DoD awards $27M engineering services task order to Vision Point Systems for corrosion control RDT&E

Contract Overview

Contract Amount: $27,085,864 ($27.1M)

Contractor: Vision Point Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-04-04

End Date: 2020-09-30

Contract Duration: 1,640 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: IGF::CT::IGF USMC/NAVY ENGINEERING SERVICES TASK ORDER WITH EMPHASIS ON CORROSION PREVENTION AND CONTROL THROUGH RDT&E AND IN SERVICE ENGINEERING.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.1 million to VISION POINT SYSTEMS, INC. for work described as: IGF::CT::IGF USMC/NAVY ENGINEERING SERVICES TASK ORDER WITH EMPHASIS ON CORROSION PREVENTION AND CONTROL THROUGH RDT&E AND IN SERVICE ENGINEERING. Key points: 1. Task order awarded under a larger indefinite-delivery/indefinite-quantity contract, suggesting potential for follow-on work. 2. Contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost savings but also carries inherent cost uncertainty. 3. The contract duration of 1640 days (approx. 4.5 years) indicates a significant, long-term need for these specialized engineering services. 4. Focus on corrosion prevention and control highlights a critical maintenance and readiness requirement within the USMC/Navy. 5. The award was made through full and open competition, implying a robust vetting of potential offerors. 6. The contract was issued by the Defense Contract Management Agency, indicating oversight of performance and financial aspects.

Value Assessment

Rating: fair

The total award amount of approximately $27 million over 4.5 years averages to about $6 million annually. Without specific benchmarks for corrosion prevention RDT&E and in-service engineering for naval platforms, a direct value-for-money assessment is challenging. However, the CPIF contract type suggests an attempt to manage costs by incentivizing the contractor to stay within target costs. Further analysis would require comparing the scope of work and deliverables to similar contracts awarded by the DoD or other military branches for comparable engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award suggests that the government sought the best value proposition. This approach generally leads to more favorable pricing and a wider range of technical solutions compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it fosters a competitive environment that can drive down prices and improve the quality of services received.

Public Impact

Naval forces (USMC/Navy) benefit from enhanced readiness and reduced lifecycle costs through improved corrosion prevention and control. Services delivered include research, development, testing, and evaluation (RDT&E) related to corrosion, as well as in-service engineering support. The geographic impact is likely focused on naval bases and operational areas where USMC and Navy assets are deployed. Workforce implications include specialized engineering roles and technical support personnel required for RDT&E and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPIF contract type introduces potential for cost overruns if not managed diligently.
Scope of RDT&E can be broad, requiring careful monitoring to ensure alignment with objectives and budget.
Long contract duration necessitates sustained oversight to ensure continued performance and value.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Focus on corrosion prevention addresses a critical and costly issue for naval assets.
Task order issued under an IDIQ contract, potentially indicating a pre-vetted and capable contractor.

Sector Analysis

The engineering services sector supporting the Department of Defense is substantial, encompassing a wide range of specialized technical support. This contract falls within the broader category of professional, scientific, and technical services, specifically focusing on defense engineering. Comparable spending benchmarks would involve analyzing other large-scale RDT&E and engineering support contracts awarded to the defense industrial base, particularly those related to platform maintenance, survivability, and lifecycle management. The market for such services is characterized by high barriers to entry due to specialized knowledge requirements and security clearances.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Vision Point Systems, Inc., may engage small businesses as subcontractors if it aligns with their subcontracting plan or operational needs, though this is not mandated by the contract's set-aside status.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with contract terms, quality standards, and delivery schedules. The CPIF contract type necessitates close monitoring of costs and performance against established targets. Transparency is facilitated through contract reporting mechanisms and potential audits by the Inspector General's office, particularly concerning cost expenditures and the effectiveness of RDT&E efforts.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Engineering Services
Marine Corps Logistics Command Engineering Support
Department of Defense Research and Development Contracts
Defense Contract Management Agency (DCMA) Oversight

Risk Flags

Cost Overrun Risk (CPIF)
RDT&E Scope Creep
Long-Term Performance Monitoring
Technical Solution Effectiveness

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.1 million to VISION POINT SYSTEMS, INC.. IGF::CT::IGF USMC/NAVY ENGINEERING SERVICES TASK ORDER WITH EMPHASIS ON CORROSION PREVENTION AND CONTROL THROUGH RDT&E AND IN SERVICE ENGINEERING.

