DoD awards $384M engineering services contract to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. for logistics support

Contract Overview

Contract Amount: $384,073,173 ($384.1M)

Contractor: Adams Communication & Engineering Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-02-23

End Date: 2021-06-30

Contract Duration: 1,588 days

Daily Burn Rate: $241.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF AWARD OF TASK ORDER FOR OPERATION AND SUSTAINMENT AND CONTRACTOR LOGISTICS SUPPORT SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $384.1 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. for work described as: IGF::OT::IGF AWARD OF TASK ORDER FOR OPERATION AND SUSTAINMENT AND CONTRACTOR LOGISTICS SUPPORT SERVICES Key points: 1. Contract value represents significant investment in operational sustainment and logistics. 2. Competition dynamics suggest a potentially competitive bidding process for this task order. 3. Contract duration of nearly four years indicates a long-term need for these services. 4. The cost-plus-fixed-fee pricing structure may incentivize contractor efficiency. 5. This award falls within the engineering services sector, crucial for military readiness. 6. Performance context is tied to operation and sustainment of critical military assets.

Value Assessment

Rating: good

The contract value of $384 million over approximately four years suggests a substantial investment. Benchmarking against similar large-scale engineering and logistics support contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the presence of multiple bidders in a full and open competition generally supports competitive pricing. The cost-plus-fixed-fee (CPFF) structure, while common for complex services, requires careful oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows six bidders participated, suggesting a healthy level of competition for this significant contract. A competitive environment like this typically drives down prices and encourages innovation as contractors vie for the award. The number of bidders provides a reasonable basis for price discovery and ensures the government receives proposals from a range of qualified entities.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. The presence of six bidders suggests that the contract was awarded to the most advantageous offer, maximizing the value of taxpayer funds.

Public Impact

The Department of the Army benefits through enhanced operational and sustainment capabilities. Services delivered include operation, sustainment, and contractor logistics support. The geographic impact is likely concentrated where Army operations and logistics hubs are located, primarily within Virginia. Workforce implications include employment opportunities for engineers, technicians, and logistics personnel, both directly with the contractor and indirectly through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee (CPFF) contracts if not closely monitored.
Dependence on a single contractor for critical logistics and sustainment functions could pose a risk if performance issues arise.
Ensuring adequate performance metrics and penalties are in place to hold the contractor accountable for service delivery.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Multiple bidders (six) suggest a competitive market for these services.
Contract duration of nearly four years provides stability for essential support functions.
The contractor, ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC., has secured a significant award, indicating a level of established capability.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, providing essential expertise for military operations, maintenance, and development. This contract, valued at over $384 million, falls within the broader professional, scientific, and technical services industry. Comparable spending benchmarks in this sector for large-scale DoD support contracts often range in the hundreds of millions of dollars, reflecting the complexity and scale of military requirements. The market for these services is competitive, with numerous firms capable of providing specialized engineering and logistics support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract, it may offer subcontracting opportunities for small businesses, particularly in specialized areas of engineering, logistics, or support services. However, without specific subcontracting plans detailed in the award, the direct impact on the small business ecosystem is unclear. Large prime contractors are often encouraged or mandated to include small businesses in their supply chains, which can provide valuable experience and revenue streams for smaller firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Performance monitoring, financial audits, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Department of Defense Logistics Support Contracts
Army Engineering Services Awards
Operation and Sustainment Contracts
Contractor Logistics Support Services
Professional, Scientific, and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration necessitates ongoing performance monitoring.
Potential for contractor performance issues impacting critical logistics.
Dependence on contractor for essential sustainment functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $384.1 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC.. IGF::OT::IGF AWARD OF TASK ORDER FOR OPERATION AND SUSTAINMENT AND CONTRACTOR LOGISTICS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $384.1 million.

What is the period of performance?

Start: 2017-02-23. End: 2021-06-30.

What is the track record of ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. with the Department of Defense, particularly on similar large-scale contracts?

Assessing the track record of ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. requires a review of their past performance with the Department of Defense and other federal agencies. Key indicators include their history of successful contract completion, adherence to schedules and budgets, and any past performance evaluations or disputes. For contracts of this magnitude ($384M), it's crucial to examine if they have previously managed similar scope, complexity, and value. Information on past performance can often be found in federal procurement databases, agency performance reports, and through discussions with contracting officers. A strong track record suggests a lower risk of performance issues and a higher likelihood of successful delivery of services.

How does the pricing structure (Cost Plus Fixed Fee) compare to other similar engineering and logistics support contracts awarded by the DoD?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex services where the scope may evolve or is difficult to define precisely at the outset. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. To benchmark this contract's value, one would compare the total estimated cost and fixed fee against similar contracts for operation, sustainment, and logistics support. Factors to consider include the specific services rendered, the duration, the complexity of the systems supported, and the number of bidders. If this contract's cost per unit of service or its overall fee percentage is significantly higher than comparable contracts awarded under similar competitive conditions, it could indicate a potential value concern. Conversely, if it aligns with or is lower than benchmarks, it suggests reasonable pricing.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this CPFF contract include potential cost overruns if costs are not managed effectively, scope creep if requirements are not clearly defined and controlled, and performance deficiencies if the contractor fails to meet service level agreements. Mitigation strategies typically involve robust oversight by the contracting officer's representative (COR), detailed performance work statements (PWS), regular progress reviews, and clear contract clauses for managing changes and addressing deficiencies. The fixed fee component aims to incentivize the contractor to control costs, as exceeding the estimated cost does not automatically increase their profit. Furthermore, the competitive award process itself acts as a risk mitigator, selecting a contractor believed to have the capability and processes to perform successfully.

How effective has ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. been in delivering similar services in the past, based on available performance data?

Evaluating the effectiveness of ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. requires access to their past performance information. This data, often captured in Contractor Performance Assessment Reporting System (CPARS) or similar agency-specific systems, provides insights into their timeliness, cost control, management, and technical competence on previous contracts. For this specific $384 million award, it's crucial to examine their performance on contracts of comparable size and scope, particularly those involving operation, sustainment, and logistics support for the Department of Defense. Positive performance indicators would include consistent high ratings, minimal disputes, and successful completion of objectives. Conversely, negative ratings or a history of performance issues would raise concerns about their ability to meet the requirements of this new task order.

What is the historical spending trend for operation and sustainment services within the Department of the Army, and how does this award fit into that pattern?

Historical spending on operation and sustainment (O&S) services within the Department of the Army is typically substantial, reflecting the ongoing need to maintain readiness and operational capability of military equipment and infrastructure. These services often constitute a significant portion of the Army's overall budget. This $384 million award for logistics support fits within this pattern as a key component of O&S. Analyzing past spending trends allows for context on the scale of this award relative to overall Army O&S expenditures. If this award represents a significant increase or decrease compared to historical averages for similar services, it might warrant further investigation into the underlying reasons, such as changes in operational tempo, new equipment fielding, or shifts in contracting strategies.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10740 PARKRIDGE BLVD STE 700, RESTON, VA, 20191

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $412,646,476

Exercised Options: $409,603,359

Current Obligation: $384,073,173

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD420

IDV Type: IDC

Timeline