DoD's $38M Engineering Support Contract Awarded to First Division Consulting Inc. for Navy Programs

Contract Overview

Contract Amount: $38,059,584 ($38.1M)

Contractor: First Division Consulting Inc.

Awarding Agency: Department of Defense

Start Date: 2022-03-31

End Date: 2026-04-27

Contract Duration: 1,488 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SUPPORT SERVICES TO INCLUDE: PROGRAM MANAGEMENT, LOGISTICS, ENGINEERING TEST & EVALUATION MANPOWER, TRAINING, & PERSONNEL EQUIPMENT SPECIALIST EQUIPMENT FIELDING & NEW EQUIPMENT TRAINING FINANCIAL MANAGEMENT INFORMATION ASSURANCE SECURITY ETC.

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22556

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.1 million to FIRST DIVISION CONSULTING INC. for work described as: SUPPORT SERVICES TO INCLUDE: PROGRAM MANAGEMENT, LOGISTICS, ENGINEERING TEST & EVALUATION MANPOWER, TRAINING, & PERSONNEL EQUIPMENT SPECIALIST EQUIPMENT FIELDING & NEW EQUIPMENT TRAINING FINANCIAL MANAGEMENT INFORMATION ASSURANCE SECURITY ETC. Key points: 1. Contract provides comprehensive support including program management, logistics, engineering, test & evaluation, training, and financial management. 2. Awarded via full and open competition, indicating a broad market search for qualified contractors. 3. The contract duration of approximately 4 years suggests a need for sustained support services. 4. Firm Fixed Price contract type aims to control costs and provide predictability for the government. 5. The contract is categorized under Engineering Services, a critical sector for defense operations. 6. No small business set-aside was utilized, suggesting the primary contractor is not a small business or the requirement did not align with set-aside goals.

Value Assessment

Rating: good

The total contract value of $38 million over nearly 5 years represents a significant investment in engineering and support services for the Department of the Navy. Benchmarking this against similar large-scale support contracts is challenging without more granular data on specific services rendered. However, the firm-fixed-price structure suggests an effort to manage costs effectively. The number of bidders (3) is moderate for a contract of this scope, which could imply a competitive but potentially concentrated market for these specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Three bids were received, indicating a moderate level of competition for this specialized engineering and support services requirement. While three bidders suggest some market interest, a higher number could potentially drive prices lower. The agency's decision to pursue full and open competition implies a belief that this approach would yield the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of potential contractors to bid, which can lead to more competitive pricing and innovative solutions. The moderate number of bidders in this instance suggests that while competition was present, there may be room for further market engagement in future procurements to ensure maximum cost savings.

Public Impact

The Department of the Navy benefits from integrated program management, logistics, engineering, and training support, enhancing operational readiness. Personnel, including engineers, logisticians, and training specialists, will be engaged to fulfill the contract requirements. The services provided are crucial for the effective fielding and sustainment of new and existing military equipment. Geographic impact is likely concentrated around Navy installations where these support services are most needed, potentially including Virginia where the contractor is based. The contract supports specialized technical and professional roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Moderate competition (3 bidders) could limit price discovery compared to procurements with a larger number of offers.
The broad scope of services could lead to potential cost overruns if not managed tightly under the fixed-price structure.
Reliance on a single prime contractor for such a wide array of critical support functions presents a concentration of risk.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Full and open competition suggests a thorough market search was conducted.
The contract duration allows for stable planning and execution of support services.
The contractor, First Division Consulting Inc., is likely experienced in providing these types of defense support services.

Sector Analysis

Engineering Services (NAICS 541330) is a significant sector within the federal contracting landscape, particularly for defense agencies. This contract falls within a broad category encompassing professional, scientific, and technical services essential for military operations, research, and development. The total addressable market for engineering services within the federal government is substantial, with the Department of Defense being a primary consumer. This specific award represents a portion of the DoD's ongoing investment in maintaining and enhancing its technological and operational capabilities.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates no specific subcontracting goals for small businesses were mandated. This suggests that the primary focus was on securing the most capable large business contractor for the requirement. Consequently, the direct impact on the small business ecosystem through this specific award may be limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to meet defined deliverables within budget. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Department of Defense Program Management Support
Navy Logistics and Supply Chain Services
Engineering and Technical Services Contracts
Test and Evaluation Support
Defense Training and Personnel Services

Risk Flags

Moderate Competition
Broad Service Scope
Potential for Cost Overruns if Scope is Not Well-Managed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.1 million to FIRST DIVISION CONSULTING INC.. SUPPORT SERVICES TO INCLUDE: PROGRAM MANAGEMENT, LOGISTICS, ENGINEERING TEST & EVALUATION MANPOWER, TRAINING, & PERSONNEL EQUIPMENT SPECIALIST EQUIPMENT FIELDING & NEW EQUIPMENT TRAINING FINANCIAL MANAGEMENT INFORMATION ASSURANCE SECURITY ETC.

