DoD's $112M Engineering Services Contract Awarded to Computer Sciences Corporation Faces Scrutiny

Contract Overview

Contract Amount: $45,225,460 ($45.2M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-02

End Date: 2012-09-01

Contract Duration: 2,556 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200512!052540!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0017804D4030 !A!N! !Y!FC01 ! !20050902!20100901!112373324!112373324!009581091!N!COMPUTER SCIENCES CORPORATION !1201 M STREET STE 400 !WASHINGTON !DC!20003!51560!065!06!NORCO !RIVERSIDE !CALIFORNIA!+000000957661!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! !1700!N00178!0001! !

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $45.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: 200512!052540!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0017804D4030 !A!N! !Y!FC01 ! !20050902!20100901!112373324!112373324!009581091!N!COMPUTER SCIENCES CORPORATION !1201 M STREET STE 400 !WASHINGTON !DC!20003!51560!065!06!NORCO !RIVE… Key points: 1. The contract, valued at $112,373,324, was awarded to Computer Sciences Corporation for engineering technical services. 2. Competition was full and open, but the specific impact on pricing and value is not immediately clear. 3. Potential risks include the long duration of the contract (2005-2010) and the cost-plus-fixed-fee pricing structure. 4. The sector is Engineering Services, a critical area for defense operations.

Value Assessment

Rating: fair

The contract value of $112.37 million over five years suggests a significant investment. Benchmarking against similar engineering services contracts would be necessary to determine if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific details of the bidding process and the number of bidders are not provided, making it difficult to assess the full impact on price discovery.

Taxpayer Impact: With full and open competition, taxpayers are likely to benefit from competitive pricing, assuming the bidding process was robust and resulted in the best value.

Public Impact

This contract supports critical engineering and technical services for the Naval Surface Warfare Center, Crane Division. The duration of the contract, spanning from 2005 to 2010, indicates a long-term need for these services. The award to Computer Sciences Corporation highlights the role of major IT and professional services firms in defense contracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can incentivize cost overruns.
Long contract duration may not adapt well to evolving technological needs.
Lack of specific performance metrics makes it hard to assess effectiveness.

Positive Signals

Awarded under full and open competition.
Contract supports essential defense engineering services.

Sector Analysis

The Engineering Services sector (NAICS 541330) is vital for government operations, particularly in defense, providing specialized technical expertise. Spending in this sector can vary significantly based on defense priorities and infrastructure needs.

Small Business Impact

The data does not indicate any specific set-aside for small businesses, suggesting that larger, established contractors like Computer Sciences Corporation were likely the primary focus for this award.

Oversight & Accountability

Oversight would typically involve contract performance reviews, milestone tracking, and financial audits to ensure the contractor meets requirements and manages costs effectively. The specific oversight mechanisms for this contract are not detailed.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost-plus-fixed-fee contract type.
Long contract duration (5 years).
Lack of detailed performance metrics in provided data.
Potential for cost overruns inherent in CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. 200512!052540!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0017804D4030 !A!N! !Y!FC01 ! !20050902!20100901!112373324!112373324!009581091!N!COMPUTER SCIENCES CORPORATION !1201 M STREET STE 400 !WASHINGTON !DC!20003!51560!065!06!NORCO !RIVERSIDE !CALIFORNIA!+000000957661!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!200

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $45.2 million.

What is the period of performance?

Start: 2005-09-02. End: 2012-09-01.

What was the specific technical scope of the engineering services provided under this contract, and how did it align with the Naval Surface Warfare Center's mission objectives?

The contract focused on 'ENGINEERING TECHNICAL SERVICES' for the CRANE DIVISION NAVAL SURFACE. While the exact scope isn't detailed, these services likely encompassed design, development, testing, and sustainment engineering for naval systems and platforms. Alignment with mission objectives would depend on the specific projects undertaken, contributing to the readiness and technological advancement of naval assets.

Given the cost-plus-fixed-fee structure, what mechanisms were in place to control costs and prevent potential overruns by Computer Sciences Corporation?

Cost-plus-fixed-fee contracts require robust oversight to manage costs. Mechanisms likely included detailed cost reporting, regular audits, negotiation of fee adjustments based on performance, and clear definition of allowable costs. The government contracting officer would monitor expenditures closely to ensure they remained within the contract's scope and budget, potentially using incentive clauses if applicable.

How effectively did the full and open competition process ensure the best value for the government in this $112 million contract for engineering services?

Full and open competition is designed to maximize value by encouraging multiple bids. Its effectiveness hinges on the clarity of the solicitation, the number and quality of bidders, and the evaluation criteria used. Without knowing the number of bids received or the evaluation details, it's difficult to definitively state if the best value was achieved, though the process itself provides a strong foundation for competitive pricing.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation

Address: 3160 FAIRVIEW PARK DRIVE, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0017804D4030

IDV Type: IDC

Timeline