DoD Awards $7.99M Engineering Services Contract to RMGS Inc. for Asset Management
Contract Overview
Contract Amount: $7,994,416 ($8.0M)
Contractor: Rmgs Inc
Awarding Agency: Department of Defense
Start Date: 2023-09-29
End Date: 2026-09-28
Contract Duration: 1,095 days
Daily Burn Rate: $7.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: ASSET MANAGEMENT
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $8.0 million to RMGS INC for work described as: ASSET MANAGEMENT Key points: 1. Contract value of $7.99 million for asset management services. 2. RMGS Inc. is the sole awardee under a full and open competition after exclusion of sources. 3. Potential risk associated with the 'exclusion of sources' clause. 4. Spending falls within the Engineering Services sector.
Value Assessment
Rating: good
The contract value of $7.99 million for a 3-year period appears reasonable for specialized engineering services. Benchmarking against similar asset management contracts within the DoD would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method suggests that while competition was sought, specific sources were excluded, potentially limiting the breadth of price discovery and innovation.
Taxpayer Impact: Taxpayer funds are being utilized for essential asset management services. The 'exclusion of sources' may impact the ultimate cost-effectiveness compared to unrestricted full and open competition.
Public Impact
Ensures effective management of critical defense assets. Supports the operational readiness of the Defense Threat Reduction Agency. Potential for specialized expertise to enhance asset lifecycle management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in competition
- Cost Plus Fixed Fee pricing structure
Positive Signals
- Awarded to support critical defense agency
- Defined period of performance
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for national defense. Spending benchmarks for similar DoD engineering services contracts would provide further context on the value of this award.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific award or the preceding competition. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The Department of Defense's oversight mechanisms are expected to ensure proper execution of this contract. Accountability for asset management performance will be key.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Limited competition due to source exclusion
- Potential for cost overruns with CPFF structure
- Lack of transparency on specific performance metrics
- No indication of small business participation
Tags
engineering-services, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.0 million to RMGS INC. ASSET MANAGEMENT
Who is the contractor on this award?
The obligated recipient is RMGS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $8.0 million.
What is the period of performance?
Start: 2023-09-29. End: 2026-09-28.
What is the justification for excluding specific sources in the competition?
The justification for excluding specific sources in the competition is not provided in the data. Typically, such exclusions are based on factors like proprietary data, unique capabilities, or prior performance requirements. A thorough review of the solicitation documents would be necessary to understand the rationale and its potential impact on competition and pricing.
How does the Cost Plus Fixed Fee structure impact overall cost control?
The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover allowable costs plus a predetermined fixed fee. While it incentivizes the contractor to control costs to maximize their fee, it can also lead to cost overruns if not closely monitored. The government bears the risk of cost increases beyond the estimate.
What are the key performance indicators (KPIs) for this asset management contract?
Key performance indicators for this asset management contract are not detailed in the provided data. Effective oversight would require clearly defined KPIs related to asset tracking accuracy, maintenance scheduling, lifecycle cost analysis, and compliance with regulatory standards to ensure the contractor meets the agency's objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HDTRA120R0076
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 500 VIKING DR, VIRGINIA BEACH, VA, 23452
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $11,125,166
Exercised Options: $8,602,233
Current Obligation: $7,994,416
Actual Outlays: $1,248,309
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA122D0010
IDV Type: IDC
Timeline
Start Date: 2023-09-29
Current End Date: 2026-09-28
Potential End Date: 2028-09-28 00:00:00
Last Modified: 2025-12-11
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