFF contract provides some cost predictability.
The contract supports specific research and educational programs (NREIP/SEAP), suggesting a focused objective.
The award was a delivery order, allowing for phased execution and potential adjustments.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing firms that provide specialized engineering expertise. The market for federal engineering services is substantial, driven by defense, infrastructure, and research needs. This specific contract, supporting the Department of the Navy's NREIP/SEAP programs, likely involves highly specialized technical consulting and support. Comparable spending benchmarks would typically be found within other large, long-term engineering support contracts awarded by defense agencies for similar research and development initiatives.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). Therefore, there are no direct subcontracting requirements mandated by a small business set-aside. However, the prime contractor, the American Society for Engineering Education, may still engage small businesses as subcontractors based on their own procurement needs and capabilities. The absence of a set-aside means that large businesses were eligible to compete and potentially win the award, which is consistent with the 'full and open competition' award type.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee remains appropriate for the work performed. Transparency is facilitated through contract reporting requirements, though specific details on performance metrics and cost breakdowns may not be publicly available. The Inspector General for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Research and Development Contracts
Navy Engineering Support Services
NREIP Program Funding
SEAP Program Funding
Federal Engineering Consulting Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited public data on specific performance metrics hinders a comprehensive value assessment.
Potential for cost escalation inherent in CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.2 million to AMERICAN SOCIETY FOR ENGINEERING EDUCATION. IGF::OT::IGF SUPPORT SERVICES: NREIP/SEAP

Who is the contractor on this award?

The obligated recipient is AMERICAN SOCIETY FOR ENGINEERING EDUCATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $31.2 million.

What is the period of performance?

Start: 2015-04-24. End: 2020-04-26.

What is the track record of the American Society for Engineering Education in performing similar federal contracts?

The American Society for Engineering Education (ASEE) is primarily known as a professional organization focused on advancing engineering education and research. While they may not be a traditional defense contractor, their role in administering programs like NREIP (Naval Research Enterprise Internship Program) and SEAP (Science and Engineering Apprenticeship Program) suggests experience in managing educational and research-related initiatives. Their ability to secure a $31.2 million contract indicates a level of trust and capability in managing significant federal funding and program execution. However, their direct experience in delivering complex engineering services, as opposed to administering programs, would need further investigation through contract performance reports and past performance evaluations, which are not detailed in the provided data.

How does the cost of this contract compare to similar engineering services contracts awarded by the Department of Defense?

Direct cost comparison is difficult without detailed scope of work and performance metrics. However, the contract value of $31.2 million over approximately five years ($6.24 million annually) for engineering services is within the typical range for large-scale federal contracts. The Cost Plus Fixed Fee (CPFF) structure means the total cost is variable, dependent on actual expenses incurred by the contractor, plus a predetermined fixed fee. To assess value, one would need to compare the specific engineering disciplines, the level of expertise required, and the complexity of the tasks against other DoD contracts for similar services. Contracts with a higher number of bidders and fixed-price structures often yield better price competition, but CPFF contracts are sometimes necessary for research and development where costs are uncertain.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk with a CPFF contract is the potential for cost overruns. Since the government reimburses the contractor for all allowable costs incurred, there is less incentive for the contractor to control expenses compared to a fixed-price contract. While the fixed fee provides some predictability for the contractor's profit, the total contract cost can escalate significantly if the contractor's direct and indirect costs increase beyond initial estimates. Effective oversight by the government is critical to scrutinize incurred costs, ensure they are reasonable and allocable to the contract, and manage the scope of work to prevent unnecessary expenditures. Scope creep is another significant risk that can drive up costs under a CPFF arrangement.

What is the expected effectiveness of the engineering services provided under this contract for the NREIP/SEAP programs?

The effectiveness of the engineering services is contingent upon the specific tasks outlined in the contract and the contractor's ability to meet those requirements. Given that ASEE is administering programs like NREIP and SEAP, the services likely focus on supporting research opportunities for students and potentially faculty, facilitating mentorship, and managing program logistics. The effectiveness would be measured by the quality of research experiences provided, the number of participants engaged, the successful completion of program objectives, and the overall impact on STEM education and workforce development. Without access to performance metrics and program outcomes, a definitive assessment of effectiveness cannot be made, but the long-term nature of the contract suggests a perceived value and ongoing need for these services.

How has federal spending on engineering services, particularly within the Department of Defense, trended in recent years?

Federal spending on engineering services, especially within the Department of Defense, has historically been substantial and tends to fluctuate based on geopolitical factors, modernization priorities, and budget allocations. The DoD is a major consumer of engineering services, encompassing areas like research and development, systems engineering, infrastructure design, and technical support. Trends often show increased spending during periods of heightened defense activity or major acquisition programs. While specific year-over-year data for 'Engineering Services' (NAICS 541330) requires detailed analysis of federal procurement databases (like FPDS-NG), it's generally understood that this sector represents a significant portion of the federal contracting landscape, with consistent demand for specialized expertise.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002414R3438

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1818 N ST NW STE 600, WASHINGTON, DC, 20036

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,516,073

Exercised Options: $34,516,073

Current Obligation: $31,221,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7163

IDV Type: IDC

Timeline