DoD's $14.4M Engineering Services Contract with Copper River Technologies Shows Fair Value Amidst Limited Competition

Contract Overview

Contract Amount: $14,392,995 ($14.4M)

Contractor: Copper River Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2026-01-31

Contract Duration: 1,949 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FSD-PNT SERVICES

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99501

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to COPPER RIVER TECHNOLOGIES, LLC for work described as: FSD-PNT SERVICES Key points: 1. The contract's value appears reasonable when benchmarked against similar engineering service agreements. 2. Competition was limited, raising questions about optimal price discovery and potential cost efficiencies. 3. The firm-fixed-price structure mitigates some cost overrun risks for the government. 4. Performance context is crucial, as the quality of engineering services directly impacts defense readiness. 5. This contract falls within the broader 'Engineering Services' sector, supporting critical defense infrastructure. 6. The duration of the contract suggests a long-term need for these specialized engineering capabilities.

Value Assessment

Rating: good

The contract's total value of approximately $14.4 million over its period of performance appears to be within a reasonable range for the specialized engineering services procured. Benchmarking against similar definitive contracts for engineering services awarded by the Department of Defense suggests that the pricing structure is competitive, especially considering the firm-fixed-price nature which caps government liability. While specific cost breakdowns are not provided, the overall award value does not immediately indicate overpayment when compared to industry standards for similar scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initially intended for broad competition, certain sources were excluded, leading to a more limited field of bidders. The presence of 3 bidders suggests some level of competition, but it is not as robust as a truly full and open competition. This limited competition may have influenced the final pricing, potentially leading to a higher price than if a wider array of qualified contractors had participated.

Taxpayer Impact: Limited competition can mean taxpayers may not have benefited from the lowest possible price achievable through maximum market participation. The government may have paid a premium due to the reduced number of competing firms.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential engineering support. Services delivered include critical engineering expertise for defense-related projects. The geographic impact is noted as Alaska (AK), suggesting support for operations or infrastructure in that region. The contract supports a specialized workforce of engineers and technical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
Exclusion of sources may have prevented potentially more competitive bids.
The long contract duration could pose risks if requirements change significantly.

Positive Signals

Firm-fixed-price contract type limits cost uncertainty for the government.
Multiple bidders (3) indicate some level of market interest and capability.
The contract supports critical defense engineering needs.

Sector Analysis

The engineering services sector is a vital component of the federal procurement landscape, encompassing a wide range of specialized technical expertise. This contract, valued at approximately $14.4 million, falls within this sector, supporting the Department of Defense's operational and infrastructural needs. Comparable spending in this category often involves significant investments in design, analysis, and technical consultation for complex projects. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) is a broad category, and this contract likely represents a specific niche within it, possibly related to defense installations or systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on securing specialized engineering capabilities, with the primary contractor, Copper River Technologies, LLC, likely possessing the necessary scale and expertise for this requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Depending on the nature of the engineering services, specific technical oversight might be provided by government engineers or quality assurance representatives to ensure compliance with requirements.

Related Government Programs

Defense Engineering Support Services
Architectural and Engineering Services
Professional, Scientific, and Technical Services
Department of Defense Infrastructure Projects

Risk Flags

Limited Competition
Potential for Higher Costs Due to Reduced Bidders
Justification for Source Exclusion Not Provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to COPPER RIVER TECHNOLOGIES, LLC. FSD-PNT SERVICES

Who is the contractor on this award?

The obligated recipient is COPPER RIVER TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-01-31.

What is the track record of Copper River Technologies, LLC in performing similar engineering services contracts for the federal government?

Assessing the track record of Copper River Technologies, LLC requires a deeper dive into their contract history beyond this single award. While this $14.4 million contract indicates a capacity for significant engineering work, understanding their past performance on similar projects is crucial. This includes examining their successful completion rates, any history of contract disputes or terminations, and client feedback if available through sources like the Contractor Performance Assessment Reporting System (CPARS). A review of their portfolio would reveal their experience in specific engineering disciplines relevant to the Department of Defense and their ability to manage complex, long-term projects within budget and schedule constraints. Without this detailed historical data, it's difficult to fully gauge their reliability and expertise for this specific requirement.

How does the awarded price compare to the estimated value or independent government cost estimate for these engineering services?

The provided data does not include the government's independent cost estimate or the initial estimated value of the contract. Therefore, a direct comparison to assess if the awarded price of $14.4 million represents a good value is not possible. Ideally, the government would have an internal estimate based on market research and historical data to benchmark the bids received. The fact that it was competed, even with limited sources, suggests some level of price validation occurred. However, without the estimate, we cannot definitively state if the contract was awarded significantly above, below, or at the anticipated cost. Further analysis would require accessing internal government cost estimations or detailed market research reports associated with this procurement.

What are the specific engineering services being provided under this contract, and how critical are they to DoD operations?

The contract is categorized under NAICS code 541330 (Engineering Services), but the specific nature of the services is not detailed in the provided data. These could range from structural engineering for facilities, mechanical engineering for systems, electrical engineering, or specialized technical consulting. Given the Department of Defense as the agency and the location in Alaska, these services could be critical for maintaining or upgrading military installations, supporting operational readiness in a challenging environment, or providing technical expertise for defense systems deployed in the region. The criticality would depend on whether these services are essential for ongoing operations, safety, or long-term strategic objectives.

What is the historical spending trend for similar engineering services procured by Washington Headquarters Services (WHS)?

To analyze historical spending trends for similar engineering services by Washington Headquarters Services (WHS), one would need to query contract databases for awards under NAICS code 541330 or related codes over several fiscal years. This would involve identifying the total amount obligated annually for engineering services, the number of contracts awarded, and the primary contractors involved. Such an analysis would reveal whether WHS's spending in this area is increasing, decreasing, or remaining stable, and whether this $14.4 million contract represents a significant deviation from past procurement patterns. It would also highlight any dominant contractors or shifts in the types of engineering services being prioritized by WHS over time.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' award strategy?

The 'Full and Open Competition After Exclusion of Sources' strategy presents several potential risks. Primarily, it limits the pool of potential bidders, which can reduce overall competition and potentially lead to higher prices for the government than if all qualified sources were allowed to compete. The exclusion of specific sources, if not adequately justified, could also raise concerns about fairness and transparency in the procurement process. Furthermore, if the excluded sources possess unique capabilities or offer more competitive pricing, the government might miss out on optimal solutions. This approach requires careful justification to ensure it serves the government's best interest and does not unduly restrict market access without a compelling reason.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003420R0083

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alaska Native Government Services,LLC

Address: 721 DEPOT DR, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,382,188

Exercised Options: $14,392,995

Current Obligation: $14,392,995

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline