DoD's OOC Salvage and Diving Program awarded $18M for engineering services, with full and open competition
Contract Overview
Contract Amount: $17,975,622 ($18.0M)
Contractor: ROH Inc
Awarding Agency: Department of Defense
Start Date: 2008-08-25
End Date: 2015-09-30
Contract Duration: 2,592 days
Daily Burn Rate: $6.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: Defense
Official Description: OOC SALVAGE AND DIVING PROGRAM OFFICE SUPPORT SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.0 million to ROH INC for work described as: OOC SALVAGE AND DIVING PROGRAM OFFICE SUPPORT SERVICES Key points: 1. Contract value of $17.98M over 7 years. 2. ROH INC secured the contract via full and open competition. 3. No small business participation noted. 4. Engineering services sector, with a benchmark of $6.94M. 5. Potential for cost savings through competitive bidding.
Value Assessment
Rating: good
The contract's total value of $17.98M appears reasonable for 7 years of engineering services. Benchmarking against similar contracts is difficult without more specific service details, but the provided benchmark of $6.94M suggests this contract might be on the higher end for its duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market prices.
Taxpayer Impact: Full and open competition is the most effective method for ensuring taxpayer dollars are spent wisely, as it drives down costs through market forces.
Public Impact
Supports critical salvage and diving operations for the Department of Defense. Ensures readiness and operational capability in maritime environments. Contract duration of 7 years provides long-term stability for essential services.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Lack of small business participation.
- High contract value relative to benchmark.
Positive Signals
- Full and open competition.
- Long contract duration ensures service continuity.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector vital for defense operations. The benchmark of $6.94M for this sector suggests that while the total contract value is substantial, the annual expenditure might be within a typical range for specialized engineering support.
Small Business Impact
The data indicates no small business participation in this contract. Efforts should be made in future procurements to ensure opportunities are available for small businesses within the defense contracting ecosystem.
Oversight & Accountability
The contract was awarded by the Department of Defense, with oversight from the Defense Contract Management Agency. The use of full and open competition suggests a robust initial oversight process.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- No small business participation.
- Contract value exceeds sector benchmark.
- Long contract duration may lead to obsolescence.
- Potential for performance degradation over time.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.0 million to ROH INC. OOC SALVAGE AND DIVING PROGRAM OFFICE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is ROH INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $18.0 million.
What is the period of performance?
Start: 2008-08-25. End: 2015-09-30.
What specific engineering services are included in this contract, and how do they align with the stated benchmark?
The specific engineering services are not detailed in the provided data. To fully assess value, a breakdown of services (e.g., design, analysis, project management) is needed. Comparing these detailed services against the $6.94M benchmark would reveal if the $17.98M total is justified by the scope and complexity of the work performed over the contract's lifespan.
What risks are associated with a 7-year contract for salvage and diving support services?
A significant risk is technological obsolescence or changes in operational requirements over a 7-year period, potentially making the contracted services less relevant or efficient. Another risk is contractor performance degradation over time, or the potential for cost overruns if not managed tightly. Market conditions and material costs can also fluctuate, impacting the fixed price nature of the contract.
How effective is full and open competition in ensuring cost-effectiveness for specialized defense services like salvage and diving?
Full and open competition is generally highly effective for specialized services by fostering a competitive environment that drives down prices. However, effectiveness can be limited if the pool of qualified contractors is small, or if the technical requirements are so unique that only a few firms can realistically compete. For salvage and diving, it likely ensures a competitive baseline, but specialized expertise might still command premium pricing.
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: N0002408R3186
Offers Received: 2
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 2711 JEFFERSON-DAVIS HWY 500, ARLINGTON, VA, 22202
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $19,472,614
Exercised Options: $19,472,614
Current Obligation: $17,975,622
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017805D4537
IDV Type: IDC
Timeline
Start Date: 2008-08-25
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2017-05-09
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