DoD's $15.1M SLDCADA II contract awarded to Innovatus Technology Consulting for engineering services

Contract Overview

Contract Amount: $15,103,880 ($15.1M)

Contractor: Innovatus Technology Consulting

Awarding Agency: Department of Defense

Start Date: 2022-03-31

End Date: 2026-03-30

Contract Duration: 1,460 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: STANDARD LABOR DATA COLLECTION AND DISTRIBUTION APPLICATION (SLDCADA) II

Place of Performance

Location: YORKTOWN, YORK County, VIRGINIA, 23691

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.1 million to INNOVATUS TECHNOLOGY CONSULTING for work described as: STANDARD LABOR DATA COLLECTION AND DISTRIBUTION APPLICATION (SLDCADA) II Key points: 1. Contract value represents a significant investment in engineering support services for the Department of the Navy. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (1460 days) indicates a long-term need for these engineering services. 4. The use of a Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure cost control. 5. The contract's focus on engineering services aligns with broader DoD efforts to modernize and maintain its technological edge. 6. The prime contractor, Innovatus Technology Consulting, will be responsible for delivering critical engineering support.

Value Assessment

Rating: good

The contract's total value of $15.1 million over approximately four years suggests a moderate investment for specialized engineering services. Benchmarking against similar large-scale engineering support contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the CPFF structure necessitates diligent oversight to prevent cost overruns and ensure the fixed fee remains reasonable relative to the effort expended. The number of bids received (3) provides a limited basis for comparison, but suggests some level of market interest.

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. Three bids were received, which suggests a moderate level of competition for this specific requirement. While more bidders would typically lead to better price discovery, three offers can still provide a competitive environment, especially for specialized engineering services where the pool of qualified contractors may be smaller.

Taxpayer Impact: The full and open competition process is generally favorable for taxpayers as it aims to secure the best value by encouraging multiple companies to offer their services, potentially driving down costs through competitive pricing.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its technological infrastructure and operational needs. Services delivered likely include system design, integration, testing, and lifecycle support for various naval systems. The geographic impact is primarily within Virginia, where the contractor is located, but the services support naval operations nationwide and potentially globally. The contract supports a workforce of engineers and technical specialists, contributing to employment in the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed meticulously, potentially increasing the final cost to taxpayers.
With only three bids received, the level of competition might not have been sufficient to drive the absolute lowest price.
The specific details of the engineering services required are not fully elaborated, making it difficult to assess the full scope of work and potential risks.
The long duration of the contract (4 years) increases the risk of scope creep or the need for adjustments due to evolving technological requirements.

Positive Signals

Awarded through full and open competition, indicating a commitment to a fair and transparent procurement process.
The contract is for essential engineering services, crucial for maintaining and advancing naval capabilities.
The prime contractor, Innovatus Technology Consulting, is likely selected based on demonstrated capabilities and past performance in relevant engineering domains.
The fixed fee component of the CPFF contract provides some level of cost certainty for the government, provided the base cost is well-managed.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise and often involves complex projects requiring deep technical knowledge. The market size for engineering services supporting the federal government, particularly the Department of Defense, is substantial, driven by the need for advanced technological solutions, system modernization, and ongoing maintenance. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by DoD agencies for similar types of services.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a set-aside. However, the prime contractor may still choose to subcontract portions of the work to small businesses as part of their overall business strategy or to meet broader socioeconomic goals. The absence of a set-aside means that large businesses were eligible to compete and potentially win the prime contract, which is common for large, complex engineering services.

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 embedded within the CPFF contract structure, requiring the contractor to justify costs and adhere to the fixed fee. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

DoD Engineering Services Contracts
Naval Systems Engineering Support
Standard Labor Data Collection and Distribution Application (SLDCADA) Program
Professional, Scientific, and Technical Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Limited competition (3 bidders)
Need for robust cost oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to INNOVATUS TECHNOLOGY CONSULTING. STANDARD LABOR DATA COLLECTION AND DISTRIBUTION APPLICATION (SLDCADA) II

Who is the contractor on this award?

The obligated recipient is INNOVATUS TECHNOLOGY CONSULTING.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2022-03-31. End: 2026-03-30.

What is the track record of Innovatus Technology Consulting with the Department of Defense, particularly on similar engineering contracts?

A thorough review of Innovatus Technology Consulting's contract history with the Department of Defense would be necessary to assess their track record. This would involve examining past performance evaluations, any documented issues or disputes, and the successful completion of previous contracts, especially those involving engineering services and similar contract types (e.g., CPFF). Information from sources like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System) would be crucial. Without specific data on their past performance on comparable DoD contracts, it's difficult to definitively assess their reliability and expertise for the SLDCADA II program. However, winning a contract of this magnitude suggests they possess the necessary qualifications and have likely met certain performance standards in previous engagements.

How does the awarded amount of $15.1 million compare to the estimated value or budget for the SLDCADA II program?

The provided data indicates an award amount of $15,103,879.66. To assess if this represents good value, it needs to be compared against the government's initial estimate or allocated budget for the Standard Labor Data Collection and Distribution Application (SLDCADA) II program. If the award is significantly below the estimate, it could indicate successful negotiation or competitive pricing. Conversely, if it's at or above the estimate, further scrutiny of the estimate's accuracy and the competitive landscape is warranted. Without the government's independent cost estimate or budget allocation for this specific contract, a definitive comparison of value is challenging. The number of bids (3) provides a limited benchmark for price discovery.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is paid their actual allowable costs plus a fixed fee, there's an incentive for the contractor to incur costs to ensure the 'cost' portion is high, even if not strictly necessary, as their profit is fixed. The government bears the risk of cost increases. For the SLDCADA II program, this means the Department of the Navy must implement robust oversight to scrutinize all incurred costs, ensure they are reasonable, allocable, and allowable, and prevent scope creep that inflates the cost base. Effective management of the contractor's performance against the defined scope is crucial to mitigate the risk of the 'cost' component exceeding expectations, thereby protecting the taxpayer.

What is the expected impact of this contract on the broader IT or engineering services market within the Department of Defense?

This contract, valued at $15.1 million over four years for engineering services related to the SLDCADA II program, signifies a continued investment by the Department of the Navy in specialized technical support. Its impact on the broader market depends on the specific nature of the engineering services. If these services are critical for modernizing or maintaining key naval systems, it could signal a trend towards increased demand for such expertise. For Innovatus Technology Consulting, winning this contract enhances their profile and potentially positions them for future, larger opportunities within DoD. For competitors, it highlights the capabilities required to win such contracts and may influence their strategic bidding on future solicitations in this space.

How has federal spending on engineering services, particularly within the Department of the Navy, trended in recent years?

Federal spending on engineering services, especially within the Department of the Navy, has generally been substantial and often increasing, driven by modernization efforts, platform sustainment, and research and development initiatives. The Navy, in particular, requires extensive engineering support for its complex fleet of ships, aircraft, and weapon systems. Analyzing historical spending data for NAICS code 541330 (Engineering Services) awarded by the Department of the Navy over the past 5-10 years would reveal trends. Factors such as geopolitical events, technological advancements, and budget allocations significantly influence these spending patterns. This $15.1 million SLDCADA II contract is one component of that larger spending picture, reflecting an ongoing commitment to acquiring necessary engineering expertise.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003922R3004

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9655 GRANITE RIDGE DRIVE, SUITE 200, SAN DIEGO, CA, 92123

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,410,979

Exercised Options: $15,988,188

Current Obligation: $15,103,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7840

IDV Type: IDC

Timeline