Who is the contractor on this award?

The obligated recipient is VISION POINT SYSTEMS, 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 $27.1 million.

What is the period of performance?

Start: 2016-04-04. End: 2020-09-30.

What is the track record of Vision Point Systems, Inc. in performing similar engineering services for the Department of Defense?

Vision Point Systems, Inc. has a history of performing various engineering and technical services for the U.S. government, including defense agencies. While specific details on past corrosion control RDT&E projects are not immediately available from the provided data, their experience likely encompasses a range of technical support functions. A deeper dive into their contract history, performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), and past performance on similar IDIQ vehicles would provide a more comprehensive understanding of their capabilities and reliability in executing complex engineering tasks. Their ability to secure this task order under full and open competition suggests they met the government's requirements and demonstrated relevant past performance.

How does the pricing structure (Cost Plus Incentive Fee) compare to other contract types for similar RDT&E services?

Cost Plus Incentive Fee (CPIF) contracts are often used for RDT&E efforts where the scope of work is not precisely defined at the outset, and there's a desire to incentivize contractor efficiency. Compared to fixed-price contracts, CPIF offers more flexibility for the government if requirements evolve but carries a higher risk of cost growth. It differs from Cost Plus Fixed Fee (CPFF) by including a performance-based incentive that adjusts the fee based on achieving specific cost targets. While potentially more cost-effective than CPFF if targets are met, it requires robust government oversight to establish realistic targets and monitor performance. Other contract types like Cost Plus Award Fee (CPAF) or firm-fixed-price (FFP) might be used depending on the level of cost certainty and performance risk.

What are the primary risks associated with this specific contract, and how are they being mitigated?

Key risks include potential cost overruns inherent in the CPIF structure, the possibility of RDT&E efforts not yielding desired results or exceeding projected timelines, and ensuring sustained contractor performance over the 4.5-year duration. Mitigation strategies likely involve rigorous government oversight by DCMA, including regular cost reviews, performance monitoring against milestones, and clear definition of incentive targets. The full and open competition process aims to mitigate risks by selecting a contractor with a proven ability to deliver. Furthermore, the focus on corrosion prevention addresses a critical operational risk for naval assets, implying that the potential benefits of successful RDT&E outweigh the inherent risks.

What is the expected impact of this contract on the readiness and operational effectiveness of USMC and Navy assets?

This contract is expected to significantly enhance the readiness and operational effectiveness of USMC and Navy assets by addressing the pervasive issue of corrosion. Corrosion degrades material integrity, reduces lifespan, and can lead to mission-critical failures. By investing in RDT&E for advanced corrosion prevention techniques and providing in-service engineering support, the contract aims to extend the service life of platforms, reduce maintenance costs, and ensure that naval assets remain combat-ready. Improved corrosion control directly translates to higher availability rates for ships, aircraft, and ground vehicles, thereby bolstering overall operational capability.

How does the historical spending on engineering services for corrosion control compare to this specific award?

Without specific historical spending data for corrosion control engineering services, a direct comparison is difficult. However, the U.S. Navy and Marine Corps operate extensive fleets of ships, aircraft, and vehicles that are constantly exposed to harsh maritime environments, making corrosion a persistent and costly challenge. Annual spending on maintenance, repair, and overhaul (MRO) for naval assets is in the billions of dollars, with a significant portion attributed to combating corrosion. This $27 million task order represents a focused investment in RDT&E and specialized engineering support to proactively manage and mitigate these costs, suggesting a strategic allocation of resources towards a critical long-term issue.

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: N0002415R3214

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 1700 KRAFT DR STE 2150, BLACKSBURG, VA, 24060

Business Categories: Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,210,887

Exercised Options: $42,210,887

Current Obligation: $27,085,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7991

IDV Type: IDC

Timeline