DoD awards $114.5M for Marine Corps intelligence systems R&D, with a 5-year performance period

Contract Overview

Contract Amount: $114,483,680 ($114.5M)

Contractor: Mantech TSG-2 Joint Venture

Awarding Agency: Department of Defense

Start Date: 2022-07-29

End Date: 2027-07-28

Contract Duration: 1,825 days

Daily Burn Rate: $62.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT FOR PORTFOLIO MANAGER COMMAND ELEMENT SYSTEMS, MARINE CORPS SYSTEM COMMAND (MARCORSYSCOM) PROGRAM MANAGER INTELLIGENCE SYSTEMS (PMIS)

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22554

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $114.5 million to MANTECH TSG-2 JOINT VENTURE for work described as: RESEARCH AND DEVELOPMENT FOR PORTFOLIO MANAGER COMMAND ELEMENT SYSTEMS, MARINE CORPS SYSTEM COMMAND (MARCORSYSCOM) PROGRAM MANAGER INTELLIGENCE SYSTEMS (PMIS) Key points: 1. Contract focuses on critical research and development for intelligence systems, enhancing Marine Corps capabilities. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Performance period of 1825 days (5 years) indicates a long-term investment in system development. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control while allowing for flexibility. 5. The contractor, MANTECH TSG-2 JOINT VENTURE, will be responsible for delivering advanced intelligence solutions. 6. This spending aligns with broader Department of Defense investments in modernizing intelligence, surveillance, and reconnaissance (ISR) capabilities.

Value Assessment

Rating: good

The contract value of $114.5 million over five years for R&D in specialized intelligence systems appears reasonable, especially considering the complexity and long-term nature of such development. Benchmarking against similar R&D contracts for advanced defense systems is challenging due to unique requirements, but the pricing structure (CPFF) allows for cost transparency and contractor incentive for efficiency. The value proposition hinges on the successful development and integration of these systems into the Marine Corps' operational framework.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The agency sought the best value through a structured evaluation process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider range of solutions, ensuring the government receives optimal value for its investment.

Public Impact

The primary beneficiaries are the United States Marine Corps, who will receive enhanced intelligence gathering and processing capabilities. The contract will deliver research and development services for advanced command element systems. The geographic impact is primarily within the United States, supporting defense operations. Workforce implications include specialized R&D roles for engineers, scientists, and technical personnel within the contractor's organization.

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 performance period requires sustained oversight to ensure progress and alignment with evolving requirements.
Dependence on a single joint venture for critical R&D could pose a risk if the venture faces internal challenges.

Positive Signals

Awarding under full and open competition suggests a robust vetting of potential contractors.
The focus on R&D for intelligence systems aligns with critical national security needs.
The fixed fee component of the CPFF contract provides a degree of cost certainty for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on intelligence systems for the Marine Corps. The market for defense intelligence technology is highly specialized and competitive, driven by continuous innovation and evolving threats. Spending in this area is crucial for maintaining technological superiority. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of military intelligence systems, but significant investments are common across the Department of Defense for similar advanced technological development.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no small business set-aside (ss) for this contract. This suggests that the primary award was made to a larger entity or joint venture, and there is no explicit requirement for small business subcontracting mandated within this specific award notice. Further analysis would be needed to determine if subcontracting opportunities exist indirectly or if other related contracts within the program have small business goals.

Oversight & Accountability

Oversight for this contract will likely be managed by the Marine Corps Systems Command (MARCORSYSCOM) Program Manager Intelligence Systems (PMIS), who is the contracting activity. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring of costs incurred by the contractor to ensure adherence to the agreed-upon fixed fee and overall budget. Accountability measures will be tied to performance milestones and deliverables outlined in the contract. Transparency is generally maintained through contract reporting requirements, though specific details of R&D progress may be sensitive.

