DoD's $23M Engineering Services Task Order Awarded to MAG DS Corp Under Full and Open Competition

Contract Overview

Contract Amount: $22,992,001 ($23.0M)

Contractor: MAG DS Corp

Awarding Agency: Department of Defense

Start Date: 2017-09-25

End Date: 2022-05-25

Contract Duration: 1,703 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CL::IGF TASK ORDER (TO) KY01 IS ISSUED ON A COST-PLUS-FIXED-FEE (CPFF) BASIS FOR LABOR AND COST (NO FEE) FOR TRAVEL, MATERIALS AND OTHER DIRECT COSTS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE BASIC CONTRACT, W15P7T-10-D-D421 AND MODIFICATIONS THEREAFTER. THE RAPID RESPONSE THIRD GENERATION (R2-3G) ORDER NUMBER ASSOCIATED WITH THIS TASK ORDER IS R2 3G-1000.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to MAG DS CORP for work described as: IGF::CL::IGF TASK ORDER (TO) KY01 IS ISSUED ON A COST-PLUS-FIXED-FEE (CPFF) BASIS FOR LABOR AND COST (NO FEE) FOR TRAVEL, MATERIALS AND OTHER DIRECT COSTS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE BASIC CONTRACT, W15P7T-10-D-D421 AND MODIFICATIONS THEREAFTER. THE RAPID R… Key points: 1. The task order, valued at $22.99 million, was awarded on a Cost-Plus-Fixed-Fee basis. 2. MAG DS Corp secured the contract for engineering services, with a duration of 1703 days. 3. Awarded by the Department of the Army, this represents a significant investment in engineering support. 4. The contract was awarded under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The Cost-Plus-Fixed-Fee (CPFF) contract type allows for flexibility in project scope but requires careful monitoring of costs. The fixed fee component provides some cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently to secure necessary engineering services.

Public Impact

Supports critical engineering services for the Department of Defense. The long contract duration suggests a sustained need for these services. Awarded by the Department of the Army, impacting military readiness and infrastructure. The CPFF structure requires diligent oversight to manage costs effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-Plus-Fixed-Fee contracts can lead to cost overruns if not managed properly.
Long contract durations may not always reflect the most agile or cost-effective approach.
Lack of specific performance metrics makes it difficult to assess value for money.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
The contract addresses a clear need for engineering services within the DoD.
The fixed fee component offers some predictability in contractor profit.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for government infrastructure and defense projects. Spending in this sector can vary significantly based on national priorities and ongoing projects.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Cost-Plus-Fixed-Fee structure necessitates robust oversight to ensure costs are reasonable and the fixed fee is justified. The Department of Defense's Inspector General may play a role in auditing such contracts.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Lack of specific performance metrics.
Long contract duration may not be optimal.
Limited transparency on specific services provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to MAG DS CORP. IGF::CL::IGF TASK ORDER (TO) KY01 IS ISSUED ON A COST-PLUS-FIXED-FEE (CPFF) BASIS FOR LABOR AND COST (NO FEE) FOR TRAVEL, MATERIALS AND OTHER DIRECT COSTS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE BASIC CONTRACT, W15P7T-10-D-D421 AND MODIFICATIONS THEREAFTER. THE RAPID RESPONSE THIRD GENERATION (R2-3G) ORDER NUMBER ASSOCIATED WITH THIS TASK ORDER IS R2 3G-1000.

Who is the contractor on this award?

The obligated recipient is MAG DS CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2017-09-25. End: 2022-05-25.

What specific engineering services are being provided under this task order, and how do they align with current defense priorities?

The task order is for general engineering services. Without further details, it's difficult to ascertain the specific nature of these services. However, engineering services for the Department of Defense typically encompass areas like design, development, testing, and technical support for military systems, infrastructure, and equipment, all crucial for maintaining national security and operational readiness.

How does the fixed fee component of this CPFF contract compare to industry benchmarks for similar engineering services?

Benchmarking the fixed fee requires detailed knowledge of the project's scope, complexity, and risk. CPFF contracts are often used for research and development or projects with uncertain outcomes. A reasonable fixed fee should reflect the contractor's effort, risk, and profit margin, typically falling within a range established by government procurement regulations and industry standards for comparable services.

What mechanisms are in place to ensure the cost-plus aspect of this contract does not lead to excessive spending on travel, materials, and other direct costs?

Effective oversight is critical. This includes detailed review and approval of all travel, material, and direct cost expenditures against the contract's terms. Regular audits, performance reviews, and clear reporting requirements from the contractor are essential to verify the necessity and reasonableness of these costs, ensuring taxpayer funds are used judiciously.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1 RADAR WAY, TINTON FALLS, NJ, 07724

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

Financial Breakdown

Contract Ceiling: $35,476,208

Exercised Options: $35,476,208

Current Obligation: $22,992,001

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $14,266,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD421

IDV Type: IDC

Timeline