Naval Surface Warfare Center contract for engineering services awarded to Adaptech Corporation for over $26.5 million

Contract Overview

Contract Amount: $26,547,813 ($26.5M)

Contractor: Adaptech Corporation

Awarding Agency: Department of Defense

Start Date: 2012-08-03

End Date: 2015-12-28

Contract Duration: 1,242 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS TASK ORDER SHALL PROVIDE TECHNICAL, ENGINEERING, ASSESSMENT, LABORATORY, CALIBRATION PROGRAM, AND TEST EQUIPMENT ANALYSIS SUPPORT SERVICES FOR THE PRODUCT ENGINEERING ASSESSMENT DEPARTMENT (PE) OF THE NAVAL SURFACE WARFARE CENTER, CORONA DIVISION.

Place of Performance

Location: CORONA, RIVERSIDE County, CALIFORNIA, 92878

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to ADAPTECH CORPORATION for work described as: THIS TASK ORDER SHALL PROVIDE TECHNICAL, ENGINEERING, ASSESSMENT, LABORATORY, CALIBRATION PROGRAM, AND TEST EQUIPMENT ANALYSIS SUPPORT SERVICES FOR THE PRODUCT ENGINEERING ASSESSMENT DEPARTMENT (PE) OF THE NAVAL SURFACE WARFARE CENTER, CORONA DIVISION. Key points: 1. Contract provides critical technical and engineering support for the Naval Surface Warfare Center, Corona Division. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is over 3 years, indicating a significant, long-term need for these services. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries inherent risks. 5. The awarded amount of over $26.5 million represents a substantial investment in specialized engineering services. 6. The North American Industry Classification System (NAICS) code 541330 points to a focus on engineering services. 7. The contract was a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and comparisons to similar specialized engineering support services. The Cost Plus Fixed Fee (CPFF) structure means the final cost can fluctuate based on actual expenses, making direct price comparisons difficult. However, the awarded amount of over $26.5 million for over three years of support suggests a significant investment. Further analysis would require comparing labor rates, overhead, and profit margins against industry standards for similar technical and engineering assessment services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 8 bidders suggests a healthy level of competition for this specialized engineering support. A competitive process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. This process ensures that the government is obtaining services at a price that reflects market conditions.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center, Corona Division, which receives essential technical and engineering support. Services delivered include technical, engineering, assessment, laboratory, calibration program, and test equipment analysis. The geographic impact is centered around the Naval Surface Warfare Center, Corona Division in California. The contract supports a specialized workforce of engineers and technical experts, potentially impacting the local economy around the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently, as the contractor is reimbursed for actual costs plus a fixed fee.
Lack of detailed cost breakdowns makes it difficult to assess the true value-for-money and identify potential inefficiencies.
The specific nature of the engineering services requires specialized expertise, potentially limiting the pool of qualified contractors in future competitions.

Positive Signals

Awarded under full and open competition with 8 bidders, indicating a robust and competitive process.
The contract duration of over 3 years provides stability and continuity for critical engineering support services.
The services provided are essential for the operational effectiveness and product assessment capabilities of the Naval Surface Warfare Center.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related product engineering and assessment. The market for specialized defense engineering services is significant, driven by the need for advanced technical expertise in areas like testing, calibration, and analysis. Comparable spending benchmarks would involve looking at other contracts for similar technical support services awarded to defense organizations, considering factors like labor intensity, required certifications, and the complexity of the engineering tasks.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of the engineering services required, it is possible that larger, more established firms were better positioned to compete. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Surface Warfare Center, Corona Division's contracting and program management offices. Accountability measures would be tied to performance metrics and deliverables outlined in the contract. Transparency is generally maintained through contract award databases and reporting requirements, though detailed cost performance data may be less accessible to the public.

