DoD's $41.2M Engineering Services Contract Awarded to RGS Associates, Inc. for SEA 10 and SEA 00X Support

Contract Overview

Contract Amount: $41,220,658 ($41.2M)

Contractor: RGS Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-03-09

End Date: 2016-07-15

Contract Duration: 1,589 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS PROCUREMENT IS TO OBTAIN PROFESSIONAL SUPPORT SERVICES FOR SEA 10 AND SEA 00X.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.2 million to RGS ASSOCIATES, INC. for work described as: THE PURPOSE OF THIS PROCUREMENT IS TO OBTAIN PROFESSIONAL SUPPORT SERVICES FOR SEA 10 AND SEA 00X. Key points: 1. Contract value of $41.2 million over approximately 4 years indicates significant investment in specialized engineering support. 2. Awarded via full and open competition, suggesting a competitive bidding process aimed at achieving fair market value. 3. The contract type (Cost Plus Fixed Fee) can introduce cost-reimbursement risks if not closely managed. 4. Performance period of nearly 4 years allows for sustained support but requires ongoing monitoring. 5. The procurement focuses on critical engineering services for SEA 10 and SEA 00X, highlighting its importance to naval operations. 6. The absence of small business set-aside suggests the primary contractor may not be a small business, with subcontracting potential unclear.

Value Assessment

Rating: fair

The contract value of $41.2 million over 1589 days averages to approximately $26,000 per day. Without specific benchmarks for 'SEA 10 and SEA 00X' professional support services, a direct value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, carries inherent risks of cost overruns if not meticulously managed and audited. Comparing this to similar large-scale engineering support contracts within the Department of Defense would be necessary for a more robust valuation.

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 4 bids suggests a moderate level of competition for this specialized engineering service. While competition is generally positive for price discovery, the specific number of bidders (4) in relation to the complexity and value of the contract warrants further investigation to ensure optimal pricing was achieved.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality. The fact that four bids were received suggests that the government had options, potentially driving down costs compared to a sole-source award.

Public Impact

Naval operations and readiness are directly supported through specialized engineering services for SEA 10 and SEA 00X. The primary beneficiary is the Department of the Navy, receiving critical technical expertise. Geographic impact is likely concentrated around naval facilities where SEA 10 and SEA 00X operations are based, primarily in Virginia. The contract supports a workforce of engineers and technical specialists, contributing to the skilled labor pool in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces potential for cost overruns if not rigorously managed.
Limited information on the specific deliverables and performance metrics makes it difficult to fully assess performance.
The number of bidders (4) is moderate; further analysis could determine if it was sufficient to ensure maximum price competition.
Lack of explicit small business subcontracting goals could limit opportunities for smaller firms in this contract.

Positive Signals

Awarded through full and open competition, indicating a commitment to a competitive bidding process.
The contract duration of nearly 4 years allows for sustained support and potential for long-term relationship building.
The focus on specific naval programs (SEA 10 and SEA 00X) suggests alignment with critical defense needs.
The contractor, RGS Associates, Inc., has experience in engineering services, implying a level of capability.

Sector Analysis

The engineering services sector within the defense industry is substantial, supporting complex military platforms and systems. This contract, valued at over $41 million, falls within the typical range for specialized professional services required by the Department of Defense. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) encompasses a broad range of activities, and this procurement specifically targets support for naval programs. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by the Navy or other military branches for similar types of services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contract was awarded to a large business or that the competition was open to all, with no specific preference given to small entities. Consequently, the direct impact on small business set-asides is nil. However, there may be opportunities for small businesses to participate as subcontractors to RGS Associates, Inc., depending on the contractor's subcontracting plan and the nature of the services required. Further investigation into subcontracting goals would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract databases like FPDS, which provide public access to award information. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Professional Support Services Contracts
Cost-Plus-Fixed-Fee Contracts
Defense Contract Management Agency Oversight

Risk Flags

Potential for cost overruns due to CPFF contract type.
Need for robust oversight to ensure value for money.
Moderate competition level requires validation of pricing.
Unclear subcontracting opportunities for small businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.2 million to RGS ASSOCIATES, INC.. THE PURPOSE OF THIS PROCUREMENT IS TO OBTAIN PROFESSIONAL SUPPORT SERVICES FOR SEA 10 AND SEA 00X.

Who is the contractor on this award?

The obligated recipient is RGS ASSOCIATES, 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 $41.2 million.

What is the period of performance?

Start: 2012-03-09. End: 2016-07-15.

What is the track record of RGS Associates, Inc. in performing similar engineering support services for the Department of Defense?

RGS Associates, Inc. has a history of providing engineering services, as indicated by their presence in this contract. To fully assess their track record, a deeper dive into their past performance evaluations, other DoD contracts (especially those with similar scope and complexity), and any reported issues or commendations would be necessary. Examining their financial stability and capacity to handle a contract of this magnitude is also crucial. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would provide valuable insights into their past performance, including timeliness, quality of work, and adherence to contract requirements. Without this detailed historical data, assessing their reliability for this specific procurement remains incomplete.

How does the awarded amount of $41.2 million compare to similar engineering support contracts for naval programs?

Comparing the $41.2 million award to similar contracts requires access to a database of historical procurements for naval engineering support services. Factors such as the specific systems supported (SEA 10 and SEA 00X), the duration of the contract (1589 days), and the type of services rendered (professional support) are key variables. If this contract represents a significant portion of the total spending in this niche or is notably higher/lower than comparable awards, it could indicate market trends, pricing anomalies, or unique contract requirements. Benchmarking against contracts with similar NAICS codes (541330) and agencies (DoD) but varying scopes would provide context on whether the price is competitive within the market.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the total expenditure. For the government, this poses a risk of cost overruns if cost controls are not robust and if the fixed fee is not adequately negotiated relative to the anticipated effort. Effective oversight, detailed cost accounting, and clear definition of allowable costs are critical to mitigate these risks and ensure the government receives good value. Without stringent management, CPFF contracts can become significantly more expensive than initially projected.

What is the expected impact of this contract on the readiness and capabilities of the naval programs (SEA 10 and SEA 00X)?

This contract is intended to provide professional support services essential for the functioning and advancement of SEA 10 and SEA 00X. These services likely encompass areas such as design, analysis, testing, maintenance planning, or program management, all critical for ensuring the operational readiness and technological relevance of naval assets. By securing specialized expertise through RGS Associates, Inc., the Department of the Navy aims to enhance the capabilities, reliability, and potentially the modernization of the systems under SEA 10 and SEA 00X. The successful execution of this contract should directly translate into improved performance and sustained operational effectiveness for these naval programs.

How has federal spending on engineering services for naval programs evolved over the past five years?

Analyzing federal spending trends on engineering services for naval programs over the past five years requires access to historical procurement data. This would involve aggregating contract awards under relevant NAICS codes (like 541330) and PSC codes associated with naval engineering support, filtering by agency (Department of the Navy) and potentially by specific program areas if data allows. An upward trend might indicate increased investment in naval modernization or maintenance, while a downward trend could suggest budget constraints or shifts in priorities. Understanding these patterns provides context for the current $41.2 million award, helping to determine if it aligns with or deviates from historical spending levels and strategic investments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002411R3012

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Usfalcon Inc (UEI: 829288856)

Address: 1800 S BELL ST STE 1000, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $41,857,982

Exercised Options: $41,857,982

Current Obligation: $41,220,658

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4530

IDV Type: IDC

Timeline