DoD's $16.8M engineering services contract with Referentia Systems Inc. awarded via full and open competition

Contract Overview

Contract Amount: $16,853,812 ($16.9M)

Contractor: Referentia Systems Inc

Awarding Agency: Department of Defense

Start Date: 2007-03-30

End Date: 2012-10-30

Contract Duration: 2,041 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ADVANCED COALITION INTEGRATION TECHNOLOGIES (ACIT)

Place of Performance

Location: CAMP H M SMITH, HONOLULU County, HAWAII, 96861

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to REFERENTIA SYSTEMS INC for work described as: ADVANCED COALITION INTEGRATION TECHNOLOGIES (ACIT) Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract duration of 2041 days suggests a long-term requirement for ongoing support. 3. Awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The Cost Plus Fixed Fee (CPFF) pricing structure can incentivize contractor efficiency while managing costs. 5. The contract was awarded to a single entity, Referentia Systems Inc., following full and open competition. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 7. The contract was awarded by the Department of the Navy, a major component of the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this specific $16.8 million contract is challenging without knowing the scope of services and the specific engineering tasks performed. The CPFF contract type allows for cost reimbursement plus a fixed fee, which can be effective for research and development or when the scope is uncertain. However, it carries a risk of cost overruns if not managed closely. Comparing it to similar engineering services contracts within the DoD or Navy would require detailed analysis of service types, durations, and performance outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. This typically leads to a more competitive bidding process, potentially resulting in better pricing and value for the government. The fact that it was a delivery order suggests it was competed as part of a larger IDIQ vehicle, where multiple vendors may have been considered.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation from a wider pool of contractors.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its operations and technological advancements. This contract likely supports critical defense infrastructure or systems requiring expert engineering knowledge. The geographic impact is centered in Hawaii, where the contract was awarded. The contract may have implications for the specialized engineering workforce, potentially creating or sustaining jobs in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher overall costs if not meticulously managed and monitored for scope creep.
The duration of the contract (2041 days) indicates a long-term commitment, which requires sustained oversight to ensure continued value.
As a delivery order, the specific performance metrics and quality of services rendered need to be continuously evaluated to ensure they meet DoD standards.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process that likely yielded competitive pricing.
The contract is for engineering services, indicating a focus on specialized technical capabilities crucial for defense operations.
The fixed fee component in the CPFF structure provides a degree of cost certainty for the government regarding the contractor's profit margin.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, providing essential technical expertise for the development, maintenance, and modernization of military systems. This contract falls within the broader professional, scientific, and technical services industry, which is characterized by specialized knowledge and skilled labor. Spending in this sector is often driven by complex government requirements, technological advancements, and the need for ongoing support of sophisticated defense platforms. Comparable spending benchmarks would typically be found within the DoD's overall budget for engineering and technical support services.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contracts awarded through full and open competition can sometimes lead to subcontracting opportunities for small businesses if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures would be tied to the contract's performance clauses, delivery schedules, and quality standards. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Engineering Services
Department of the Navy Technical Support Contracts
Cost Plus Fixed Fee Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Vehicles
Professional, Scientific, and Technical Services

Risk Flags

Contract Duration
Cost Reimbursable Contract Type
Potential for Cost Overruns
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to REFERENTIA SYSTEMS INC. ADVANCED COALITION INTEGRATION TECHNOLOGIES (ACIT)

Who is the contractor on this award?

The obligated recipient is REFERENTIA SYSTEMS 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 $16.9 million.

What is the period of performance?

Start: 2007-03-30. End: 2012-10-30.

What specific engineering services were provided under this contract, and how do they align with the Department of the Navy's mission requirements?

The contract, NAICS code 541330, specifies 'Engineering Services.' Without access to the detailed statement of work (SOW) for this specific delivery order, the precise nature of the engineering services remains unspecified in the provided data. However, given it was awarded by the Department of the Navy, these services likely pertain to naval systems, infrastructure, research and development, or technical support for naval platforms and operations. These could range from design and analysis to testing and integration of complex military technologies. The alignment with the Navy's mission would depend on whether these services directly supported fleet readiness, modernization programs, or strategic objectives.

How does the $16.8 million total value compare to other similar engineering services contracts awarded by the Department of the Navy or DoD?

The $16.8 million total value for this contract is a moderate-sized award within the vast landscape of Department of Defense spending. The Department of the Navy and the broader DoD award numerous contracts for engineering services, with values ranging from thousands to billions of dollars. Contracts for specialized engineering support, particularly those involving complex systems integration, research, or long-term sustainment, can easily exceed this amount. Conversely, smaller, more focused engineering tasks might be awarded for less. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes (541330), contract types (CPFF), and durations awarded within the same agency (Navy) or across the DoD over a comparable period.

What are the key performance indicators (KPIs) or metrics used to evaluate the performance of Referentia Systems Inc. under this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate Referentia Systems Inc.'s performance. However, for a Cost Plus Fixed Fee (CPFF) contract, performance evaluation typically focuses on adherence to the scope of work, meeting established milestones and deadlines, quality of deliverables, and effective cost management within the agreed-upon fixed fee structure. For engineering services, KPIs might include technical accuracy, innovation, successful integration of systems, adherence to safety standards, and timely completion of project phases. The contracting officer's representative (COR) would be responsible for monitoring these aspects throughout the contract's lifecycle.

What is the historical spending pattern for engineering services by the Department of the Navy, and how does this contract fit into that pattern?

The Department of the Navy, as a major component of the DoD, consistently spends significant amounts on engineering services to maintain its technological edge and operational capabilities. Historical spending patterns reveal a continuous demand for services related to naval aviation, surface vessels, submarines, C4ISR systems, and shore infrastructure. This $16.8 million contract, awarded in 2007 and ending in 2012, represents a specific investment within that broader historical context. Its duration and value suggest it addressed a substantial, multi-year engineering requirement. Analyzing the Navy's total annual expenditure on NAICS code 541330 over the past two decades would reveal trends and the relative significance of individual contracts like this one.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services, and how might they have been mitigated?

The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for all allowable costs. If the scope of work expands or unforeseen technical challenges arise, the total cost to the government could exceed initial estimates, even though the fee (profit) remains fixed. Another risk is that the contractor might not be sufficiently incentivized to control costs beyond ensuring they are allowable, as their profit is fixed regardless of the total cost. Mitigation strategies typically involve robust contract administration, clear definition of the scope of work, stringent monitoring of allowable costs, regular progress reviews, and effective communication between the government and the contractor to manage any potential scope changes or issues proactively.

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

Solicitation ID: N0002407R3152

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 550 PAIEA ST STE 236, HONOLULU, HI, 96819

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $206,948,882

Exercised Options: $124,102,588

Current Obligation: $16,853,812

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4523

IDV Type: IDC

Timeline