Related Government Programs

Marine Corps Intelligence Systems
Department of Defense Research and Development
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Command and Control Systems

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Long performance period requires sustained oversight.
Dependence on a joint venture for critical R&D.
Scope definition challenges in R&D contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $114.5 million to MANTECH TSG-2 JOINT VENTURE. RESEARCH AND DEVELOPMENT FOR PORTFOLIO MANAGER COMMAND ELEMENT SYSTEMS, MARINE CORPS SYSTEM COMMAND (MARCORSYSCOM) PROGRAM MANAGER INTELLIGENCE SYSTEMS (PMIS)

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 $114.5 million.

What is the period of performance?

Start: 2022-07-29. End: 2027-07-28.

What is the track record of MANTECH TSG-2 JOINT VENTURE in delivering similar intelligence systems R&D for the Department of Defense?

Assessing the specific track record of MANTECH TSG-2 JOINT VENTURE requires a deep dive into their past performance on Department of Defense contracts, particularly those involving intelligence systems and research and development. As a joint venture, its performance history may be a composite of its member companies' experiences. Key indicators to examine would include on-time delivery, adherence to budget, quality of deliverables, and customer satisfaction ratings from previous government evaluations. Without specific contract history data, it's difficult to provide a definitive assessment, but the award of this significant contract suggests they met the qualification criteria set forth by MARCORSYSCOM. Further investigation into contract databases and performance reports would be necessary for a comprehensive evaluation.

How does the $114.5 million value compare to similar R&D contracts for intelligence systems within the DoD?

The $114.5 million value for a five-year R&D contract for intelligence systems is substantial but not unusual within the Department of Defense, which invests heavily in advanced technological capabilities. Benchmarking requires comparing this contract to others with similar scopes, such as the development of new sensor technologies, data processing algorithms, or command and control software for intelligence applications. Contracts for foundational R&D can range from tens to hundreds of millions of dollars, depending on the complexity, innovation required, and the specific systems being developed. Given the critical nature of intelligence systems for the Marine Corps, this investment level appears aligned with strategic priorities for modernization and capability enhancement.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in this domain?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in intelligence systems involve potential cost overruns and contractor incentives. While the fixed fee provides the contractor with a profit incentive, the 'cost plus' portion means the government reimburses allowable costs. If the contractor's costs exceed initial estimates, the government bears that burden, potentially leading to a higher total contract price than initially anticipated. Effective oversight is crucial to ensure costs are reasonable and allocable. Additionally, for R&D, the scope can be inherently uncertain, making accurate cost estimation challenging. The contractor might be incentivized to control costs to protect their fee, but the government must remain vigilant against scope creep or inefficient practices.

What is the expected program effectiveness and impact on Marine Corps intelligence capabilities?

The expected program effectiveness hinges on the successful development and integration of the 'Portfolio Manager Command Element Systems' for the Marine Corps. These systems are intended to enhance intelligence gathering, analysis, and dissemination capabilities, providing commanders with more timely and accurate information. The impact on Marine Corps intelligence capabilities could be significant, potentially improving situational awareness, decision-making speed, and operational effectiveness across various mission sets. The R&D focus suggests the program aims to introduce novel solutions or significantly upgrade existing ones, addressing emerging threats and operational requirements. The ultimate measure of effectiveness will be how well these developed systems perform in real-world operational environments and contribute to mission success.

How has federal spending on intelligence systems R&D evolved over the past five years, and where does this contract fit?

Federal spending on intelligence systems R&D has generally seen consistent or increasing investment over the past five years, driven by evolving geopolitical landscapes and the need for technological superiority. The Department of Defense, including the Marine Corps, represents a significant portion of this spending. This $114.5 million contract fits within this trend as a specific investment aimed at modernizing critical intelligence infrastructure. It reflects a strategic allocation of resources towards enhancing the Marine Corps' ability to process and act upon intelligence data. Trends indicate a growing emphasis on areas like artificial intelligence, machine learning, cybersecurity, and data fusion within intelligence R&D, which this contract likely addresses.

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: 1

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: $115,303,443

Exercised Options: $115,303,443

Current Obligation: $114,483,680

Actual Outlays: $33,964,438

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $23,015,202

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