DoD's Missile Defense Agency spent $16.6M on engineering services over 7 years, awarded via full and open competition

Contract Overview

Contract Amount: $16,607,348 ($16.6M)

Contractor: Vanguard Research, Inc

Awarding Agency: Department of Defense

Start Date: 2006-10-01

End Date: 2013-06-30

Contract Duration: 2,464 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SERVICES IN SUPPORT OF MDA/DE.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to VANGUARD RESEARCH, INC for work described as: SERVICES IN SUPPORT OF MDA/DE. Key points: 1. The contract provided essential engineering support to the Missile Defense Agency, contributing to critical national security functions. 2. Awarded through full and open competition, this contract suggests a competitive environment for specialized engineering services. 3. The duration of the contract (over 6 years) indicates a sustained need for these engineering capabilities. 4. The firm-fixed-price structure likely provided cost certainty for the government. 5. While specific performance metrics are not detailed, the sustained award implies satisfactory delivery of services. 6. The contract's focus on engineering services aligns with the broader trend of specialized technical support within the defense sector.

Value Assessment

Rating: good

The total award of $16.6 million over approximately 7 years averages to about $2.37 million per year. Benchmarking this against similar engineering support contracts for defense agencies is challenging without more granular data on the specific services rendered. However, the firm-fixed-price contract type suggests that the government aimed for predictable costs. The absence of detailed performance data makes a definitive value-for-money assessment difficult, but the sustained award over a significant period implies the services met the agency's needs at an acceptable price point.

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 data does not specify the number of bidders, but the designation suggests a robust competitive process. A competitive award generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers likely benefited from a more competitive pricing environment, as multiple companies vied for the contract, driving down costs and ensuring the government received fair market value for the engineering services.

Public Impact

The primary beneficiary is the Missile Defense Agency (MDA), which received critical engineering support for its programs. The services delivered were engineering support, crucial for the development, testing, and sustainment of missile defense systems. The geographic impact is primarily within the United States, supporting defense infrastructure and personnel. The contract supported a specialized engineering workforce, likely requiring highly skilled professionals in fields related to aerospace, systems engineering, and defense technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to fully assess the quality and effectiveness of the engineering services provided.
The long contract duration could potentially lead to vendor lock-in if not managed carefully, although the initial competition mitigates this risk.
Specific details on cost breakdowns or profit margins are not available, limiting a deeper financial risk assessment.

Positive Signals

Awarded through full and open competition, indicating a healthy market and competitive pricing.
Firm-fixed-price contract type provides cost certainty and reduces financial risk for the government.
The sustained award over a multi-year period suggests consistent delivery of required services and contractor reliability.
The contract directly supports a critical national security mission (Missile Defense Agency).

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a vital component of the broader aerospace and defense industry. The market for specialized engineering support services for government agencies, particularly in defense, is substantial and characterized by high technical barriers to entry. The Missile Defense Agency represents a significant customer within this sector, requiring highly specialized expertise. Comparable spending benchmarks would typically involve analyzing annual budgets for similar support contracts across various defense agencies, looking at average contract values and durations for engineering services.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, it likely competed in the general market, potentially excluding smaller firms unless they were part of a larger team or joint venture. There is no information on subcontracting plans, so the direct impact on the small business ecosystem is unclear, but it suggests larger, established firms were likely the primary awardees.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures, specifically within the Missile Defense Agency. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services. Transparency is facilitated by the contract's award through full and open competition, which is generally publicly documented. Inspector General jurisdiction would apply for any investigations into fraud, waste, or abuse related to the contract.

Related Government Programs

Missile Defense Systems
Aerospace Engineering Services
Defense Research and Development
Government Engineering Contracts
Department of Defense Procurement

Risk Flags

Lack of detailed performance data
Limited insight into specific engineering tasks performed
No breakdown of cost components (e.g., labor rates, overhead)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to VANGUARD RESEARCH, INC. SERVICES IN SUPPORT OF MDA/DE.

Who is the contractor on this award?

The obligated recipient is VANGUARD RESEARCH, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2006-10-01. End: 2013-06-30.

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

The contract, identified by NAICS code 541330, was for Engineering Services. While the specific details are not elaborated in the provided data, this typically encompasses a wide range of activities such as systems engineering, design, analysis, testing, and technical support related to the development and sustainment of complex systems. For the Missile Defense Agency (MDA), these services would likely be critical for areas like radar systems, interceptors, command and control, and overall system integration of missile defense capabilities. The duration of the contract (over 6 years) suggests a sustained need for these specialized engineering functions, implying they were integral to ongoing MDA programs rather than short-term projects.

How does the $16.6 million total award compare to other engineering support contracts for the Missile Defense Agency?

Direct comparison of the $16.6 million total award requires access to a comprehensive database of MDA's historical contracts, including their scope, duration, and specific services. However, considering the contract spanned over 6 years (from Oct 2006 to June 2013), the average annual value was approximately $2.37 million. This figure appears moderate for specialized engineering support within a major defense agency like the MDA, which manages programs often costing billions. Many MDA contracts for research, development, and system integration can run into tens or hundreds of millions of dollars annually. This particular contract likely supported a specific set of engineering functions rather than encompassing the entirety of MDA's engineering needs, making its value relative to the specific services rendered.

What were the key risks associated with this contract, and how were they mitigated?

Key risks for this contract likely included technical performance risk (ensuring the engineering services met complex requirements), schedule risk (delays impacting MDA programs), and cost risk (though mitigated by the firm-fixed-price structure). Mitigation strategies would have included the initial full and open competition to select a capable contractor, clear performance work statements defining the required services, and ongoing government oversight. The firm-fixed-price (FFP) contract type itself is a primary risk mitigation tool, shifting cost overrun risk to the contractor. The multi-year duration also presented a risk of evolving requirements; however, contract modifications or task orders could address necessary changes, assuming appropriate clauses were included.

What does the 'full and open competition' award type imply about the contractor, Vanguard Research, Inc.?

The 'full and open competition' award type signifies that Vanguard Research, Inc. was selected through a process where all responsible sources were allowed to submit bids, and the contract was awarded based on the best value to the government. This implies that Vanguard Research, Inc. successfully demonstrated its capability, technical approach, and competitive pricing against other potential bidders. It suggests the company possesses the necessary expertise and resources to perform the engineering services required by the Missile Defense Agency. This award method generally indicates a higher level of confidence in the contractor's ability to deliver, as they were chosen from a pool of competing entities rather than being the sole option.

How has spending on engineering services for missile defense evolved since this contract ended in 2013?

Tracking precise spending evolution requires detailed analysis of subsequent MDA budgets and contract awards. However, it is reasonable to infer that spending on engineering services for missile defense has likely remained substantial, if not increased, given the persistent and evolving nature of global missile threats. Post-2013, advancements in missile technology (hypersonic, ballistic, cruise) and the expansion of missile defense architectures (e.g., Ground-based Midcourse Defense, Aegis BMD, THAAD, Patriot) would necessitate continued, and potentially increased, investment in specialized engineering support. Trends may include a greater focus on areas like artificial intelligence for threat detection, advanced materials for interceptors, and cybersecurity for defense systems, all requiring sophisticated engineering expertise.

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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1235 S CLARK ST, STE-501, ARLINGTON, VA, 22202

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,344,402

Exercised Options: $28,092,075

Current Obligation: $16,607,348

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS23F0210K

IDV Type: FSS

Timeline