Serco Inc. awarded $3.3M contract for Tradspace SME Support by the Department of Defense

Contract Overview

Contract Amount: $3,334,468 ($3.3M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2026-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRADESPACE SME SUPPORT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $3.3 million to SERCO INC for work described as: TRADESPACE SME SUPPORT Key points: 1. Contract value of $3.3 million over a 5-year period suggests a moderate investment in specialized support services. 2. The award to Serco Inc. indicates a reliance on established contractors for critical defense support functions. 3. The firm fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of 1825 days (5 years) allows for sustained support and potential for long-term impact. 5. The contract falls under Engineering Services (NAICS 541330), a sector requiring specialized technical expertise.

Value Assessment

Rating: good

The contract value of $3.3 million over five years for SME support appears reasonable, especially given the specialized nature of engineering services. Benchmarking against similar contracts for Subject Matter Expertise (SME) support within the Department of Defense would provide a clearer picture of value for money. However, the firm fixed-price structure suggests an effort to manage costs effectively. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the duration and scope suggest a solid, albeit not exceptionally high-value, investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The fact that it was competed openly suggests that the market for these specialized engineering services is robust enough to attract several qualified vendors. The specific number of bidders is not provided, but the method of award implies a healthy level of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging innovation among potential contractors, leading to better service at a more efficient cost.

Public Impact

The primary beneficiaries are likely the Department of the Air Force, receiving specialized expertise to support the TRADESPACE program. The services delivered are expected to enhance the effectiveness and efficiency of the TRADESPACE initiative. The geographic impact is centered around the Department of Defense's operational areas, primarily within Virginia where the contractor is located. Workforce implications may include the direct employment of subject matter experts by Serco Inc. and potential indirect benefits to military and civilian personnel relying on this support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of SME support is not tightly managed.
Dependence on a single contractor for critical expertise could pose a risk if performance falters.
Ensuring continuous knowledge transfer and avoiding vendor lock-in are important considerations.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market and potentially good pricing.
The 5-year duration allows for building deep expertise and long-term program support.

Sector Analysis

The Engineering Services sector (NAICS 541330) is a critical component of the defense industrial base, providing specialized technical and scientific expertise. This contract for TRADESPACE SME support fits within this sector, likely contributing to the development, maintenance, or enhancement of defense systems or programs. The market for such services is competitive, with numerous firms offering specialized engineering capabilities. Comparable spending benchmarks would involve looking at other contracts for similar SME support within defense agencies, which can range significantly based on the complexity and duration of the required expertise.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Serco Inc., is a large business. This suggests that subcontracting opportunities for small businesses may be limited unless Serco Inc. voluntarily includes them in its supply chain. The absence of a set-aside means that the primary focus was on securing the best overall offer, rather than specifically promoting small business participation through this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Performance monitoring, adherence to the firm fixed-price terms, and delivery of specified SME support would be key areas of oversight. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Engineering Services
Subject Matter Expert Support Contracts
Air Force IT and Technical Support
TRADESPACE Program Support

Risk Flags

Potential for vendor lock-in due to specialized knowledge.
Performance continuity dependent on contractor's key personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.3 million to SERCO INC. TRADESPACE SME SUPPORT

Who is the contractor on this award?

The obligated recipient is SERCO 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 $3.3 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-29.

What is the historical spending pattern for TRADESPACE SME support with Serco Inc. or other contractors?

Based on the provided data, this appears to be a new award for TRADESPACE SME Support to Serco Inc. with an award date of September 30, 2021. There is no immediate historical spending data presented for this specific service or contractor within the TRADESPACE program. To understand historical patterns, one would need to query federal procurement databases (like FPDS or USASpending) for prior contracts related to 'TRADESPACE' and 'SME Support' or 'Engineering Services' awarded by the Department of the Air Force or Department of Defense. This would reveal if similar services were procured previously, with which contractors, and at what cost, allowing for trend analysis and comparison to the current award.

How does the per-unit cost of this contract compare to similar SME support contracts in the defense sector?

The provided data does not include specific details on the 'per-unit' cost, as the contract is for 'SME Support' which is often a broad service rather than a quantifiable unit. The total contract value is $3.3 million over 1825 days. To compare per-unit costs, we would need to define a 'unit' (e.g., per hour, per SME, per deliverable) and obtain similar data from comparable contracts. Without this granular information, a direct per-unit cost comparison is not feasible. However, the overall contract value can be benchmarked against the total value of other SME support contracts within the Department of Defense for similar durations and scopes of work to assess if the $3.3 million figure is within a reasonable range for the services rendered.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data summary does not explicitly list the Key Performance Indicators (KPIs) or specific deliverables for the TRADESPACE SME Support contract. Typically, such details would be outlined in the Statement of Work (SOW) or Performance Work Statement (PWS) attached to the contract award. For SME support, KPIs might include response times for expert consultation, quality of technical advice provided, successful completion of assigned tasks, contribution to program milestones, or adherence to project timelines. Deliverables could range from technical reports and analyses to direct support in meetings, training sessions, or system development processes. A thorough review of the contract's SOW/PWS would be necessary to identify these specific performance expectations.

What is Serco Inc.'s track record with the Department of Defense for similar engineering services?

Serco Inc. has a significant track record of performing services for the Department of Defense across various domains. While this specific award is for TRADESPACE SME Support, Serco has historically been involved in a wide array of defense-related contracts, including logistics, training, technical support, and operational services. Their performance history with the DoD can be assessed by reviewing past contract awards, performance evaluations (e.g., CPARS reports, if publicly available), and any documented issues or successes. A comprehensive review would involve searching federal procurement databases for Serco's contract history with the DoD, focusing on contracts of similar size, scope, and service type (engineering, technical support) to gauge their reliability and capability in meeting defense requirements.

What is the potential risk associated with relying on a single contractor for specialized SME support?

Relying on a single contractor, like Serco Inc. in this case, for specialized Subject Matter Expert (SME) support carries several potential risks. Firstly, there's a risk of 'vendor lock-in,' where the government becomes overly dependent on the contractor's unique knowledge and processes, making it difficult or costly to switch providers. Secondly, performance could degrade over time if the contractor becomes complacent or faces internal challenges, and the government has limited immediate alternatives. Thirdly, key personnel turnover within the contractor's organization could lead to a loss of institutional knowledge and disrupt service continuity. Finally, a lack of ongoing competition might reduce the incentive for the contractor to innovate or offer the most cost-effective solutions throughout the contract's life.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12930 WORLDGATE DR, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $7,881,576

Exercised Options: $3,662,411

Current Obligation: $3,334,468

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20DU322

IDV Type: IDC

Timeline