DoD's $11.75M Engineering Services Contract Awarded to R & K Enterprise Solutions Inc

Contract Overview

Contract Amount: $11,749,294 ($11.7M)

Contractor: R & K Enterprise Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2020-06-30

End Date: 2025-06-30

Contract Duration: 1,826 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GREEN FLAG SUPPORT ELEMENT (GFSE)

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to R & K ENTERPRISE SOLUTIONS INC for work described as: GREEN FLAG SUPPORT ELEMENT (GFSE) Key points: 1. Contract value of $11.75M over 5 years. 2. Awarded under full and open competition after exclusion of sources. 3. Potential risk associated with limited competition. 4. Sector is Engineering Services, a critical support function for defense.

Value Assessment

Rating: fair

The contract value of $11.75M over five years suggests a moderate annual spend. Benchmarking against similar engineering services contracts would be necessary to determine if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, not all potential sources may have been considered. This method can impact price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayer funds are being utilized for engineering services. The effectiveness of the competition method in securing the best value for taxpayer money is a key consideration.

Public Impact

Supports Department of the Air Force operations with essential engineering services. Contract duration of five years provides long-term planning for the agency. Potential for cost savings if competitive bidding processes are optimized.

Waste & Efficiency Indicators

Waste Risk Score: 64 / 10

Warning Flags

  • Limited competition may impact cost-effectiveness.
  • Contract type (Firm Fixed Price) shifts risk to contractor, but scope creep could be an issue.

Positive Signals

  • Long-term contract provides stability.
  • Supports critical Air Force engineering needs.

Sector Analysis

Engineering services are vital for defense projects, encompassing design, analysis, and technical support. Spending benchmarks vary widely based on project complexity and duration, but consistent, long-term contracts like this are common for specialized support.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method warrants scrutiny to ensure all eligible and capable sources were genuinely considered, promoting accountability in the procurement process.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Limited competition.
  • Potential for unaddressed scope creep under FFP.
  • Lack of transparency on source exclusion rationale.
  • No clear indication of small business participation.

Tags

engineering-services, department-of-defense, nv, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to R & K ENTERPRISE SOLUTIONS INC. GREEN FLAG SUPPORT ELEMENT (GFSE)

Who is the contractor on this award?

The obligated recipient is R & K ENTERPRISE SOLUTIONS 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 $11.7 million.

What is the period of performance?

Start: 2020-06-30. End: 2025-06-30.

What specific engineering services are being provided under this contract, and how do they align with the Air Force's strategic objectives?

The contract, identified by NAICS code 541330 (Engineering Services), likely covers a range of technical support, design, analysis, and consulting activities crucial for Air Force operations and modernization efforts. Understanding the precise deliverables is key to assessing their strategic alignment and overall value.

What was the rationale for excluding certain sources in the competition, and what impact did this have on the final contract price?

The exclusion of sources suggests specific capabilities or requirements were prioritized, potentially limiting the pool of bidders. This could influence price discovery; a thorough review of the justification for exclusion and a comparison of the awarded price against market rates for similar services are necessary to gauge the financial impact.

How effectively does the Firm Fixed Price contract structure manage risks and ensure optimal performance for the engineering services provided?

A Firm Fixed Price (FFP) contract shifts the primary cost risk to the contractor, incentivizing efficiency. However, for complex engineering services, careful scope definition is crucial to prevent contractor claims for additional costs due to unforeseen issues or scope creep, ensuring the government receives the intended value.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: R & K Enterprise Solutions, Inc

Address: 11830 CANON BLVD, NEWPORT NEWS, VA, 23606

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,842,936

Exercised Options: $11,749,294

Current Obligation: $11,749,294

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $530,022

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1015

IDV Type: IDC

Timeline

Start Date: 2020-06-30

Current End Date: 2025-06-30

Potential End Date: 2025-06-30 00:00:00

Last Modified: 2025-09-26

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