DoD awards $26.3M engineering services task order to Joint Tactics and Technologies, LLC

Contract Overview

Contract Amount: $26,302,074 ($26.3M)

Contractor: Joint Tactics and Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2020-03-11

End Date: 2025-03-10

Contract Duration: 1,825 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER AWARD

Place of Performance

Location: CORONADO, SAN DIEGO County, CALIFORNIA, 92118

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to JOINT TACTICS AND TECHNOLOGIES, LLC for work described as: TASK ORDER AWARD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Task order duration of 1825 days indicates a long-term need for engineering services. 3. The Cost Plus Fixed Fee (CPFF) contract type may present cost control challenges. 4. Awarded by the Department of the Navy, indicating a focus on naval engineering needs. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract's value of $26.3 million over five years for engineering services appears moderate for a Department of Defense contract. Benchmarking against similar large-scale engineering contracts within the DoD is difficult without more specific service details. The Cost Plus Fixed Fee (CPFF) structure necessitates careful oversight to ensure costs remain reasonable and the fixed fee aligns with the effort required. Without detailed cost breakdowns or comparisons to industry standards for specific engineering tasks, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a healthy level of competition for this engineering services requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government. The number of bidders provides some assurance that the government explored a range of options.

Taxpayer Impact: The full and open competition and multiple bidders indicate that taxpayer funds were likely used efficiently, as the government had the opportunity to select the most cost-effective and technically capable offer.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its operations and projects. This contract likely supports various naval engineering initiatives, potentially including design, analysis, and technical support. The geographic impact is primarily within California, where the contractor is located, but the services may support naval operations globally. The contract supports a workforce of engineers and technical specialists, contributing to the skilled labor market in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
Lack of small business set-aside may limit opportunities for smaller, specialized engineering firms.
The duration of the contract (5 years) requires sustained oversight to ensure continued performance and value.

Positive Signals

Awarded through full and open competition with multiple bidders, indicating a competitive process.
The contractor, Joint Tactics and Technologies, LLC, has secured a significant contract, suggesting a level of established capability.
The contract is for essential engineering services, crucial for the Department of the Navy's mission.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise and often supports complex government and private sector projects. The market size for engineering services supporting the Department of Defense is substantial, driven by ongoing modernization, maintenance, and research and development efforts. This specific award aligns with the government's strategy to procure specialized technical support for its naval operations.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. This means that opportunities for small businesses to directly participate in this contract are limited unless they are prime contractors or choose to subcontract independently. The absence of a set-aside may impact the direct flow of federal dollars to the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Professional, Scientific, and Technical Services
Cost Plus Fixed Fee Contracts
Defense Contract Management Agency (DCMA) Oversight

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Potential for higher labor costs due to contractor's location in California.
Lack of explicit small business subcontracting goals may limit SMB participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to JOINT TACTICS AND TECHNOLOGIES, LLC. TASK ORDER AWARD

Who is the contractor on this award?

The obligated recipient is JOINT TACTICS AND TECHNOLOGIES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.3 million.

What is the period of performance?

Start: 2020-03-11. End: 2025-03-10.

What is the track record of Joint Tactics and Technologies, LLC in securing and performing on federal contracts, particularly within the Department of Defense?

Joint Tactics and Technologies, LLC has been awarded multiple federal contracts, primarily with the Department of Defense. Analysis of their contract history reveals a pattern of securing task orders and delivery orders for various services, including engineering, technical support, and program management. While this specific $26.3 million award is substantial, it is important to examine their performance on previous contracts. Key indicators to review include past performance evaluations, any instances of contract disputes or terminations, and their ability to meet cost, schedule, and performance requirements. A review of their financial stability and management capacity would also be prudent, especially given the five-year duration of this current task order.

How does the awarded amount of $26.3 million compare to similar engineering services contracts awarded by the Department of the Navy or other DoD branches?

The $26.3 million award for engineering services over five years, averaging approximately $5.26 million annually, is a moderate-sized contract within the Department of the Navy's portfolio. Larger, more complex engineering programs can reach hundreds of millions or even billions of dollars. However, for specific task orders focused on specialized engineering support, this amount is significant. To provide a precise comparison, one would need to identify contracts with similar NAICS codes (541330) and service descriptions awarded within the last 1-3 years by comparable naval commands or DoD agencies. Factors like contract type (CPFF), duration, and geographic scope also influence comparability. Without such granular data, it's challenging to definitively state if this represents exceptional or questionable value.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this engineering services award?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than anticipated if the contractor's costs exceed initial estimates. While the fee is fixed, the total contract price is variable. This structure can incentivize contractors to incur higher costs, as their fixed fee remains constant regardless of the actual expenses. Effective oversight is crucial to monitor the contractor's cost accounting practices, ensure that only allowable costs are included, and verify that the work performed justifies the costs incurred. The Department of the Navy must maintain robust financial and performance monitoring to mitigate the risk of cost overruns and ensure the fixed fee remains a fair reflection of the effort.

Given the 'full and open competition' and 7 bidders, what is the likely impact on the quality and innovation of the engineering services provided?

Full and open competition with multiple bidders, such as the 7 firms that bid on this contract, generally fosters a competitive environment that can lead to higher quality services and greater innovation. When faced with several capable competitors, contractors are motivated to offer their best technical solutions and competitive pricing to win the award. This scenario increases the likelihood that the Department of the Navy selected a contractor offering a superior approach to the engineering challenges. Furthermore, the competitive pressure can encourage contractors to propose innovative methods or technologies to differentiate themselves, potentially leading to more efficient or effective outcomes for the government.

How does the geographic location of the award (California) potentially influence the cost and delivery of these engineering services?

The award to a California-based contractor, Joint Tactics and Technologies, LLC, may influence costs due to the state's generally higher cost of living and doing business, which can translate into higher labor rates for engineers and support staff. Travel costs could also be a factor if the engineering services require on-site work at naval facilities outside of California. However, California also has a strong ecosystem of technology and engineering firms, potentially providing access to specialized talent and resources that could offset higher base costs with enhanced expertise or efficiency. The specific nature of the engineering services and the required locations for their execution would determine the ultimate impact of the geographic location on overall cost and delivery.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003920R3002

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1111 ORANGE AVE STE A, CORONADO, CA, 92118

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $45,369,693

Exercised Options: $45,369,693

Current Obligation: $26,302,074

Actual Outlays: $2,099,423

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7933

IDV Type: IDC

Timeline