DoD's $127.8M Marine Gas Turbine Engineering Contract Awarded to EDO Acquisition II, Inc

Contract Overview

Contract Amount: $12,780,142 ($12.8M)

Contractor: EDO Acquisition II, Inc

Awarding Agency: Department of Defense

Start Date: 2008-03-07

End Date: 2011-09-30

Contract Duration: 1,302 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING AND LOGISTICAL SUPPORT SERVICES FOR MARINE GAS TURBINE PROGRAM

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to EDO ACQUISITION II, INC for work described as: ENGINEERING AND LOGISTICAL SUPPORT SERVICES FOR MARINE GAS TURBINE PROGRAM Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries risk. 3. The duration of 1302 days indicates a long-term need for these specialized engineering services. 4. The contract was awarded to EDO Acquisition II, Inc., with 3 bids received. 5. The contract is categorized under Engineering Services (NAICS 541330). 6. The contract was awarded by the Department of the Navy. 7. The contract was awarded under the 'Other Services' (ST=PA) category. 8. The contract was awarded in Pennsylvania.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means the final cost is subject to actual expenses plus a predetermined fee. While this can be effective for projects with uncertain costs, it requires robust oversight to ensure the government receives good value and that costs are managed efficiently. The fee structure itself needs to be assessed against industry standards for similar services to determine if it represents a fair price for the contractor's effort and risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that three bids were received suggests a moderate level of competition for these specialized engineering services. While three bidders is not a large number, it does provide a basis for price comparison and negotiation, which is generally beneficial for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging contractors to offer their best value. This approach minimizes the risk of overpayment and promotes a more cost-effective acquisition.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader U.S. Marine Corps, who will receive essential engineering and logistical support for their marine gas turbine systems. The services delivered include critical engineering and logistical support, ensuring the operational readiness and maintenance of vital marine propulsion systems. The geographic impact is primarily within Pennsylvania, where the contract was awarded, but the services support naval operations globally. The contract supports a specialized segment of the engineering workforce, likely requiring highly skilled professionals in marine engineering and related fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can lead to cost overruns if not closely monitored.
Limited competition (3 bidders) may not have yielded the lowest possible price.
The specific nature of 'logistical support' could be broad and require detailed performance metrics.
The contract's duration could lead to scope creep if not managed effectively.

Positive Signals

Awarded through full and open competition, indicating a fair process.
The fixed fee component of CPFF provides some cost predictability.
Engineering services are critical for maintaining complex military assets.
The contract supports a specific, vital program (Marine Gas Turbine).

Sector Analysis

The defense engineering services sector is characterized by highly specialized technical expertise and long-term relationships with government agencies. Contracts in this area often involve complex systems, requiring deep knowledge of military specifications and operational environments. The market size for defense engineering services is substantial, driven by the continuous need for research, development, sustainment, and modernization of military platforms. This contract fits within the broader category of defense logistics and engineering support, a critical component of maintaining naval readiness.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the specialized nature of engineering and logistical support for marine gas turbine programs, it is likely that larger, more established firms with specific expertise and certifications would be the primary bidders. There is no explicit information provided regarding subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this critical defense function.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to track expenditures and ensure the fixed fee is earned appropriately. Accountability measures would be tied to performance metrics and milestones outlined in the contract. Transparency is generally maintained through contract award databases, though detailed performance reports may be less publicly accessible.

Related Government Programs

Marine Propulsion Systems
Naval Engineering Support
Defense Logistics Services
Gas Turbine Maintenance
Military Equipment Sustainment

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
Limited number of bidders (3) may indicate potential for higher prices than with broader competition.
Lack of specific performance metrics in summary data hinders value assessment.
The broad nature of 'engineering and logistical support' could lead to scope definition challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to EDO ACQUISITION II, INC. ENGINEERING AND LOGISTICAL SUPPORT SERVICES FOR MARINE GAS TURBINE PROGRAM

Who is the contractor on this award?

The obligated recipient is EDO ACQUISITION II, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2008-03-07. End: 2011-09-30.

What was the specific fixed fee awarded to EDO Acquisition II, Inc. as part of this Cost Plus Fixed Fee contract?

The provided data does not specify the exact fixed fee amount or percentage awarded to EDO Acquisition II, Inc. for this contract. In a Cost Plus Fixed Fee (CPFF) contract, the total price is the sum of the allowable costs incurred by the contractor and a fixed fee. The fee is negotiated upfront and represents the contractor's profit. Without this specific detail, it is difficult to fully assess the contractor's profit margin or benchmark the fee against industry standards for similar services. Further investigation into the contract details or award modification history would be required to ascertain the fixed fee.

How did the winning bid from EDO Acquisition II, Inc. compare in price to the other two bids received?

The provided data indicates that three bids were received for this contract, but it does not offer a comparison of the pricing among these bids. In a competitive bidding process, the government typically evaluates bids based on a combination of technical merit and price. While the contract was awarded, the specific price comparison between EDO Acquisition II, Inc. and the other bidders is not publicly available in this summary. Understanding this comparison would provide insight into how competitive the pricing was and whether the government secured the best possible value.

What are the key performance indicators (KPIs) or deliverables associated with this engineering and logistical support contract?

The summary data does not detail the specific Key Performance Indicators (KPIs) or deliverables for this contract. For engineering and logistical support services related to marine gas turbines, typical KPIs might include response times for technical assistance, successful completion of maintenance schedules, efficiency improvements in engine performance, or adherence to delivery timelines for parts and services. The absence of these details makes it challenging to assess the contractor's performance and the overall effectiveness of the support provided.

What is the historical spending pattern for marine gas turbine engineering and logistical support services by the Department of the Navy?

The provided data focuses on a single contract award and does not offer historical spending patterns for marine gas turbine engineering and logistical support services by the Department of the Navy. To establish historical trends, one would need to analyze spending data over multiple fiscal years, looking at the total amount obligated, the number of contracts awarded, the primary contractors, and the types of services procured. Such an analysis would reveal whether spending on these services has increased, decreased, or remained stable, and identify any shifts in contracting strategies or key service providers.

What specific types of marine gas turbines does this contract cover, and what is their operational significance?

The provided data mentions 'Marine Gas Turbine Program' but does not specify the exact types of gas turbines covered under this contract. Marine gas turbines are critical propulsion systems for many naval vessels, providing high power-to-weight ratios and rapid acceleration. They are essential for the operational capability of destroyers, frigates, patrol boats, and aircraft carriers. Understanding the specific turbine models would allow for a more precise assessment of the contract's technical scope and its importance to naval fleet readiness.

What is the track record of EDO Acquisition II, Inc. in performing similar defense engineering and logistical support contracts?

The provided data identifies EDO Acquisition II, Inc. as the contractor but does not offer details on their track record with similar defense engineering and logistical support contracts. A comprehensive assessment of their performance history, including past contract values, on-time delivery rates, quality of service, and any past performance issues or awards, would be necessary to evaluate their reliability and capability for this specific program. This information is typically available through government contract databases and past performance reviews.

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: N0002407R3475

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2800 SHIRLINGTON ROAD, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,436,204

Exercised Options: $18,103,471

Current Obligation: $12,780,142

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4040

IDV Type: IDC

Timeline