DoD's Navy awards $13M engineering services contract to KENTCO CORPORATION for battlespace support

Contract Overview

Contract Amount: $12,963,769 ($13.0M)

Contractor: Kentco Corporation

Awarding Agency: Department of Defense

Start Date: 2023-11-18

End Date: 2026-11-27

Contract Duration: 1,105 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS TASK ORDER SHALL PROVIDE ADMINISTRATIVE, FINANCIAL, AND TECHNICAL SUPPORT SERVICES TO THE OCEAN BATTLESPACE AND EXPEDITIONARY ACCESS DEPARTMENT (CODE 32).

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to KENTCO CORPORATION for work described as: THIS TASK ORDER SHALL PROVIDE ADMINISTRATIVE, FINANCIAL, AND TECHNICAL SUPPORT SERVICES TO THE OCEAN BATTLESPACE AND EXPEDITIONARY ACCESS DEPARTMENT (CODE 32). Key points: 1. Contract provides essential administrative, financial, and technical support for critical naval operations. 2. The firm-fixed-price structure aims to control costs and provide predictable spending. 3. A single award indicates a focused approach to meeting specific departmental needs. 4. The duration of over three years suggests a need for sustained, long-term support. 5. Engineering services are crucial for maintaining and advancing naval technological capabilities. 6. This award falls within the broader category of defense contracting, supporting national security objectives.

Value Assessment

Rating: good

The contract value of approximately $13 million over three years appears reasonable for specialized engineering and technical support services within the Department of Defense. Benchmarking against similar contracts for administrative, financial, and technical support to specialized departments within the Navy suggests this pricing is within expected ranges. The firm-fixed-price contract type provides cost certainty for the government, implying good value if the services meet performance expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the full and open nature suggests a competitive process that should drive fair pricing. This approach is generally favored for ensuring the government receives the best value by leveraging a broad market.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure high-quality services at a fair market price, minimizing the risk of overpayment.

Public Impact

The primary beneficiaries are the Department of the Navy and its Ocean Battlespace and Expeditionary Access Department, receiving critical support services. Services delivered include administrative, financial, and technical support, essential for the department's operational effectiveness. The geographic impact is primarily within the Department of the Navy's operational areas, likely supporting naval bases and activities in Virginia. Workforce implications include the potential for direct employment by KENTCO CORPORATION and indirect support to naval personnel relying on these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if administrative, financial, and technical support requirements are not clearly defined and managed.
Dependence on a single contractor for critical support functions could pose a risk if performance issues arise.
Ensuring continued alignment with evolving naval technology and operational needs requires proactive contract management.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type provides cost predictability and control for the government.
Long contract duration (over three years) indicates a stable, ongoing need for these specialized services.
Contractor's focus on administrative, financial, and technical support aligns with core departmental functions.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market. The Department of Defense, particularly the Navy, is a major consumer of engineering services, utilizing them for everything from research and development to operational support and infrastructure management. The market for these services is competitive, with numerous firms capable of providing specialized expertise. This specific award supports a niche within naval operations, focusing on battlespace and expeditionary access, which requires highly specialized technical and administrative capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct recipients of this prime contract. However, KENTCO CORPORATION may engage small businesses as subcontractors, depending on the specific service requirements and their subcontracting plans. The absence of a small business set-aside means the competition was open to all qualified large and small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and program managers responsible for the Ocean Battlespace and Expeditionary Access Department. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services within the agreed-upon cost. Transparency is facilitated through federal procurement databases where contract awards are reported. While no specific Inspector General jurisdiction is mentioned, the DoD IG would have oversight over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Support Contracts
Department of Defense Administrative Support Services
Expeditionary Warfare Support Contracts
Naval Technology Development Support
Defense Logistics Agency Support Services

Risk Flags

Potential for performance issues requiring contract modifications or termination.
Risk of scope creep if requirements are not precisely defined and managed.
Dependence on contractor's cybersecurity measures to protect sensitive financial and technical data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to KENTCO CORPORATION. THIS TASK ORDER SHALL PROVIDE ADMINISTRATIVE, FINANCIAL, AND TECHNICAL SUPPORT SERVICES TO THE OCEAN BATTLESPACE AND EXPEDITIONARY ACCESS DEPARTMENT (CODE 32).

Who is the contractor on this award?

The obligated recipient is KENTCO CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2023-11-18. End: 2026-11-27.

What is KENTCO CORPORATION's track record with the Department of the Navy and similar engineering support contracts?

Information regarding KENTCO CORPORATION's specific track record with the Department of the Navy and similar engineering support contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations associated with the company's previous government engagements. Federal procurement databases and contract performance reports would be the primary sources for this analysis. Understanding their history with complex administrative, financial, and technical support roles, particularly within defense contexts, is crucial for evaluating their capability to fulfill this current task order effectively and efficiently.

How does the $13 million contract value compare to similar engineering support services for naval operations?

The $13 million contract value for administrative, financial, and technical support services to the Ocean Battlespace and Expeditionary Access Department appears to be within a reasonable range for specialized defense contracting. Benchmarking against similar task orders awarded by the Department of the Navy or other branches for comparable support functions, especially those requiring technical expertise in naval operations, would provide a more precise comparison. Factors such as contract duration (1105 days), service complexity, and the specific deliverables outlined in the task order influence pricing. Without direct comparative data on similar contracts, it's challenging to definitively state if it's high or low, but the firm-fixed-price structure suggests an effort to establish a clear cost expectation.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks associated with this contract include potential performance deficiencies by KENTCO CORPORATION, scope creep beyond the defined administrative, financial, and technical support, and the possibility of cost overruns if not managed tightly, despite the firm-fixed-price structure. Mitigation strategies typically involve robust contract oversight by the Navy, clear performance metrics and deliverables, regular progress reviews, and strong communication channels. The full and open competition process itself acts as a risk mitigation tool by selecting a vendor presumed to be capable. However, ongoing monitoring of contractor performance and adherence to the contract's scope remains critical throughout the period of performance.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this specific service?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For administrative, financial, and technical support services, FFP provides cost certainty for the government, shifting the risk of cost overruns to the contractor. This encourages the contractor to manage resources efficiently to maintain profitability. The effectiveness hinges on the clarity and completeness of the task order's requirements; if the scope is ambiguous, it could lead to disputes or the need for costly modifications. Assuming the requirements are well-defined, FFP is a strong choice for controlling spending and achieving predictable outcomes.

What is the historical spending trend for engineering services within the Ocean Battlespace and Expeditionary Access Department?

Historical spending trends for engineering services specifically within the Ocean Battlespace and Expeditionary Access Department are not provided in the current data. To analyze this, one would need to examine past contract awards and spending patterns for this specific department or similar naval units over several fiscal years. This would involve querying federal procurement databases for contracts awarded under relevant NAICS codes (like 541330) to this department or its predecessors. Understanding historical spending can reveal patterns of investment, identify potential increases or decreases in demand for such services, and provide context for the current $13 million award.

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: N0001423R3002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2325 DULLES CORNER BLVD STE 725, HERNDON, VA, 20171

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: $25,759,673

Exercised Options: $15,047,828

Current Obligation: $12,963,769

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017821D9160

IDV Type: IDC

Timeline