Related Government Programs

Naval Surface Warfare Center Contracts
Defense Engineering Services
Product Engineering Assessment
Technical Support Services
Test and Evaluation Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
Potential for cost overruns inherent in CPFF contracts.
Specialized nature of services may limit future competition.
Need for detailed cost performance data to fully assess value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to ADAPTECH CORPORATION. THIS TASK ORDER SHALL PROVIDE TECHNICAL, ENGINEERING, ASSESSMENT, LABORATORY, CALIBRATION PROGRAM, AND TEST EQUIPMENT ANALYSIS SUPPORT SERVICES FOR THE PRODUCT ENGINEERING ASSESSMENT DEPARTMENT (PE) OF THE NAVAL SURFACE WARFARE CENTER, CORONA DIVISION.

Who is the contractor on this award?

The obligated recipient is ADAPTECH CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2012-08-03. End: 2015-12-28.

What is the historical spending pattern for engineering services at the Naval Surface Warfare Center, Corona Division?

Analyzing historical spending patterns for engineering services at the Naval Surface Warfare Center, Corona Division, requires access to detailed procurement data over several fiscal years. Generally, such facilities require consistent investment in technical and engineering support to maintain their operational capabilities. Spending can fluctuate based on specific program needs, modernization efforts, and the lifecycle of the systems being assessed. Without specific historical data for this division, it's difficult to provide precise figures, but it's reasonable to assume a sustained requirement for these services, potentially in the tens of millions of dollars annually, depending on the scope of ongoing projects and research initiatives.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development or complex services where the scope of work is not precisely defined at the outset. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with Fixed Price contracts, where the price is set regardless of actual costs, and Cost Plus Incentive Fee (CPIF) contracts, which include incentives for meeting cost or performance targets. For engineering services, CPFF can be advantageous when innovation or exploration is key, but it carries a risk of cost overruns if not closely monitored. Fixed Price contracts offer more cost certainty for the government but may deter contractors from undertaking high-risk, innovative projects. CPIF offers a balance, encouraging efficiency while sharing risks and rewards.

What are the key performance indicators (KPIs) typically used to evaluate the success of engineering support contracts like this one?

Key Performance Indicators (KPIs) for engineering support contracts often focus on technical performance, schedule adherence, and cost control. For a contract like this, KPIs might include the accuracy and timeliness of technical assessments, the successful completion of laboratory and calibration tasks, the quality of engineering analysis reports, and adherence to project milestones. On-time delivery of services, responsiveness to task orders, and the effectiveness of problem-solving are also critical. Furthermore, metrics related to the impact of the services on the overall mission of the Naval Surface Warfare Center, Corona Division, such as improvements in product reliability or reduced testing times, would be highly valued. Contractor performance ratings and feedback from government technical monitors are also crucial evaluation tools.

What is the typical profit margin for engineering services contractors in the defense sector?

Profit margins for engineering services contractors in the defense sector can vary significantly based on contract type, competition level, risk, and the specific expertise required. For Cost Plus Fixed Fee (CPFF) contracts, the 'fixed fee' component represents the contractor's profit. This fee is negotiated upfront and typically ranges from 7% to 15% of the estimated cost, though it can be higher for highly specialized or risky endeavors. In competitive fixed-price environments, profit margins might be tighter, perhaps in the 5% to 10% range, as contractors must absorb cost overruns. Defense contractors often face scrutiny on profit margins, and government regulations aim to ensure fair and reasonable pricing. The specific margin for Adaptech Corporation would be detailed in the contract's fee structure.

How does the geographic location of the Naval Surface Warfare Center, Corona Division, influence the contract's execution and potential workforce implications?

The Naval Surface Warfare Center, Corona Division, is located in Norco, California. This geographic concentration means the contract's execution relies heavily on the local or regional talent pool for specialized engineering and technical expertise. Proximity to the facility can reduce travel costs and improve communication and collaboration between government personnel and contractor staff. However, it also means that the contractor must compete for talent within the Southern California labor market, which can be competitive and costly. Workforce implications include the potential for job creation in the region, but also the need for the contractor to offer competitive compensation and benefits to attract and retain skilled professionals in a high-cost-of-living area.

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

Solicitation ID: N0002411R3315

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 13133 TRIPLE CROWN LOOP, GAINESVILLE, VA, 20155

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $30,315,210

Exercised Options: $29,479,129

Current Obligation: $26,547,813

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4001

IDV Type: IDC

Timeline