Naval Surface Warfare Center contract for engineering services awarded to AMSEC LLC for over $8.1 million

Contract Overview

Contract Amount: $13,091,059 ($13.1M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2006-04-26

End Date: 2011-02-14

Contract Duration: 1,755 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200607!SS3054!1700!N00167!NAVAL SURFACE WARFARE CENTER !N0017804D4119 !A!N! !Y!FD02 ! !20060426!20110214!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!82000!810!51!VIRGINIA BEACH !VIRGINIA BEACH (CITY) !VIRGINIA !+000000463000!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! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00167!0001! !

Place of Performance

Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23510, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: 200607!SS3054!1700!N00167!NAVAL SURFACE WARFARE CENTER !N0017804D4119 !A!N! !Y!FD02 ! !20060426!20110214!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!82000!810!51!VIRGINIA BEACH !VIRG… Key points: 1. Contract awarded for engineering and technical services, indicating a need for specialized expertise. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The duration of the contract was 1755 days, implying a long-term need for these services. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The primary place of performance was Virginia Beach, VA, indicating a concentration of naval support activities in the region. 6. The contract was awarded to a single entity, AMSEC LLC, raising questions about potential consolidation of services.

Value Assessment

Rating: fair

The contract's total award amount was $8,100,547.74. Benchmarking this against similar engineering services contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, carries inherent risks of cost escalation. The fixed fee component suggests a baseline profit expectation, but the cost reimbursement aspect means actual costs could vary significantly. Further analysis would require comparing the per-hour rates or total cost for equivalent services provided by other contractors to the Navy or other agencies.

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 a bid. The data shows 21 offers were received, suggesting a healthy level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that 21 entities competed implies that the market for these engineering services is active and diverse.

Taxpayer Impact: The full and open competition with 21 offers is beneficial for taxpayers as it likely drove down prices through competitive bidding, ensuring the government received value for its investment in engineering services.

Public Impact

The primary beneficiary of this contract is the Naval Surface Warfare Center, which receives essential engineering and technical support. The services delivered are critical for the maintenance, development, and operational readiness of naval systems. The geographic impact is concentrated in Virginia Beach, VA, supporting local employment and the regional defense industry. The contract supports a workforce of engineers and technical specialists, contributing to the skilled labor pool in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to incur higher costs to increase the fixed fee, potentially leading to less cost-consciousness.
The contract was awarded to a single entity (AMSEC LLC), which might limit future competition or create dependency.
Limited information on specific performance metrics makes it difficult to assess the contractor's effectiveness and value for money.
The contract duration of nearly 5 years (1755 days) means potential for cost increases over time without regular re-competition.
The absence of specific small business subcontracting goals (indicated by 'N' for SB) might mean missed opportunities for small business participation.

Positive Signals

Awarded under full and open competition with 21 offers, indicating a competitive marketplace and likely fair pricing.
The contract addresses a clear need for specialized engineering and technical services for naval warfare systems.
The primary place of performance is within the United States (Virginia Beach, VA), supporting domestic industry and jobs.
The contract was awarded to AMSEC LLC, a known entity in the defense contracting space, suggesting some level of established capability.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), which is a significant part of the broader professional, scientific, and technical services industry. The defense sector, in particular, relies heavily on specialized engineering firms for research, development, testing, and sustainment of complex military platforms. Spending in this area is often driven by national security priorities and technological advancements. Comparable spending benchmarks would typically involve analyzing the total annual expenditure by the Department of Defense on engineering services across various warfare centers and commands.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (SB is 'N'). While there is no explicit information on subcontracting plans or goals, the absence of a small business set-aside suggests that large businesses were eligible and likely competed. This could mean fewer direct opportunities for small businesses on this specific prime contract, although they might still participate as subcontractors if AMSEC LLC chooses to engage them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Naval Surface Warfare Center (NSWC) and the Department of the Navy. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor costs and ensure the fixed fee is justified. Transparency is typically managed through contract reporting systems like the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Naval Surface Warfare Center (NSWC) Support Contracts
Defense Professional Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Limited transparency on specific performance metrics.
Potential for contractor dependency due to single award.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. 200607!SS3054!1700!N00167!NAVAL SURFACE WARFARE CENTER !N0017804D4119 !A!N! !Y!FD02 ! !20060426!20110214!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!82000!810!51!VIRGINIA BEACH !VIRGINIA BEACH (CITY) !VIRGINIA !+000000463000!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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2006-04-26. End: 2011-02-14.

