Naval Surface Warfare Center contract for engineering services awarded to AMSEC LLC for over $50.9M
Contract Overview
Contract Amount: $50,933,850 ($50.9M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2006-03-10
End Date: 2009-03-01
Contract Duration: 1,087 days
Daily Burn Rate: $46.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 21
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200606!SS2183!1700!N00167!NAVAL SURFACE WARFARE CENTER !N0017804D4119 !A!N! !Y!FD01 ! !20060310!20090301!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!13140!031!24!CARDEROCK !MONTGOMERY !MARYLAND !+000015763000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !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!N00167!0001! !
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $50.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: 200606!SS2183!1700!N00167!NAVAL SURFACE WARFARE CENTER !N0017804D4119 !A!N! !Y!FD01 ! !20060310!20090301!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!13140!031!24!CARDEROCK !MONT… Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The contract duration of approximately 3 years (1087 days) indicates a medium-term engagement. 4. The primary place of performance is Carderock, Maryland, with a secondary location in Montgomery, Maryland. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The award was made by the Naval Surface Warfare Center, a key component of the Navy's research and development arm.
Value Assessment
Rating: fair
The total award amount of $50,933,850 for approximately three years of engineering technical services appears to be within a reasonable range for complex defense contracts. However, without specific benchmarks for similar engineering support services to naval warfare centers, a precise value-for-money assessment is difficult. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee, potentially leading to higher final costs than fixed-price contracts if not closely monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but the designation suggests a competitive process was intended. Full and open competition generally promotes price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.
Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, preventing potential overpayment associated with less competitive awards.
Public Impact
The primary beneficiaries of this contract are the Naval Surface Warfare Center and the broader U.S. Navy, receiving critical engineering and technical support. The services delivered are essential for the development, maintenance, and modernization of naval systems and technologies. The geographic impact is concentrated in Maryland, specifically Carderock and Montgomery, where the contractor's performance will take place. The contract supports a workforce skilled in engineering and technical services, contributing to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not rigorously managed.
- Lack of specific details on the number of bidders in the full and open competition makes it hard to gauge the true level of competition.
- The contract was awarded in 2006, and performance concluded in 2009; current market rates and technologies may differ significantly.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- The contract specifies engineering technical services, a critical area for naval readiness and technological advancement.
- The Naval Surface Warfare Center is a reputable entity within the Department of Defense, implying a need for high-quality services.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense applications. The Engineering Services market (NAICS 541330) is substantial, driven by government and private sector demand for specialized technical expertise. Comparable spending benchmarks for similar defense engineering support contracts can vary widely based on scope, duration, and complexity. This contract represents a portion of the Department of Defense's significant investment in maintaining and advancing its technological capabilities.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Therefore, its direct impact on the small business ecosystem is not discernible from this information alone. Without explicit set-aside goals, it is likely that larger businesses, such as AMSEC LLC (which is part of Science Applications International Corporation), were the primary focus of the competition.
Oversight & Accountability
Oversight for this contract would have been provided by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures would be embedded within the contract's reporting requirements and performance metrics. Transparency is generally facilitated through contract award databases, though specific details of performance and cost management are often considered sensitive.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Department of Defense Engineering Services
- Naval Research and Development Contracts
- Defense Contract Management Agency Oversight
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost growth.
- Limited information on the number of bidders in a 'full and open' competition.
- Contract performance concluded in 2009; data may not reflect current market conditions or needs.
Tags
defense, department-of-defense, naval-surface-warfare-center, engineering-services, cost-plus-fixed-fee, full-and-open-competition, amsec-llc, science-applications-international-corporation, maryland, naval-operations, technical-services, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. 200606!SS2183!1700!N00167!NAVAL SURFACE WARFARE CENTER !N0017804D4119 !A!N! !Y!FD01 ! !20060310!20090301!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!13140!031!24!CARDEROCK !MONTGOMERY !MARYLAND !+000015763000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!D!200
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $50.9 million.
What is the period of performance?
Start: 2006-03-10. End: 2009-03-01.
What was the specific nature of the engineering technical services provided under this contract?
The contract, awarded to AMSEC LLC, was for "ENGINEERING TECHNICAL SERVICES." While the specific details are not fully elaborated in the provided data snippet, this typically encompasses a broad range of activities crucial for naval systems. These could include systems engineering, design, analysis, testing, integration, logistics support, and program management for various naval platforms and technologies. Given the awarding body, the Naval Surface Warfare Center, the services likely supported the research, development, acquisition, and sustainment of naval warfare capabilities, potentially involving areas like surface combatants, submarines, or related weapon systems.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and potential value for the government?
The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not well-defined or involves significant uncertainty, making fixed-price contracts impractical. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts much of the cost risk to the government, as the final price is not fixed. While it allows for flexibility and encourages contractor participation in uncertain projects, it can lead to higher costs than fixed-price contracts if cost controls are not stringent. For the government, effective oversight, clear definition of allowable costs, and robust negotiation of the fixed fee are critical to managing risk and ensuring value.
What is the significance of the North American Industry Classification System (NAICS) code 541330 for this contract?
The NAICS code 541330, "Engineering Services," signifies that the primary business activity for this contract falls within the professional, scientific, and technical services sector, specifically focusing on engineering consulting and design. This code is used by federal agencies to classify business establishments and is crucial for tracking spending across industries. For this contract, it indicates that the government procured specialized engineering expertise, likely related to defense systems, from AMSEC LLC. This classification helps in benchmarking spending against similar contracts within the engineering sector and understanding the market dynamics for such services.
What does the contract duration of approximately 3 years (1087 days) imply about the nature of the services?
A contract duration of approximately three years suggests that the engineering technical services required were not short-term or project-specific but rather involved ongoing support, development, or sustainment activities. Such durations are common for defense contracts that require sustained effort in areas like system modernization, long-term research and development, or continuous technical assistance to naval operations. This timeframe allows the contractor to build expertise, integrate with government teams, and achieve meaningful progress on complex naval engineering challenges, while also providing a degree of stability for both the government and the contractor.
How does the awarding agency, Naval Surface Warfare Center (NSWC), influence the type and scope of contracts it issues?
The Naval Surface Warfare Center (NSWC) is a field activity of Naval Sea Systems Command (NAVSEA) and is responsible for a wide range of research, development, test, and evaluation (RDT&E) activities for naval systems. Consequently, NSWC typically issues contracts that support these core functions. This often involves complex engineering, scientific, and technical services, as seen in the AMSEC LLC contract. NSWC contracts are generally characterized by a high degree of technical sophistication, often requiring specialized expertise and innovation. The agency's mission dictates a need for contracts that can address evolving threats, technological advancements, and the lifecycle support of naval platforms, leading to contracts that may be long-term, involve advanced technologies, and require rigorous performance standards.
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: 21
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2006-03-10
Current End Date: 2009-03-01
Potential End Date: 2009-03-01 00:00:00
Last Modified: 2024-01-19
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