DoD's $11.6M Engineering Services Contract with C.J. Seto Support Services Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $11,659,233 ($11.7M)

Contractor: C.J. Seto Support Services, LLC

Awarding Agency: Department of Defense

Start Date: 2015-07-17

End Date: 2021-06-25

Contract Duration: 2,170 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF NON-PERSONAL PROFESSIONAL, TECHNICAL AND MANAGEMENT SUPPORT SERVICES IN THE AREAS OF TECHNICAL SUPPORT SERVICES, SCIENTIFIC/ENGINEERING ANALYSIS AND STUDIES, TECHNICAL DATA SUPPORT, AND DATA MANAGEMENT SUPPORT. THESE SERVICES ARE IN SUPPORT OF ENVIRONMENTAL PROGRAMS AND OVERALL PROGRAM SUPPORT SERVICES PERFORMED IN SUPPORT OF TASKS MANAGED BY THE CRANE DIVISION, NAVAL SURFACE WARFARE CENTER, ENVIRONMENTAL PROTECTION BRANCH OF THE MISSION SUPPORT SERVICES DEPARTMENT.

Place of Performance

Location: VENTURA, VENTURA County, CALIFORNIA, 93003

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to C.J. SETO SUPPORT SERVICES, LLC for work described as: IGF::OT::IGF NON-PERSONAL PROFESSIONAL, TECHNICAL AND MANAGEMENT SUPPORT SERVICES IN THE AREAS OF TECHNICAL SUPPORT SERVICES, SCIENTIFIC/ENGINEERING ANALYSIS AND STUDIES, TECHNICAL DATA SUPPORT, AND DATA MANAGEMENT SUPPORT. THESE SERVICES ARE IN SUPPORT OF ENVIRONMENTAL PROGRAMS … Key points: 1. The contract, valued at $11.6 million, is for environmental program support services. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract's duration of 2170 days (approx. 6 years) raises questions about long-term value and adaptability. 4. Services are for the Naval Surface Warfare Center, Environmental Protection Branch, indicating a specialized need.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar contracts for environmental support services is difficult without more detailed scope information.

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 pricing mechanisms and the effectiveness of price discovery within the Cost Plus Fixed Fee structure require further examination.

Taxpayer Impact: Taxpayer funds are being used for specialized environmental support services. While competition was present, the Cost Plus Fixed Fee structure necessitates careful oversight to ensure cost efficiency and prevent unnecessary expenditures.

Public Impact

Environmental protection efforts at a key naval facility are supported, contributing to regulatory compliance and operational readiness. The long-term nature of the contract suggests a sustained need for these specialized engineering and technical services. Potential for cost efficiencies or overruns exists due to the Cost Plus Fixed Fee contract type, impacting taxpayer value. The award to C.J. Seto Support Services, LLC, highlights a specific contractor's role in fulfilling critical government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure can incentivize higher costs.
Long contract duration may not reflect evolving needs or market changes.
Lack of specific performance metrics makes value assessment challenging.

Positive Signals

Full and open competition was utilized.
Services support critical environmental programs.
Contract awarded to a specific LLC, potentially supporting small business ecosystem if applicable.

Sector Analysis

The contract falls within Engineering Services, a sector often characterized by specialized expertise and project-based work. Spending benchmarks for similar environmental support services for defense entities can vary significantly based on scope and duration.

Small Business Impact

The data indicates the awardee is C.J. Seto Support Services, LLC. Further investigation is needed to determine if this is a small business and if the contract contributed to small business goals.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates robust oversight from the Naval Surface Warfare Center to ensure costs are reasonable and allocable to the contract's objectives. Monitoring performance and expenditures is crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Long contract duration may lead to outdated services or missed opportunities for better pricing.
Lack of detailed performance metrics hinders objective value assessment.
Need to verify small business status and impact.
Scope of 'environmental programs' is broad and requires further definition for precise value analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to C.J. SETO SUPPORT SERVICES, LLC. IGF::OT::IGF NON-PERSONAL PROFESSIONAL, TECHNICAL AND MANAGEMENT SUPPORT SERVICES IN THE AREAS OF TECHNICAL SUPPORT SERVICES, SCIENTIFIC/ENGINEERING ANALYSIS AND STUDIES, TECHNICAL DATA SUPPORT, AND DATA MANAGEMENT SUPPORT. THESE SERVICES ARE IN SUPPORT OF ENVIRONMENTAL PROGRAMS AND OVERALL PROGRAM SUPPORT SERVICES PERFORMED IN SUPPORT OF TASKS MANAGED BY THE CRANE DIVISION, NAVAL SURFACE WARFARE CENTER, ENVIRONMENTAL PROTECTION BRANCH OF THE MISSION SUPPORT SERVICES DEPARTMENT.

Who is the contractor on this award?

The obligated recipient is C.J. SETO SUPPORT SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2015-07-17. End: 2021-06-25.

What specific environmental programs are being supported, and what are the key performance indicators for this contract?

The contract supports environmental programs managed by the Crane Division, Naval Surface Warfare Center, Environmental Protection Branch. Specific programs include technical support, scientific/engineering analysis, technical data support, and data management. Key performance indicators (KPIs) are not detailed in the provided data but would typically include metrics related to project completion, accuracy of analysis, timeliness of data management, and adherence to environmental regulations.

How does the Cost Plus Fixed Fee structure impact the government's ability to control costs for these long-term environmental services?

The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can escalate if direct costs increase. This necessitates strong government oversight to scrutinize costs, ensure they are reasonable and allocable, and prevent scope creep. Without diligent management, CPFF contracts can be susceptible to higher overall expenditures compared to fixed-price contracts.

Given the 6-year duration, what mechanisms are in place to ensure the services remain relevant and cost-effective as environmental regulations and technologies evolve?

The contract's long duration (2170 days) suggests a need for flexibility. Mechanisms likely include contract modifications for evolving requirements, periodic reviews of service effectiveness, and potentially built-in price adjustments tied to economic factors. However, the provided data doesn't detail these specific provisions. A review of contract modifications and performance reviews would be necessary to assess ongoing relevance and cost-effectiveness.

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: N0002414R3560

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2300 KNOLL DR UNIT G, VENTURA, CA, 93003

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,021,790

Exercised Options: $12,692,995

Current Obligation: $11,659,233

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7662

IDV Type: IDC

Timeline