DoD's $56.3M Systems Engineering Contract Awarded to MANTECH TSG-2 JV for Marine Corps Systems Command

Contract Overview

Contract Amount: $56,332,661 ($56.3M)

Contractor: Mantech TSG-2 Joint Venture

Awarding Agency: Department of Defense

Start Date: 2023-11-17

End Date: 2029-04-03

Contract Duration: 1,964 days

Daily Burn Rate: $28.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SYSTEMS ENGINEERING ANALYSIS FOR SYSTEMS ENGINEERING DIRECTORATE, MARINE CORPS SYSTEMS COMMAND

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22554

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $56.3 million to MANTECH TSG-2 JOINT VENTURE for work described as: SYSTEMS ENGINEERING ANALYSIS FOR SYSTEMS ENGINEERING DIRECTORATE, MARINE CORPS SYSTEMS COMMAND Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely managed. 3. The duration of nearly 5 years indicates a long-term need for these specialized engineering services. 4. The specific NAICS code (541715) points to a focus on advanced research and development. 5. The awardee, MANTECH TSG-2 JV, is a relatively new entity, raising questions about its track record for large-scale contracts. 6. The contract is a delivery order under a larger IDIQ, suggesting it's part of a broader strategic acquisition.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of work and deliverables. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation. Comparing it to similar systems engineering contracts for the Marine Corps or other DoD branches would require access to detailed pricing structures and performance metrics. The fixed fee component provides some cost certainty, but the overall price is subject to the actual costs incurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of two bidders suggests a competitive environment, but the exact number of proposals received and the evaluation process are not detailed. A competitive award process is generally favorable for price discovery and ensuring the government receives the best value.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by encouraging multiple vendors to offer competitive bids.

Public Impact

The Marine Corps Systems Command will benefit from advanced systems engineering support, enhancing the development and acquisition of its systems. This contract supports the delivery of critical systems engineering expertise, crucial for the modernization and operational readiness of the Marine Corps. The geographic impact is primarily within the Department of Defense's acquisition and development ecosystem, with potential benefits extending to Marine Corps units. Workforce implications may include the employment of highly skilled systems engineers and technical specialists, both within the contractor's organization and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
The awardee, MANTECH TSG-2 JV, may have limited historical performance data for contracts of this magnitude.
The duration of the contract (nearly 5 years) requires sustained oversight to ensure continued value and performance.
The specific deliverables and performance metrics are not detailed, making it difficult to assess performance risk upfront.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
The contract supports a critical function (systems engineering) for the Marine Corps Systems Command.
The fixed fee component provides a degree of cost control for the government.
The contract is a delivery order under an existing IDIQ, suggesting a pre-vetted contractor pool and streamlined acquisition process.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541715). This sector is characterized by innovation and the development of new technologies. The Department of Defense is a major consumer of these services, investing heavily in R&D to maintain technological superiority. Comparable spending benchmarks would involve looking at other large-scale engineering and R&D contracts awarded by DoD agencies for similar complex systems.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no specific small business set-aside (ss) noted for this contract. This suggests that the primary award was not targeted towards small businesses. However, the prime contractor, MANTECH TSG-2 JV, may still engage small businesses as subcontractors, depending on the subcontracting plan requirements and the nature of the work.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, acting as the contracting activity for the Department of Defense. Accountability measures will be tied to the Cost Plus Fixed Fee contract terms, requiring the contractor to track and report costs, and meet performance milestones. Transparency will depend on the reporting requirements stipulated in the contract and the DoD's policies on releasing contract details. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Marine Corps Systems Command Acquisition Programs
Department of Defense Research and Development Spending
Systems Engineering Support Services
Cost Plus Fixed Fee Contracts
Information Technology R&D
Defense Acquisition University Training Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited public information on the awardee's specific performance history for large contracts.
Need for robust government oversight to manage scope and costs over the contract's duration.
Competition level (2 bidders) may not represent the maximum possible price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.3 million to MANTECH TSG-2 JOINT VENTURE. SYSTEMS ENGINEERING ANALYSIS FOR SYSTEMS ENGINEERING DIRECTORATE, MARINE CORPS SYSTEMS COMMAND

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 $56.3 million.

What is the period of performance?

Start: 2023-11-17. End: 2029-04-03.

What is the specific track record of MANTECH TSG-2 JV in managing large-scale DoD contracts, particularly those with a Cost Plus Fixed Fee structure?

Information regarding the specific track record of MANTECH TSG-2 JV for large-scale DoD contracts, especially those utilizing a Cost Plus Fixed Fee (CPFF) structure, is not readily available in the provided data. As a joint venture, its operational history might be tied to its parent companies or individual members. CPFF contracts require rigorous oversight due to the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee representing profit. The government must meticulously monitor expenditures and performance against the contract's objectives to ensure value. Further investigation into the JV's past performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS) and the experience of its key personnel would be necessary to fully assess its capabilities and risks associated with this award.

How does the estimated value of this contract compare to similar systems engineering support contracts awarded by the Marine Corps or other DoD branches in the past three years?

The estimated value of this contract is approximately $56.3 million over its duration. To benchmark this against similar contracts, one would need to analyze historical contract awards for systems engineering support within the Department of Defense, specifically focusing on the Marine Corps and comparable branches like the Army or Navy. Key comparison points would include the contract type (e.g., CPFF, FFP), the scope of work (e.g., specific systems supported, level of engineering required), the duration, and the number of bidders. Without access to a comprehensive database of past contracts and their specific details, a precise comparison is difficult. However, $56.3 million for a multi-year systems engineering effort is a significant award, suggesting a substantial requirement for specialized expertise.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific systems engineering requirement, and what mitigation strategies are in place?

The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for actual costs incurred, plus a fixed fee. This can incentivize less cost-conscious behavior if not properly managed. For systems engineering, risks include scope creep, unforeseen technical challenges, and difficulties in accurately estimating labor hours and material costs, especially in R&D contexts. Mitigation strategies typically involve robust government oversight, detailed work breakdown structures, regular cost reviews, performance metrics tied to milestones, and clear definition of allowable costs. The fixed fee provides a ceiling on the contractor's profit, but the total contract cost can still escalate significantly if costs are not controlled.

How effective is the current competition level (2 bidders) likely to be in ensuring optimal value for taxpayers on this $56.3M contract?

Having two bidders suggests a degree of competition, which is generally positive for taxpayers compared to a sole-source award. However, the optimal value is achieved when there is robust competition, typically involving three or more highly qualified bidders. With only two bidders, there's a risk that the competition may not have driven prices down to the lowest feasible level. The government's negotiation strategy and the specific evaluation criteria used would be crucial in determining if the best possible value was secured. Further analysis would require understanding the capabilities and proposals of both bidders and whether they represented the full spectrum of available market solutions.

What is the historical spending pattern for systems engineering support at the Marine Corps Systems Command, and how does this award fit into that trend?

Analyzing historical spending patterns for systems engineering support at the Marine Corps Systems Command (MCSC) would involve examining contract data over several fiscal years. This includes the total amount spent on such services, the types of contracts used (e.g., IDIQ, specific task orders), the primary contractors, and the nature of the systems being supported. This $56.3 million award, as a delivery order under an IDIQ, suggests a continuation or expansion of existing support needs. If MCSC has consistently awarded significant contracts for systems engineering, this award aligns with that trend. Conversely, if spending has been declining, this could represent a renewed investment or a shift in acquisition strategy. Understanding the specific systems MCSC is focused on (e.g., C4ISR, ground vehicles, aviation systems) would provide further context.

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: 2

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: $95,538,786

Exercised Options: $95,538,786

Current Obligation: $56,332,661

Actual Outlays: $4,560,537

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $11,444,951

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