DoD's $23.3M engineering services contract awarded to MES Simulation & Training, LLC shows fair value
Contract Overview
Contract Amount: $23,354,066 ($23.4M)
Contractor: MES Simulation & Training, LLC
Awarding Agency: Department of Defense
Start Date: 2009-03-31
End Date: 2010-08-25
Contract Duration: 512 days
Daily Burn Rate: $45.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SAVT
Place of Performance
Location: CHRISTMAS, ORANGE County, FLORIDA, 32709
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $23.4 million to MES SIMULATION & TRAINING, LLC for work described as: SAVT Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract's fixed-price nature helps mitigate cost overrun risks for the government. 3. Performance period of 512 days provides a defined timeframe for service delivery. 4. The award amount of $23.3M falls within a reasonable range for similar engineering services. 5. The contractor, MES Simulation & Training, LLC, has a track record with government contracts. 6. Geographic location in Florida may indicate specific regional support needs.
Value Assessment
Rating: good
The contract's value of $23.3M for engineering services appears reasonable when benchmarked against similar government contracts for specialized simulation and training support. The firm fixed-price structure is advantageous, locking in costs and reducing the government's exposure to potential cost escalations. While specific performance metrics are not detailed here, the duration of the contract suggests a substantial scope of work that aligns with the awarded amount.
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 bids. The presence of multiple bidders (3 indicated) suggests a healthy level of competition, which typically drives down prices and encourages innovation. This competitive process allows the government to select the offer that provides the best overall value, considering both technical merit and cost.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that likely resulted in a more cost-effective solution compared to a sole-source or limited competition award.
Public Impact
The Department of the Navy benefits from specialized engineering services to support its simulation and training requirements. This contract likely supports the development or maintenance of critical training systems for naval personnel. The geographic impact is centered in Florida, where the contractor is located, potentially supporting regional defense infrastructure. Workforce implications may include employment for engineers and technical specialists within MES Simulation & Training, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics makes it difficult to fully assess value for money.
- Specific technical requirements and their complexity are not fully detailed, hindering deeper analysis.
- Potential for scope creep if not managed tightly, despite fixed-price structure.
Positive Signals
- Awarded via full and open competition, indicating a robust bidding process.
- Firm fixed-price contract type helps control costs and provides budget certainty.
- Contractor has prior experience with government contracts, suggesting familiarity with requirements.
- Defined performance period limits the duration of the engagement.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related simulation and training. The market for defense engineering services is substantial, driven by the continuous need for advanced technological solutions to maintain military readiness. Comparable spending benchmarks in this niche often involve complex system integration, software development, and specialized technical support, aligning with the nature of this award.
Small Business Impact
The contract was not set aside for small businesses, and the 'sb' field is false. There is no explicit information provided regarding subcontracting plans or their impact on the small business ecosystem. Without further details on subcontracting requirements, it's difficult to assess the extent to which small businesses may indirectly benefit from this award.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally facilitated through contract award databases, though detailed performance reporting may be internal to the agency.
Related Government Programs
- Naval Training Systems
- Defense Simulation Technology
- Engineering Consulting Services
- Military Readiness Support
Risk Flags
- Potential for performance issues if scope is not clearly defined.
- Risk of cost overruns if contractor's estimates are inaccurate (though mitigated by FFP).
- Dependence on contractor's specialized expertise.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, simulation-and-training, firm-fixed-price, full-and-open-competition, florida, large-contract, technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.4 million to MES SIMULATION & TRAINING, LLC. SAVT
Who is the contractor on this award?
The obligated recipient is MES SIMULATION & TRAINING, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.4 million.
What is the period of performance?
Start: 2009-03-31. End: 2010-08-25.
What is the track record of MES Simulation & Training, LLC with government contracts, particularly with the Department of Defense?
MES Simulation & Training, LLC has a history of securing contracts with various U.S. government agencies, including the Department of Defense. While this specific contract is for engineering services, their portfolio often includes simulation, training, and technical support solutions. Analyzing past performance on similar contracts would reveal their ability to meet deadlines, manage budgets, and deliver quality services. A review of their contract history might show a pattern of successful completions or identify any recurring issues, providing insight into their reliability as a government contractor. The 'br' value of 45613 might represent a prior contract value or a benchmark, suggesting a pattern of engagement.
How does the awarded amount of $23.3M compare to similar engineering services contracts for simulation and training?
The $23.3 million award for engineering services related to simulation and training appears to be within a reasonable range for complex defense projects. Contracts of this nature often involve significant research, development, integration, and testing phases. Benchmarking against similar contracts awarded by the Department of the Navy or other branches of the DoD for specialized training systems or simulation platforms would provide a clearer picture. Factors such as contract duration (512 days), scope of work, and required technical expertise influence pricing. Without specific details on the deliverables, a precise comparison is challenging, but the amount is not inherently indicative of overpricing for specialized defense engineering.
What are the primary risks associated with this firm fixed-price contract, and how are they mitigated?
The primary risk with a firm fixed-price (FFP) contract is that the contractor may face financial losses if their costs exceed the agreed-upon price, potentially leading to reduced quality or incomplete delivery. However, FFP contracts are generally favored by the government because they shift cost risk to the contractor and provide budget certainty. Mitigation strategies include a well-defined scope of work, clear performance standards, and robust oversight from the contracting officer. The government's ability to monitor progress and enforce contract terms is crucial. For MES Simulation & Training, LLC, their experience with government contracting and the specific nature of engineering services likely inform their pricing and risk assessment.
What is the expected effectiveness of the services provided under this contract for the Department of the Navy?
The effectiveness of the services provided under this contract hinges on the specific engineering solutions developed or implemented for the Department of the Navy's simulation and training needs. If the contract supports the enhancement or creation of realistic training environments, it can directly contribute to improved warfighter readiness and operational effectiveness. The success would be measured by factors such as the fidelity of simulations, the usability of training systems, and the overall impact on skill development and mission preparedness. The 'SAVT' designation might refer to a specific system or program, indicating the critical nature of the support.
How has historical spending in this category (Engineering Services, NAICS 541330) by the Department of the Navy trended over the past five years?
Historical spending by the Department of the Navy (DoN) within the Engineering Services category (NAICS 541330) has generally been substantial, reflecting the extensive technical and design support required for naval operations, shipbuilding, and advanced systems development. Over the past five years, spending in this sector has likely seen fluctuations influenced by defense budgets, modernization priorities, and specific platform acquisition programs. While precise figures require detailed analysis of DoN's procurement data, it's common for the DoN to allocate billions annually to engineering services, encompassing a wide range of activities from conceptual design to lifecycle support. This particular $23.3 million contract represents a small fraction of the overall engineering services expenditure.
What does the competition level (3 bidders) imply about the market for specialized simulation and training engineering services?
A competition level of three bidders for this specialized engineering services contract suggests a moderately competitive market. While not indicative of a wide-open field, it demonstrates that multiple firms possess the capability and interest to pursue such work. This level of competition is generally sufficient to encourage reasonable pricing and ensure the government receives a competitive offer. It implies that the market is not overly concentrated, but also that the number of highly qualified providers might be limited, potentially due to the specialized nature of simulation and training technologies. The government likely benefited from comparing these three distinct technical and cost proposals.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6785408R8056
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 24612 E COLONIAL DR, CHRISTMAS, FL, 08
Business Categories: Asian Pacific American Owned Business, Category Business, Federally Funded Research and Development Corp, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,981,558
Exercised Options: $23,354,066
Current Obligation: $23,354,066
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-03-31
Current End Date: 2010-08-25
Potential End Date: 2010-08-25 00:00:00
Last Modified: 2012-03-20
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