DoD's $101M Engineering Services Contract with Analex Corporation: Sole-Source Award Raises Oversight Concerns
Contract Overview
Contract Amount: $101,077,343 ($101.1M)
Contractor: Analex Corporation
Awarding Agency: Department of Defense
Start Date: 2020-10-01
End Date: 2025-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $55.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SYSTEM ASSESSMENT&VULNERABILITY
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $101.1 million to ANALEX CORPORATION for work described as: SYSTEM ASSESSMENT&VULNERABILITY Key points: 1. Significant contract value of $101M for engineering services. 2. Awarded solely to Analex Corporation, limiting competitive options. 3. Potential for inflated costs due to lack of competition. 4. The 'Engineering Services' sector often involves specialized expertise.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a sole-source award, makes a direct pricing assessment difficult without further data. Benchmarking against similar sole-source engineering contracts is recommended to evaluate value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers and limiting opportunities for other qualified vendors.
Taxpayer Impact: The lack of competition in this $101M award may result in suboptimal pricing, meaning taxpayers could be paying more than necessary for these engineering services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited visibility into the justification for a sole-source award. Potential for reduced innovation by not engaging a broader market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award lacks competition
- Cost-plus-fixed-fee structure can incentivize spending
- Long contract duration (5 years)
Positive Signals
- Contract supports Department of the Navy
- Specific NAICS code (541330) indicates specialized services
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense and infrastructure projects. Spending in this area can vary widely, but competitive bidding is typically preferred to ensure cost-effectiveness.
Small Business Impact
The sole-source nature of this award suggests that small businesses were likely not considered or given an opportunity to compete for this significant contract, potentially limiting their access to federal opportunities.
Oversight & Accountability
The sole-source justification for this substantial contract requires rigorous oversight to ensure it was truly necessary and that the pricing is fair. Transparency regarding the decision-making process is crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of transparency on justification
- Potential for inflated costs
- Long contract duration
Tags
engineering-services, department-of-defense, co, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $101.1 million to ANALEX CORPORATION. SYSTEM ASSESSMENT&VULNERABILITY
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 $101.1 million.
What is the period of performance?
Start: 2020-10-01. End: 2025-09-30.
What was the specific justification for awarding this $101M engineering services contract on a sole-source basis, and was a full and open competition truly not feasible?
The justification for a sole-source award is critical for understanding why competitive market forces were bypassed. Agencies typically cite reasons such as urgency, unique capabilities, or lack of available sources. Without this specific justification, it's difficult to assess if taxpayer funds are being used efficiently or if alternative solutions were adequately explored.
How does the cost-plus-fixed-fee structure impact the overall risk and potential for cost overruns in this sole-source contract?
A cost-plus-fixed-fee (CPFF) contract reimburses the contractor for allowable costs plus a fixed fee representing profit. In a sole-source scenario, this structure can increase risk as the contractor may have less incentive to control costs, knowing that costs are reimbursed. The fixed fee, however, is negotiated upfront. Oversight is key to ensure costs remain reasonable and within the scope of work.
What is the expected effectiveness of Analex Corporation's engineering services, and how will performance be measured to ensure value for the Department of the Navy?
The effectiveness of Analex Corporation's services will depend on clearly defined performance metrics and rigorous oversight by the Department of the Navy. Key performance indicators (KPIs) related to project milestones, quality of deliverables, and adherence to technical specifications are essential. Regular performance reviews and feedback mechanisms are crucial to ensure the contract delivers the intended value and meets the Navy's requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003021R0016
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: $120,818,962
Exercised Options: $116,935,128
Current Obligation: $101,077,343
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $2,574,449
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-08-20
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