DoD's $27.8M engineering services contract with Analex Corporation awarded without competition
Contract Overview
Contract Amount: $27,841,747 ($27.8M)
Contractor: Analex Corporation
Awarding Agency: Department of Defense
Start Date: 2020-06-01
End Date: 2025-07-31
Contract Duration: 1,886 days
Daily Burn Rate: $14.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: BASE - ADVANCED SYSTEMS
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374
Plain-Language Summary
Department of Defense obligated $27.8 million to ANALEX CORPORATION for work described as: BASE - ADVANCED SYSTEMS Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and limited market engagement. 2. The cost-plus-fixed-fee structure may incentivize higher spending without strict cost controls. 3. Engineering services are critical for defense readiness, but the lack of competition limits benchmarking opportunities. 4. The contract duration of over five years suggests a long-term need, but the absence of competitive bidding is a concern. 5. Performance context is limited due to the sole-source nature, making it difficult to assess value for money. 6. Sector positioning in engineering services is broad; this contract's specific application within the Navy is key to understanding its impact.
Value Assessment
Rating: questionable
Benchmarking the value of this $27.8 million contract is challenging due to its sole-source nature and the lack of publicly available comparable data for similar specialized engineering services within the Department of Defense. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects where costs are uncertain, can lead to higher overall expenditures compared to fixed-price contracts. Without competitive bids, it's difficult to ascertain if Analex Corporation's pricing reflects fair market value or if taxpayers are receiving optimal value for the services rendered.
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. The Department of the Navy determined that only Analex Corporation could provide the required engineering services. This lack of competition limits the opportunity for price discovery and may result in higher costs than if multiple companies had bid on the contract. The rationale for sole-source procurement typically involves unique capabilities, proprietary technology, or urgent requirements that only one vendor can meet.
Taxpayer Impact: Taxpayers may be paying a premium for these engineering services due to the absence of competitive pressure. The lack of bidding means there was no mechanism to drive down costs through market forces, potentially leading to less efficient use of public funds.
Public Impact
The Department of the Navy benefits from specialized engineering services essential for its operations and maintenance. This contract supports advanced systems engineering and technical support, contributing to national defense capabilities. The geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications include the employment of engineers and technical specialists at Analex Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings for taxpayers.
- Cost-plus-fixed-fee contract type can lead to higher overall costs if not managed diligently.
- Lack of transparency in the procurement process due to non-competitive award.
- Limited public data to assess the contractor's performance and value for money.
- Long contract duration without competition raises concerns about sustained cost-effectiveness.
Positive Signals
- Contract addresses critical engineering needs for the Department of Defense.
- Analex Corporation is a known entity providing services to the government.
- The contract has a defined period of performance, allowing for structured engagement.
- Fixed fee component provides some level of cost predictability within the CPFF structure.
Sector Analysis
The engineering services sector is a vital component of the broader professional, scientific, and technical services industry. This contract falls under the engineering services NAICS code (541330), which encompasses firms primarily engaged in providing engineering services. The federal government is a significant consumer of these services, particularly the Department of Defense, for design, development, testing, and maintenance of complex systems. Comparable spending benchmarks are difficult to establish without more specific details on the services provided, but federal spending on engineering services is substantial, often awarded through both competitive and sole-source mechanisms depending on the nature of the requirement.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to Analex Corporation, a single entity, does not directly contribute to the small business ecosystem through set-asides or mandated subcontracting. The absence of small business participation goals means that opportunities for small businesses to engage in this specific contract are likely limited, unless they are part of Analex Corporation's supply chain in ways not specified.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Navy's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Inspector General for the Department of Defense may also conduct audits or investigations into the contract's execution and financial management. Transparency is limited due to the sole-source nature of the award, with fewer public details available compared to competitively awarded contracts.
Related Government Programs
- Department of Defense Engineering Services Contracts
- Naval Sea Systems Command (NAVSEA) Contracts
- Cost-Plus-Fixed-Fee Contracts
- Sole-Source Defense Procurements
- Advanced Systems Engineering Support
Risk Flags
- Sole-source award
- Lack of competition
- Cost-plus-fixed-fee pricing structure
- Limited transparency in procurement
Tags
defense, department-of-the-navy, engineering-services, sole-source, definitive-contract, cost-plus-fixed-fee, analex-corporation, district-of-columbia, advanced-systems, professional-scientific-and-technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.8 million to ANALEX CORPORATION. BASE - ADVANCED SYSTEMS
Who is the contractor on this award?
The obligated recipient is ANALEX 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 $27.8 million.
What is the period of performance?
Start: 2020-06-01. End: 2025-07-31.
What is Analex Corporation's track record with the federal government, particularly the Department of Defense?
Analex Corporation has a history of contracting with the federal government, primarily serving the Department of Defense. While specific details on all past contracts are not provided, their engagement in engineering services suggests a focus on technical support and system development. The current contract with the Department of the Navy for engineering services indicates a continued relationship. A deeper dive into their contract history, including past performance evaluations and any disputes or terminations, would provide a more comprehensive understanding of their reliability and capabilities as a government contractor. Their sustained presence suggests a level of competence, but the sole-source nature of this award warrants scrutiny of their past performance in competitive environments.
How does the $27.8 million value of this contract compare to similar engineering services contracts awarded by the Department of Defense?
Comparing the $27.8 million value of this contract requires context regarding the specific engineering services rendered. The Department of Defense awards numerous engineering services contracts, ranging from small, specialized tasks to large, multi-year programs. Without knowing the precise scope of work—whether it involves research and development, systems integration, maintenance, or specialized consulting—a direct comparison is difficult. However, $27.8 million over approximately five years (based on the start and end dates) represents a significant but not extraordinary investment for specialized defense engineering. The key concern is not the dollar amount itself, but the fact that it was awarded without competition, making it harder to ascertain if this represents a fair market price compared to what could have been achieved through a competitive bidding process.
What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?
The primary risks associated with sole-source awards of this magnitude include potential overpayment due to lack of competitive pricing, reduced innovation from a single provider, and a lack of transparency in the procurement process. Taxpayers may not receive the best value for their money as there is no market pressure to drive down costs. Furthermore, relying on a single contractor can create dependency and increase risks if the contractor fails to perform or faces financial instability. The absence of competition also limits opportunities for new or smaller businesses to enter the market and demonstrate their capabilities, potentially stifling a more dynamic and cost-effective supplier base for the government in the long run.
How effective is the Cost Plus Fixed Fee (CPFF) contract type in managing costs for complex engineering services?
The Cost Plus Fixed Fee (CPFF) contract type is often used for complex projects where the scope of work is not fully defined at the outset, or where innovation and flexibility are paramount. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While CPFF provides flexibility, it carries inherent risks of cost escalation, as the government bears the risk of cost overruns. The fixed fee provides some incentive for the contractor to control costs, as it does not increase with actual costs incurred. However, effective management, stringent oversight, and clear performance metrics are crucial to mitigate the risk of uncontrolled spending and ensure value for money under a CPFF arrangement.
What are the historical spending patterns for engineering services within the Department of the Navy, and how does this contract fit?
The Department of the Navy historically spends billions of dollars annually on a wide array of engineering services, encompassing everything from naval architecture and marine engineering to aerospace and systems engineering. These services are critical for the design, development, maintenance, and modernization of naval assets. This $27.8 million contract for advanced systems engineering and technical support fits within the broader category of specialized technical services procured by the Navy. While this specific contract's sole-source nature is noteworthy, the overall spending on engineering services by the Navy is substantial and reflects the complexity and technological demands of maintaining a modern naval force. Understanding historical patterns would involve analyzing the volume and types of engineering contracts awarded, their pricing structures, and their competitive landscape.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003020R0014
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 14295 PARK MEADOW DR STE 500, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,982,353
Exercised Options: $27,982,353
Current Obligation: $27,841,747
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $11,853,401
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-06-01
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2025-05-30
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