DoD's $20.3M H-1 Program Management Support Service contract awarded to Precise Systems, Inc. shows fair value

Contract Overview

Contract Amount: $20,305,422 ($20.3M)

Contractor: Precise Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-11-24

End Date: 2015-05-22

Contract Duration: 2,005 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Defense

Official Description: PMA276 H-1 PROGRAM MANAGEMENT SUPPORT SERVICE

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to PRECISE SYSTEMS, INC. for work described as: PMA276 H-1 PROGRAM MANAGEMENT SUPPORT SERVICE Key points: 1. The contract's value appears reasonable when benchmarked against similar engineering services contracts. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration and delivery order structure indicate a need for ongoing support. 4. Performance context is tied to program management within the Defense Contract Management Agency. 5. Sector positioning is within Defense Engineering Services, a critical area for military readiness.

Value Assessment

Rating: good

The contract's total value of $20.3 million over its period of performance suggests a fair price for the engineering services provided. Benchmarking against similar contracts for program management support within the Department of Defense indicates that the pricing is within an acceptable range. The cost-no-fee contract type also implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a moderate level of competition, which generally helps in achieving competitive pricing. The specific details of the bidding process would provide further insight into the intensity of the competition and its impact on the final award price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a level playing field, encouraging multiple companies to offer their best prices and services, ultimately leading to better value for government spending.

Public Impact

The primary beneficiaries are the Department of Defense and its various programs requiring expert program management support. Services delivered include crucial program management, technical guidance, and administrative support for defense initiatives. The geographic impact is likely concentrated around the Defense Contract Management Agency's operational areas, primarily Maryland. Workforce implications involve the employment of skilled professionals in engineering and program management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program requirements are not clearly defined and managed.
Reliance on a single contractor for critical program management functions could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Cost-no-fee contract type shifts cost overrun risk to the contractor.
Contract duration suggests a stable, long-term need for these services.

Sector Analysis

The Defense Engineering Services sector is characterized by high technical complexity and significant government investment. This contract for program management support fits within this sector by providing essential services that enable the efficient execution of defense programs. Comparable spending in this area often involves substantial sums due to the critical nature of national defense and the specialized expertise required.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'ss: false'. There is no explicit information regarding subcontracting plans for small businesses. The focus on larger prime contractors for this type of specialized support may limit direct opportunities for small businesses unless they are part of a larger subcontracting team.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA) and the Department of Defense's internal audit and inspection mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Program Management Services
Engineering and Technical Support Contracts
Department of Defense Acquisition Support

Risk Flags

Contract awarded under 'Cost No Fee' structure, requiring careful monitoring of contractor's cost management.
Limited competition (2 bidders) could potentially impact price competitiveness, though full and open competition was used.
Long contract duration (approx. 5.5 years) necessitates ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to PRECISE SYSTEMS, INC.. PMA276 H-1 PROGRAM MANAGEMENT SUPPORT SERVICE

Who is the contractor on this award?

The obligated recipient is PRECISE SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2009-11-24. End: 2015-05-22.

What is the track record of Precise Systems, Inc. in performing similar defense program management contracts?

Precise Systems, Inc. has a history of performing contracts related to defense program management and engineering support. Reviewing their past performance on similar contracts, particularly those with the Department of Defense, would provide insight into their reliability, quality of service, and ability to meet deadlines and budget constraints. Data on contract awards, performance evaluations, and any past disputes or challenges would be crucial in assessing their track record. While this specific contract was awarded in 2009 and ended in 2015, their subsequent contract history would offer more current performance indicators. A deeper dive into their portfolio would reveal the scale and complexity of projects they have successfully managed.

How does the awarded amount compare to the initial estimated value or ceiling of the contract?

The provided data indicates a total award amount of $20,305,422.35. Without the initial contract solicitation or award documents, it is difficult to determine the original estimated value or ceiling. However, the fact that the contract was awarded under 'Cost No Fee' (PT: COST NO FEE) suggests that the contractor is responsible for managing costs to achieve the defined scope. If the final award amount is significantly different from any publicly available estimates or if it reached a high percentage of a stated ceiling, it could warrant further investigation into the reasons for the variance, such as scope changes or unforeseen circumstances.

What are the key performance indicators (KPIs) used to evaluate the success of this program management support service?

Key Performance Indicators (KPIs) for program management support services typically revolve around schedule adherence, cost control (though less critical in Cost No Fee contracts for the government), quality of deliverables, responsiveness to requests, and overall contribution to program objectives. For this specific contract, KPIs might include metrics related to the timely completion of milestones, the accuracy and completeness of reports, the effectiveness of risk mitigation strategies implemented, and the successful coordination of various program elements. The Defense Contract Management Agency (DCMA) would have established specific metrics to monitor Precise Systems, Inc.'s performance throughout the contract's duration.

Were there any significant challenges or disputes encountered during the performance of this contract?

The provided data does not contain information regarding specific challenges or disputes encountered during the performance of this contract. A thorough review of contract performance reports, modification histories, and any official correspondence between the contracting officer and Precise Systems, Inc. would be necessary to identify any significant issues. Such information might be available through contract databases like the Federal Procurement Data System (FPDS) or agency-specific contract management systems, potentially including details on contract modifications, claims, or termination actions, if any occurred.

What is the historical spending trend for H-1 Program Management Support Services within the Department of Defense?

Historical spending on H-1 Program Management Support Services within the Department of Defense can be analyzed by examining contract awards for similar services over multiple fiscal years. This specific contract, awarded in 2009 and ending in 2015, represents a portion of that spending. To understand the trend, one would need to aggregate data for all contracts categorized under 'Program Management Support Services' or similar descriptors (e.g., 'Engineering Services,' 'Management Consulting') related to the H-1 program or comparable defense platforms. Analyzing this data would reveal whether spending has increased, decreased, or remained stable, and identify key contractors and agencies involved in this type of support.

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: N0002408R3362

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 22290 EXPLORATION DR, STE 400, LEXINGTON PARK, MD, 20653

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

Financial Breakdown

Contract Ceiling: $23,417,840

Exercised Options: $22,724,072

Current Obligation: $20,305,422

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4500

IDV Type: IDC

Timeline