DoD Awards $33.5M AIRS Contractor Logistics Support Services Contract to MAG DS Corp
Contract Overview
Contract Amount: $33,482,636 ($33.5M)
Contractor: MAG DS Corp
Awarding Agency: Department of Defense
Start Date: 2014-09-26
End Date: 2016-09-30
Contract Duration: 735 days
Daily Burn Rate: $45.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF AWARD OF AERIAL INTELLIGENCE, RECONNAISSANCE, AND SURVEILLANCE (AIRS) CONTRACTOR LOGISTICS SUPPORT SERVICES FOR PRIME MISSION EQUIPMENT. INITIAL FUNDING IS PROVIDED FOR THE BASE PERIOD. THE TASK ORDER HAS A SIX (6) MONTH BASE POP WITH TWO (2) SIX (6) MONTH OPTIONS
Place of Performance
Location: OCEAN, MONMOUTH County, NEW JERSEY, 07712
Plain-Language Summary
Department of Defense obligated $33.5 million to MAG DS CORP for work described as: IGF::OT::IGF AWARD OF AERIAL INTELLIGENCE, RECONNAISSANCE, AND SURVEILLANCE (AIRS) CONTRACTOR LOGISTICS SUPPORT SERVICES FOR PRIME MISSION EQUIPMENT. INITIAL FUNDING IS PROVIDED FOR THE BASE PERIOD. THE TASK ORDER HAS A SIX (6) MONTH BASE POP WITH TWO (2) SIX (6) MONTH OPTIONS Key points: 1. Contract awarded for aerial intelligence, reconnaissance, and surveillance (AIRS) logistics support. 2. MAG DS Corp secured the contract with initial funding for the base period. 3. The contract includes a six-month base period and two six-month options. 4. Services are for Prime Mission Equipment, indicating critical operational support. 5. The award falls under Engineering Services (NAICS 541330).
Value Assessment
Rating: good
The contract value of $33.5M for a 1.5-year period (base + one option) appears reasonable for specialized logistics support. Benchmarking against similar intelligence and surveillance equipment support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.
Public Impact
Enhances national security through improved intelligence gathering capabilities. Supports critical military operations by ensuring equipment readiness. Potential for job creation in specialized technical and logistics fields. Ensures continuity of essential surveillance and reconnaissance missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if options are exercised and scope expands.
- Dependence on a single contractor for critical logistics support.
Positive Signals
- Awarded through full and open competition.
- Supports critical national security functions.
- Clear contract structure with defined base and option periods.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting advanced defense technologies. Spending in this area is often driven by national security needs and technological advancements, with benchmarks varying widely based on system complexity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The award of a delivery order under a larger contract structure suggests existing oversight mechanisms. However, ongoing monitoring of performance, costs, and adherence to contract terms is crucial, especially with option periods.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep if options are exercised without clear justification.
- Risk of vendor lock-in if MAG DS Corp becomes indispensable.
- Dependency on specialized personnel and potential for staffing challenges.
- Cybersecurity risks associated with handling sensitive intelligence data.
Tags
engineering-services, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.5 million to MAG DS CORP. IGF::OT::IGF AWARD OF AERIAL INTELLIGENCE, RECONNAISSANCE, AND SURVEILLANCE (AIRS) CONTRACTOR LOGISTICS SUPPORT SERVICES FOR PRIME MISSION EQUIPMENT. INITIAL FUNDING IS PROVIDED FOR THE BASE PERIOD. THE TASK ORDER HAS A SIX (6) MONTH BASE POP WITH TWO (2) SIX (6) MONTH OPTIONS
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 $33.5 million.
What is the period of performance?
Start: 2014-09-26. End: 2016-09-30.
What is the projected total cost if both option periods are exercised?
The provided data only specifies the initial funding for the base period. To determine the projected total cost, we would need to know the estimated value or ceiling for each of the two six-month option periods. Without this information, a full cost projection is not possible.
What are the specific performance metrics and Key Performance Indicators (KPIs) for this contract?
The data does not detail the specific performance metrics or KPIs. These are crucial for assessing the contractor's effectiveness in providing logistics support for the AIRS Prime Mission Equipment. Understanding these metrics is essential for evaluating the value and success of the contract.
How does the Cost Plus Fixed Fee (CPFF) pricing structure align with industry standards for similar services?
The contract type is listed as 'COST PLUS FIXED FEE' (CPFF), but the award details state 'DELIVERY ORDER' and the data shows 'pt': 'COST PLUS FIXED FEE'. This appears to be a contradiction or an error in the provided data. CPFF is typically used when costs are uncertain. Clarification on the actual contract type is needed for a proper assessment.
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: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 804C W PARK AVE, OCEAN, NJ, 07712
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $45,732,779
Exercised Options: $33,884,730
Current Obligation: $33,482,636
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T10DD421
IDV Type: IDC
Timeline
Start Date: 2014-09-26
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 12:09:00
Last Modified: 2020-04-22
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