DoD awards $18.3M for Engineering Technical Services, with competition impacting price discovery

Contract Overview

Contract Amount: $12,057,809 ($12.1M)

Contractor: P3I, Incorporated

Awarding Agency: Department of Defense

Start Date: 2002-05-02

End Date: 2007-06-30

Contract Duration: 1,885 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: 200510!000095!5700!FA8708!ESC/JSK !GS35F0247L !C!N! !Y!F1962802F8179!P00021!20050712!20051231!183355874!101918761!008898843!N!TITAN CORPORATION !300 CONCORD ROAD !BILLERICA !MA!01821!28425!017!25!HANSCOM AFB !MIDDLESEX !MASS !+000000385610!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !274 !JSTARS !541690!E! !6! ! !B! ! !20200930!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!B!Y!N! !B! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to P3I, INCORPORATED for work described as: 200510!000095!5700!FA8708!ESC/JSK !GS35F0247L !C!N! !Y!F1962802F8179!P00021!20050712!20051231!183355874!101918761!008898843!N!TITAN CORPORATION !300 CONCORD ROAD !BILLERICA !MA!01821!28425!017!25!HANSCOM AFB !MIDD… Key points: 1. Contract awarded for Engineering Technical Services to P3I, Inc. for $18.3M. 2. Full and open competition was utilized, suggesting potential for competitive pricing. 3. The contract duration is 1885 days, indicating a long-term service requirement. 4. The NAICS code 541512 points to Computer Systems Design Services, a common IT sector area. 5. The contract was awarded under the 'DO' award type, often used for defense priorities.

Value Assessment

Rating: good

The contract value of $18.3M for Engineering Technical Services appears reasonable given the 1885-day duration. Benchmarking against similar long-term IT service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows all eligible contractors to bid, fostering a competitive environment that can lead to better pricing for the government.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the services rendered, as multiple vendors vied for the contract.

Public Impact

Ensures continued support for critical defense systems (JSTARS). Supports technological advancement and maintenance within the Department of Defense. Provides employment opportunities within the IT and engineering sectors. Contributes to national security through robust defense infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 63 / 10

Warning Flags

Potential for cost overruns in long-term labor hour contracts.
Reliance on a single awardee for extended service periods.

Positive Signals

Full and open competition utilized.
Clear definition of services (Engineering Technical Services).
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across the federal government, supporting a wide range of digital infrastructure and operational needs.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific indication of small business participation or set-asides in the provided data. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency, indicating established oversight. However, the long duration necessitates ongoing monitoring to ensure performance and cost control.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Long contract duration increases risk of cost escalation.
Labor hour contract type can be susceptible to scope creep.
Potential for vendor lock-in over the contract's life.
Reliance on specific technical expertise may limit future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to P3I, INCORPORATED. 200510!000095!5700!FA8708!ESC/JSK !GS35F0247L !C!N! !Y!F1962802F8179!P00021!20050712!20051231!183355874!101918761!008898843!N!TITAN CORPORATION !300 CONCORD ROAD !BILLERICA !MA!01821!28425!017!25!HANSCOM AFB !MIDDLESEX !MASS !+000000385610!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !274 !JSTARS !541690!E! !6! ! !B! ! !202

Who is the contractor on this award?

The obligated recipient is P3I, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2002-05-02. End: 2007-06-30.

What is the specific nature of the 'Engineering Technical Services' required for JSTARS, and how do these services contribute to the platform's operational effectiveness?

The 'Engineering Technical Services' likely encompass a range of specialized support for the JSTARS (Joint Surveillance Target Attack Radar System) platform. This could include software development, system integration, hardware maintenance, testing, and lifecycle support. These services are crucial for maintaining the operational readiness, enhancing capabilities, and ensuring the long-term effectiveness of this critical intelligence, surveillance, and reconnaissance asset for the Department of Defense.

Given the 1885-day duration, what are the primary risks associated with cost escalation or scope creep, and what mitigation strategies were likely employed?

The primary risks with long-term labor hour contracts include potential cost escalation due to inflation or increased labor rates, and scope creep where requirements expand beyond the original agreement. Mitigation strategies likely involved fixed price elements for certain tasks, regular performance reviews, strict change control processes, and clear performance metrics tied to payment. The contracting agency would also monitor market labor rates to ensure fair pricing.

How does the utilization of 'full and open competition' for this $18.3M contract ensure optimal value for taxpayer dollars compared to other contracting methods?

Full and open competition ensures that a wide range of qualified vendors can bid on the contract, fostering a competitive environment. This typically drives down prices and encourages innovation as contractors strive to offer the best value. For a significant award like this, competition is a key mechanism for the government to obtain necessary services at a fair and reasonable price, maximizing the return on taxpayer investment compared to sole-source or limited competition scenarios.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 77 MAIN ST STE 3, HOPKINTON, MA, 02

Business Categories: Category Business, Small Business, Veteran Owned Business, Woman Owned Business

Parent Contract

Parent Award PIID: GS35F0247L

IDV Type: FSS

Timeline