DoD Awards $18.5M Engineering Contract to Spectrum Technology Group, Inc. for Ship Signatures
Contract Overview
Contract Amount: $18,536,919 ($18.5M)
Contractor: Spectrum Technology Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-09-29
End Date: 2017-03-28
Contract Duration: 2,372 days
Daily Burn Rate: $7.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SHIP SIGNATURES ENGINEERING
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20877
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $18.5 million to SPECTRUM TECHNOLOGY GROUP, INC. for work described as: SHIP SIGNATURES ENGINEERING Key points: 1. Contract awarded for ship signatures engineering services. 2. Spectrum Technology Group, Inc. is the prime contractor. 3. The contract was awarded under full and open competition. 4. The contract duration is 2372 days. 5. The contract type is Cost Plus Fixed Fee.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, though the CPFF structure requires diligent oversight to control costs.
Public Impact
Supports critical Department of Defense naval capabilities. Enhances understanding and management of ship signatures. Long-term contract indicates sustained need for these services. Potential for technological advancements in naval engineering.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires close monitoring.
- Long duration may increase risk of scope creep or obsolescence.
Positive Signals
- Full and open competition likely ensured competitive pricing.
- Award to established contractor suggests capability.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to defense applications. Spending in this sector is significant, driven by national security requirements and complex technological development.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Cost Plus Fixed Fee structure necessitates robust oversight from the Defense Contract Management Agency to ensure cost control and adherence to contract terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (2372 days).
- Potential for cost escalation.
- Lack of specific performance metrics in provided data.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.5 million to SPECTRUM TECHNOLOGY GROUP, INC.. SHIP SIGNATURES ENGINEERING
Who is the contractor on this award?
The obligated recipient is SPECTRUM TECHNOLOGY GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $18.5 million.
What is the period of performance?
Start: 2010-09-29. End: 2017-03-28.
What specific engineering services are included under 'ship signatures' and how do they contribute to naval effectiveness?
Ship signatures refer to the detectable characteristics of a vessel, such as acoustic, magnetic, infrared, and radar signatures. Engineering services likely involve analysis, modeling, simulation, and potentially mitigation strategies for these signatures to enhance stealth, operational security, and mission success for naval assets. This directly contributes to the effectiveness of naval operations by improving survivability and operational flexibility.
What are the primary risks associated with a Cost Plus Fixed Fee contract for long-term engineering services?
The primary risks with a CPFF contract, especially over a long duration like 2372 days, include potential cost overruns if the fixed fee is not adequately justified or if the contractor's costs escalate beyond projections. There's also a risk of reduced incentive for the contractor to control costs aggressively, as their fee is fixed. Scope creep is another significant risk, where the project's objectives expand without corresponding adjustments to the fee or timeline, leading to increased costs.
How does the competitive nature of the award impact the overall value and effectiveness of the engineering services provided?
The 'full and open competition' award method suggests that multiple qualified vendors had the opportunity to bid, fostering a competitive environment. This typically drives down prices and encourages contractors to offer their best technical solutions and value propositions. Consequently, the government is more likely to receive effective engineering services at a reasonable cost, maximizing the value of taxpayer investment in critical defense capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002410R3098
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 21917 FOXLAIR RD, LAYTONSVILLE, MD, 20882
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Small Business, Special Designations, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $20,898,697
Exercised Options: $20,898,697
Current Obligation: $18,536,919
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017808D5597
IDV Type: IDC
Timeline
Start Date: 2010-09-29
Current End Date: 2017-03-28
Potential End Date: 2017-03-28 00:00:00
Last Modified: 2023-08-08
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