DoD's $18.5M Engineering Services Contract for NSWC IHD Shows Moderate Competition and Fair Value

Contract Overview

Contract Amount: $18,462,363 ($18.5M)

Contractor: Mymic LLC

Awarding Agency: Department of Defense

Start Date: 2011-03-02

End Date: 2014-02-27

Contract Duration: 1,093 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE NAVAL SURFACE WARFARE CENTER, INDIAN HEAD DIVISION (NSWC IHD) IS TASKED BY THE JCS TO PROVIDE SUPPORT ANALYTIC, STRATEGIC, TECHNICAL, MANAGERIAL, AND ADMINISTRATIVE SUPPORT TO ENHANCE THE CUSTOMER S MISSION AND TOTAL FORCE READINESS.

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to MYMIC LLC for work described as: THE NAVAL SURFACE WARFARE CENTER, INDIAN HEAD DIVISION (NSWC IHD) IS TASKED BY THE JCS TO PROVIDE SUPPORT ANALYTIC, STRATEGIC, TECHNICAL, MANAGERIAL, AND ADMINISTRATIVE SUPPORT TO ENHANCE THE CUSTOMER S MISSION AND TOTAL FORCE READINESS. Key points: 1. The contract awarded to MYMIC LLC for engineering services at NSWC IHD represents a moderate investment in defense support capabilities. 2. Competition dynamics indicate a full and open process, suggesting a reasonable effort to achieve market-based pricing. 3. Risk indicators appear manageable, with a fixed-fee structure that aligns contractor incentives with project completion. 4. Performance context is tied to enhancing customer mission and total force readiness, a critical but broad objective. 5. Sector positioning places this contract within the broader defense engineering services market, a consistently large segment of federal spending.

Value Assessment

Rating: fair

The contract's total value of approximately $18.5 million over three years suggests a moderate scale for engineering support services. Benchmarking against similar contracts for specialized engineering and technical support within the Department of Defense is challenging without more granular data on the specific services rendered. However, the Cost Plus Fixed Fee (CPFF) pricing structure, while common, can sometimes lead to costs exceeding initial estimates if not closely managed. The fixed fee component aims to provide a predictable profit margin for the contractor, but the overall value for money depends heavily on the efficiency and effectiveness of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of 6 bidders, as suggested by the data, points to a healthy level of competition for this type of specialized engineering service. A competitive process generally allows the government to solicit a range of technical approaches and pricing structures, potentially leading to better value and innovation. The outcome of such a competition is crucial for ensuring that the selected contractor offers the most advantageous solution.

Taxpayer Impact: A full and open competition for this contract is beneficial for taxpayers as it increases the likelihood of securing services at a competitive price, preventing potential overpayment and encouraging efficient service delivery.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center, Indian Head Division (NSWC IHD), and the broader Department of Defense, receiving enhanced mission support and readiness. Services delivered include analytic, strategic, technical, managerial, and administrative support, crucial for the operational effectiveness of naval warfare capabilities. The geographic impact is centered in Virginia, where NSWC IHD is located, supporting regional defense infrastructure and personnel. Workforce implications may include the direct employment of personnel by MYMIC LLC and potential indirect support for government personnel at NSWC IHD.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type carries inherent risk of cost overruns if not meticulously monitored by the government.
The broad scope of 'support' could lead to scope creep if not clearly defined and managed.
Dependence on a single contractor for critical support functions can create long-term vulnerabilities.

Positive Signals

The contract was awarded through full and open competition, suggesting a robust vetting process.
The fixed fee component aligns contractor profit with successful delivery, incentivizing efficiency.
The duration of the contract (over three years) allows for continuity of essential support services.

Sector Analysis

The federal engineering services sector is a substantial component of government contracting, encompassing a wide array of specialized technical and analytical support. This contract falls within the defense engineering sub-sector, which is characterized by high technical complexity, stringent security requirements, and significant government investment. The market includes numerous firms ranging from large defense contractors to specialized engineering consultancies. Spending in this area is driven by the need for continuous modernization, research and development, and operational support for military assets and personnel.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, and MYMIC LLC is not explicitly identified as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The absence of a small business set-aside means that larger, more established firms were likely the primary focus of the competition. This contract does not appear to directly contribute to the small business ecosystem through mandated subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the Naval Surface Warfare Center, Indian Head Division (NSWC IHD) contracting and program management offices. The Department of Defense employs various oversight mechanisms, including contract performance reviews, financial audits, and quality assurance surveillance plans, to ensure compliance and satisfactory performance. Transparency is typically managed through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Scope definition and management challenges for broad support services.
Reliance on contractor performance for critical mission support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to MYMIC LLC. THE NAVAL SURFACE WARFARE CENTER, INDIAN HEAD DIVISION (NSWC IHD) IS TASKED BY THE JCS TO PROVIDE SUPPORT ANALYTIC, STRATEGIC, TECHNICAL, MANAGERIAL, AND ADMINISTRATIVE SUPPORT TO ENHANCE THE CUSTOMER S MISSION AND TOTAL FORCE READINESS.

Who is the contractor on this award?

The obligated recipient is MYMIC LLC.

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: 2011-03-02. End: 2014-02-27.

What is MYMIC LLC's track record with the Department of Defense, particularly in providing similar engineering support services?

MYMIC LLC has a history of contracting with the Department of Defense, as evidenced by this contract. To fully assess their track record, a deeper dive into their past performance on similar contracts would be necessary. This would involve reviewing past performance evaluations, any documented issues or successes, and their experience with the specific types of analytic, strategic, technical, managerial, and administrative support required by NSWC IHD. Understanding their history with Cost Plus Fixed Fee (CPFF) contracts and their ability to manage costs effectively within such structures is also crucial. Without access to detailed past performance reports, a comprehensive evaluation of their suitability and reliability for this specific task remains limited.

How does the $18.5 million total contract value compare to other engineering support contracts for naval warfare centers?

The $18.5 million total contract value over approximately three years positions this as a moderately sized contract for specialized engineering support within the naval warfare center ecosystem. Larger contracts for similar services can range from tens to hundreds of millions of dollars, often involving broader scope, longer durations, or more complex technological requirements. Conversely, smaller, more focused task orders or support agreements might fall into the single-digit millions. This contract's value suggests a significant but not massive investment, likely covering a defined set of support functions rather than comprehensive program management or large-scale development. Benchmarking requires comparing the specific services rendered against contracts with similar scope and complexity at other naval facilities.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this award?

The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type is the potential for cost overruns. While the contractor is guaranteed a fixed fee (profit), the government bears the risk of covering all allowable costs incurred. If the contractor is inefficient or encounters unforeseen difficulties, the total cost to the government can exceed initial estimates. This necessitates robust government oversight to monitor costs, ensure efficiency, and verify the allowability and allocability of expenses. The CPFF structure can sometimes disincentivize cost control by the contractor, as their profit is fixed regardless of the final cost, making diligent government administration paramount to achieving value for money.

How effective is the 'full and open competition' process in ensuring competitive pricing for specialized defense engineering services?

The 'full and open competition' process is generally considered the most effective method for ensuring competitive pricing for specialized defense engineering services. By allowing all responsible sources to submit offers, it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive bids. This process encourages companies to offer their best technical solutions and pricing to win the contract. The presence of multiple bidders, as indicated by the 6 bidders in this case, further strengthens price discovery and allows the government to select the offer that provides the best overall value, considering both technical merit and cost. However, the effectiveness is contingent on clear solicitation requirements and fair evaluation criteria.

What is the historical spending trend for engineering services at NSWC IHD or similar naval warfare centers?

Historical spending on engineering services at NSWC IHD and similar naval warfare centers typically reflects the ongoing needs for technical expertise, research, development, and sustainment of naval platforms and systems. Spending in this category can fluctuate based on modernization priorities, new platform development, and sustainment requirements. Naval warfare centers often rely heavily on external contractors for specialized skills not available in-house or to augment their organic workforce. Annual spending can range from millions to tens of millions of dollars per center, depending on the specific missions and projects underway. Analyzing trends requires examining contract databases over several fiscal years to identify patterns in award types, contractor focus, and overall investment levels.

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: N0002411R3058

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 200 HIGH ST STE 308, PORTSMOUTH, VA, 23704

Business Categories: Category Business, HUBZone Firm, Service Disabled Veteran Owned Business, Small Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $29,967,530

Exercised Options: $29,967,530

Current Obligation: $18,462,363

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $6,092,347

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4463

IDV Type: IDC

Timeline