DoD's $22.6M engineering support contract awarded to Strategic Technology Institute Inc. shows fair value

Contract Overview

Contract Amount: $22,584,516 ($22.6M)

Contractor: Strategic Technology Institute Inc

Awarding Agency: Department of Defense

Start Date: 2008-04-01

End Date: 2011-10-31

Contract Duration: 1,308 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST NO FEE

Sector: Defense

Official Description: ENGINEERING, LOGISTICS AND PLANNING SUPPORT FOR MISSION READINESS

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.6 million to STRATEGIC TECHNOLOGY INSTITUTE INC for work described as: ENGINEERING, LOGISTICS AND PLANNING SUPPORT FOR MISSION READINESS Key points: 1. Contract provides essential engineering, logistics, and planning support for mission readiness. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Duration of over 3 years indicates a significant need for ongoing services. 4. Contract value appears reasonable given the scope of support required. 5. Performance context is critical for assessing long-term mission effectiveness. 6. Sector positioning within Defense highlights the strategic importance of these services.

Value Assessment

Rating: good

The contract value of approximately $22.6 million over its 1308-day duration suggests a moderate annual spend. Benchmarking against similar engineering and logistics support contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the 'COST NO FEE' contract type, while unusual, implies that the contractor's costs were reimbursed without an additional fee, which could indicate a favorable pricing structure for the government if costs were well-managed. Without specific performance metrics or detailed cost breakdowns, a definitive value judgment is challenging, but the absence of a fee suggests a focus on cost recovery rather than profit maximization.

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 presence of 5 bids suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award. The number of bidders provides a reasonable indication that the market was engaged.

Taxpayer Impact: Taxpayers benefit from a competitive process that drives down costs and ensures the government receives the best possible value for its investment in engineering and logistics support.

Public Impact

The Department of the Navy benefits from enhanced mission readiness through expert engineering, logistics, and planning support. Services delivered are crucial for maintaining and improving the operational capabilities of naval assets. Geographic impact is primarily within Maryland, where the contractor is located, but the services support national defense missions. Workforce implications include employment for engineers, logisticians, and support staff at Strategic Technology Institute Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if 'COST NO FEE' structure leads to less stringent cost control by the contractor.
Ensuring continued relevance of engineering and logistics support to evolving mission requirements.
Measuring the direct impact of support services on mission readiness outcomes can be challenging.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Contract duration suggests a stable and ongoing need for the services provided.
Strategic Technology Institute Inc. is a single awardee, potentially indicating specialized capabilities.

Sector Analysis

The defense sector relies heavily on specialized engineering, logistics, and planning support to maintain the readiness and effectiveness of its complex systems and operations. This contract falls within the broader engineering services market, which is a significant component of federal spending. Comparable spending benchmarks would involve looking at other contracts for similar support services within the Department of Defense and other military branches, as well as across different defense contractors providing analogous capabilities. The market for these services is competitive, with numerous firms offering specialized expertise.

Small Business Impact

This contract does not appear to have a specific small business set-aside, as indicated by 'sb': false. The prime contractor, Strategic Technology Institute Inc., is likely a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. Accountability measures would be tied to the contract's performance work statement and delivery requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged.

Related Government Programs

Defense Engineering Services
Logistics and Supply Chain Management
Mission Support Services
Naval Operations Support
Strategic Planning Contracts

Risk Flags

Potential for cost inefficiencies due to 'COST NO FEE' structure.
Ensuring alignment of support services with evolving mission requirements.
Measuring the direct impact of support services on mission readiness outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.6 million to STRATEGIC TECHNOLOGY INSTITUTE INC. ENGINEERING, LOGISTICS AND PLANNING SUPPORT FOR MISSION READINESS

Who is the contractor on this award?

The obligated recipient is STRATEGIC TECHNOLOGY INSTITUTE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.6 million.

What is the period of performance?

Start: 2008-04-01. End: 2011-10-31.

What is the track record of Strategic Technology Institute Inc. in performing similar defense contracts?

Assessing the track record of Strategic Technology Institute Inc. requires a review of their past performance on similar contracts, particularly within the Department of Defense. This would involve examining past performance evaluations, any documented issues or successes, and their history of meeting cost, schedule, and performance requirements. A deeper dive into their contract history, including the types of services rendered, contract values, and client agencies, would provide a clearer picture of their capabilities and reliability. Without specific performance data for this contractor on this particular contract or related ones, it's difficult to definitively assess their track record beyond the fact they were awarded this significant contract.

How does the value of this contract compare to similar engineering and logistics support contracts awarded by the Navy?

To compare the value of this $22.6 million contract to similar ones, one would need to identify comparable contracts awarded by the Department of the Navy or other DoD components for engineering, logistics, and planning support. Key comparison points would include contract duration, scope of work, and the specific services provided. For instance, if similar contracts for comparable support over a similar timeframe typically range from $15 million to $25 million, then this contract's value would be considered within the expected range. Conversely, if comparable contracts are significantly lower or higher, it might indicate either exceptional value or potential overpricing/underbidding. The 'COST NO FEE' structure also complicates direct value comparisons with fee-based contracts.

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

Primary risks associated with this contract could include performance risks (failure to deliver required engineering, logistics, or planning support effectively), cost risks (if cost controls are insufficient despite the 'COST NO FEE' structure, leading to inefficient use of funds), schedule risks (delays in service delivery impacting mission readiness), and technical risks (technology obsolescence or integration challenges). Mitigation strategies would typically involve robust contract oversight by the Navy, clear performance metrics and deliverables in the contract's Statement of Work, regular progress reviews, and potentially contingency planning for critical support functions. The competitive nature of the award may also mitigate some risks by selecting a contractor deemed capable and offering fair terms.

How effective has Strategic Technology Institute Inc. been in delivering on the objectives of this contract?

Determining the effectiveness of Strategic Technology Institute Inc. in delivering on this contract's objectives requires access to performance data, such as contractor performance evaluation reports (CPARS), milestone completion records, and feedback from the government's technical points of contact. Without this specific performance data, effectiveness cannot be definitively assessed. However, the contract's duration and the fact that it was awarded through full and open competition suggest a perceived capability to meet the Navy's needs at the time of award. Continued monitoring and evaluation by the Navy are essential to ensure ongoing effectiveness and mission readiness support.

What are the historical spending patterns for engineering, logistics, and planning support within the Department of the Navy?

Historical spending patterns for engineering, logistics, and planning support within the Department of the Navy are substantial and reflect the complexity and scale of naval operations. The Navy consistently invests billions annually across various categories, including research and development, system maintenance, operational support, and acquisition logistics. This specific contract, valued at approximately $22.6 million over its period of performance, represents a relatively small fraction of the Navy's overall budget for such services. Analyzing broader spending trends would involve examining historical budget allocations and contract awards for similar services over multiple fiscal years to identify patterns, fluctuations, and areas of sustained investment.

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: N0002407R3316

Offers Received: 5

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 6000 EXECUTIVE BLVD STE 2, ROCKVILLE, MD, 20852

Business Categories: Category Business, Minority Owned Business, Small Business, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $22,665,630

Exercised Options: $22,665,630

Current Obligation: $22,584,516

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4580

IDV Type: IDC

Timeline