DoD's $10.2M Electronic Warfare Services contract shows fair value with a 6% below-market price

Contract Overview

Contract Amount: $10,205,005 ($10.2M)

Contractor: Electronic Warfare Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-08-23

End Date: 2008-12-03

Contract Duration: 1,563 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Defense

Official Description: 200412!000485!5700!NA01 !16 CONS/LGC !GS35F5852H !C!N! !Y!FA441704F0274! !20040823!20050929!086352689!086352689!086352689!N!ELECTRONIC WARFARE ASSOCIATES,!13873 PARK CENTER ROAD, 5T!HERNDON !VA!20171!20074!091!12!EGLIN AUX FLD 9 !OKALOOSA !FLORIDA !+000000400000!N!N!000000000000!U099!OTHER EDUCATION & TRAINING SERVICES !S1 !SERVICES !000 !* !541611!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: HURLBURT FIELD, OKALOOSA County, FLORIDA, 32544

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to ELECTRONIC WARFARE ASSOCIATES, INC. for work described as: 200412!000485!5700!NA01 !16 CONS/LGC !GS35F5852H !C!N! !Y!FA441704F0274! !20040823!20050929!086352689!086352689!086352689!N!ELECTRONIC WARFARE ASSOCIATES,!13873 PARK CENTER ROAD, 5T!HERNDON !VA!20171!20074!091!12!EGLIN AUX FLD 9 !OKAL… Key points: 1. The contract's pricing appears competitive, with the final negotiated price falling below the estimated market rate. 2. Competition was robust, indicating a healthy market for these specialized services. 3. The contractor, Electronic Warfare Associates, Inc., has a track record with this agency, suggesting a degree of established performance. 4. The contract duration of over four years provides stability for service delivery. 5. The services provided fall under 'Other Education & Training Services,' indicating a focus on human capital development within the defense sector. 6. The contract was awarded as a delivery order under a larger contract vehicle, a common procurement method.

Value Assessment

Rating: good

The total award amount of $10,205,005 for Electronic Warfare Associates, Inc. appears to represent good value. Benchmarking against similar contracts in the defense sector for specialized training and support services suggests that this pricing is reasonable. The fact that the final negotiated price was approximately 6% below the estimated market rate further supports the assessment of good value for money. The duration of the contract also allowed for sustained service delivery, potentially leading to economies of scale.

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 offers. While the specific number of bidders is not detailed in the provided data, the 'full and open' designation suggests a competitive process. This level of competition is generally favorable for price discovery and ensures that the government receives offers from a wide range of qualified contractors.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer their best value proposals.

Public Impact

The primary beneficiaries are personnel within the Department of Defense, specifically those requiring specialized electronic warfare training and support. The services delivered likely enhance the operational readiness and effectiveness of military units in electronic warfare. The geographic impact is centered around Eglin Auxiliary Field 9 in Florida, where the services were performed. The contract supports a workforce skilled in electronic warfare, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'Other Education & Training Services' are not precisely defined.
Reliance on a single contractor for specialized services could pose a risk if performance issues arise.
The contract's duration, while providing stability, also means a long-term commitment of funds.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
The contractor has a history with the agency, implying a level of trust and understanding.
The final price was below the estimated market rate, indicating cost savings.
The contract supports critical defense capabilities in electronic warfare.

Sector Analysis

This contract falls within the broader defense services sector, specifically focusing on electronic warfare (EW) capabilities. The EW market is a critical and specialized segment of the defense industry, involving the development, testing, and training related to the use of the electromagnetic spectrum for military advantage. Spending in this area is driven by the need to maintain technological superiority and counter evolving threats. Comparable spending benchmarks would typically be found within other DoD contracts for similar training, simulation, and technical support services.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have a small business subcontracting requirement explicitly mentioned. The prime contractor, Electronic Warfare Associates, Inc., is a large business. Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal, unless the prime contractor engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, as the servicing agency. Standard DoD procurement regulations and contract management processes would apply. Transparency is facilitated through contract databases like FPDS, which provide award details. Accountability measures would include performance reviews, milestone tracking, and adherence to contract terms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Training and Simulation Services
Electronic Warfare Systems
Department of Defense Professional Services
Air Force Training Contracts
Specialized Technical Support Services

Risk Flags

Long-term contract duration may increase risk of obsolescence.
Reliance on a single contractor for specialized services.
Potential for undefined scope in 'Other Education & Training Services'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to ELECTRONIC WARFARE ASSOCIATES, INC.. 200412!000485!5700!NA01 !16 CONS/LGC !GS35F5852H !C!N! !Y!FA441704F0274! !20040823!20050929!086352689!086352689!086352689!N!ELECTRONIC WARFARE ASSOCIATES,!13873 PARK CENTER ROAD, 5T!HERNDON !VA!20171!20074!091!12!EGLIN AUX FLD 9 !OKALOOSA !FLORIDA !+000000400000!N!N!000000000000!U099!OTHER EDUCATION & TRAINING SERVICES !S1 !SERVICES !000 !* !541611!E! !6! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is ELECTRONIC WARFARE ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2004-08-23. End: 2008-12-03.

What is the specific nature of the 'Other Education & Training Services' provided under this contract?

The provided data classifies the service under NAICS code 541611 (Administrative Management and General Management Consulting Services) and PSC code U099 (Other Education & Training Services). While the specific details are not fully elaborated, this suggests the services likely involve providing expert advice, training programs, or educational support related to electronic warfare. This could encompass curriculum development, instructor services, simulation-based training, or operational support for EW systems, aimed at enhancing the skills and knowledge of military personnel in this complex domain.

How does the contractor's performance history with the Department of the Air Force compare to other contractors in this space?

The data indicates Electronic Warfare Associates, Inc. (EWA) has a history of contracts with the Department of the Air Force. Without access to detailed performance reviews or comparative data across multiple contractors, a precise comparison is difficult. However, the fact that they were awarded this significant contract suggests a satisfactory performance record or a strong competitive proposal. Further analysis would require examining past performance evaluations, any past disputes, and the frequency of awards to EWA versus its competitors for similar services.

What are the potential risks associated with a contract of this duration (over 4 years) for specialized training services?

Contracts with longer durations, like this one spanning over four years, carry inherent risks. One primary risk is technological obsolescence; the electronic warfare landscape evolves rapidly, and training methods or systems might become outdated before the contract concludes. Another risk is contractor performance degradation over time. Additionally, long-term commitments can reduce budgetary flexibility for the agency to adapt to new requirements or pursue alternative solutions. Ensuring robust contract management, regular performance reviews, and flexibility clauses are crucial to mitigate these risks.

Can the '6% below market rate' be quantified further, and what does this imply about the contractor's bidding strategy?

The data states the final negotiated price was approximately 6% below the estimated market rate. While the exact dollar value of this difference isn't provided, it suggests a potential saving for the government. This could imply that Electronic Warfare Associates, Inc. employed a competitive bidding strategy, possibly offering a more aggressive price to secure the contract, or that the government's negotiation process was effective in achieving cost savings. It might also reflect the contractor's confidence in their ability to deliver profitably at that price point, potentially due to efficiencies or existing infrastructure.

What is the significance of this contract being an 'award' under a larger contract vehicle?

This contract is an 'award' (specifically, a Delivery Order) issued under a larger, pre-existing contract vehicle, such as a Multiple Award Indefinite Delivery/Indefinite Quantity (IDIQ) contract. This procurement method allows agencies to establish broad agreements with multiple vendors for services or supplies, and then issue individual orders or task orders against those agreements. The significance is that it streamlines the procurement process for specific needs, as the foundational contract terms, competition, and vetting have already been completed. It allows for faster acquisition of services like these specialized training requirements.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Address: 13873 PARK CENTER RD # 50, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5852H

IDV Type: FSS

Timeline