Missile Defense Agency contract for engineering services awarded to BETA ANALYTICS, INC. for over $130 million

Contract Overview

Contract Amount: $123,189,969 ($123.2M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-02-17

End Date: 2011-06-30

Contract Duration: 2,690 days

Daily Burn Rate: $45.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200408!000176!9700!HQ0006!MISSILE DEFENSE AGENCY !GS07F0190L !C!N! !N!HQ000604F0007! !20040217!20050214!130440241!130440241!130440241!N!BETA ANALYTICS, INC !9600 PENNSYLVANIA AVENUE !UPPER MARLBORO !MD!20772!79875!033!24!UPPER MARLBORO !PRINCE GEORGE S !MARYLAND !+000004799471!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !CAA !MDA SUPPORT !561612!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!B!N!N! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $123.2 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: 200408!000176!9700!HQ0006!MISSILE DEFENSE AGENCY !GS07F0190L !C!N! !N!HQ000604F0007! !20040217!20050214!130440241!130440241!130440241!N!BETA ANALYTICS, INC !9600 PENNSYLVANIA AVENUE !UPPER MARLBORO !MD!20772!79875!033!24!UPPER MARLBORO !PRIN… Key points: 1. Contract value exceeds $130 million, indicating a significant investment in engineering services. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is substantial, spanning over 9 years, implying long-term service needs. 4. The primary service category is engineering, aligning with the agency's mission to develop missile defense systems. 5. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

The total contract value of approximately $130.4 million over a period of roughly 9 years and 4 months suggests an average annual spend of around $14 million. Benchmarking this against similar large-scale engineering support contracts for defense agencies is challenging without more specific service details. However, the contract was awarded under a firm-fixed-price (FFP) type, which typically offers predictable costs for the government. The contract's base value was $79,750, with subsequent modifications leading to the final obligated amount. Without knowing the specific scope of work and the number of bids received, a precise value-for-money assessment is difficult, but the FFP structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders that participated in the competition. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award. The fact that it was competed openly suggests that the Missile Defense Agency sought the best value available in the market for these engineering services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, which can drive down prices and improve the quality of services received, ensuring that taxpayer funds are used efficiently.

Public Impact

The primary beneficiary is the Missile Defense Agency (MDA), which receives critical engineering support for its complex programs. Services delivered likely include systems engineering, technical support, analysis, and integration for missile defense systems. The geographic impact is centered around the contractor's location in Upper Marlboro, Maryland, and the MDA's operational areas. The contract supports a specialized workforce of engineers and technical professionals, contributing to the defense industry's skilled labor pool.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of the competitive landscape.
The long contract duration could pose risks if requirements change significantly over time.
Without detailed performance metrics, it's difficult to fully assess the contractor's performance and value delivered.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract supports a critical national security mission for the Missile Defense Agency.

Sector Analysis

This contract falls within the Engineering Services sector, a vital component of the broader aerospace and defense industry. The Missile Defense Agency (MDA) operates in a highly specialized market focused on developing and deploying advanced technologies to counter ballistic missile threats. Spending in this sector is characterized by long development cycles, high R&D investment, and significant government oversight. Comparable spending benchmarks would involve other large-scale engineering support contracts awarded by defense agencies for complex system development and integration.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb=false). There is no explicit information 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. Further investigation into subcontracting reports would be needed to determine any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Missile Defense Agency's contracting officers and program managers. As a Department of Defense contract, it is subject to the oversight of the Department of Defense Inspector General (DoDIG) for audits and investigations into fraud, waste, and abuse. Transparency is facilitated through contract award databases like FPDS, which provide basic information on contract values, dates, and awardees. However, detailed performance reports and specific oversight activities are often not publicly disclosed.

Related Government Programs

Missile Defense Systems
Ballistic Missile Defense
Aerospace Engineering Services
Department of Defense IT and Engineering Support
Advanced Technology Development Contracts

Risk Flags

Long contract duration may increase risk of obsolescence or changing requirements.
Limited public information on specific performance metrics makes value assessment challenging.
Lack of detail on the number of bidders limits the assessment of competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $123.2 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. 200408!000176!9700!HQ0006!MISSILE DEFENSE AGENCY !GS07F0190L !C!N! !N!HQ000604F0007! !20040217!20050214!130440241!130440241!130440241!N!BETA ANALYTICS, INC !9600 PENNSYLVANIA AVENUE !UPPER MARLBORO !MD!20772!79875!033!24!UPPER MARLBORO !PRINCE GEORGE S !MARYLAND !+000004799471!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !CAA !MDA SUPPORT !561612!E! !6! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $123.2 million.

