Navy awards $42.3M engineering services contract to BearingPoint, Inc. for NMCI and BPM support

Contract Overview

Contract Amount: $42,286,294 ($42.3M)

Contractor: Bearingpoint, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-09-10

End Date: 2012-09-22

Contract Duration: 1,839 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NMCI AND BUSINESS PROCESS MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23511, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $42.3 million to BEARINGPOINT, INC. for work described as: NMCI AND BUSINESS PROCESS MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1839 days indicates a significant, long-term need for these services. 3. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for defense operations. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 5. The award was made by the Department of the Navy, a major component of the Department of Defense. 6. The contract value of $42.3 million represents a substantial investment in IT and business process management support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means the final cost could fluctuate, making direct price comparisons difficult. However, the fixed fee component provides some predictability. The total award amount of $42.3 million for nearly five years of support suggests a significant investment, and its value hinges on the effective delivery of NMCI and business process management services.

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 moderate level of competition for this requirement. While not an exceptionally high number of bidders, full and open competition generally promotes price discovery and allows the government to select the best value offer.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the most advantageous pricing and service offerings for the government. Full and open competition helps prevent inflated costs that might arise from less competitive or sole-source procurements.

Public Impact

The Department of the Navy benefits from enhanced IT infrastructure and business process management, crucial for its operational efficiency. Naval personnel and civilian employees will likely experience improved IT services and streamlined business operations. The contract supports critical defense functions by ensuring the reliability and effectiveness of the Navy's IT systems. The geographic impact is primarily within Virginia, where the contract is administered, potentially supporting local IT and professional services jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
The long duration of the contract (1839 days) necessitates ongoing performance monitoring to ensure continued value.
The specific nature of NMCI and BPM support can be complex, requiring specialized expertise from the contractor.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract addresses essential IT and business process management needs for a major military branch.
The fixed fee component of the CPFF contract provides a degree of cost certainty.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT and business process management for the Department of the Navy. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading complex systems like the Navy Marine Corps Intranet (NMCI). This contract represents a portion of that broader spending, focusing on specialized support functions within a large federal agency.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract, as 'sb' is false. There is no explicit information on subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. Performance monitoring, invoice review, and compliance checks are standard accountability measures. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Navy Marine Corps Intranet (NMCI) Program
Department of Defense IT Modernization Initiatives
Business Process Re-engineering Services
IT Support Services Contracts
Engineering Consulting Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Long contract duration necessitates sustained performance monitoring.
Complexity of NMCI and BPM support requires specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.3 million to BEARINGPOINT, INC.. NMCI AND BUSINESS PROCESS MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is BEARINGPOINT, 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 $42.3 million.

What is the period of performance?

Start: 2007-09-10. End: 2012-09-22.

What is the track record of BearingPoint, Inc. with Department of Defense contracts, particularly for IT and business process support?

BearingPoint, Inc. has a history of performing IT and professional services for various government agencies, including the Department of Defense. Their experience often spans areas like system integration, business process improvement, and IT infrastructure support. For the Department of the Navy, contracts like this one for NMCI and BPM support indicate a capability to handle large-scale, complex IT requirements. Analyzing past performance reviews and contract close-out data for BearingPoint would provide a more granular understanding of their reliability, quality of service, and adherence to schedules and budgets on similar DoD engagements. Specific details on past performance metrics would be crucial for a comprehensive assessment.

How does the $42.3 million award compare to similar IT and business process support contracts awarded by the Department of the Navy or other DoD branches?

The $42.3 million award for nearly five years of support (1839 days) for NMCI and Business Process Management (BPM) services is a significant but not extraordinary sum for a large federal agency like the Department of the Navy. Comparable contracts for enterprise-wide IT support, system integration, and modernization efforts within the DoD often range from tens to hundreds of millions of dollars over similar or longer durations. For instance, contracts supporting other major military networks or large-scale IT infrastructure upgrades can exceed this value considerably. The value is influenced by the scope of services, the complexity of the systems supported (like NMCI), and the level of competition. Without specific details on the exact deliverables and service levels, a precise benchmark is difficult, but it aligns with substantial IT support investments common within the defense sector.

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

The primary risks associated with a CPFF contract of this magnitude and duration revolve around cost control and contractor performance. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' portion means the government bears the risk of cost overruns if the contractor's actual expenses exceed estimates. This necessitates robust oversight to ensure costs are reasonable, allocable, and allowable. For a long-term contract, there's also the risk of scope creep, where the requirements may evolve, potentially leading to increased costs and delays if not managed properly through contract modifications. Contractor performance is another key risk; if BearingPoint, Inc. fails to deliver the required IT and BPM support effectively, the government may not realize the intended benefits, despite the expenditure. Ensuring clear performance metrics and strong contract management is crucial to mitigate these risks.

How effective is the Navy Marine Corps Intranet (NMCI) program, and how does this contract contribute to its overall success?

The Navy Marine Corps Intranet (NMCI) program aims to provide a unified, secure, and cost-effective IT infrastructure for the Navy and Marine Corps. Its effectiveness has been a subject of ongoing evaluation, with reported successes in consolidating networks, enhancing cybersecurity, and standardizing services. However, challenges related to user satisfaction, service delivery times, and cost management have also been noted over its history. This contract for NMCI and Business Process Management Support Services directly contributes to the program's success by providing essential technical expertise and operational support. It helps ensure the continued functioning, maintenance, and potential evolution of the NMCI network and associated business processes, addressing critical needs for system reliability and efficiency.

What are the historical spending patterns for engineering and IT support services within the Department of the Navy over the last five years?

Historical spending patterns for engineering and IT support services within the Department of the Navy have shown a consistent and significant allocation of resources. The Navy, as a major component of the DoD, relies heavily on advanced IT infrastructure and engineering expertise to maintain its operational readiness and technological superiority. Spending in these categories typically fluctuates based on modernization initiatives, cybersecurity requirements, and the lifecycle of major IT systems like NMCI. While specific figures require detailed analysis of DoD spending reports, it's evident that billions of dollars are annually dedicated to IT services, network management, software development, and engineering support across the Navy. Contracts for services similar to this one are a recurring feature, reflecting the ongoing need for specialized support in these critical areas.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002407R3356

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $232,405,211

Exercised Options: $69,270,090

Current Obligation: $42,286,294

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4020

IDV Type: IDC

Timeline