DoD's $20.8M engineering services contract to ROI Defense Associates, LLC awarded via full and open competition

Contract Overview

Contract Amount: $20,862,846 ($20.9M)

Contractor: ROI Defense Associates, LLC

Awarding Agency: Department of Defense

Start Date: 2011-01-27

End Date: 2020-10-21

Contract Duration: 3,555 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: SD N00024-10-R-3257

Place of Performance

Location: MESQUITE, CLARK County, NEVADA, 89034

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to ROI DEFENSE ASSOCIATES, LLC for work described as: SD N00024-10-R-3257 Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract was competed openly, suggesting a competitive environment for this type of service. 3. The duration of the contract (over 9 years) points to a long-term requirement for these services. 4. The contract type (Cost Plus Incentive Fee) suggests performance incentives were built into the agreement. 5. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The small business indicators are false, suggesting the prime contractor is not a small business.

Value Assessment

Rating: fair

Benchmarking the value of this specific engineering services contract is challenging without more detailed service descriptions and comparable contract data. The Cost Plus Incentive Fee (CPIF) structure aims to control costs by incentivizing the contractor to perform efficiently, but it can also lead to cost overruns if not managed carefully. The total award amount of approximately $20.8 million over nearly 10 years suggests a moderate annual spend, but the true value for money depends on the quality and impact of the engineering services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a healthy level of competition for this requirement. The presence of 4 bids (no=4) further supports this, showing that multiple companies vied for the opportunity. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices and encourages innovation among contractors, ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are likely the Department of Defense, which receives essential engineering support for its programs. The services delivered are engineering-related, potentially encompassing design, analysis, testing, or technical consultation. The geographic impact is centered in Nevada (sn=NEVADA), where the contractor is located or where services were performed. Workforce implications include employment opportunities for engineers and technical staff at ROI Defense Associates, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the engineering services provided.
The CPIF contract type, while incentivizing, carries inherent risks of cost escalation if not rigorously monitored.
Limited information on the specific nature of the engineering services prevents a deeper analysis of value for money.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract duration suggests a stable, long-term need that the contractor is fulfilling.
The existence of multiple bids (4) points to market interest and potential for competitive pricing.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a critical component of the broader professional, scientific, and technical services industry. This sector supports various government and private sector initiatives by providing specialized expertise. Spending in this area is often tied to large-scale projects, research and development, and complex system design. Comparable spending benchmarks would typically involve analyzing other engineering services contracts awarded by the Department of Defense or other federal agencies for similar types of support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb=false). As such, there are no direct subcontracting implications specifically mandated for small businesses through this prime contract. The prime contractor, ROI Defense Associates, LLC, is not identified as a small business. This means opportunities for small business participation would likely arise if ROI Defense Associates, LLC chooses to subcontract portions of the work, rather than through a formal set-aside requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Defense's contracting officers and the Defense Contract Management Agency (DCMA), which is listed as the 'sa' (servicing agency). Accountability measures are embedded within the Cost Plus Incentive Fee (CPIF) structure, which links contractor profit to performance against cost targets. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports are often not publicly available.

Related Government Programs

Defense Engineering Services
Professional, Scientific, and Technical Services
Department of Defense Contracts
Cost Plus Incentive Fee Contracts

Risk Flags

Contract type (CPIF) requires careful cost monitoring.
Specific services not detailed, hindering value assessment.
Performance data not publicly available for contractor assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to ROI DEFENSE ASSOCIATES, LLC. SD N00024-10-R-3257

Who is the contractor on this award?

The obligated recipient is ROI DEFENSE ASSOCIATES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2011-01-27. End: 2020-10-21.

What specific engineering services were provided under this contract?

The provided data identifies the contract as being for 'Engineering Services' under NAICS code 541330. However, it does not detail the specific nature of these services. Typically, engineering services can encompass a wide range of activities, including but not limited to, systems engineering, design, analysis, testing, research, development, and technical consulting. Without further information, it is impossible to ascertain the precise technical contributions made by ROI Defense Associates, LLC under this $20.8 million award. Understanding the specific services is crucial for evaluating the contract's effectiveness and value for money.

How does the $20.8 million total award compare to similar engineering services contracts within the DoD?

Comparing the $20.8 million total award for ROI Defense Associates, LLC's engineering services contract to similar contracts within the DoD requires access to a broader dataset of defense engineering procurements. However, as a contract spanning approximately 9.5 years (from January 2011 to October 2020), the average annual value is roughly $2.2 million. This figure falls within a moderate range for specialized engineering support services. Larger, more complex defense programs often involve engineering contracts in the tens or hundreds of millions of dollars, while smaller, more focused tasks might be in the hundreds of thousands. This contract's value suggests a significant but not exceptionally large requirement for engineering expertise.

What are the key risks associated with a Cost Plus Incentive Fee (CPIF) contract like this one?

The primary risk with a Cost Plus Incentive Fee (CPIF) contract is the potential for cost overruns if the incentive targets are not well-defined or if the government's oversight is insufficient. While CPIF aims to incentivize efficiency by linking contractor profit to performance against cost, schedule, or performance goals, it still allows the contractor to recover allowable costs. If the target cost is set too high or the incentive structure is weak, the contractor may not be sufficiently motivated to control expenses. Conversely, overly aggressive targets could lead to the contractor cutting corners on quality or performance. Effective management and robust monitoring by the government are critical to mitigating these risks and ensuring value.

What was the track record of ROI Defense Associates, LLC prior to or during this contract?

The provided data does not include information on the track record of ROI Defense Associates, LLC. To assess their performance on this specific $20.8 million contract, one would need to examine performance evaluations, past performance questionnaires, and any documented issues or successes. Generally, a contractor's history of delivering on time, within budget, and to the required quality standards is a key indicator of reliability. Without access to such performance data, it's difficult to definitively assess ROI Defense Associates, LLC's capabilities and reliability in fulfilling this engineering services requirement for the Department of Defense.

How does the 'full and open competition' award mechanism impact taxpayer value?

Awarding contracts through 'full and open competition' is generally considered the most effective mechanism for maximizing taxpayer value. This process allows any responsible business, regardless of size or previous relationship with the government, to submit a bid. The resulting competition among multiple bidders typically drives down prices as companies vie for the contract. It also encourages innovation, as contractors seek to differentiate their offerings. Furthermore, it ensures that the government is not locked into potentially higher prices or less innovative solutions that might arise from sole-source or limited competition scenarios. The presence of 4 bids in this case suggests that the full and open process was effective in attracting multiple interested parties.

What is the significance of the contract being a 'Delivery Order' (aw=DELIVERY ORDER)?

The designation 'DELIVERY ORDER' indicates that this contract award was likely a task order issued under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract, or a similar type of contract vehicle. IDIQ contracts establish terms and conditions for services or supplies over a period, allowing the government to issue specific orders (delivery or task orders) as needed. This approach provides flexibility for the government to procure services incrementally and manage fluctuating requirements. For taxpayers, it can be efficient if it streamlines the procurement process for recurring needs. However, the overall value and necessity of the underlying IDIQ contract and the specific orders issued under it still require scrutiny.

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: N0002410R3257

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 1582 SMOKE SIGNAL CT, MESQUITE, NV, 89034

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $32,021,803

Exercised Options: $30,774,303

Current Obligation: $20,862,846

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4538

IDV Type: IDC

Timeline