DoD's $16.3M contract for Naval Logistics Integration Services awarded to RGS Associates, Inc

Contract Overview

Contract Amount: $16,272,842 ($16.3M)

Contractor: RGS Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-06-22

End Date: 2012-06-21

Contract Duration: 1,826 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SUPPORT FOR INTEGRATION OF NAVAL LOGISTICS SYSTEMS AND INFORMATION

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to RGS ASSOCIATES, INC. for work described as: SUPPORT FOR INTEGRATION OF NAVAL LOGISTICS SYSTEMS AND INFORMATION Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1826 days indicates a long-term need for these engineering services. 3. The cost-plus-fixed-fee (CPFF) contract type may lead to cost overruns if not managed carefully. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 5. Awarded by the Defense Contract Management Agency, indicating a focus on defense-related logistics. 6. The contract was a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided and comparable contracts. The cost-plus-fixed-fee structure introduces inherent risk for cost escalation. However, the award through full and open competition suggests that pricing was likely scrutinized against multiple proposals. Further analysis would require understanding the specific deliverables and the complexity of integrating naval logistics systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 5 offers indicates a healthy level of competition for this requirement. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the funds expended on naval logistics integration.

Public Impact

Naval forces benefit from improved logistics systems and information integration, enhancing operational readiness. The services delivered are critical for the efficiency and effectiveness of naval supply chains and operational support. The geographic impact is primarily within naval operations, potentially affecting bases and deployed units globally. The contract supports specialized engineering roles, likely impacting a skilled workforce within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
The long duration of the contract could lead to scope creep or evolving requirements that may not be optimally addressed.
Integration of complex logistics systems is prone to technical challenges and potential delays.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract addresses a critical need for naval logistics modernization, which is vital for national security.
The fixed fee component of the contract provides some cost certainty for the government.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense logistics. The market for defense engineering services is substantial, driven by the continuous need for modernization and efficiency within military operations. Comparable spending benchmarks would typically be found within broader defense procurement data for IT, systems integration, and professional services supporting naval and other military branches.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless RGS Associates, Inc. voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases, though specific performance metrics may be internal.

Related Government Programs

Naval Logistics Modernization Programs
Defense Information Systems Agency (DISA) Contracts
Department of Defense IT Modernization Initiatives
Supply Chain Management Systems Contracts

Risk Flags

Cost-Plus-Fixed-Fee contract type carries inherent cost overrun risk.
Long contract duration may lead to evolving requirements and potential scope creep.
Complexity of integrating disparate logistics systems presents technical challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to RGS ASSOCIATES, INC.. SUPPORT FOR INTEGRATION OF NAVAL LOGISTICS SYSTEMS AND INFORMATION

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 $16.3 million.

What is the period of performance?

Start: 2007-06-22. End: 2012-06-21.

What specific naval logistics systems and information are being integrated under this contract?

The contract description 'SUPPORT FOR INTEGRATION OF NAVAL LOGISTICS SYSTEMS AND INFORMATION' is broad. Specific systems could range from inventory management and maintenance tracking to personnel deployment and operational readiness reporting. Integration likely involves connecting disparate databases, software platforms, and communication networks to create a unified view of logistics operations. This could include systems like the Navy's Enterprise Resource Planning (ERP) systems, fleet readiness databases, and supply chain management tools. The goal is to enhance data visibility, streamline processes, and improve decision-making for naval commanders and logisticians.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar engineering services?

Cost-plus-fixed-fee (CPFF) contracts are common for research and development or complex engineering projects where the scope is not fully defined at the outset, or where innovation is a key component. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure can be advantageous when requirements are uncertain, as it allows for flexibility. However, it carries a higher risk of cost overruns compared to fixed-price contracts, as the government bears the brunt of cost increases. For more defined engineering services, fixed-price contracts might offer better cost certainty for the government, but CPFF is often chosen for its adaptability in complex, evolving projects like system integration.

What is the track record of RGS Associates, Inc. in performing similar defense logistics integration contracts?

Assessing RGS Associates, Inc.'s track record requires a deeper dive into their past performance history, which is not fully detailed in the provided data. Typically, government agencies review past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) when awarding contracts. For this specific contract, the award suggests they met the necessary qualifications and demonstrated capability. However, without access to detailed performance reviews or a history of similar large-scale integration projects, it's difficult to definitively assess their expertise in this niche. Further investigation into their contract history with the DoD and other agencies would be necessary.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract focused on integrating naval logistics systems and information would likely revolve around improvements in data accuracy, system uptime, processing times, and user satisfaction. Examples could include: reduction in logistics response times, increase in inventory accuracy, successful data synchronization rates between systems, successful completion of integration milestones, and positive feedback from end-users (e.g., naval personnel). The specific KPIs would be defined in the contract's Statement of Work (SOW) and monitored by the contracting officer's representative (COR) to ensure the contractor meets performance expectations.

How does the $16.3 million total award value compare to historical spending on naval logistics IT and engineering services?

The $16.3 million award value for this specific contract needs to be contextualized within the broader landscape of naval logistics spending. The U.S. Navy's annual budget for IT, systems engineering, and logistics support runs into billions of dollars. Therefore, this $16.3 million contract, while significant for a single award, represents a relatively small portion of the overall defense logistics IT and services expenditure. Historical spending patterns show a consistent and substantial investment in modernizing naval C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) and logistics systems, driven by evolving threats and operational requirements.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002407R3188

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $117,614,114

Exercised Options: $41,399,570

Current Obligation: $16,272,842

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4530

IDV Type: IDC

Timeline