DoD's $33.8M engineering services contract awarded to Valiant Global Defense Services Inc. was not competed

Contract Overview

Contract Amount: $33,815,044 ($33.8M)

Contractor: Valiant Global Defense Services Inc.

Awarding Agency: Department of Defense

Start Date: 2017-10-26

End Date: 2019-05-26

Contract Duration: 577 days

Daily Burn Rate: $58.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MTSS

Place of Performance

Location: QUANTICO, WICOMICO County, MARYLAND, 21856

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $33.8 million to VALIANT GLOBAL DEFENSE SERVICES INC. for work described as: MTSS Key points: 1. The contract's value of $33.8 million for engineering services represents a significant investment by the Department of Defense. 2. The lack of competition raises questions about potential overpayment and the absence of market-driven pricing. 3. Awarded as a definitive contract with a firm fixed price, it suggests a defined scope of work. 4. The contract duration of 577 days indicates a medium-term engagement for the services provided. 5. The contractor, Valiant Global Defense Services Inc., has secured a substantial award, highlighting its role in defense contracting. 6. The absence of small business set-asides suggests the primary contractor is not a small business, and subcontracting opportunities may be limited.

Value Assessment

Rating: questionable

Benchmarking the value of this $33.8 million engineering services contract is challenging without detailed service descriptions and comparison points. However, the lack of competition inherently limits the ability to assess if the price achieved was the most advantageous. Typically, competitive bidding drives down costs and ensures fair market value. Without this process, there's a risk that the government may not have secured the best possible pricing for these engineering services. Further analysis would require understanding the specific nature of the engineering services and comparing them to similar contracts awarded through competitive means.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically employed when only one vendor possesses the unique capabilities, qualifications, or proprietary technology required for the service, or in cases of urgent need where competition is not feasible. The lack of competition means that the Department of Defense did not benefit from the price discovery and innovation that typically arise from a bidding process. This can potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. Without multiple bids, there is less assurance that the price reflects the best value achievable in the market.

Public Impact

The Department of the Navy benefits from specialized engineering services crucial for its operations. The contract supports national defense by ensuring the availability of essential engineering expertise. The geographic impact is likely concentrated around the Navy's operational bases or facilities where the engineering services are rendered. The contract supports the workforce of Valiant Global Defense Services Inc., providing employment for engineers and technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source awards can limit opportunities for other capable businesses to secure government contracts.
Transparency is reduced when a contract is not competed, making it harder to assess value for money.

Positive Signals

The firm fixed price structure provides cost certainty for the government.
The definitive contract type suggests a clear scope and deliverables.
The award to Valiant Global Defense Services Inc. ensures continuity of essential engineering support for the Navy.

Sector Analysis

Engineering services are a critical component of the defense sector, encompassing a wide range of activities from design and development to testing and maintenance of military systems and infrastructure. The market for defense engineering services is substantial, driven by the continuous need for technological advancement and operational readiness. This contract, valued at $33.8 million, fits within the broader landscape of defense procurement, where specialized technical expertise is often required. Comparable spending benchmarks for similar engineering support contracts within the Department of Defense can vary widely based on complexity, duration, and specific technical requirements.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field indicates 'false', suggesting that small business participation was not a primary consideration in the award. This means that subcontracting opportunities for small businesses may be limited unless the prime contractor voluntarily includes them. The absence of a small business set-aside for a contract of this size could mean that the prime contractor, Valiant Global Defense Services Inc., is a large business, and the focus was on securing the required specialized services rather than fostering small business growth through this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is somewhat limited due to the sole-source nature of the award, making public scrutiny of the procurement process more difficult. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Engineering Services
Naval Sea Systems Command Contracts
Defense Professional Services Contracts
Sole-Source Defense Procurements

Risk Flags

Sole-source award
Lack of competition
Potential for overpayment
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.8 million to VALIANT GLOBAL DEFENSE SERVICES INC.. MTSS

Who is the contractor on this award?

The obligated recipient is VALIANT GLOBAL DEFENSE SERVICES INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.8 million.

What is the period of performance?

Start: 2017-10-26. End: 2019-05-26.

What specific engineering services were provided under this contract?

The provided data indicates the contract was for 'Engineering Services' under NAICS code 541330. However, the specific nature of these services is not detailed. Typically, engineering services in the defense sector can range from systems engineering, design and development of new platforms, technical support for existing systems, cybersecurity engineering, to infrastructure design and project management. Without more granular information, it's difficult to ascertain the exact technical domains or projects supported by Valiant Global Defense Services Inc. under this $33.8 million award. Further investigation into contract line item numbers (CLINs) or attached statements of work would be necessary to understand the precise deliverables and technical expertise utilized.

How does the $33.8 million value compare to similar engineering services contracts awarded by the Department of the Navy?

Comparing the $33.8 million value requires context on the scope and duration of 'similar' contracts. The Department of the Navy procures a vast array of engineering services, from small, specialized technical support tasks to large-scale platform development. This contract, awarded as a definitive contract with a duration of 577 days (approximately 1.5 years), represents a significant but not unprecedented investment. Benchmarking against other sole-source or competed engineering contracts for comparable complexity and duration would be necessary for a precise valuation. However, the lack of competition for this award means a direct value-for-money comparison against competitively bid contracts is inherently difficult, as market forces were not leveraged to determine the optimal price.

What are the potential risks associated with awarding a $33.8 million contract on a sole-source basis?

The primary risk associated with a sole-source award of this magnitude is the potential for paying a non-competitive price, meaning the government may not have achieved the best possible value for its investment. This lack of competition can reduce the incentive for the contractor to be highly efficient or innovative, as there is no market pressure from rivals. Furthermore, sole-source awards can limit opportunities for other qualified businesses to demonstrate their capabilities and secure government work, potentially stifling broader market competition and innovation in the long run. There's also a risk of vendor lock-in if the services are highly specialized and difficult to transition to another provider.

What is Valiant Global Defense Services Inc.'s track record with the Department of Defense?

Valiant Global Defense Services Inc. has a history of contracting with the Department of Defense. While this specific contract is a definitive contract valued at $33.8 million, their broader portfolio likely includes various services supporting military operations. A comprehensive assessment of their track record would involve examining past performance reviews, any past performance issues or awards, the types and values of previous contracts, and their overall success in meeting government requirements across different agencies and branches. Without access to a detailed contract history database or performance evaluations, it's challenging to provide a definitive assessment of their overall track record beyond the information presented for this single award.

What does the 'NOT COMPETED' status imply for the program's effectiveness and future procurements?

The 'NOT COMPETED' status indicates that this contract was awarded without seeking bids from multiple sources. This can be due to various reasons, such as the unique capabilities of the sole provider, urgent needs, or specific program requirements. For program effectiveness, it implies that the chosen contractor was deemed essential or the only viable option at the time of award. However, for future procurements, this status raises questions about whether competition was explored or if it was deemed unnecessary. A pattern of sole-source awards for similar services could indicate a lack of market diversity or potential issues with how requirements are defined, potentially hindering the government's ability to secure better value and innovation through competition.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: M6785418R7801

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9333 BALBOA AVE, SAN DIEGO, CA, 92123

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

Financial Breakdown

Contract Ceiling: $33,815,044

Exercised Options: $33,815,044

Current Obligation: $33,815,044

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline