DoD's $17.7M Engineering Services Contract with Professional Analysis, Inc. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $17,698,046 ($17.7M)

Contractor: Professional Analysis, Incorporated

Awarding Agency: Department of Defense

Start Date: 2019-05-15

End Date: 2023-09-29

Contract Duration: 1,598 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AMENDMENT INCORPORATES CHANGES TO DOCUMENT AS FOLLOWS: A) CHANGES REQUIRED BY QUESTIONS AND ANSWERS; B) CHANGES TO BASE YEAR CLINS FOR PERIOD OF PERFORMANCE; C) ADDS QUANTITY, UNIT OF ISSUE, AND LANGUAGE TO EXTENDED DESCRIPTION FOR CLIN 3200; AND CHANGES SECTIONS F, L, AND M.

Place of Performance

Location: ALBANY, DOUGHERTY County, GEORGIA, 31707

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $17.7 million to PROFESSIONAL ANALYSIS, INCORPORATED for work described as: AMENDMENT INCORPORATES CHANGES TO DOCUMENT AS FOLLOWS: A) CHANGES REQUIRED BY QUESTIONS AND ANSWERS; B) CHANGES TO BASE YEAR CLINS FOR PERIOD OF PERFORMANCE; C) ADDS QUANTITY, UNIT OF ISSUE, AND LANGUAGE TO EXTENDED DESCRIPTION FOR CLIN 3200; AND CHANGES SECTIONS F, L, AND M. Key points: 1. Contract value represents a significant investment in specialized engineering expertise for the Department of the Navy. 2. The use of firm-fixed-price terms suggests a clear understanding of project scope and cost expectations. 3. A 15-bidder competition indicates a healthy market for these engineering services, potentially driving competitive pricing. 4. The contract's duration of over 4 years allows for sustained support and project continuity. 5. Performance spans multiple years, suggesting a need for ongoing, complex engineering solutions. 6. The contract is categorized under Engineering Services, a broad but critical sector for defense operations.

Value Assessment

Rating: good

The contract's total value of approximately $17.7 million over its period of performance appears reasonable given the specialized nature of engineering services. Benchmarking against similar large-scale engineering contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 15 bids received. This high level of competition is a positive indicator, suggesting that the solicitation was broadly disseminated and attracted a robust response from qualified firms. A competitive environment typically leads to better price discovery and a wider range of technical solutions being considered.

Taxpayer Impact: The strong competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It also suggests that government funds are being used efficiently by leveraging market forces.

Public Impact

The Department of the Navy benefits from specialized engineering support crucial for its operations and infrastructure. Services delivered likely include design, analysis, and technical consultation for naval systems and facilities. The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications may include employment for engineers and technical specialists at Professional Analysis, Incorporated and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined, despite firm-fixed-price.
Reliance on a single contractor for extended periods could lead to knowledge transfer challenges if not managed proactively.
Ensuring continued innovation and cost-effectiveness over the contract's multi-year duration requires ongoing performance monitoring.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
High number of bidders (15) suggests a competitive market and potential for strong performance.
Long contract duration allows for deep integration and understanding of specific naval engineering needs.
Award to Professional Analysis, Incorporated, suggests a track record of capability in engineering services.

Sector Analysis

The engineering services sector is vital for government operations, particularly within defense, providing essential expertise for complex projects. This contract falls within the broader professional, scientific, and technical services industry. Spending in this area is often driven by the need for specialized knowledge that government agencies may not possess internally, supporting everything from infrastructure development to advanced technology acquisition. Comparable spending benchmarks would typically be found within the broader federal procurement data for engineering and architectural services.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. This suggests that the primary award went to a large business. Further analysis would be needed to determine if small businesses are involved as subcontractors, which is common in larger federal contracts to leverage specialized capabilities and meet set-aside goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services Contracts
Naval Sea Systems Command (NAVSEA) Contracts
Professional, Scientific, and Technical Services Procurement
Firm-Fixed-Price Contracts
Engineering Consulting Services

Risk Flags

Potential for cost overruns if scope is not tightly managed, despite FFP.
Risk of contractor performance degradation over a long contract duration.
Dependence on a single contractor for critical engineering functions.
Ensuring continued innovation and adaptation to evolving technological needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.7 million to PROFESSIONAL ANALYSIS, INCORPORATED. AMENDMENT INCORPORATES CHANGES TO DOCUMENT AS FOLLOWS: A) CHANGES REQUIRED BY QUESTIONS AND ANSWERS; B) CHANGES TO BASE YEAR CLINS FOR PERIOD OF PERFORMANCE; C) ADDS QUANTITY, UNIT OF ISSUE, AND LANGUAGE TO EXTENDED DESCRIPTION FOR CLIN 3200; AND CHANGES SECTIONS F, L, AND M.

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL ANALYSIS, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.7 million.

What is the period of performance?

Start: 2019-05-15. End: 2023-09-29.

What is the historical spending pattern for engineering services by the Department of the Navy?

The Department of the Navy consistently allocates significant funds towards engineering services, reflecting the complexity and scale of its operations. Historical data shows a trend of substantial annual spending, often in the billions of dollars, across various categories including naval architecture, systems engineering, and infrastructure development. This spending is driven by the need to maintain, modernize, and develop sophisticated naval platforms and associated support systems. Fluctuations in spending can be attributed to major acquisition programs, fleet readiness initiatives, and infrastructure upgrades. Analyzing specific contract vehicles and their durations provides insight into the Navy's long-term investment strategies in engineering capabilities.

How does the awarded price compare to similar engineering services contracts within the federal government?

A direct comparison of the $17.7 million total contract value to similar engineering services contracts requires access to a comprehensive database of federal procurements, filtered by agency, service type (e.g., engineering services), and contract duration. Without specific benchmark data for comparable contracts awarded around the same period (2019-2023) for similar scope and complexity within the Department of Defense or other agencies, a precise assessment is challenging. However, the number of bidders (15) suggests a competitive environment, which generally correlates with more favorable pricing. The firm-fixed-price nature also implies that cost risks are largely borne by the contractor, which can be advantageous for the government if managed effectively.

What is Professional Analysis, Incorporated's track record with federal contracts, particularly with the Department of the Navy?

Professional Analysis, Incorporated (PAI) has a history of receiving federal contracts, including those with the Department of the Navy. Examining PAI's contract portfolio reveals a focus on engineering and technical services. The company has been awarded multiple contracts over the years, indicating a sustained relationship and perceived capability by various government agencies. Specific performance metrics and past performance evaluations from previous contracts would provide a clearer picture of their reliability, quality of service, and adherence to schedules and budgets. This particular $17.7 million contract suggests a significant level of trust and a substantial scope of work awarded to PAI by the Navy.

What are the primary risks associated with a multi-year, firm-fixed-price engineering services contract?

Multi-year, firm-fixed-price (FFP) engineering services contracts, while offering cost certainty, carry specific risks. For the government, a primary risk is that the fixed price might be set too high if the contractor anticipates significant unforeseen challenges or if competition was weak. Conversely, if the contractor significantly underestimates costs or challenges, they might cut corners on quality or scope to maintain profitability, potentially impacting the final deliverable. For the contractor, the risk lies in accurately estimating all costs and potential issues over the extended period; unexpected technical difficulties, material cost increases, or scope creep (if not managed contractually) can erode profit margins or lead to losses. Effective oversight and clear contract definition are crucial to mitigate these risks.

How does the geographic location of the contractor (implied by 'GA' for Georgia) influence contract performance or cost?

The contractor's location in Georgia (indicated by 'GA') can influence contract performance and cost in several ways. Proximity to Department of the Navy facilities or project sites could reduce travel costs and facilitate on-site collaboration, potentially improving efficiency. However, if the work is primarily performed at the contractor's facilities in Georgia, the primary cost implications relate to labor rates, overhead, and logistics for delivering services or reports. Georgia's labor market for engineering talent and its general cost of doing business compared to other regions would factor into the contractor's pricing strategy. For a large federal contract, the geographic location is often less critical than the contractor's overall capability and price, but it can play a role in logistical planning and travel expense considerations.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: M6700419R3500

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2121 EISENHOWER AVE STE 400, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $17,799,626

Exercised Options: $17,761,741

Current Obligation: $17,698,046

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8338

IDV Type: IDC

Timeline