What is the track record of AMSEC LLC as a government contractor, particularly with the Department of Defense?

AMSEC LLC, now part of Huntington Ingalls Industries (HII) Technical Solutions, has a significant history as a government contractor, primarily serving the Department of Defense. Prior to its acquisition, AMSEC specialized in a range of technical and engineering services, including naval architecture, marine engineering, systems engineering, and integrated logistics support. Their work often supports fleet readiness, ship design, and modernization programs. Data from the Federal Procurement Data System (FPDS) would show numerous awards to AMSEC across various agencies, with a strong concentration within the Navy. Analyzing past performance reviews, contract modifications, and any past performance issues would provide a more comprehensive view of their track record. Their integration into HII suggests a continued capacity to handle large and complex defense contracts.

How does the awarded amount of $8.1 million compare to other engineering services contracts for similar naval support?

Comparing the $8.1 million award to other similar naval support contracts requires careful consideration of the scope of work, duration, and specific services provided. Contracts for engineering and technical services can vary widely in value. For instance, a contract for basic design services might be significantly less than one involving complex systems integration, testing, and lifecycle support for major naval platforms. The Naval Surface Warfare Center (NSWC) manages numerous contracts, and $8.1 million for a nearly 5-year duration (1755 days) appears to be a moderate-sized award within this context. To provide a precise comparison, one would need to identify contracts with identical or highly similar Product Service Codes (PSCs) and service descriptions awarded around the same period by the Navy or other defense agencies, and then normalize for contract length and complexity.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to AMSEC LLC, revolve around cost control and contractor incentives. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. The main risk for the government is that the contractor may have less incentive to control costs rigorously, as higher costs directly lead to higher overhead absorption, even though the profit (fee) is fixed. This can lead to cost overruns beyond initial estimates. Additionally, defining 'allowable costs' can be complex and subject to negotiation or dispute. Effective oversight, detailed cost tracking, and clear contract terms are essential to mitigate these risks and ensure the government receives good value.

What does the number of offers (21) suggest about the market for naval engineering services?

Receiving 21 offers for this engineering services contract suggests a robust and competitive market for naval engineering and technical support. A high number of bidders indicates that multiple companies possess the necessary capabilities, resources, and interest to compete for this type of work. This level of competition is generally favorable for the government, as it increases the likelihood of receiving competitive pricing and innovative solutions. It implies that the barriers to entry for providing such services to the Navy are not prohibitively high for a significant number of firms, and that the demand for these services is sufficient to attract a wide range of potential contractors. This competitive landscape can lead to better value for taxpayer dollars.

How has spending on engineering services by the Naval Surface Warfare Center evolved over time?

Analyzing the historical spending trends for engineering services by the Naval Surface Warfare Center (NSWC) would require accessing and aggregating data from the Federal Procurement Data System (FPDS) over multiple fiscal years. Generally, spending in this category tends to fluctuate based on defense budgets, modernization priorities, and specific fleet requirements. Periods of increased naval shipbuilding or major platform upgrades often correlate with higher spending on engineering and technical support. Conversely, budget constraints or shifts in strategic focus might lead to reductions. The NSWC, being a major research, development, and acquisition command, consistently requires significant engineering support, making it a stable, albeit variable, area of federal spending. Examining specific contract vehicles and award trends over the past decade would reveal patterns related to specific warfare areas or technological investments.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1710 SAIC DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline