DoD awards $6.9M engineering services contract to Analex Corporation for advanced systems support
Contract Overview
Contract Amount: $6,921,682 ($6.9M)
Contractor: Analex Corporation
Awarding Agency: Department of Defense
Start Date: 2025-08-01
End Date: 2026-07-31
Contract Duration: 364 days
Daily Burn Rate: $19.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: BASE PERIOD - ADVANCED SYSTEMS
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $6.9 million to ANALEX CORPORATION for work described as: BASE PERIOD - ADVANCED SYSTEMS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Pricing structure (Cost Plus Fixed Fee) may incentivize cost increases. 3. Short contract duration (364 days) suggests a focused, potentially short-term need. 4. Engineering services sector is critical for defense modernization. 5. Virginia location may indicate a concentration of defense-related technical expertise. 6. No small business set-aside indicates a focus on larger, specialized firms.
Value Assessment
Rating: fair
The contract's value of $6.9 million for a one-year period for advanced systems engineering services appears within a reasonable range for specialized defense support. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D and complex services, carries inherent risks of cost overruns compared to fixed-price contracts. Benchmarking against similar sole-source engineering contracts for advanced systems would provide a clearer picture of its competitiveness.
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 among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities, technology, or security clearances required for the specific service. The lack of competition means that the government did not benefit from a bidding process that could drive down prices through market forces. While justified in certain specialized scenarios, sole-source awards warrant careful scrutiny to ensure fair pricing and necessity.
Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competitive bidding, potentially leading to higher costs for taxpayers.
Public Impact
The Department of the Navy benefits from specialized engineering expertise for advanced systems. This contract supports the development and maintenance of critical defense technologies. The primary beneficiaries are likely the military personnel who will utilize the advanced systems. The contract is geographically focused within Virginia, potentially leveraging local technical talent.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing, potentially increasing costs.
- Cost Plus Fixed Fee structure may lead to cost overruns if not managed tightly.
- Lack of competition raises concerns about optimal resource utilization.
- Limited contract duration might indicate a need for future, potentially more expensive, follow-on contracts.
Positive Signals
- Award to Analex Corporation suggests they possess specialized expertise required by the Navy.
- Focus on advanced systems indicates support for critical national defense capabilities.
- Engineering services are essential for maintaining technological superiority in defense.
Sector Analysis
The engineering services sector supporting the Department of Defense is a significant market, characterized by high technical barriers to entry and specialized expertise. This contract falls within the broader defense industrial base, specifically focusing on advanced systems, which often involves complex research, development, and integration. Spending in this area is crucial for maintaining military readiness and technological advantage. Comparable spending benchmarks would typically involve analyzing other sole-source or competed contracts for similar engineering support to defense agencies.
Small Business Impact
The contract does not indicate any small business set-aside provisions, suggesting that the primary contractor, Analex Corporation, is likely a larger entity or that the specialized nature of the work was deemed unsuitable for small business participation. There is no explicit mention of subcontracting plans for small businesses. This approach may limit opportunities for small businesses to participate in this specific contract, although they may be involved in other defense contracts or supply chains.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and program managers responsible for ensuring performance and adherence to terms. The Cost Plus Fixed Fee structure necessitates robust financial oversight to monitor expenditures and prevent cost overruns. Transparency may be limited due to the sole-source nature, but contract performance reviews and audits are standard accountability measures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Engineering Services
- Advanced Systems Development
- Naval Technology Support
- Cost Plus Fixed Fee Contracts
- Sole Source Procurements
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of small business participation
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, advanced-systems, cost-plus-fixed-fee, sole-source, definitive-contract, virginia, analex-corporation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.9 million to ANALEX CORPORATION. BASE PERIOD - 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 $6.9 million.
What is the period of performance?
Start: 2025-08-01. End: 2026-07-31.
What is Analex Corporation's track record with the Department of Defense, particularly in advanced systems engineering?
Analex Corporation has a history of providing engineering and technical services to various government agencies, including the Department of Defense. Their experience often spans areas like aerospace, defense systems, and research and development. Specific to advanced systems engineering, their past performance would be detailed in contract databases, showcasing their ability to handle complex projects. A review of their contract history would reveal the types of systems they have supported, the scale of those projects, and any performance metrics or awards received. This information is crucial for assessing their capability to successfully execute the current contract, especially given its sole-source nature which relies heavily on demonstrated expertise.
How does the $6.9 million contract value compare to similar advanced systems engineering contracts awarded by the Navy?
Benchmarking the $6.9 million contract value requires comparing it against similar advanced systems engineering contracts awarded by the Department of the Navy or other DoD components. Factors such as contract duration, scope of work, specific technologies involved, and the level of expertise required significantly influence pricing. Given this is a one-year contract, the annual value needs to be considered. Sole-source awards, by definition, lack direct price competition, making external benchmarking even more critical. If comparable sole-source contracts for similar services exist, their values can provide a reference point. However, if this contract supports a unique or highly specialized system, direct comparisons might be difficult, necessitating a deeper dive into the cost breakdown and justification provided by the agency.
What are the primary risks associated with a sole-source Cost Plus Fixed Fee (CPFF) contract for advanced systems?
The primary risks associated with a sole-source CPFF contract for advanced systems are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices than might be achieved in an open competition. The government relies on the contractor's proposed pricing and the agency's negotiation skills to ensure fairness. Secondly, the CPFF structure, while flexible for R&D and uncertain scopes, incentivizes cost incurrence. The contractor is reimbursed for allowable costs plus a fixed fee, meaning they have less financial incentive to control costs compared to fixed-price contracts. This necessitates stringent government oversight of expenditures and performance to mitigate risks of cost overruns and ensure the project stays within budget and meets objectives.
What is the expected impact of this contract on the advancement of specific defense technologies?
This contract is expected to directly impact the advancement of specific defense technologies by providing essential engineering services for 'advanced systems.' The exact nature of these systems is not detailed, but they likely fall under the Navy's strategic modernization priorities. The engineering support could involve design, integration, testing, or sustainment of cutting-edge platforms or capabilities. Analex Corporation's role will be to apply their specialized knowledge to overcome technical challenges, refine designs, and ensure these advanced systems meet stringent performance requirements. The success of this contract could contribute to enhanced naval capabilities, improved operational effectiveness, and maintaining a technological edge over potential adversaries.
How has federal spending on engineering services for advanced systems evolved over the past five years?
Federal spending on engineering services for advanced systems has generally seen a consistent or increasing trend over the past five years, driven by the Department of Defense's continuous need to modernize platforms and develop next-generation capabilities. Agencies like the Navy, Air Force, and Army consistently allocate significant budgets towards R&D and acquisition of advanced technologies, which heavily rely on specialized engineering support. Factors such as geopolitical shifts, emerging threats, and technological advancements fuel this spending. While specific figures fluctuate annually based on budget appropriations and program priorities, the overall demand for high-level engineering expertise in areas like AI, cyber, hypersonics, and space systems remains robust, indicating a sustained investment in this sector.
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: N0003025R2022
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: $36,025,756
Exercised Options: $6,921,683
Current Obligation: $6,921,682
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-08-01
Current End Date: 2026-07-31
Potential End Date: 2030-07-31 00:00:00
Last Modified: 2025-12-23
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