Who is the contractor on this award?

The obligated recipient is FIRST DIVISION CONSULTING 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 $38.1 million.

What is the period of performance?

Start: 2022-03-31. End: 2026-04-27.

What is the track record of First Division Consulting Inc. in performing similar large-scale defense support contracts?

First Division Consulting Inc. has a history of securing and performing various contracts with federal agencies, including the Department of Defense. While specific details on past performance for contracts of this exact scope and value require deeper analysis of contract databases, their presence as a prime awardee suggests a demonstrated capability. Reviewing their past performance ratings, any past performance issues, and the types of services they have previously delivered would provide a clearer picture of their suitability and reliability for this significant engineering and support services contract. Understanding their experience with firm-fixed-price contracts and complex program management is crucial.

How does the awarded value of $38 million compare to similar engineering support contracts for the Department of the Navy?

The $38 million value for this contract, spanning nearly five years, positions it as a mid-to-large-sized award for engineering and support services within the Department of the Navy. Without access to a comprehensive database of all comparable contracts, a precise benchmark is difficult. However, contracts for program management, logistics, and test & evaluation support for major naval platforms or systems often range from tens to hundreds of millions of dollars. The value appears reasonable given the breadth of services outlined, including program management, logistics, engineering, test & evaluation, training, and financial management, suggesting a comprehensive support package.

What are the primary risk indicators associated with this contract award?

Key risk indicators include the moderate level of competition (three bidders), which might suggest a specialized market where price discovery could be limited. The broad scope of services, while comprehensive, also presents a risk of potential cost overruns if not meticulously managed under the firm-fixed-price structure. Furthermore, reliance on a single prime contractor for diverse critical functions can create a concentration of risk. The contractor's past performance, particularly regarding schedule adherence and quality of deliverables on similar complex contracts, would be another critical area to monitor for potential risks.

How effective is the firm-fixed-price (FFP) contract type likely to be in managing costs for these diverse support services?

The Firm Fixed Price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and risks are understood. For a contract encompassing diverse services like program management, logistics, engineering, and training, FFP provides cost certainty for the government, shifting the risk of cost overruns to the contractor. However, the effectiveness hinges on the clarity and completeness of the contract's Statement of Work (SOW). If unforeseen technical challenges or scope creep occur, the contractor may seek modifications, potentially impacting the 'fixed' nature of the price. Robust oversight is still necessary to ensure the contractor meets all performance requirements within the agreed price.

What are the historical spending patterns for engineering and support services by the Department of the Navy?

The Department of the Navy consistently allocates substantial funding towards engineering, logistics, and program management support services. Historical spending data reveals a significant and often increasing trend in these areas, driven by modernization efforts, platform sustainment, and the introduction of new technologies. These services are critical for maintaining operational readiness and ensuring the effective deployment of naval assets. The Navy's budget typically includes large allocations for contractor support across various domains, reflecting a strategic reliance on external expertise and capacity to supplement organic military and civilian workforce capabilities.

What is the potential impact of this contract on the specific engineering services market segment?

This $38 million contract awarded to First Division Consulting Inc. contributes to the overall spending within the engineering services sector, particularly for defense applications. The full and open competition, despite yielding three bids, indicates a market where several firms possess the capability to handle such comprehensive support requirements. The sustained demand for these services underscores the importance of the engineering sector to national defense. The contract's value and duration signal a stable revenue stream for the prime contractor and potentially for any subcontractors involved, influencing market dynamics and potentially encouraging further specialization within the defense engineering support niche.

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: M6785422R3000

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5641 BURKE CENTRE PARKWAY, 120, BURKE, VA, 22015

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $44,092,131

Exercised Options: $38,327,086

Current Obligation: $38,059,584

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7654

IDV Type: IDC

Timeline