DoD's $10.8M Engineering Services Contract with RJ Lee Group Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $10,855,349 ($10.9M)
Contractor: RJ LEE Group Inc
Awarding Agency: Department of Defense
Start Date: 2004-07-08
End Date: 2010-03-01
Contract Duration: 2,062 days
Daily Burn Rate: $5.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Place of Performance
Location: MONROEVILLE, ALLEGHENY County, PENNSYLVANIA, 15146
Plain-Language Summary
Department of Defense obligated $10.9 million to RJ LEE GROUP INC for work described as: Key points: 1. The contract value is substantial at $10.8 million. 2. RJ Lee Group Inc. secured this contract. 3. The award method was 'Full and Open Competition After Exclusion of Sources', indicating a competitive process. 4. The sector is Engineering Services, a critical component of defense operations.
Value Assessment
Rating: fair
The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The duration of 2062 days suggests a long-term engagement where cost control is paramount.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This method suggests that while competition was sought, specific sources might have been initially excluded, potentially impacting the breadth of price discovery.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure services at a reasonable price. However, the Time and Materials pricing structure warrants close monitoring to ensure cost efficiency.
Public Impact
Taxpayers funded engineering services critical for Department of Defense operations. The contract supported the Department of the Air Force's mission. RJ Lee Group Inc., a private entity, provided specialized engineering expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can inflate costs without strict oversight.
- Long contract duration (2062 days) increases risk of cost escalation.
- Exclusion of sources in competition might limit optimal pricing.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Contract supports critical Department of Defense engineering needs.
Sector Analysis
Engineering services are vital for the Department of Defense, encompassing a wide range of technical support, design, and analysis. Benchmarks for such contracts vary widely based on scope and complexity, but a $10.8M value over nearly six years indicates a significant engagement.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The 'Full and Open Competition After Exclusion of Sources' method implies a structured procurement process. However, the long duration and Time and Materials basis necessitate robust oversight to ensure accountability and prevent cost overruns.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration increases risk of price escalation and scope creep.
- Exclusion of sources may have limited competitive pricing.
- Lack of detail on specific services provided hinders full value assessment.
Tags
engineering-services, department-of-defense, pa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.9 million to RJ LEE GROUP INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is RJ LEE GROUP 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 $10.9 million.
What is the period of performance?
Start: 2004-07-08. End: 2010-03-01.
What specific engineering services were provided under this contract, and how did they contribute to the Air Force's mission objectives?
The contract, NA 541330, falls under Engineering Services. While the specific services are not detailed in the provided data, they likely encompassed technical analysis, design, testing, or consulting essential for Air Force operations. The $10.8M value suggests a significant contribution to a major program or ongoing requirement, supporting the agency's strategic goals.
What were the primary reasons for excluding certain sources during the competitive bidding process, and did this exclusion impact the final price?
The exclusion of sources in a 'Full and Open Competition After Exclusion of Sources' award typically occurs when specific capabilities or security requirements necessitate limiting the pool of potential bidders. The impact on price is complex; while it might reduce the number of offers, it could also ensure that the selected vendor possesses highly specialized skills crucial for the task, potentially justifying a higher, yet competitive, price.
How effectively was the Time and Materials pricing model managed to control costs over the contract's 2062-day duration?
Managing a Time and Materials contract over nearly six years requires stringent oversight of labor hours, rates, and material costs. Without detailed performance reports, it's difficult to assess effectiveness. However, the inherent risk of cost escalation in T&M contracts necessitates proactive government monitoring, clear task definitions, and regular audits to ensure value for taxpayer money.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 350 HOCHBERG RD, MONROEVILLE, PA, 12
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2004-07-08
Current End Date: 2010-03-01
Potential End Date: 2010-03-01 00:00:00
Last Modified: 2011-06-30
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