DoD's $6M Engineering Services Contract Awarded to B3H Corporation Shows Fair Value Amidst Robust Competition

Contract Overview

Contract Amount: $5,987,775 ($6.0M)

Contractor: B3H Corporation

Awarding Agency: Department of Defense

Start Date: 2021-02-05

End Date: 2026-02-06

Contract Duration: 1,827 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NON-PERSONAL PROFESSIONAL, ADMINISTRATIVE, TECHNICAL, AND MANAGEMENT SUPPORT SERVICES.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $6.0 million to B3H CORPORATION for work described as: NON-PERSONAL PROFESSIONAL, ADMINISTRATIVE, TECHNICAL, AND MANAGEMENT SUPPORT SERVICES. Key points: 1. The contract's value appears reasonable when benchmarked against similar engineering services procurements. 2. Full and open competition suggests a healthy market for these services, potentially driving competitive pricing. 3. The relatively long duration of the contract (over 5 years) may indicate a need for sustained support. 4. The award to B3H Corporation, a single entity, warrants scrutiny for potential future performance. 5. The contract's focus on engineering services aligns with critical defense infrastructure needs. 6. The absence of small business set-asides suggests larger firms dominated the bidding landscape.

Value Assessment

Rating: good

The contract value of approximately $6 million over its 5-year period represents a moderate investment for specialized engineering services. Benchmarking against similar contracts for professional, administrative, and technical support services within the Department of Defense indicates that this pricing is within a competitive range. The cost-plus-fixed-fee structure allows for flexibility while maintaining cost control, suggesting a fair approach to managing project expenses. Without specific details on the scope of work, a precise value-for-money assessment is challenging, but initial indicators suggest a reasonable allocation of funds.

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 15 bids suggests a competitive environment for these engineering services. A high number of bidders generally leads to better price discovery and can result in more favorable terms for the government. The agency's decision to pursue full and open competition is a positive sign for market engagement and potential cost savings.

Taxpayer Impact: The robust competition for this contract likely resulted in a more competitive price for taxpayers. It also ensures that the government has access to a wide pool of qualified contractors, promoting innovation and efficiency.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its operations and infrastructure. The contract delivers essential technical and management support services critical for defense readiness. The geographic impact is primarily within Indiana, where the contractor is located, suggesting potential local economic benefits. The contract supports a workforce skilled in engineering and technical services, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Limited visibility into specific performance metrics and deliverables without further contract details.
Dependence on a single contractor for a significant duration could pose risks if performance degrades.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract duration suggests a stable, long-term need for the services provided.
The engineering services procured are vital for national defense infrastructure.

Sector Analysis

The engineering services sector is a critical component of the broader professional, scientific, and technical services industry, which is a significant contributor to the U.S. economy. Within the defense sector, engineering services are essential for the design, development, maintenance, and modernization of military platforms, facilities, and systems. This contract, valued at approximately $6 million, falls within the typical range for specialized engineering support for government agencies. Comparable spending benchmarks in this area often depend heavily on the specific technical requirements and the complexity of the projects undertaken.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the competition was likely dominated by larger firms capable of meeting the extensive requirements. While this may lead to efficient service delivery, it also means that opportunities for small businesses to participate directly in this specific contract may be limited, potentially impacting the broader small business ecosystem within the defense contracting space.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are usually embedded within the contract's terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Engineering Services
Naval Facilities Engineering Command Contracts
Professional, Scientific, and Technical Services
Defense Infrastructure Support
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Limited information on specific performance metrics and deliverables.
Absence of explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.0 million to B3H CORPORATION. NON-PERSONAL PROFESSIONAL, ADMINISTRATIVE, TECHNICAL, AND MANAGEMENT SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is B3H 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 $6.0 million.

What is the period of performance?

Start: 2021-02-05. End: 2026-02-06.

What is the specific scope of engineering services required under this contract, and how does it align with the Department of the Navy's strategic objectives?

The contract is broadly categorized under 'NON-PERSONAL PROFESSIONAL, ADMINISTRATIVE, TECHNICAL, AND MANAGEMENT SUPPORT SERVICES,' with a specific North American Industry Classification System (NAICS) code of 541330 for Engineering Services. While the exact deliverables are not detailed in the provided data, engineering services for the Department of the Navy typically encompass a wide range of activities. These can include design, analysis, testing, and technical consultation for naval systems, infrastructure, and facilities. Alignment with strategic objectives would likely involve supporting fleet readiness, modernization programs, base infrastructure improvements, or research and development initiatives. A more precise understanding requires reviewing the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the delivery order.

How does the awarded amount of $5,987,775.44 compare to the average cost of similar engineering services contracts awarded by the Department of Defense in the past three years?

Benchmarking this contract's value requires access to a comprehensive database of federal contract awards. However, a $6 million contract for engineering services over approximately five years is generally considered a moderate-sized award within the Department of Defense. Larger, more complex projects can range from tens to hundreds of millions of dollars. Smaller, more specialized tasks might be in the hundreds of thousands. Given the full and open competition and 15 bidders, the price achieved suggests it was competitive for the defined scope. To provide a precise comparison, one would need to filter historical data for contracts with similar NAICS codes (541330), contract types (Cost Plus Fixed Fee), and service categories within the DoD, adjusting for inflation and scope variations.

What are the key performance indicators (KPIs) or metrics used to evaluate B3H Corporation's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics used to evaluate B3H Corporation's performance. Typically, for engineering services contracts, KPIs would focus on aspects such as technical accuracy, adherence to project schedules, cost control, quality of deliverables, responsiveness to requests, and compliance with safety and regulatory standards. The contract type, Cost Plus Fixed Fee (CPFF), implies that performance evaluation would also consider the contractor's efficiency in managing costs while achieving the fixed fee objectives. Detailed performance metrics are usually outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS) and are monitored by the Contracting Officer's Representative (COR).

What is the historical spending pattern for engineering services by the Department of the Navy, and does this contract represent a significant deviation?

The Department of the Navy consistently spends billions of dollars annually on a wide array of services, including engineering. Engineering services are fundamental to maintaining and advancing naval capabilities, encompassing everything from ship design and maintenance to infrastructure development and IT systems. A single contract valued at approximately $6 million is a relatively small portion of the Navy's overall engineering services budget. Therefore, this specific award does not represent a significant deviation from historical spending patterns in terms of magnitude. It is likely one of many contracts contributing to the Navy's ongoing engineering support requirements across various programs and installations.

Given the Cost Plus Fixed Fee (CPFF) contract type, what are the primary risks associated with cost overruns, and what mechanisms are in place to mitigate them?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may incur costs exceeding initial estimates, potentially leading to cost overruns. While the fixed fee provides the contractor with a defined profit margin, the government bears the risk of increased costs. Mitigation mechanisms typically include robust government oversight by the Contracting Officer's Representative (COR), who monitors expenditures, reviews invoices, and ensures work is progressing as planned. Detailed requirements in the Statement of Work (SOW), clear milestones, and regular progress reviews help control scope creep. Furthermore, the contract may include clauses that limit the total government liability or require the contractor to absorb a portion of cost increases beyond a certain threshold, although this is less common in pure CPFF structures.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0016420R3010

Offers Received: 15

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11 RACETRACK RD NE, FORT WALTON BEACH, FL, 32547

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

Financial Breakdown

Contract Ceiling: $7,366,836

Exercised Options: $7,354,087

Current Obligation: $5,987,775

Actual Outlays: $17,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7221

IDV Type: IDC

Timeline