DoD's $218M contract for advanced weapons systems modeling and simulation awarded to MANTECH TSG-2 JOINT VENTURE

Contract Overview

Contract Amount: $217,893,966 ($217.9M)

Contractor: Mantech TSG-2 Joint Venture

Awarding Agency: Department of Defense

Start Date: 2022-05-11

End Date: 2026-08-22

Contract Duration: 1,564 days

Daily Burn Rate: $139.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: WEAPONS SYSTEMS AND AVIATION WARFARE MODELING & SIMULATION, ENGINEERING, INTEGRATION, EXPERIMENTATION, AND CYBER SECURITY FOR LEADING EDGE TRAINING NAVAL SURFACE WARFARE CENTER, CORONA DIVISION

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $217.9 million to MANTECH TSG-2 JOINT VENTURE for work described as: WEAPONS SYSTEMS AND AVIATION WARFARE MODELING & SIMULATION, ENGINEERING, INTEGRATION, EXPERIMENTATION, AND CYBER SECURITY FOR LEADING EDGE TRAINING NAVAL SURFACE WARFARE CENTER, CORONA DIVISION Key points: 1. Contract focuses on critical R&D for naval warfare simulation and cybersecurity. 2. Significant investment in advanced modeling and simulation capabilities for the Navy. 3. Long-term contract duration suggests sustained need for these specialized services. 4. Potential for innovation in training and warfare preparedness. 5. Cybersecurity component is crucial for protecting sensitive defense technologies. 6. Contract awarded via full and open competition, indicating broad market engagement.

Value Assessment

Rating: good

The contract's value of approximately $218 million over its period of performance appears reasonable given the highly specialized nature of weapons systems modeling, simulation, engineering, integration, experimentation, and cybersecurity. Benchmarking against similar large-scale R&D contracts in defense requires detailed analysis of scope and deliverables, but the pricing structure (Cost Plus Fixed Fee) allows for flexibility while incentivizing efficient performance. The fixed fee component provides a degree of cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The presence of 3 bidders indicates a competitive landscape for these specialized R&D services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down costs through market forces and encouraging innovation from a wider pool of contractors.

Public Impact

Naval Surface Warfare Center, Corona Division benefits from enhanced modeling and simulation capabilities. Warfighters will experience improved training scenarios and technological development. The contract supports advanced research and development in physical, engineering, and life sciences. Geographic impact is primarily within Virginia, where the Naval Surface Warfare Center is located. Workforce implications include highly skilled engineers, scientists, and cybersecurity professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The long duration of the contract (over 4 years) requires sustained oversight to ensure continued value.
Reliance on a single joint venture, even if competitively selected, could pose future risks if capabilities are not maintained or expanded.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Focus on critical R&D areas like advanced simulation and cybersecurity is a positive investment.
The contract aims to enhance leading-edge training capabilities for naval forces.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced modeling and simulation, particularly for defense applications, is highly specialized and competitive, involving a limited number of firms with the requisite expertise. Spending in this area is crucial for maintaining technological superiority and developing next-generation defense capabilities. Comparable spending benchmarks would likely be found within other large-scale defense R&D contracts for simulation and advanced engineering services.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion (ss: false, sb: false). While the prime contractor is a joint venture, the direct impact on small businesses as prime awardees is limited. However, the joint venture structure and the nature of R&D work may involve subcontracting opportunities for specialized small businesses in areas like software development, specific engineering disciplines, or cybersecurity services. Further analysis of subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Surface Warfare Center, Corona Division, with potential involvement from the Department of the Air Force and the Department of Defense's Inspector General. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract reporting mechanisms, though specific technical details of the R&D may be sensitive.

Related Government Programs

Naval Warfare Simulation Programs
Defense R&D Contracts
Cybersecurity Research
Advanced Engineering Services
Military Training Technology

Risk Flags

Cybersecurity Risk
Cost Control in CPFF Contracts
Long-Term Contract Management
Technical Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $217.9 million to MANTECH TSG-2 JOINT VENTURE. WEAPONS SYSTEMS AND AVIATION WARFARE MODELING & SIMULATION, ENGINEERING, INTEGRATION, EXPERIMENTATION, AND CYBER SECURITY FOR LEADING EDGE TRAINING NAVAL SURFACE WARFARE CENTER, CORONA DIVISION

Who is the contractor on this award?

The obligated recipient is MANTECH TSG-2 JOINT VENTURE.

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 $217.9 million.

What is the period of performance?

Start: 2022-05-11. End: 2026-08-22.

What is the track record of MANTECH TSG-2 JOINT VENTURE in delivering similar complex R&D and simulation services?

MANTECH TSG-2 JOINT VENTURE is a joint venture formed to address specific government contracting needs. As a joint venture, its track record is often a composite of its parent companies' experiences. MANTECH Systems Engineering, a key entity often associated with such ventures, has a history of providing engineering, technical, and programmatic support to various government agencies, including the Department of Defense. Their experience typically spans areas like systems engineering, test and evaluation, and simulation. However, specific performance data for the 'TSG-2 JOINT VENTURE' entity itself on contracts of this magnitude and complexity would require a deeper dive into contract databases and performance reviews. The award of this significant contract suggests a perceived capability and past performance deemed sufficient by the contracting agency.

How does the cost structure (Cost Plus Fixed Fee) compare to other large-scale defense R&D contracts?

The Cost Plus Fixed Fee (CPFF) contract structure is common for research and development efforts where the scope of work can be difficult to define precisely upfront, or where innovation is a primary objective. In a CPFF contract, the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their fixed profit margin. Compared to other large-scale defense R&D contracts, CPFF is frequently used, especially in early-stage research or when exploring novel technologies. Other structures like Cost Plus Incentive Fee (CPIF) or Firm Fixed Price (FFP) might be used for more defined projects. CPFF offers flexibility but requires robust government oversight to manage costs effectively and ensure value for money, as the government bears the majority of the cost risk.

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

While specific KPIs are not publicly detailed, for a contract focused on weapons systems modeling, simulation, engineering, integration, experimentation, and cybersecurity, key performance indicators would likely revolve around the technical accuracy and fidelity of the models and simulations produced. This could include metrics related to the validation and verification of simulation outputs against real-world data or established benchmarks. For engineering and integration, KPIs might focus on the successful incorporation of new technologies or system upgrades. Cybersecurity performance would be measured by adherence to security protocols, successful penetration testing, and the robustness of protective measures. Timeliness of deliverables, adherence to budget constraints (within the CPFF framework), and the successful achievement of specific research milestones or experimental objectives would also be critical.

What is the historical spending trend for similar modeling and simulation services within the Department of Defense?

Historical spending on modeling and simulation (M&S) services within the Department of Defense (DoD) has been substantial and generally increasing over the past decade. The DoD views M&S as a critical enabler for training, acquisition, and operational planning, aiming to reduce reliance on costly physical testing and improve decision-making. Spending spans various categories, including live, virtual, and constructive simulation environments, digital twins, and advanced analytical tools. While specific figures fluctuate annually based on budget priorities and program needs, the overall trend indicates a sustained and significant investment. This particular contract, valued at approximately $218 million, aligns with the broader DoD strategy to invest heavily in advanced simulation and digital engineering capabilities to maintain a technological edge.

What are the potential risks associated with the cybersecurity component of this contract?

The cybersecurity component of this contract carries significant risks, primarily due to the sensitive nature of the data and systems involved in weapons systems modeling and simulation. Potential risks include unauthorized access to classified or proprietary information, manipulation of simulation models to produce inaccurate results, disruption of critical research and development activities, and the potential for nation-state sponsored cyber-attacks targeting advanced defense technologies. The integration of cybersecurity measures into complex simulation environments also presents challenges, as vulnerabilities can arise from software flaws, network configurations, or human error. Ensuring the integrity and confidentiality of the digital assets developed under this contract is paramount, requiring continuous monitoring, robust security protocols, and rapid response capabilities to emerging threats.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12015 LEE JACKSON HWY, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $329,821,916

Exercised Options: $329,821,916

Current Obligation: $217,893,966

Actual Outlays: $26,017,648

Subaward Activity

Number of Subawards: 52

Total Subaward Amount: $525,928,304

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0011

IDV Type: IDC

Timeline