DoD Awards $37M to EMCUBE for Trident Training, Sole-Source Engineering Services

Contract Overview

Contract Amount: $37,158,241 ($37.2M)

Contractor: Emcube Inc

Awarding Agency: Department of Defense

Start Date: 2019-10-01

End Date: 2024-11-30

Contract Duration: 1,887 days

Daily Burn Rate: $19.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: UK SUPPORT TO UK/US TRIDENT TRAINING

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $37.2 million to EMCUBE INC for work described as: UK SUPPORT TO UK/US TRIDENT TRAINING Key points: 1. Significant contract value of $37.16 million. 2. Sole-source award raises questions about competition and potential cost savings. 3. Engineering services sector, with a focus on defense. 4. Long contract duration of 1887 days suggests a substantial, ongoing need.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, combined with a sole-source award, makes it difficult to assess value without further data on pricing benchmarks for similar specialized engineering services. The lack of competition inherently limits price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach can be justified for highly specialized services but often leads to higher prices compared to competitive procurements, as there is no market pressure to drive down costs.

Taxpayer Impact: Without competitive bidding, taxpayers may be paying a premium for these engineering services. The lack of transparency in pricing due to the sole-source nature limits the ability to ensure the most cost-effective outcome.

Public Impact

Taxpayer funds are allocated to a single contractor for critical defense training support. The specialized nature of Trident training implies a high degree of technical expertise required. Long-term contract duration suggests sustained reliance on this specific service provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of small business participation noted

Positive Signals

Supports critical national defense capability (Trident training)
Long-term commitment provides stability for contractor and program

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related training. Benchmarks for specialized defense engineering services can vary widely, but sole-source awards often indicate a premium is paid compared to competitive bids.

Small Business Impact

The data indicates no small business participation in this contract. This is common for large, specialized defense contracts, but it represents a missed opportunity to support small businesses within the defense industrial base.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The sole-source nature necessitates robust oversight to ensure performance and cost control, though competitive pressure is absent.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition may lead to higher costs.
Cost-plus-fixed-fee structure can incentivize cost overruns.
Long contract duration limits flexibility and future competition.
No small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.2 million to EMCUBE INC. UK SUPPORT TO UK/US TRIDENT TRAINING

Who is the contractor on this award?

The obligated recipient is EMCUBE 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 $37.2 million.

What is the period of performance?

Start: 2019-10-01. End: 2024-11-30.

What specific justifications were provided for the sole-source award, and have alternative contractors been considered in the past?

Sole-source awards typically require detailed justification, often citing unique capabilities, urgent needs, or lack of market availability. Without access to the contract file, it's impossible to know the specific reasons. However, for specialized defense systems like Trident, it's plausible that only a limited number of entities possess the requisite expertise and security clearances, making competition impractical or impossible.

How does the cost-plus-fixed-fee structure compare to industry standards for similar sole-source engineering services, and what mechanisms are in place to control costs?

Cost-plus-fixed-fee contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. While providing flexibility, they can incentivize cost overruns if not tightly managed. Benchmarking against similar sole-source contracts is challenging due to proprietary data. Robust government oversight, including audits and performance reviews, is crucial to control costs and ensure the fixed fee remains appropriate for the effort.

What is the projected impact of this long-term sole-source contract on the development of future competition or alternative solutions for Trident training support?

A long-term sole-source award can stifle the development of future competition by creating a barrier to entry for potential new contractors. It may reduce the incentive for the incumbent to innovate or reduce costs aggressively. The government should consider strategies to foster competition in the future, such as breaking down the requirement into smaller components or actively seeking out and developing new sources.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003020R0009

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1900 N BEAUREGARD ST STE 105, ALEXANDRIA, VA, 22311

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

Financial Breakdown

Contract Ceiling: $68,936,804

Exercised Options: $58,476,959

Current Obligation: $37,158,241

Actual Outlays: $517,927

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline