DoD Awards $145M Engineering Services Task Order to MAG DS Corp Under Full and Open Competition
Contract Overview
Contract Amount: $145,067,506 ($145.1M)
Contractor: MAG DS Corp
Awarding Agency: Department of Defense
Start Date: 2017-08-15
End Date: 2022-07-27
Contract Duration: 1,807 days
Daily Burn Rate: $80.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::CL,CT::IGF THIS TASK ORDER, KZ03, IS ISSUED PURSUANT TO THE BASIC CONTRACT, W15P7T-10-D-D421, ON A COST-PLUS-FIXED-FEE (CPFF) TERM AND COST (NO FEE) BASIS (TRAVEL/MATERIAL/ODC) FOR A PERIOD OF PERFORMANCE CONSISTS OF ONE (1) THIRTY (30) DAY TRANSITION PERIOD, ONE (1) ELEVEN (11) MONTH BASE PERIOD AND FOUR (4) TWELVE (12) MONTH OPTION PERIODS. THE PERIO OF PERFORMANCE FOR THE TRANSITION PERIOD STARTS ON 15 AUGUST 2017 THROUGH 14 SEPTEMBER 2017. THE PERIOD OF PERFORMANCE FOR THE BASE PERIOD STARTS ON 15 SEPTEMBER 2017 AND ENDS 14 AUGUST 2018. THE PERIOD OF PERFORMANCE FOR EACH FUNDING SLIN IS IDENTIFIED IN SECTION B. THE RAPID RESPONSE THIRD GENERATION (R2-3G) ORDER NUMBER ASSOCIATED WITH THIS TASK ORDER IS R23G-1002
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $145.1 million to MAG DS CORP for work described as: IGF::CL,CT::IGF THIS TASK ORDER, KZ03, IS ISSUED PURSUANT TO THE BASIC CONTRACT, W15P7T-10-D-D421, ON A COST-PLUS-FIXED-FEE (CPFF) TERM AND COST (NO FEE) BASIS (TRAVEL/MATERIAL/ODC) FOR A PERIOD OF PERFORMANCE CONSISTS OF ONE (1) THIRTY (30) DAY TRANSITION PERIOD, ONE (1) ELEVEN… Key points: 1. The task order, valued at $145,067,506.25, is for Engineering Services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Cost-Plus-Fixed-Fee (CPFF) with a term and cost basis. 4. Performance period spans from August 2017 to July 2022, totaling 1807 days.
Value Assessment
Rating: fair
The contract is CPFF, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust price discovery process. However, the CPFF structure requires diligent oversight to ensure cost-effectiveness.
Taxpayer Impact: Taxpayer funds are being used for engineering services with a competitive award, but the CPFF structure necessitates vigilance against potential cost inefficiencies.
Public Impact
Supports the Department of the Army's engineering and technical needs. The long performance period suggests a significant, ongoing requirement for these services. The CPFF contract type requires careful monitoring to ensure value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize cost increases.
- Lack of detailed cost breakdown for unit pricing.
- Long performance period may not reflect current market rates.
Positive Signals
- Awarded under full and open competition.
- Clear identification of performing agency and service type.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector critical for defense infrastructure and operations. Spending in this sector can vary significantly based on project scope and duration.
Small Business Impact
The data indicates this was a full and open competition, and there is no specific mention of small business participation or set-asides. Further analysis would be needed to determine if small businesses were involved.
Oversight & Accountability
The CPFF contract type requires robust oversight to manage costs and ensure performance objectives are met. The long duration necessitates continuous monitoring of expenditures and deliverables.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost-Plus-Fixed-Fee (CPFF) contract type.
- Long performance period (over 5 years).
- Lack of specific service details.
- No mention of small business participation.
- Potential for cost creep without diligent oversight.
Tags
engineering-services, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $145.1 million to MAG DS CORP. IGF::CL,CT::IGF THIS TASK ORDER, KZ03, IS ISSUED PURSUANT TO THE BASIC CONTRACT, W15P7T-10-D-D421, ON A COST-PLUS-FIXED-FEE (CPFF) TERM AND COST (NO FEE) BASIS (TRAVEL/MATERIAL/ODC) FOR A PERIOD OF PERFORMANCE CONSISTS OF ONE (1) THIRTY (30) DAY TRANSITION PERIOD, ONE (1) ELEVEN (11) MONTH BASE PERIOD AND FOUR (4) TWELVE (12) MONTH OPTION PERIODS. THE PERIO OF PERFORMANCE FOR THE TRANSITION PERIOD STARTS ON 15 AUGUST 2017 THROUGH 14 SEPTEMBER 2017. THE PERIOD OF PERFORMANCE FOR THE BASE PERIOD
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 $145.1 million.
What is the period of performance?
Start: 2017-08-15. End: 2022-07-27.
What specific engineering services are being procured under this task order, and how do they align with the Army's strategic objectives?
The task order is for Engineering Services (NAICS 541330) under the Rapid Response Third Generation (R2-3G) program. While the specific services aren't detailed, they likely support the Army's operational readiness, infrastructure development, or technological advancements. Understanding the precise nature of these services is crucial for assessing their strategic alignment and overall value to the Department of Defense.
How will the Cost-Plus-Fixed-Fee structure be managed to mitigate risks of cost overruns and ensure fair pricing for taxpayers?
Effective management of a CPFF contract involves stringent oversight of direct costs, including labor, materials, and travel. The government must actively monitor the contractor's spending, validate invoices, and ensure adherence to the fixed fee. Regular performance reviews and audits are essential to identify potential inefficiencies or unallowable costs, thereby safeguarding taxpayer interests and ensuring the project remains within reasonable financial parameters.
What mechanisms are in place to ensure the quality and effectiveness of the engineering services provided over the 5-year performance period?
Quality assurance for engineering services typically involves performance metrics, deliverable reviews, and milestone tracking. The government contracting officer and technical representatives play a key role in monitoring progress and ensuring services meet specified requirements. Regular communication channels and a clear process for addressing deficiencies are vital. The long duration necessitates adaptive quality control measures to account for evolving project needs and technological changes.
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: 3
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: $175,268,767
Exercised Options: $175,268,767
Current Obligation: $145,067,506
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $85,229,492
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
Start Date: 2017-08-15
Current End Date: 2022-07-27
Potential End Date: 2022-07-27 00:00:00
Last Modified: 2025-07-01
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