What is the period of performance?

Start: 2004-02-17. End: 2011-06-30.

What was the specific scope of engineering services provided under this contract?

The provided data indicates the contract falls under the 'Engineering Services' category (NAICS code 541330) and was awarded to BETA ANALYTICS, INC. for the Missile Defense Agency (MDA). While the exact scope is not detailed, engineering services for the MDA typically encompass a wide range of activities crucial for missile defense systems. This can include systems engineering, requirements definition, design, integration, testing, verification, validation, and technical support for various missile defense components and platforms. Given the agency's mission, these services likely involve complex analysis, simulation, and development work related to threat detection, tracking, and interception technologies. The contract's firm-fixed-price nature suggests that the scope was well-defined at the time of award, allowing for predictable cost management.

How does the awarded value of $130.4 million compare to similar engineering services contracts for missile defense?

Comparing the $130.4 million total value of this contract to similar Missile Defense Agency (MDA) engineering services contracts requires access to a broader dataset of historical contract awards. However, for a contract spanning over nine years, this average annual value of approximately $14 million is substantial but not extraordinary within the context of large-scale defense programs. Major defense engineering contracts, especially those involving complex systems like missile defense, often run into hundreds of millions or even billions of dollars over their lifecycles. The firm-fixed-price (FFP) award type suggests a defined scope, which can be more cost-effective than cost-plus contracts if managed well. Without specific details on the number of bidders and the competitive landscape, it's difficult to definitively benchmark the 'value for money' against market rates, but the open competition is a positive sign.

What are the key risks associated with a contract of this duration (over 9 years)?

Contracts with a duration exceeding nine years, like this one, present several potential risks. Firstly, technological obsolescence is a significant concern; the technology landscape can change rapidly, potentially making the services or systems supported by the contract outdated before its completion. Secondly, requirements creep or shifts in strategic priorities within the Missile Defense Agency could necessitate substantial contract modifications, leading to cost overruns and schedule delays. Thirdly, maintaining contractor performance and engagement over such an extended period can be challenging; initial performance levels may not be sustained without continuous oversight and incentive structures. Finally, economic fluctuations or changes in government funding priorities could impact the contract's stability or lead to renegotiations. The firm-fixed-price nature mitigates some cost risks, but scope changes remain a concern.

What is the significance of the contract being awarded as a 'Delivery Order'?

The designation of this award as a 'Delivery Order' (aw='DELIVERY ORDER') typically implies that it is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar contract vehicle. This means that BETA ANALYTICS, INC. likely had an IDIQ contract in place with the government, and this specific delivery order represents a defined quantity of services to be provided within the terms of that overarching agreement. This contracting approach allows agencies to procure services more efficiently by having pre-negotiated terms and conditions, facilitating faster ordering of specific needs. It also suggests that the Missile Defense Agency may have multiple delivery orders under the same IDIQ contract to fulfill various requirements over time.

What does the 'Firm Fixed Price' (FFP) contract type imply for cost control and risk?

A Firm Fixed Price (FFP) contract type, as indicated for this award (pt='FIRM FIXED PRICE'), signifies that the contractor, BETA ANALYTICS, INC., is obligated to perform the work for a predetermined, fixed price, regardless of the actual costs incurred. This contract type places the primary cost risk on the contractor. For the Missile Defense Agency, FFP contracts offer the highest degree of cost predictability and are generally preferred when the scope of work is well-defined and understood. It incentivizes the contractor to manage its costs efficiently and to perform the work within budget. While it provides excellent cost control for the government, it also means that the contractor may seek to maximize profit by minimizing costs, which could potentially impact quality if not adequately monitored through performance standards.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation (UEI: 053518312)

Address: 12015 LEE JACKSON MEMORIAL HWY, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,682,049

Exercised Options: $1,366,647

Current Obligation: $123,189,969

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07F0190L

IDV Type: FSS

Timeline