DoD's $30.5M Olympus contract to R & K Enterprise Solutions Inc. for engineering services awarded via full and open competition

Contract Overview

Contract Amount: $30,520,150 ($30.5M)

Contractor: R & K Enterprise Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2022-07-25

End Date: 2025-07-24

Contract Duration: 1,095 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OLYMPUS ADVISORY AND ASSISTANCE SERVICES

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23606

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.5 million to R & K ENTERPRISE SOLUTIONS INC for work described as: OLYMPUS ADVISORY AND ASSISTANCE SERVICES Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract duration of 1095 days suggests a long-term requirement for these services. 3. Awarded by the Department of the Air Force, highlighting a specific branch's operational needs. 4. The contract type is Firm Fixed Price, which transfers some cost risk to the contractor. 5. The procurement method, 'Full and Open Competition After Exclusion of Sources,' suggests a competitive process with specific justifications. 6. The base contract value is $27.87M, with the current award representing a significant portion of potential spending. 7. The contractor, R & K Enterprise Solutions Inc., is providing these services. 8. The North American Industry Classification System (NAICS) code 541330 points to engineering services.

Value Assessment

Rating: fair

The contract value of $30.5 million over three years for engineering services appears within a reasonable range for specialized support. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale engineering support contracts within the Department of Defense would provide a clearer picture of whether the pricing is competitive. The firm fixed-price structure suggests an expectation of defined services, but the potential for cost overruns still exists if the scope is not well-managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method implies that while the competition was intended to be open, certain sources were excluded, likely due to specific requirements or prior performance. The number of bidders is not provided, making it difficult to assess the breadth of competition. This approach can sometimes lead to less competitive pricing compared to unrestricted full and open competition, depending on the reasons for source exclusion.

Taxpayer Impact: The exclusion of certain sources, even within a competitive framework, may limit the potential for the most aggressive pricing, potentially impacting taxpayer savings. Further transparency on the justification for source exclusion would be beneficial for taxpayers.

Public Impact

The Department of the Air Force benefits from specialized engineering expertise to support its operations and programs. Services delivered likely include technical analysis, design, development, or testing related to Air Force systems. The geographic impact is primarily within the operational areas supported by the Department of the Air Force, potentially worldwide. Workforce implications include the employment of engineers and technical specialists by R & K Enterprise Solutions Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' raises questions about the extent of competition and potential impact on pricing.
Lack of detailed scope of work makes it difficult to fully assess value for money and performance metrics.
The base contract value of $27.87M suggests a significant investment, requiring robust oversight.

Positive Signals

Awarded under a competitive process, indicating multiple interested parties.
Firm Fixed Price contract type provides cost certainty for the government.
Long contract duration (1095 days) suggests a stable, ongoing need for critical services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government and private-sector activities, including defense, infrastructure, and technology development. Spending in this area is often driven by complex project requirements, research and development, and the need for specialized technical expertise. Comparable spending benchmarks would typically involve analyzing other large engineering support contracts awarded by the Department of Defense or other federal agencies for similar types of services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, R & K Enterprise Solutions Inc., is responsible for fulfilling the contract requirements, and any subcontracting decisions would be at their discretion, not mandated by a small business set-aside.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the contract's performance work statement, including defined deliverables, milestones, and quality standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Engineering Services
Air Force Professional Services
Advisory and Assistance Services
Engineering Consulting Contracts
Federal IT and Engineering Support

Risk Flags

Potential for limited competition due to source exclusion.
Scope definition and management critical for value realization.
Performance metrics not explicitly detailed in award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 million to R & K ENTERPRISE SOLUTIONS INC. OLYMPUS ADVISORY AND ASSISTANCE SERVICES

Who is the contractor on this award?

The obligated recipient is R & K ENTERPRISE SOLUTIONS 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 $30.5 million.

What is the period of performance?

Start: 2022-07-25. End: 2025-07-24.

What is the specific nature of the engineering services provided under this contract?

The contract specifies 'Engineering Services' under NAICS code 541330. While the exact deliverables are not detailed in the provided data, typical services under this code for the Department of Defense can include a wide range of activities such as systems engineering, design, analysis, testing, integration, and technical support for military platforms, weapons systems, or operational infrastructure. Given the 'Olympus' project name, it might relate to a specific Air Force program or initiative requiring specialized engineering expertise for its development, sustainment, or modernization. Further details would be found in the Performance Work Statement (PWS) associated with the contract award.

How does the $30.5 million contract value compare to similar engineering services contracts awarded by the Air Force?

Benchmarking the $30.5 million contract value requires comparing it to similar engineering services contracts awarded by the Department of the Air Force, particularly those with comparable scope, duration, and complexity. Contracts under NAICS 541330 can vary significantly in price. For instance, large-scale system design and integration projects could easily exceed this amount, while smaller, specialized consulting tasks might be considerably less. Without access to a detailed database of comparable Air Force engineering contracts, it's difficult to provide a precise benchmark. However, for a three-year contract providing specialized engineering support, $30.5 million suggests a substantial requirement, likely involving a dedicated team of engineers and significant project management.

What are the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance?

The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate R & K Enterprise Solutions Inc.'s performance. Typically, these are detailed within the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). Common KPIs for engineering services contracts include adherence to project schedules, meeting technical specifications and quality standards, timely delivery of reports and analyses, effective problem-solving, and overall customer satisfaction. The contracting officer and program managers are responsible for monitoring these metrics and ensuring the contractor meets the agreed-upon standards throughout the contract's duration.

What is the justification for the 'Full and Open Competition After Exclusion of Sources' procurement method?

The 'Full and Open Competition After Exclusion of Sources' method indicates that the solicitation was initially intended for full and open competition, but specific sources were excluded from consideration. The justification for such exclusion is typically rooted in specific requirements that only certain contractors can meet, such as unique technical capabilities, proprietary knowledge, or prior successful performance on related systems. For example, if the engineering services require deep familiarity with a specific, classified, or highly specialized system developed or maintained by a limited number of entities, those entities might be the only ones considered after an initial broad solicitation. The specific rationale would be documented in the contract file, often as part of a Justification for Other Than Full and Open Competition (JOFOC) or a similar determination.

What is the track record of R & K Enterprise Solutions Inc. in performing similar federal contracts?

Assessing the track record of R & K Enterprise Solutions Inc. requires examining their past performance on federal contracts, particularly those within the engineering services domain and for agencies like the Department of Defense. Publicly available contract databases (like FPDS) can provide insights into their award history, contract values, and agencies served. A review of past performance evaluations, if available, would offer a more qualitative assessment of their reliability, technical competence, and ability to meet contractual obligations. Without specific historical data on this contractor's performance in similar roles, it's challenging to definitively state their track record. However, winning a $30.5 million contract from the Air Force suggests they possess the necessary qualifications and have likely demonstrated satisfactory performance on previous engagements.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: R & K Enterprise Solutions, Inc

Address: 11830 CANON BLVD, NEWPORT NEWS, VA, 23606

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $44,174,984

Exercised Options: $34,833,218

Current Obligation: $30,520,150

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $11,585,002

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1015

IDV Type: IDC

Timeline